Selling without a real estate agent: Hidden risks
Rudolphe ABEN
Why selling your property without an agent can be costly: The compliance pitfalls for private sellers.
"I want to sell my home myself; I don’t need a real estate agent. I can save that 3%!” This is a common thought among homeowners who think they can manage without a real estate agent. At first glance, it may seem profitable, but let’s be honest: when dealing with hundreds of thousands of euros, overconfidence can quickly become very costly.
The primary risk of selling without a real estate agent: Legal compliance
For private sellers, the first pitfall lies in legal requirements and compliance standards. Without a real estate agent’s guidance, the risks are numerous and often expensive. A common mistake? Miscalculating the property’s square footage. If this information is incorrect, even accidentally, the buyer could demand compensation years after the sale, turning initial savings into significant losses.
Legal framework in Luxembourg: Civil code articles to know
Luxembourg's Civil Code is clear: Article 1602 requires the seller to ensure the accuracy of information, particularly regarding the property's size and features. In cases of non-compliance, the buyer can request a price reduction or even annul the sale. Article 1641 holds the seller responsible for any hidden defects, even if these are unintentional.
For example, if a house listed in Luxembourg at 200 m² is later measured at 180 m², it could lead to a potential claim of €160,000. Savings on agency fees quickly become financial losses, not to mention the cost of legal fees and proceedings.
At Nextimmo.lu, we protect you from these errors by providing precise measurements, realistic evaluations, and ensuring your property’s legal compliance. Before deciding to sell on your own, ask yourself: why risk costly complications when a real estate agent can secure the transaction? The 3% might just be one of the best investments you can make.
Common compliance errors in private sales
Here are a few examples of legal compliance errors that may occur for private sellers looking to save on agency fees:
- Non-compliant electrical installations: incidents can lead to claims after the sale.
- Missing gas compliance certificates: buyers may require repairs if issues arise.
- Inconsistent cadastral plans: undeclared extensions can result in fines or sale cancellations.
- Unreported easements: forgotten passage rights can lead to neighborhood disputes.
- Unreported hazardous materials: discovering asbestos can justify sale cancellation.
- Incorrect energy classification: may lead to value disputes.
- Incorrect construction year information: buyers may feel misled and demand price reductions.
- Ignored urban planning rules: unreported restrictions can hinder renovations.
- Undeclared renovations: can expose buyers to fines and result in claims against the seller.
- Non-compliant sanitation installations: high sanitation costs may be claimed.
- Absence of pest inspections: structural issues could be discovered post-sale.
- Misestimation of outdoor space: measurement errors may lead to refund requests.
- Unreported co-ownership disputes: unexpected charges for the buyer could prompt claims.
- Unpaid rent in rental properties: impacts profitability and may justify compensation.
- Lack of smoke detector certificates: mandatory in some cases, or potential claims.
- Incorrect co-ownership fee estimates: if costs are higher than expected, buyers may dispute.
- Undeclared risk zones: discovering natural hazards later may justify claims.
- Unreported hidden defects: plumbing, waterproofing, etc., can lead to lawsuits.
- Incorrect market value assessment: overvaluation or undervaluation jeopardizes the sale.
- Missing ten-year warranty for recent work: uncovered repairs can damage trust.
Selling your property alone may seem appealing, but the risks are real and numerous. At Nextimmo.lu, we have the expertise to anticipate these errors and ensure a secure, compliant transaction. Consider the 3% as a security investment rather than an expense.