Negotiate agency fees?
Sale : Negotiate agency fees?
The purpose of agency fees is to cover the expenses incurred and the remuneration of the real estate agent when the latter concludes the transaction of a property entrusted to him beforehand. For this reason, negotiating agency fees is for most of the time not the best approach to initiate, the professional allowing to sell by the best means.
The purchaser indirectly pays the agency fees
When an owner makes the decision to sell his property by benefiting services of an agency, the latter undertakes to pay a certain amount once the transaction has been completed by the agency. The sum in question is equivalent to a percentage of the sale price of the property, being previously defined initially and appearing in the sales mandate.
Despite the fact that the seller deliberately chooses to go through an agency and pay the agency the amount associated with the service rendered at the end of the transaction, the buyer will indirectly be the person paying the agency. The property is usually displayed in an ad with its listed price Agency Fees Included (ISP), the buyer will pay this amount in full.
The cost of agency fees
On average, the fees for a transaction are around 5.4% of the price of the property for sale but can vary in an interval of 3 to 8%. This interval can vary mainly depending on the Property for sale, real estate agents applying a decreasing scale depending on the size of the property.
Comparing the rates of an agency can therefore be complicated, however it is essential to proceed with the sale of the property with a real estate agent accompanying throughout the process. The time savings he provides is ultimately the most profitable benefit in the project by saving current expenses.
It is therefore essential to watch over the grain and rely on the overall reputation of a real estate agent to be advised at best and sell as quickly as possible, the objective of the agent being the same as that of the seller.
Negotiate on agency fees or other items
The seller may be tempted to question the real estate agent in order to get a discount on his fees, however this request could be a double-edged sword. The real estate professional working everything possible to sell the property at the best possible price while closing each step of the transaction in the most optimal conditions with the most structured file possible. The agency fees constituting the remuneration of the real estate agent, his efficiency will be all the more important in his work as the remuneration at the height of the work having been necessary.
The buyer when has him rather than negotiating the agency fees with the real estate agent in order to save only a few hundred euros, may have the opportunity to lower the amount in a more significant way. Indeed, when signing the sales agreement, it is possible to ask the real estate agent to deduct the value of the furniture of the property from the sale price in view of the signing of the final deed of sale, making it possible to significantly reduce notary fees.
- The purpose of agency fees is to cover the expenses incurred and the remuneration of the real estate agent when the latter concludes the transaction of a property entrusted to him beforehand.
- When an owner makes the decision to sell his property by benefiting services of an agency, the latter undertakes to pay a certain amount once the transaction has been completed by the agency.
- The seller may be tempted to question the real estate agent in order to get a discount on his fees, however this request could be a double-edged sword.
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Posted on 21/10/2021 by
Andy LECUYER
