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Old 06.07.2021, 22:30
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Brokerage fee paid by the buyer??

I'm looking at an apartment to buy in Kilchberg and found out couple of things that really stuck out:

1. The brokerage (3%) is to be paid by the buyer- When I asked why is that, the agent (a rather reputed large broker) said that the seller has told them to sell the apartment at price X and wouldn't pay any brokerage.

2. The property was not listed on Homegate/ Immoscout etc- was just sent around to the people registered with the broker. Now I understand that the broker probably wants to save commission charged by Homegate- however, now we are in negotiation phase and they're already bringing down the price- I take it that they have not received tons of bids for the apartment. If I was in this broker's place, I would have tried to publicize a bit more by putting an ad on Homegate etc.

Do you think any of the above is a warning sign?
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Old 07.07.2021, 11:06
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Re: Brokerage fee paid by the buyer??

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I'm looking at an apartment to buy in Kilchberg and found out couple of things that really stuck out:

1. The brokerage (3%) is to be paid by the buyer- When I asked why is that, the agent (a rather reputed large broker) said that the seller has told them to sell the apartment at price X and wouldn't pay any brokerage.

2. The property was not listed on Homegate/ Immoscout etc- was just sent around to the people registered with the broker. Now I understand that the broker probably wants to save commission charged by Homegate- however, now we are in negotiation phase and they're already bringing down the price- I take it that they have not received tons of bids for the apartment. If I was in this broker's place, I would have tried to publicize a bit more by putting an ad on Homegate etc.

Do you think any of the above is a warning sign?
Then offer 3% less than you want to pay & pay the brokerage fee. Any option is negotiable.
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Old 07.07.2021, 11:30
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Re: Brokerage fee paid by the buyer??

While still not the norm, it seems to be becoming a bit more common that the buyer is being asked to pay the brokerage fee - simply because in the current market demand far exceeds supply for any decent property. Sellers are asking for crazy stuff, expecting that sooner or later someone with deep enough pockets will come along.

If you decide to go forward, just be aware that even if you are paying the brokerage fee the agent does not work for you. The agent works for the seller who contracted him, against your interests. Never forget that point.
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Old 07.07.2021, 12:02
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Re: Brokerage fee paid by the buyer??

Don't attribute too much logic to Swiss property sales, you're already in a good position if they're lowering the price - most stories are about properties sitting on the market at an absurdly high price for years.

As FMF says, anything is negotiable and there are other fees & charges which can go through the "you pay / I pay" discussion later. All that really matters is what your net outlay is in the end.
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Old 07.07.2021, 23:10
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Re: Brokerage fee paid by the buyer??

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While still not the norm, it seems to be becoming a bit more common that the buyer is being asked to pay the brokerage fee - simply because in the current market demand far exceeds supply for any decent property. Sellers are asking for crazy stuff, expecting that sooner or later someone with deep enough pockets will come along.

If you decide to go forward, just be aware that even if you are paying the brokerage fee the agent does not work for you. The agent works for the seller who contracted him, against your interests. Never forget that point.
Quote:
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Don't attribute too much logic to Swiss property sales, you're already in a good position if they're lowering the price - most stories are about properties sitting on the market at an absurdly high price for years.

As FMF says, anything is negotiable and there are other fees & charges which can go through the "you pay / I pay" discussion later. All that really matters is what your net outlay is in the end.
Indeed agree with both - I am just looking at the total price! But good to know that it is not as uncommon as I thought!
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Old 08.07.2021, 00:00
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Re: Brokerage fee paid by the buyer??

The buyer paid the broker when I sold my apartment. I asked for it and thatís that. It didnít occur to me that it was unusual.
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