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INSIDE GERMANY

Inside Germany: September heatwave and what happens after AfD state election victory?

From the aftermath of the AfD state election win to the sweltering start to September and Currywurst's birthday, here's what we're talking about in Germany this week.

Published: 7 September 2024 10:05 CEST
Inside Germany: September heatwave and what happens after AfD state election victory?
A dog cools down in the water during an early morning walk in Hamburg on September 3rd. Photo: picture alliance/dpa | Thomas Müller

What happens next after AfD win?

It’s been an eventful week. 

The far-right Alternative for Germany (AfD) won the biggest share of votes in Thuringia, marking the first time that a far-right party has won a state election in Germany since WWII. 

In Saxony, the AfD also made strong gains, coming just behind the conservative CDU party. Meanwhile the Bündnis Sahra Wagenknecht (BSW), a new left-wing populist party, had the third biggest share of votes in both states.

So what happens now? 

Mainstream parties have so far refused to step into a coalition with the anti-immigration AfD, meaning that it is unlikely that the party will get into power, although they will have more influence.  

Now lengthy and complicated talks are underway, mainly led by the CDU, and time will tell how (or if) parties can build partnerships to piece together new state parliaments. 

Demonstrators display a banner reading 'AfD ban now' and 'Mario Voigt says no to AfD' during a demonstration in front of Thuringia's State Parliament in Erfurt, eastern Germany, on September 1, 2024, during the Thuringia's regional elections day.

Demonstrators display a banner reading ‘AfD ban now’ and ‘Mario Voigt says no to AfD’ during a demonstration in front of Thuringia’s State Parliament in Erfurt, eastern Germany, on September 1, 2024, during the Thuringia’s regional elections day. Photo by John MACDOUGALL / AFP

Many are wondering what this means for Germany and the federal election coming up next year. At the moment the AfD is polling in second position nationwide, well behind the CDU. But there’s also a state election coming up in Brandenburg on September 22nd where the AfD is expected to surge. 

Another outcome of the votes in Saxony and Thuringia was that parties belonging to the current federal coalition (Social Democrats, Greens and Free Democrats) performed terribly. 

Readers of The Local shared their concerns this week about the political landscape and the rise of the far-right. 

Pinto from India told us that they are worried about a future which may involve “policy changes which impact immigration and citizenship for me and my family”.

Fatemah, an Indian living in Munich, told The Local that she’s concerned about the “possibility of an increase in hate crimes, racism and Islamophobia”.

Another reader, Ali, who’s from the UK, said: “The rise of the far right worries me wherever it is. But for AfD to be so popular, it feels like the post war consensus of ‘Never Again’ is being forgotten.”

READ MORE: 

Happy birthday to Currywurst

September 4th marked 75 years since Currywurst was invented! Do you count this as one of your favourite German snacks?

Hiding from the heat 

We may be saying goodbye to summer, but it is still sweltering hot across many parts of Germany. 

In Berlin, temperatures climbed above 32C at one point this week, while there were some storms elsewhere.

It may be because I spent a couple of weeks in Scotland in August where autumn weather came early (it always does), but I’ve found the heat difficult to deal with. 

It’s been interesting to report on how cities in Germany are preparing for the climbing temperatures. Many German cities have developed a ‘heat plan’, for developing better ways to protect people rom dangerously high temperatures and provide more cool spaces.

But some cities are well ahead of others in terms of converting concrete covered ‘sealed’ spaces to green spaces (which is among the best ways to cool a city centre). These include Detmold and Potsdam. 

Temperatures are set to dip somewhat across the country next week. But if you’re still struggling this weekend, check out our story which has plenty of helpful advice:

And my personal tip to get through the heatwave (or even in the rain) is: eat lots of ice cream. 

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PROPERTY

Who pays broker’s fees on property in Germany – and how much do they cost?

One of the major hidden costs of buying and selling property in Germany is the estate agent's commission, or broker's fee. We look at some of the unusual rules around it - and how much you can expect to pay.

Published: 17 September 2024 16:25 CEST
Who pays broker's fees on property in Germany - and how much do they cost?

There are many areas of life in which things in Germany function just that little bit differently – and buying a house is no exception.

Though the buoyant property market in the Bundesrepublik makes it an attractive place to buy, anyone looking to get their foot on the housing ladder should consider the hidden fees they might incur.

Beyond interest rates, taxes and fees for notaries and translators, one major outlay is the estate agent’s commission, which can sometimes stretch to thousands of euros.

Here’s what to know about these hefty fees and how you might be able to lower them. 

Who pays commission on property transactions in Germany?

