Elizabeth Bagwell, Saturday, 16 November 2013
This article is part of a series of 10 articles about buying property in Switzerland. The other articles in the series cover the following topics:
Entry into almost every profession in Switzerland requires a course of study and a qualification. Estate agents, property managers and property
valuers will usually have undertaken a course of study and a nationally accredited examination.
What estate agents do
In Switzerland, sales contracts must be drawn up by a notary, who must also witness the signing. This means that estate agents' roles are reduced.
Estate agents are typically hired by and working for the seller. They will:
- Find prospective buyers
- Show prospective buyers around a property
- Negotiate the sale price
- Act as a liaison and manage expectations
Estate agents typically act as a bridge, but it is also possible to hire a buyer's agent or search agent, working just for the seller. This will
usually incur an additional fee, but agents may:
- Search for properties beyond their catalogue
- Find specialist or rare properties
- Provide advice and support for the buyer
Some agencies specialise in providing services for foreigners, in which case they may be able to provide an agent who speaks your language. They may
also offer translation services, as contracts will be in a Swiss language.
Estate agent's costs
This is often the only or main cost incurred by the seller, however it can be significant. The fees charged by estate agents are not set by the
state,
which means they can vary enormously and are open to negotiation.
Estate agents typically charge a percentage of the final sale price as their commission. This is usually around 3-5% but may be higher for luxury
properties or niche properties, such as chalets in ski resorts. Some agents charge an up front fee to cover advertising costs, or bill for
advertising
separately. VAT applies at 8%, so be sure you understand whether this is included. Properties can often take a year or more to sell, so don't expect
a
discount if the property hasn't sold after one or two months.
Choosing an estate agent
A professional qualification is not a guarantee of honesty, but it is an indication that the agent has been trained and educated. Most estate
agencies
are small, working only in a very limited region, so studying listings for the area you're interested in is often a good way to find an agent. You
can
also find an agent through the various professional associations. These are typically divided into German, French and Italian speaking regions.
(SVIT)
(USPI) (in French
only). Active only in the
Swiss
Romand area. Visit regional sites for list of local members.