Using an estate agent: role, mandate and fees

Using an estate agent can simplify the process of selling or buying a property. However, it is important to fully understand their role. Valuation, marketing, viewings, negotiation, the agency agreement and commission: these are the areas a professional can handle, and the points you should check before choosing your estate agency.

What is the role of an estate agent?

A real estate agent acts as an intermediary in a property transaction. They may be involved in a sale, a purchase or a letting.

For a seller, they can value the property and prepare it for sale. They can also organise viewings, manage enquiries and assist with the negotiations.

For the buyer, they show the property and answer any questions about it. They also facilitate communication with the owner.

In Luxembourg, this activity is regulated. In particular, it requires a licence to practise and specific professional indemnity insurance.

Why use an estate agent to sell your property?

A professional can save you time and bring their knowledge of the market to bear. Their involvement usually covers several stages of the sale.

How does the estate agent value your property?

Valuation is a key step in preparing a property for sale. It enables you to set a price that is in line with the property’s features and market conditions.

Factors such as the property’s location, floor area, condition and energy efficiency are taken into account. The facilities available and the specific characteristics of the neighbourhood can also influence its value.

The advertised price must therefore be set carefully, as it does not always correspond to the price ultimately agreed.

To get an initial idea, you can estimate Get a free valuation of your property with atHome. This online valuation can then be refined with the help of a professional who knows your local area.

What does the agency handle during the marketing process?

Under the terms of the signed agreement, the agency can take charge of a large part of the marketing.

This may include:

• preparing the advert; ;
• the presentation of the property; ;
• request management; ;
• organising visits; ;
• following up with interested buyers; ;
• the submission of tenders; ;
• support during negotiations.

The owner, of course, retains the final say on the key aspects of the sale.

To find out about the full route, see our guide to sell a property in Luxembourg.

How does the agent support the negotiation?

The agent acts as an intermediary between the seller and prospective buyers.

Negotiations may focus on the price. However, they may also relate to the timetable or certain items included in the sale.

The professional passes on the proposals and helps to put them into the context of the market. Their role is also to ensure clear communication between the parties.

Can an estate agent also assist a buyer?

Yes. A professional can also act on behalf of the buyer.

When an estate agent is marketing a property on behalf of an owner, make the most of the viewing to find out as much information as possible. In particular, ask questions about any renovation work, service charges and the Energy Performance Certificate.

Also ask what fixtures and fittings are included in the sale. Finally, find out about the property’s availability and the documents that are available.

Our guide These 10 questions to ask during a property viewing can help you prepare for the appointment.

A buyer can also entrust their search directly to a professional. In this case, the remit is set out in a research mandate.

How does a property agency agreement work?

The mandate sets out the powers granted to the agent by their client. It therefore specifies the framework within which the professional may act.

Before signing, check the contract term and the services included. Also check the fees, the cancellation terms and any exclusivity clauses.

General or exclusive mandate: what’s the difference?

A sales mandate may provide for exclusive or non-exclusive marketing. The exact implications depend on the terms of the signed contract.

Under an exclusive agreement, a single agency generally handles the marketing for the agreed period.

Without an exclusivity clause, the owner retains more options. In particular, they can work with several professionals where the contract allows.

In any case, make sure you check your rights and obligations carefully before signing. The mandate remains the key document.

What is a search warrant?

The mandate research is different from a mandate given by a seller.

It enables a person to instruct an agent to search for a property on their behalf. The buyer can therefore instruct a professional to find a property that meets their criteria.

The terms of reference must specify the scope of this assignment. The financial terms and search criteria must also be verified.

How much does an estate agent cost?

In Luxembourg, the commission is rising as a general rule, 3 % of the sale price, plus VAT, according to Guichet.lu.

It is normally borne by the party that engaged the professional. In a standard sale, this is therefore usually the seller.

These examples do not constitute a fixed rate. The applicable amount depends on the contract agreed with the agency.

Furthermore, the Estate Agents’ Association states that the commission must be specified in the mandate. It must also appear in the compromise sales price, where applicable.

So always check the fees and what’s included before signing.

How do you choose an estate agent?

Don’t just choose the agency that offers you the highest valuation.

A good valuation must be one that can be explained. Ask what data and what characteristics of the property it is based on.

