Value = Amount of money in exchange for one thing
The market or market value is the value of a real estate, a land or a real estate right (for example hereditary building right, housing law, usufruct right) in so-called general business transactions. This value is determined according to the regulations of the real estate value regulation. This valuation is carried out by an appraiser or expert for real estate values.
A mediation is the action that makes agreement between two parties about something, with the help of an intermediary.
The brokerage of a real estate asset is to negotiate how much a buyer is willing to pay a seller for a property, land, or land right and how much the seller is willing to accept as a price.
Such an intermediary is, for example, a real estate broker, who brings about such an agreement between the parties.
From theory to practice:
Mrs. Smith wants to sell the house she acquired forty years ago with her husband, who died four years ago, and has since lived there herself. She calls a broker to help market her beloved house, as she then moves to a full-service residence with many roommates of similar age.
She has never sold a property and the purchase was handled by her husband; she can not even remember how it went along and just signed.
The broker will consult a real estate appraiser or he may be a trained expert himself.
The broker carries out all necessary steps to calculate the "market value" (market value is equal to market value, see ImmoWertV).
Then he conveys this value to his client.
If both are in agreement, the broker will advertise this house with the value determined and also conveyed to the seller.
Since the broker knows that prospective customers almost always negotiate the price, he puts the purchase price by 5-10% higher than the determined market value - if the demand in the real estate market is good.
Now, he contacts different interested parties and shows the object. As a rule, an attempt is now being made to push the price - only rarely do the offers go higher than the price set.
Now it is the job of the broker to give the prospective buyer the value of the house. He is the mediator a second time.
After all, the salesperson, prospective buyer and broker sit around a table and come to an agreement and the house is sold for that price.
This is the process of real estate value brokerage, and it is precisely this process that we conduct professionally and expertly.
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