What are real estate agency fees?

During any real estate acquisition project, whether for a primary or secondary residence, buyers are advised to pay close attention to their budget. Indeed, a certain number of ancillary costs must be taken into account before the purchase, because they inflate the total budget. This is for example the case of notary fees, which vary depending on whether it is a purchase in new or old.

What are agency fees when buying real estate?

In France, agency fees will apply to any real estate purchase when it involves a professional as an intermediary between the seller and the buyer. Direct transactions between individuals for the purchase of housing are thus excluded.

The role of the agency is multiple: for the seller, it guarantees him to find a buyer more quickly at the asking price, while it is also at the service of the buyer to streamline the transaction and accompany him until the signature at the notary.

yup. i was right. just call shit what it is. we learned how to make hard tack, butter, and pick and fry dandelions in elementary school lol

— billiegirltoo Tue Jun 20 11:55:47 +0000 2017

The agency fees thus represent the fees of the professional, his remuneration for the service rendered during the purchase of real estate. Its amount is freely fixed by the agency, and it can be a percentage of the sale price, or a fixed sum previously decided. The scale of the various real estate agencies can be consulted before the formulation of an offer. With its fees, the agency will pay its fixed costs and the service provision of the agent carrying out the sale, which covers in particular his travels, the organization of visits and the follow-up. In most cases, agency fees represent a percentage between 2 and 7% of the selling price.

Who pays agency fees and how can they be reduced?

The payment of agency fees may be the responsibility of the seller or the buyer, this being specified on the advertisement, and this depending on the sales mandate entrusted to the agency. In any case, since the Alur law, it is mandatory to specify the sale price with the fees included, under the name of FAI, for agency fees included. This means that no matter who will have to pay these agency fees, they are part of the final asking price, and therefore will not change the price to be paid for the property purchase. On arrival, it is always the buyer who will pay the amount corresponding to the agency fees when purchasing, and the notary will then transfer the share intended for the agent.

However, you should know that even if the fees are predefined, it is still possible to lower them, especially during negotiation. If the price seems too high and the buyer tries to negotiate it, the agent may indeed try to lower the sale price with the owner, but also agree to lower his commission. In the event that several agencies are competing for the same property, it will be all the easier to obtain a reduction in these agency fees from the real estate agent, so that he obtains the sale of the property in question. . Agency fees must therefore be taken into account before any real estate project.

(By the editorial staff of the hREF agency)