See also:

• your knowledge of your local area or neighbourhood; ;
• experience with similar goods; ;
• services included; ;
• the quality of the advertisements published; ;
• the media used for broadcasting; ;
• organising visits; ;
• the frequency of follow-up; ;
• the amount of the commission; ;
• the term of office; ;
• the terms of termination.

You should also check that the professional is operating within the framework laid down in Luxembourg. The profession of estate agent is subject to a licence to practise.

You can search for a estate agency on atHome. The directory allows you to compare service providers in your area.

What questions should you ask before signing a power of attorney?

The terms of reference must be absolutely clear before you commit to the role.

Here are the key questions to ask:

1. How did you arrive at the proposed price?
2. What similar properties do you know of in the area?
3. What services are included in the commission?
4. What will the exact amount of the fees be?
5. Does the contract provide for exclusivity?
6. How long does it last?
7. How can it be terminated?
8. Where will the programme be broadcast?
9. How will the visits be organised?
10. How often will I have a follow-up appointment?

Ask for a copy of the power of attorney and take the time to read it through. Any unclear clauses should be clarified before you sign.

What is the estate agent’s role when a preliminary agreement is signed?

The agent can assist with the preparation of the transaction. In particular, they can gather the necessary information and coordinate communications between the parties.

However, the compromise A sales contract is a genuine contract. Once signed by the seller and the buyer, it becomes legally binding between the parties.

The document should therefore be read carefully.

Where the buyer finances the purchase with a loan, a condition precedent is usually included. This ties the sale to the successful securing of the agreed financing.

The estate agent can assist with the process. However, the notary remains the professional responsible for drafting and authenticating the notarial deed of sale.

Is it better to sell on your own or through an estate agent?

Both options are possible. The choice depends mainly on the time available and the level of support required.

When you sell on your own, you manage the following directly:

• the estimate; ;
• the announcement; ;
• applications; ;
• visits; ;
• negotiation; ;
• the documents; ;
• correspondence with the solicitor.

With an agency, some of these tasks can be delegated. You also benefit from the professional’s knowledge of the market.

On the other hand, the agency’s services do come at a cost. You should therefore compare the commission with the services actually provided.

Ultimately, the right choice depends on your availability and experience. It also depends on the complexity of your sale.

How can atHome help you find an estate agent?

atHome allows you to prepare for your sale even before you’ve chosen an estate agent.

First of all, you can estimate your property online. The tool compares the details you’ve entered with the listings on atHome.

You can then ask professionals in your sector to refine this initial estimate. atHome also allows you to send a request to one or more partner agencies.

Finally, the’directory atHome’s list of estate agents helps you find professionals in your area.

This allows you to compare the different approaches before choosing the support that best suits your project.

Frequently Asked Questions about Estate Agents

Is it possible to get several quotes before choosing an agency?

Yes. Comparing several quotes can help you better understand the differences in approach between professionals. With atHome, you can send a quote request to one or more partner agencies. However, don’t automatically go for the highest quote. Ask each professional to explain the criteria they used to arrive at their quote.

Is an online valuation sufficient to set the selling price?

An online valuation primarily provides an initial guide. The atHome tool compares the property’s details with listings on the platform. atHome then recommends refining this valuation with a professional who knows the area. A viewing of the property allows for its condition, fixtures and fittings, and specific features to be taken into account.

What documents should you prepare before meeting with an agency?

Prepare the documents that provide a detailed description of the property. Depending on the property, these may include the title deed, floor plans, the Energy Performance Certificate and land registry documents. For a flat, include any available information about the owners’ association. Invoices for recent renovation work may also be useful. A complete set of documents makes it easier to value the property and prepare for the sale.

Can an estate agent also handle a letting?

Yes. Under Luxembourg law, an estate agent is defined as an intermediary who may act in a sale, exchange, letting or transfer of property. However, the services offered vary from one agency to another. You should therefore check exactly what services are included and the fees involved before entrusting your property to a professional.

Why compare several agencies before signing a contract?

Two estate agents may offer different marketing approaches, fees and levels of support. So compare not only the valuation, but also their knowledge of the local area and the services they offer. Also check the duration of the mandate and the exclusivity terms. The aim is not to choose the most attractive offer, but the level of support that best suits your project.