Net seller price: what the owner and the buyer must know

Looking for an apartment or a house to buy, you ask yourself questions in terms of budget. It can sometimes be difficult to find your way among the many announcements. Among them, some display an “net seller” price, others an inclusive agency fees (ISP). What differences for the seller and for the buyer? The point on the question.

Capital video: Net Seller Price: Definition and calculation

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What is the net seller price?

Selling price net seller: definition

The net seller price corresponds to the sum collected by the owner once the sale of real estate finalized and final. This is the total selling price, in summary the amount that the seller will receive on his bank account.

The real selling price excluding agency fees

The net seller price is distinguished from Sale price of agency fees included (ISP). The latter does not correspond to the real amount affected by the seller, since he includes the commission of the real estate agency. The higher the agency fees, the more the owner will tend to increase the net seller price to compensate for this loss of income.

How to calculate the net seller price?

Subtract the additional costs at the sale price of the property

The net seller price is an easy price to calculate. It is advisable to entrench the all inclusive price which will remain to the owner of the property once the transaction has been carried out. When a price is displayed with ISP (agency fees included), it is enough to subtract the amount of the commission requested by the real estate agent to find out the amount that the seller will receive (net seller).

Example of net seller price calculation from the FAI price

FAI price (agency fees included for 5%): 400,000 euros

Net seller price: 400,000 – 20,000 (5% of 400,000 = 20,000) = 380,000 euros

When the price is displayed including tax with integration of agency fees but also the estimate of notary fees and taxes, all of these taxes must be cut off to determine the net seller price.

How to increase the amount of net seller price?

Increase the sale price of housing

Nothing could be simpler to increase a net seller’s price: just increase the proposed sale price of the apartment or house. Indeed, as previously explained, the net seller price corresponds to the sum received by it for the sale of the property. Also, if the house for sale is estimated and offered to buyers at 300,000 euros, it is enough that the seller decides to sell it 320,000 euros. However, it must be said, the sale prices of the goods offered on the market are rarely considered upwards. They are generally rather revised downwards.

Negotiate a drop in real estate agency fees

Here is a situation that could allow this increase: the real estate agency accompanying the seller can decide to reduce its costs for the benefit of its client. It can thus decide to receive 5% of the sale price as fees instead of 6 or 7%, and this on a commercial basis. The seller can then decide to increase the sale price according to the difference.

Estimate the departure sale price

Another possibility to increase its net seller price: Estimate the sale price proposed at the start. Indeed, there is always a margin of negotiation between the price offered to the buyer and the final price. Also, this delta must be provided reasonably so that the property remains attractive while allowing a high seller price. You should also know that the more a good remains on the market, the more it loses its value and its attractiveness: it is suitable to put all the chances on its side to prepare the property for sale (work, energy renovation, decoration …) and to make it an advertisement capable of triggering visits quickly (photos, videos …). We limit losses.

How to calculate the FAI price?

Calculate the agency fees included in the sale price

The FAI price – Agency fees included – corresponds to the net seller price with addition of the fees of the mandated real estate agency As part of the sale of the property. These costs are variable but they usually correspond to a fork between 5 and 8% of the sale price of the property.

Example of real estate calculation of the FAI price

Net seller selling price = 300,000 euros

Agency fees for 8% = 24,000 euros (or 8% of 300,000)

Total price ISP: 300,000 + 24,000 = 324,000 euros

Obligation to display the sale price and the amount of commissions in including tax in the real estate advertisement

Since the ALUR law, real estate agencies have the obligation to indicate the sale price of the property on the announcement. Several details must be mentioned:

• The sale price of the property fees included;
• the net seller’s selling price (excluding agency fees);
• the amount of the commission in including tax;
• The mention of the person in charge of the fees (seller or the purchaser).

How to calculate notary fees?

Costs payable by the purchaser

Notary fees are borne by the buyer. They consist:

Calculation of the amount of notary fees in the sale of a property

The amount of these costs varies according to the situation of the property. If the house or the apartment purchased is old, the costs are estimated at 7 to 8% of the sale price of the property. They are lower in the event of new housing: from 2 to 3%.