Broadly speaking, there are 4 services for which you can engage a broker:
- the sale of your home
- assistance with searching and purchasing your new home
- renting out your home
- doing an appraisal
But when do you pay your realtor?
When selling your home, you pay your broker start-up costs and broker’s commission. The start-up costs are around € 500 incl. VAT and you usually pay after you have signed a ‘Service Order’ with the broker. He will send you an invoice for this.
The brokerage fee is only paid to the broker when the keys are handed over. You do not pay this brokerage fee directly to the broker. This is because the notary does this.
If your home is sold, the buyer of your home transfers the purchase price + notary fees to a special “third-party account” of the notary. The notary pays the brokerage commission for your sales broker from this sum of money. So you don’t have to put money aside to pay your broker.
When purchasing your home
If you take a buying broker in hand, this will only be paid at the notary when you receive your keys to your new house. About 1 week before the key transfer you will receive a bill from the notary. In addition to the purchase price and various other costs, this is also the brokerage fee charged by your purchasing agent. You pay this bill (with the help of a mortgage loan) to the notary and the notary pays your broker (on the day of the key transfer).
When renting out your home
The rental of your property does not go through a notary. When you pay your broker it’s entirely how you agree with him. It is customary for the bill to be sent after the signing of the lease or after completion.
When valuing property
If a broker has appraised your property, you will usually receive an invoice from the appraiser after it is ready.