Find the right real estate agent

The right real estate agent for my needs

The House Sale Project

As tax advisors, we are often asked how to handle a house sale. We offer independent advice on affordability and tax consequences and can therefore show long-term finances and tax planning. When a home is about to be sold, we are also asked for broker recommendations. Unfortunately, this question cannot be answered conclusively. However, the overall financial planning and practical experience show the following:

  • Real estate agents follow certain business models and can be divided into categories with their advantages and disadvantages. The main types include:
    • Self-employed brokers, real estate agents or administrations
    • Digital broker with a focus on online marketing and sales
    • fixed-price brokers
    • Chains (franchises) with local offices.
  • The same checkpoints apply to all types of brokers and must be taken into account when comparing offers.
  • In a second part of the blog, we will delve deeper into these findings and experiences and apply them to representatives of the corresponding broker types.

The real estate agent types

Real estate agents can be divided into classes. We look at the most common cases and include the case of self-agents.

The Digital Broker

This type of real estate agent is relatively new. Since the real estate business was previously purely physical and personal, digital agents were faced with the task of demonstrating added value through processes and digitalization without losing the essential characteristics, especially the personal contact with sellers and buyers.

Digital brokers are strong in the processes. However, it should be checked which experts are behind them and whether personal responsibility and support for the house sale project is taken.

This can be quickly determined through references to the people and in personal conversations. Thanks to video consultations and interactive online viewings, this can be done easily.

broker type
Clear advantages
Possible challenges
Digital brokers, medium-sized real estate professionals with a system
  • Large buyer networks
  • Transparent processing via digital transaction portal
  • Good accessibility and online communication
  • Often there are no offices on site
  • Local brokers change during within the network
  • The main support is in the headquarters
  • Commission and contract usually non-negotiable


fixed-price brokers

The fixed-price agent basically promises to sell a property at a fixed price, as his workload is the same regardless of the sales price. This is true. Only to a certain extent, as the workload can vary depending on the number of viewings, the duration of the transaction, etc. It is therefore important to look closely to see whether there are any extra costs or advance payments that will not be refunded if the sale is canceled.

Fixed-price brokers have also arrived in the digital age and sometimes offer comparable platforms.

Depending on the size of the fixed-price broker, aspects of the “local or national” comparison also apply.

broker type
Clear advantages
Possible challenges
fixed-price brokers
  • Cheap for more expensive properties
  • Partly large buyer networks
  • Transparent processing via digital transaction portal
  • Integrated, digital auction solutions (bidding processes)
  • Expensive for small apartments (e.g. 10 CHF commission for a sales price of 000 CHF corresponds to a too high 250% commission!)
  • Local contacts often have to cover large areas (e.g. entire canton)


Self-employed brokers

With this type of real estate agent, the personal aspect is paramount. It is important to understand whether the business is handling sales professionally or sees it as a supplement to trust and administrative tasks. This can easily be checked by looking at references from the last 1 to 2 years. A conversation with the references or online reviews will provide further insight.

broker type
Clear advantages
Possible challenges
Self-employed brokers, real estate agents and administrations
  • Clear contact person, personal support
  • Local knowledge
  • Commission and contract negotiable
  • Too small network
  • systematics and processes
  • capacity for implementation


franchises

Franchises or brokerage chains are often very large, managed internationally (DE, US) and have very different local structures, which means that depending on the staff and experience at a location, the customer experience can be very different.

broker type
Clear advantages
Possible challenges
franchise brokers (“chains”), international real estate companies
  • Local franchisees know the market
  • Older chains usually have an office on site
  • Mostly large buyer networks
  • Implementation and support is handled via headquarters
  • Commission and contract usually non-negotiable
  • mass processing


broker yourself

Houses and apartments are often sold by the owner themselves. This requires a certain amount of experience and also assumes that the necessary time and attention can be invested. Certain routine tasks, such as creating the exposé and the 3D tour, usually require equipment that is reserved for professionals and should always be outsourced. In principle, however, we advise against this and recommend focusing on pricing and strategy and delegating implementation.

broker type
Clear advantages
Possible challenges
Self-brokering, selling on your own
  • All under your own control
  • No experience, processes and tools
  • time
  • Personal connection to the object


real estate agent checklist

Timeline and Procedure

In general, it is worth going through the checklist before you first contact potential real estate agents for your own house sale project and answering the questions or writing down your preferences.

An abbreviated version of this list can also serve as a catalogue of requirements for the broker when preparing an offer.

real estate capital gains tax and financial planning

Before making initial contact, we recommend carrying out a rough tax planning exercise to estimate the tax consequences and whether a sale option would produce a better result.

real estate agent checklist

If there are specific offers from brokers, for example an independent broker from the region and a digital or fixed-price broker, a comparison should be made using the following criteria in order to find the right real estate agent:

contract form and fee
  • Brokerage contract according to OR or own form that would have to be checked?
  • Are there any restrictions? Is there a fee if there is no sale?
advance payments, additional costs
  • Assuming commissions in the range of 1.5% - 2.5%, there should be no advance payments or additional costs.
Exclusivity
  • Most contract types are exclusive. However, it is important that a quick and free cancellation is possible if the seller is not satisfied.
  • Is a commission due if the seller finds a buyer himself during the order?
market price estimate
  • Most brokers rely on market valuations from the data models of the real estate appraisers Wüst Partner, IAZI, pricehubble or Fahrländer. The best brokers check the plausibility of these sources with a local real estate appraiser.
price setting
  • The seller determines how the house is positioned, how quickly it should be sold, and how many and which prospective buyers should be approached.
Sales strategy
  • The implementation by a broker takes place within this framework. Be careful with empty promises such as “selling at the best price”. The procedures are important: bidders, auction, time period, minimum prices and communication of bids.
Marketing
  • Are the exposés professional and digitalized, is there a 3D viewing and can buyers also view the property virtually and interactively with the agent?
network of interested parties
  • How many potential buyers can the agent reach in the region? Does he have his own network of interested parties or does he only rely on advertisements?
Local knowledge
  • A sale is always tied to a local area and the agent (the person, not the brokerage firm) should have already completed several sales in the neighborhood and be able to bring this experience to the table.
personal
  • There should be just one person responsible for selling a property. This person must be competent, available (including a deputy) and locally anchored. Last but not least, it must be a good fit on a personal level.
processing of the sales contract and notary
  • Does the broker explain all legal matters? Does he communicate with the notary, arrange appointments and be present at the closing?
Tax advice before the sale and filing the tax return
  • The sale has far-reaching tax consequences. Does the broker inform you about the different options for the sale, does he know the cantonal conditions of the property capital gains tax? Does the broker take care of the tax return after the sale or does he have a suitable tax advisor as a partner?
Financing
  • If a replacement property needs to be financed or interim financing is required, the broker should provide independent advice. If a broker offers a mortgage, it must be transparent what commissions are involved and whether these are part of the contract.
  • If assets remain from the sale, for example when moving to a smaller apartment, the question arises as to how to invest them and preventionIndependent, competent and transparent advice is very important here.

These criteria are not exhaustive, which means that they should be supplemented by personal points and, last but not least, weighted.

Comparison of real estate agents in Switzerland

From the checklist, the advantages and challenges, we will describe a comparison of real estate agents in Switzerland in a second part of this blog so that you can find the right real estate agent. As part of the Advice on affordability, property capital gains tax, financing, mortgages, assets and tax planning concrete recommendations are already available.

Membership in an association or club is deliberately not included in the list of criteria. However, training and further education of brokers can build trust. The relevant federal. Professional certificates cover the topics of real estate marketing and real estate valuation with the corresponding examinations. 


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