The ordering principle is yesterday’s news. But brokers can become cheaper in many places in the future. The MCM Investor provides information about the broker’s commission.
Magdeburg, May 22, 2020. “The German real estate market is currently trying to find a permanent alternative to the ordering principle. The ordering principle failed due to the coalition partner CDU. The idea was that in the future the person who commissioned the broker would have to pay the broker. So in most cases the seller, ”explains MCM Investor Management AG from Magdeburg.
Now the Bundestag is discussing a compromise, which could be such that buyers and sellers share the brokerage fees in the future. A compromise would apply nationwide. “At the moment, the brokerage costs are still up to the federal states. They are currently between 3.57 and 7.14 percent of the purchase price. A new law should only buy real estate buyers for a maximum of 50 percent of the broker’s commission. The costs can therefore no longer be passed on completely. The seller has to pay his share first, submit the proof to the buyer and only then does he pay, ”explains MCM Investor Management AG.
Currently, sellers are still quite successful in passing the costs on to buyers, especially in the tight housing markets. The real estate association IVD is satisfied with the new concept and finds the cost sharing between buyer and seller fair. After all, they both benefit from the broker’s performance, according to the IVD.
Surprisingly, an analysis of the online platform Immowelt shows that even in nine out of eleven cities examined, existing apartments by the broker are cheaper than those that are advertised directly by the seller. And this despite the fact that buyers sometimes pay up to 7.14 percent brokerage commission. Immowelt has examined properties in Berlin, Munich, Hamburg, Frankfurt, Cologne, Dusseldorf, Stuttgart, Bremen, Essen, Dortmund and Nuremberg, which are between 40 and 120 square meters in size. “A good real estate agent has the ability to reliably estimate the value of the property. The question now is how the brokerage industry will develop and how it will react to new regulations, ”concludes MCM Investor Management AG from Magdeburg.
This press release was published on the openPR press mailing list.
MCM Investor Management AG
Telephone: 0391 – 5 36 45 410
Contact person: Enrico Selig
Magdeburg’s MCM Investor Management AG (MCM) focuses primarily on the renovation and new construction of residential properties. Previous investment locations are Berlin, Leipzig, Magdeburg, Chemnitz and Halle. In addition to buying and selling real estate, MCM is also geared towards long-term management and further development of real estate. The necessary house and WEG management are offered in addition to asset and construction management for own and third-party holdings.