If you come from another European country or somewhere like the United States, you may be used to a system in which the seller pays the broker’s fee. This intuitively makes sense because the estate agent is there to market the property, liaise with buyers and ultimately get the best price for the seller – so it makes sense that the seller should pay for these services.

Until recently, however, it was the buyer who was responsible for paying the entirety of the estate agent’s commission in Germany. That meant that these fees – which could be as high as seven percent of the purchase cost – were added to the mountain of extra costs buyers had to contend with, from notary fees to land transfer tax.

READ ALSO: The hidden costs of buying a house in Germany

Luckily for buyers (but less so for sellers), this was changed under a law that came into force at the end of 2020. Since then, costs are generally split 50/50 between buyers and sellers.

However, there are some details that are important to note here. If the seller commissions the estate agent to help them sell their home, they are technically liable for the costs but must pay a minimum of 50 percent. 

If the buyer commissions the estate agent to find them a home, the same rules apply the other way around: the buyer is liable for the costs but can obtain a maximum of 50 percent from the seller.

In each case, the side that commissioned the broker must prove they have paid their share before the other side is liable to pay theirs. 

How much do estate agents’ fees cost in Germany?

Commission on property sales varies from state to state but is generally set at between 5 and 7 percent of the purchase price.

According to online portal ImmobilienScout24, these were the standard rates that applied in each of the federal states in 2024, with the number in brackets representing a 50 percent share of the costs:

Baden-Württemberg: 7.14 percent (3.57 percent)

Bavaria: 7.14 percent (3.57 percent)

Berlin: 7.14 percent (3.57 percent)

Brandenburg: 7.14 percent (3.57 percent)

Bremen: 5.95 percent (2.97 percent)

Hamburg: 6.25 percent (3.12 percent)

Hesse: 5.95 percent (2.97 percent)

Lower Saxony: 4.76 – 5,95 percent or 7.14 percent, depending on the region. (2.38 – 3.57 percent)

Mecklenburg Western-Pomerania: 5.95 percent (2.97 percent)

North Rhine-Westphalia: 7.14 percent (3.57 percent)

Rhineland-Palatinate: 7.14 percent (3.57 percent)

Saarland: 7.14 percent (3.57 percent)

Saxony: 7.14 percent (3.57 percent)

Saxony-Anhalt: 7.14 percent (3.57 percent)

Schleswig-Holstein: 7.14 percent (3.57 percent)

Thuringia: 7.14 percent (3.57 percent)

If it’s hard to gauge how much this means in real terms, we can take the example of two properties: a €200,000 apartment and a €500,000 family home.

In the state of Hesse, a buyer splitting the broker’s fee equally with the seller would pay €5,940 to buy the €200,000 apartment and €14,850 to buy the €500,000 house.

In pricier Berlin, meanwhile, the same buyer would pay €7,140 on the €200,000 apartment and €17,850 on the €500,000 house.

READ ALSO: Is autumn 2024 the right time to buy a property in Germany?

Here’s where it gets more complicated, however: under German law, you are technically free to negotiate the commission with your estate agent.

That means that, especially in areas with stiff competition, you may be able to secure a better deal. 

Do I always have to pay commission in Germany? 

Not always. In fact, as a seller, you’re perfectly free to sell your property privately without enlisting the help of a real estate agent.

The benefit of this, of course, is that you can potentially save thousands of euros in fees, both for yourself and any prospective buyer. 

On the flip side, though, you will need to take the entire job of the estate agent on yourself, from marketing the property to liaising with potential buyers and finally closing the deal.

Real estate agent Germany

A real estate agent talks to prospective tenants at an apartment viewing. Photo: picture alliance/dpa | Tobias Hase

There can also be some upfront costs involved in commissioning things like floor plans and professional photography, as well as the time you’ll need to invest in learning all the procedures and preparing relevant documents for notary – to name just a few examples.

Ultimately, though, it’s up to you to decide whether the expense of working with a professional broker is worth it in the end. 

As a buyer, there are also some situations where you’ll see the words ‘provisionsfrei’ – or commission-free – written in a property listing.

This is fairly common in new-build properties, where the developer may sell the homes directly to interested buyers. More rarely, an existing property may be listed without commission, making it a more attractive proposition.

In both cases, it’s possible that commission has been built into the purchase price, so you may not necessarily be getting a better deal.

Another case where you’re likely to be able to avoid commission as a buyer are so-called Kapitalanlagen – or buy-to-let properties. 

READ ALSO: Should you think about purchasing a buy-to-let property in Germany?

These tenanted properties are designed to be bought as investments: buyers can enjoy additional rental income over time and, ideally, will also make money when they come to sell the property several years later.

For this reason, costs are generally kept slightly lower for the buyer by eschewing the standard broker’s commission. 

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