_New lower purchasing costs make Berlin property more affordable: Discover 3 developments for sale
Germany’s estate agent fees are known for being significant. Until December 2020, buyers were expected to cover fees entirely, however, a new law now means that the cost will be distributed between the buyers and seller, therefore reducing the fee you will have to pay and increasing the property price which you may be able to afford.
German purchasing costs explained:
As of December 2020, a reform of the real estate commission took effect, designed to relieve the burden on the buyer by reducing the purchase cost, also known as agent fees. Up until the reform, the decision was made by the individual federal states as to who was responsible for paying the estate agent and to what extent. The non-standardised structure across Germany meant that in some states, including Berlin, the buyer was solely responsible for paying the agent commission. This resulted in many states having a hefty purchase cost – sometimes more than 15% of the purchase price – making it extremely difficult for many individuals to afford to buy their own home and not so attractive to investors.
What the new law means:
The new law, however, sees the distribution of the broker’s commission for the purchase of apartments and single-family houses as part of the federal government’s housing and rent package, agreed on 18 August 2019. Now, German law states that when purchasing either of the above, the client of the agent will be liable to pay. Sellers will have to pay for the costs only if they commission an estate agent. When the seller provides proof of paying the commission in full, they can obtain up to 50% of the commission back from the buyer. The same rule applies the other way around for the buyer. If the buyer commissions an agent, they must pay the fees but can obtain up to 50% back from the seller. If both buyer and seller commission an agent, the agent can claim their commission equally from both parties. If the broker decides to waive the commission for one party, they must also do so for the other.
In summary, buyers can now be expected to pay significantly lower fees thanks to this distribution system, up to 50% less than what they may have had to pay before.
Interested in making the most of the new law? Discover three exciting new developments in Berlin:
Two-bedroom apartment in The Oyster, Augsburger Str. 23
A two-bedroom apartment for sale in luxurious new development, The Oyster, in the heart of City West. Offering peace, serenity and exquisite interiors, this apartment is a breath of fresh air away from the bustle of the prestigious city location.
Development: Pure, Mühlenstrasse 20
A range of beautiful apartments for sale on the bank of the River Spree, offering intuitive layouts that optimise space and light, fitted with only the highest-quality furnishings in the cosmopolitan district of Friedrichshain.
Development: Upside Berlin, Muehlenstrasse 31 – 33
Upside Berlin offers a range of apartments across 22 floors, with most enjoying unobstructed views of the River Spree. The combination of expansive communal areas, a rooftop terrace and concierge services all add to this development's sense of prestige.
For more information on Knight Frank’s services in Berlin, contact Oliver Banks:
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