Estate agent commission is usually calculated as a percentage of your final selling price. Because the fee is linked directly to that price, small differences in commission can result in significant differences in the final amount you pay.
How Is Estate Agent Commission Calculated?
Property selling price × commission percentage = estate agent commission.
- €500,000 × 1% = €5,000
- €500,000 × 1.5% = €7,500
- €500,000 × 2% = €10,000
VAT and other agreed selling or marketing costs may then need to be added.
Why Compare the Actual Euro Cost?
A difference of 0.25% can sound small. On a €500,000 property it represents €1,250 before VAT. On an €800,000 property it represents €2,000 before VAT. Convert every percentage quote into an actual euro amount to make comparison easier.
Can Estate Agent Commission Be Negotiated?
Estate agency fees are commercial terms, so you can ask what flexibility is available. However, the lowest percentage should not be your only consideration. Establish what is included, what may be charged separately, and how the agent will market, view and negotiate your property.
Commission vs Fixed Fee
Percentage commission rises with the value of your home, while a fixed fee works differently. If two similar homes require comparable work to market and sell, it is reasonable to compare why a professional fee may be thousands of euro higher simply because one property has a higher value.