Are agency fees the responsibility of the seller or the buyer? What seems like a detail influences the final purchase rating. When a property is sold via an intermediary, you can read the acronym “FAI” on the advert, to Agency Fees Included. Or even “HAI”, covering fees paid to an independent agent. Nothing is specified? In this situation as in the two previous ones, the purchase price includes the commission, which is called “payable by the seller“. On the other hand, if it is specified that agency fees are at the expense of the purchaserthe Alur law of 2014 requires a mention of fees as a percentage, in addition to the sale price (article 6-1 of law no. 70-9 of January 2, 1970, modified since March 27, 2014).
What does this change in concrete terms? Let’s take a property worth 300,000 euroswith agency fees corresponding to 5% of the sale price. If these are the responsibility of the seller, the sale price is 315,000 euros. When paid by the buyer, the price displayed is 300,000 euros, to which is added 15,000 euros including tax in commission. In both cases, the net seller is 300,000 euros and the buyer will pay 315,000 euros. In practice, it is always the money paid by the new owner that pays the real estate agent.
Increase in “notary fees”
However the buyer loses with a mandate established for the benefit of the seller. Because acquisition costs are then calculated on the total amount of 315,000 euros. Those commonly called “notary fees” represent 8% of the sale price in the old. These are various taxes and fees, also including the fees of the ministerial officer. For a property sold for 315,000 euros, the acquisition costs are estimated at 25,300 euros (according to the official simulator real estate.notaires.fr). Against 24,100 euros for a taxable amount of 300,000 euros. That is 1,200 euros difference, including the payment is avoidable with a mandate established by the purchaser. You will agree that it is a shame to pay fees on… fees!
Financial impact
The higher the price of housing and the agency fees, the greater the financial impact for the buyer. Especially since the commissions are not regulated by law. Real estate professionals set them freely, to remunerate their evaluation of the fair price of the property, the drafting of the corresponding advertisement, the organization of visits, the negotiation phase, etc. Their prices generally vary between 3 and 10% of the value of the house or apartment, but the amount is sometimes fixed.
A buyer will therefore have an interest in favoring an advertisement displaying agency fees payable by them. For the seller, this also represents an argument in the discussion: he could refuse a significant price reduction on the grounds of this advantage when checking out at the notary. It’s a win-win!
