Are you planning to purchase your next villa, house, or apartment through a real estate agency? It’s wise to consider the commission fees. Anticipating these costs not only helps you better manage your budget but also optimize your real estate investments. It also allows you to understand what the tenant is required to pay. Discover everything you need to know about real estate agency fees.
How Are Real Estate Agency Fees Calculated?
The calculation of the commission varies depending on whether it’s a property sale or a rental.
Sales and Real Estate Agency Commission
The fees correspond to the average remuneration for services provided by the agency, such as: property valuation, drafting real estate listings, negotiations, and finalizing the sale deed. Since there are no specific regulations on rates, the charged amount is freely set by the agency or agent.
Agency fees vary greatly, depending on location, the type of agency, and the services offered. However, the Hoguet Law requires transparency from real estate agencies. They must display their prices visibly and clearly in the agency’s premises or on advertisements. Here’s how they are calculated in practice.
The fees can be calculated in two ways:
- Percentage of the property price
- Fixed fee
When calculated as a percentage of the property price, the scale is usually progressive and does not exceed 10%. This means the higher the sale price, the lower the real estate agency commission. At Consultants Immobilier, the rate ranges from 10% (including VAT) for a sale price between €25,000 and €150,000 to 5% for a price exceeding €800,000. According to the Galian Guarantee Fund, the average agency fees are 4.87% of the property price.
Alternatively, the agency may apply a fixed rate, which is a set price regardless of the property sale price. This option allows sellers to optimize the net sale price and speed up the selling process.
Rentals and Real Estate Agency Fees
Real estate agencies holding a professional license set their rates freely for rental management services. However, the Alur Law establishes a maximum fee for certain services:
- €8/m² in non-tense zones
- €10/m² in tense zones
- €12/m² in highly tense zones
Who Pays the Real Estate Agency Fees?
There is no specific rule about who pays the fees. The seller or the buyer can cover them, but the sales mandate must specify the payer. No deposit can be requested before signing the final sale deed.
In most cases, the property listing shows the FAI price (fees included). This includes the net sale price and the real estate agency commission. In practice, the agency fees are usually borne by the buyer.
In some cases, the seller must pay the fees. This can be advantageous, especially regarding notary fees that you need to pay. For example, for a €300,000 property with a €20,000 commission charged to you, you would pay notary fees of €25,600 at an 8% rate (8% x €320,000). However, if the agency commission is paid by the seller, the notary fees are calculated on the net sale price of €300,000. In this case, you only pay €24,000, saving €1,600.
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Can You Negotiate Real Estate Agency Fees?
In principle, you can always negotiate agency fees, whether you are a seller, buyer, or owner. This allows you to reduce costs and adjust the type of commission. However, the seller has more negotiation power in the case of an exclusive mandate. Unlike a simple mandate, this gives exclusivity to the real estate agency. In a semi-exclusive mandate, the seller entrusts the sale to one agency or sells the property themselves.
Real estate agency fees are an important factor to consider when buying a property. Now that you know these fees are freely set by agencies, it’s up to you to find the most advantageous offers. With Consultants Immobilier, you’ll be supported throughout the acquisition process, from fee calculation to the final purchase.