The Real Estate Agent Myth: What Can They Do, What Are They Allowed To Do? Part 2

There are several prejudices against real estate agents. But are they actually true? Generally, it's about what an agent is allowed to do and what they can do. Read on to find out what's really behind these real estate myths.

Myth 4: Real estate agents are often not certified experts for property valuation, which is why a paid appraisal is frequently necessary for the sale of real estate.

This myth is only partially true.

For a typical property sale, a professional appraisal is not required. However, a thorough understanding of the local real estate market is crucial for determining the price. This is something that reputable local real estate agents possess. They consider current competitor listings, which are influenced by demand and comparable transactions. The agent's valuation is supplemented by an appraisal commissioned from the financing bank.

An expert appraisal is necessary, however, if a dispute over a property ends up in court and it is not about preparing for a property sale. Appraisals that must stand up in court are subject to stricter standards and do not take into account current, practically relevant circumstances in the real estate markets.

Myth 5: Brokerage agreements can be risky. There are different models: simple brokerage agreement, exclusive agreement, and qualified exclusive agreement. If there are unclear termination or term rules, or if the contract is unintentionally renewed automatically, the client (seller or buyer) risks being liable for damages.

This myth is only partially true.

Buyers and sellers are generally only liable for damages under an exclusive mandate. However, this type of contract is rarely used. Furthermore, any ambiguities in the contract are always interpreted against the real estate agent. Reputable local real estate agents use standardized contracts that meet consumer protection requirements and comply with current legislation. In addition, each party to the contract is free to negotiate details individually.

Myth 6: Real estate agents usually don't handle the secure handover of the property, for example, regarding insurance or billing issues during the transfer of ownership. After all, they are not obligated to do so.

This myth is only partially true.

Real estate agents are not obligated to accompany the handover. However, reputable local agents offer this as part of their service package. Agents are not permitted to handle insurance and billing matters; these must be settled directly between the contracting parties.

Do you have questions about buying or selling a property? Or would you like some advice? Contact us. We'd be happy to help.

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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