Broker or Sell Privately? How to Make the Right Decision

When selling a property - whether it's a condominium in Vienna or a single-family home in the countryside - the first question that arises is: Should I handle the sale myself or hire an agent? Both paths offer benefits but also come with challenges. This article helps you make an informed decision.

Selling Property with an Agent: Professional, but Costly

Real estate agents have extensive knowledge of the local real estate market and can realistically assess the selling price. They advise you on the sales strategy and assist in creating exposés as well as conducting viewings.

Advantages:

According to the Austrian Economic Chamber (WKO), the task of a real estate agent is to bring together supply and demand. They mediate purchases, rentals, and company shares or entire companies for their clients, advise interested parties, conduct sales/rental discussions, assist with financing, and inform clients about additional costs.

An experienced agent takes on all organizational and communicative tasks: placing ads, pre-selecting interested parties, coordinating and conducting viewing appointments, as well as price negotiations. Especially if you are professionally busy or do not live near the property, this service can be a tremendous relief.

Agents are also familiar with the legal aspects of property sales and can inform you about necessary documents and legal requirements. They often work with notaries or lawyers to ensure a legally secure contract. The Economic Chamber also emphasizes that the real estate agent must inform their clients about likely additional costs, draft an exclusive contract in written and time-limited form, and inform clients about the commission (fee) in advance.

Disadvantages:

Since the introduction of the ordering principle in 2023, a commission is charged for the broker's service. In Austria, this amounts to a maximum of 3 percent of the purchase price plus 20 percent VAT for a sale price over 48,448.52 euros, totaling 3.6 percent. The commission is due upon success – that is, upon the conclusion of a valid purchase contract. Even if the payment is calculated later, it represents a significant portion of the sales proceeds.

The Chamber of Labor points out that many brokers work based on a so-called "exclusive brokerage contract", usually with a term of three to six months. During this period, you are not allowed to sell the property otherwise – that is, privately. If you still decide to change your mind, you may still have to pay a commission. It is therefore important to carefully review the brokerage contract.

Private Sale: Initiative with a Lot of Personal Responsibility

If you decide to sell your property yourself – without a broker – you take on all tasks independently. No brokerage business is necessary for this, as long as you conduct the sale as a private individual for your own property.

Advantages:

The biggest advantage of selling real estate independently is the cost savings. Since no broker commission is due, the entire sales proceeds remain with you. For a sale price of, for example, 400,000 €, this corresponds to a saving of around 14,400 €. According to the financing portal infina.at, saving the broker commission in a private sale is particularly advantageous if you, as the seller, already have experience in the real estate sector or have access to professional support in contract drafting and pricing – for example, through a notary, lawyer, or bank advisor.

Another plus point is that you know your property inside and out – from the neighborhood to the lighting conditions to the quality of the furnishings. You can respond authentically to questions from interested parties, and many potential buyers find it pleasant to negotiate directly with the owner – especially with single-family homes or owner-occupied properties.

Additionally, you have full control over the handling of the property sale. You decide how to design the listings, which platforms to use, and when to start the sale or schedule viewings. Platforms like willhaben or ImmoScout24 also allow private individuals to achieve broad visibility for their listings.

Disadvantages:

Selling a property is not just about posting a few listings online, as pointed out by the residential finance experts at Infina. You need to obtain documents (land register extract, energy certificate, utility value appraisal), formulate exposés, create photos, contact interested parties, coordinate appointments, conduct viewings, and negotiate prices. You must also answer inquiries from banks or notaries on the buyer's side yourself. Those who are heavily involved professionally or with family can quickly reach their time limits.

Another significant risk is the lack of market knowledge. How do you find a realistic selling price? How do you distinguish serious from speculative buyers? What legal regulations apply to warranties, real estate income tax, or land register entries? According to oesterreich.gv.at, as a private seller, you are responsible for the accuracy of the information – errors or omissions can be costly. The absence of a professional negotiation partner can also lead to accepting a price below value or becoming liable due to unclear wording in contract drafts. You are also responsible for having the purchase contract legally processed correctly by a notary or lawyer – this applies to both the content and the correct sequence (escrow account, handover, entry in the land register). Infina, for example, offers a very helpful checklist for property sales.

In a private sale, you are also obliged to correctly calculate and pay the real estate income tax (ImmoESt). The Austrian Economic Chamber explains on its website about the taxation of private property sales that the tax generally applies when a profit is made on the sale – for example, if the property was not used personally or was purchased less than ten years ago. The tax rate is a flat 30 percent on the capital gain. However, there are exceptions:

You must document these exceptions yourself during the sales process and, if necessary, include them in the tax return (E1a form). The WKO explicitly recommends seeking tax advice in case of uncertainties, as incorrect information can result in significant back payments or penalties.

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