Time and again I am asked by clients about the commission payment, who would have to pay how much commission. There are also more and more estate agents who don't ask the seller for commission just so that they can get a property in the first place. However, the question then arises as to how such estate agents endeavour to sell a property if they don't even dare to ask for their own fee, which they are entitled to. I distance myself from such an approach. Because professional work is not free!

We take care of both sides - seller and buyer

In Austria, estate agents work as dual agents. What does this mean? When brokering a property, a brokerage contract is concluded between the seller and the broker as well as between the prospective buyer and the broker. The estate agent must therefore endeavour to act on behalf of both parties, and is therefore entitled to a fee from both parties if he or she earns a fee.

As a rule, this is 3 % brokerage commission + 20 % VAT for both parties. The commission is due as soon as a contract is concluded. Strictly speaking, this is when a written purchase or rental offer is countersigned. In practice, the broker's commission is invoiced after the purchase or rental agreement has been signed.

Since the introduction of the ordering principle, customers have repeatedly asked whether they still have to pay commission at all. It should be pointed out here that the buyer principle only applies to rental properties, i.e. the prospective tenant no longer has to pay commission to the estate agent when a rental agreement is concluded. This new legal situation does not affect property ownership.

In order to understand why both sides have to pay a commission from the customer's point of view, it is necessary to take a look behind the scenes of the estate agent. The work of a good estate agent has long consisted of much more than just a viewing.

Good work requires conscientious preliminary work

This begins with good advice to the seller/landlord before the property is offered for sale. It may be necessary to carry out renovations, obtain documents or check whether the property may be sold (e.g. in the case of inheritance matters) before realisation. The property is only photographed once it has been ideally prepared and tidied up. The photos are then edited with regard to brightness and contrast, not to distort the photos, but to minimise backlighting and to correct poor presentation of photos or to remove private photos that have no place in a sale. Then all the documents required for the exposé have to be obtained (in some cases from the local authority or property management company). So there is a lot of preliminary work before the adverts are placed on the Internet.

On the other hand, there is also enough work on the customer side:

• We advise and help with financing,
• clarify whether the property suits the customer at all,
• create 360° tours, videos that can be sent via WhatsApp.
• We carry out viewings, sometimes several times, sometimes with professionals, in order to secure customers.

The time-consuming work often only arises in the course of serious interest on the part of the customer.

I've often heard from both sides that the work I've done marketing a property was very extensive and that I've really earned my commission. Then customers are also very honest and say that they wouldn't want to swap my job. Especially when they realise what can happen during a sale in the event of a separation.

That's why we, the estate agent, are there to mediate, advise and act neutrally for both sides!

I would like to briefly discuss the term "close economic relationship" of the estate agent. This means, for example, a family relationship between the seller and the estate agent, but also an economic relationship between the estate agent and the seller. The estate agent must inform the client of this fact in writing. Failure to do so may result in the loss of the estate agent's commission.