Our article is about real estate agency fees.Agency fees must be paid when using a real estate agency when selling or buying a house or apartment. The rules to know about the calculation and distribution of the payment of these commission fees.
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This sheet deals with agency fees for the sale or purchase of a home. See also Agency fees for a rental .
Real Estate Agency Fees Calculation
Contrary to those of the notary , the amounts of the fees of the real estate agent at the time of a sale are not framed by the law.
Agency fees are therefore freely set by the agency and in practice, the same calculation rules are found in most contracts.
Real Estate Agency Fees Percentage
In almost all cases, the amount of the fees is defined in proportion to the sale price. Consequently, the higher the amount of the transaction, the higher the amount of agency fees. The percentage amount is mostly declining. Thus, a sale price of a large amount will be applied a lower percentage than a “small” sale of small amount, and vice versa.
Most often, the rate applied is between 3% and 7%% of the sale price.
Real Estate Agency Fees Regulations
If these rates are freely defined, the real estate agent is nevertheless subject to certain rules regarding the posting of agency commission fees . Thus, the costs must be expressed inclusive of tax and be displayed in a visible and legible manner at the entrance of the agency and, where applicable, in a shop window.
Real Estate Agency Fees Negotiation
The amount of the real estate agent’s commission for the sale of a home is therefore fixed by its price list, displayed in the window and on its website. In principle, the seller who entrusts him with a sales mandate cannot therefore negotiate them. In practice, when a buyer makes an offer to buy, generally lower than the asking price, it is very common for the real estate agent to agree to reduce the amount of the initial commission to facilitate the transaction.
Real Estate Agency Fees Payment
The rule of sharing agency fees in case of rental is not applicable in the context of a purchase. There is therefore no obligation to split the agency fees half between the seller and the buyer.
In the event of a property sale, agency fees are therefore, in principle, borne by the seller who has used the agency, except when a contractual clause provides that this payment will be due by the buyer or a distribution. costs between the two parties.
Most often, the payment of the commission falls to the seller who will have before passed on the agency fees on the sale price of the property. To do this, he first sets the net price he wishes to obtain from the sale and the real estate agent then adds his commission to this amount.
Real Estate Agency Fees Payment Date
The remuneration is paid to the real estate agent once the transaction is completed.
The payment of the commission of the real estate agent should not take place until the sale has not actually been concluded, that is to say at the time of the final signature at the notary. If, in the end, the authentic deed of sale is not signed, the real estate agent is not entitled to the payment of the commission. This is for example the case if a suspension condition prevents the completion of the transaction (loan refused, etc.).
In certain cases, the real estate agent nevertheless has the possibility of taking legal action with a view to collecting damages .
What is the role of a real estate agent during your purchase?
During your process, you will probably meet a real estate agent. Many sellers obtain the services of this professional. Much more than a negotiator, the real estate agent brings with him his expertise and his knowledge of the market. Find out more about its role during the purchase.
The real estate agent, an intermediary for your relationships
The real estate agent’s primary mission is to bring the buyer and the seller together. It is placed between the two parties to frame the relationship. Its presence makes it possible to centralize information. It is the guarantor of everyone’s interests, he will make it easier to go the right way. It will also offer you a more enlightened view of the situation.
During your purchasing process, a real estate agent allows you to discover various properties present on the market. Even if his catalog is often limited to the goods for which he is an agent, he generally presents an interesting diversity. Far from being limited to sales, the agent can also act as an intermediary with the other players in the transaction. It can facilitate exchanges with the notary, the lawyer or even the different urban communities. It is the hub of your real estate transaction. The real estate agent has above all a communicative role. It has a duty to circulate information clearly.
Note, however, that the agent is on assignment in the service of the seller. He holds a mandate, which authorizes him to negotiate on behalf of his client the sale of a property. This mandate can be simple or exclusive. In the case of an exclusive mandate, the seller grants total confidence to this agent to sell his property.
An advisory role in your research
When selling a property, the mission of an agent is to identify buyers with the most relevant needs. He must therefore know his subject on the fingertips. He advises the seller first. He helps him assess his property and facilitates his connection with buyers. Its main mission is to organize property visits. It is also he who will initiate negotiations with potential buyers. But that does not mean that he cannot advise you in your purchasing process. The real estate agent even has an obligation to advise both the seller and the buyer. It guides buyers so that their choices are in accordance with their needs. It is important to note this, a serious professional values his credibility. He has every interest in the buyer being satisfied with his assistance. A good real estate agent will therefore do everything possible to offer you interesting and relevant offers.
Using the services of a real estate agent avoids unpleasant surprises. His good knowledge of the local market is a positive point, as it allows him to obtain more information. A good professional brings with him a substantial network, which allows him to have a global vision of the situation. Thanks to his experience and his knowledge of the market, the real estate agent saves considerable time. Many sellers naturally go to these agents for lack of time. Today, more than one in two buyers is accompanied by a professional. And the services are generally appreciated.
This real estate professional, a negotiator and a seller
The real estate agent is a very useful guide during your purchasing process. But It is better not to forget its position. His primary objective is to find a buyer for his property. It’s a sales goal.
During your process, it is therefore possible that you will be confronted with the use of different commercial techniques. Remain vigilant in the face of these attempts at seduction which could limit your need for negotiation . Some unscrupulous real estate agents will put aside their professionalism to sell more easily. They may try to sell you a property that does not meet your needs. It is sometimes tempting to give in to ease, and the profession is not framed for nothing. In some cases, there may be several potential buyers at the same time for the same property. It is not uncommon for the agent to find himself in a position of strength facing you. He could then play on a sense of urgency to put pressure on you and push you into a hasty purchase.
All these risks prove to us that it is important to choose the right real estate agent. Do not hesitate to inquire about its reputation. A good professional will guarantee the finality of a good real estate transaction. It will not necessarily have to inflate prices, and will more often than not seek to go your way. His goal will not only be to set a sale price and finalize the purchase. Your satisfaction will also be important to him.