Estate agent fees are one of the largest costs homeowners may encounter when selling a property. Understanding exactly how the fee is calculated can potentially save you thousands of euro. Estate agents generally use percentage-based commission, a fixed fee, or a combination of fees and additional charges.
Percentage-Based Estate Agent Fees
Under a commission model, the estate agent receives a percentage of the eventual selling price. If a property sells for €400,000, 1% commission is €4,000 before VAT. At 1.5%, the commission is €6,000. If it sells for €500,000, 1.5% becomes €7,500 before VAT. As property value increases, so does the fee.
Does VAT Apply to Estate Agent Fees?
Always establish whether a quote includes or excludes VAT. An illustrative €7,500 professional fee becomes €9,225 when 23% VAT is added. Compare the final amount payable, not headline percentages alone.
What Other Charges Should I Ask About?
Depending on the provider and package, costs may include professional photography, floor plans, signage, advertising, video, drone photography, BER certification, premium portal advertising, administration or other agreed services. Ask for a complete breakdown before signing an agreement.
Percentage Fee vs Fixed Fee
On a €500,000 sale, 1% commission is €5,000 before VAT and 1.5% is €7,500. Under a fixed-fee model, the charge does not necessarily change as the property value increases, so the potential difference can grow on higher-value homes.
Does Higher Commission Mean a Higher Selling Price?
Not automatically. Price is affected by location, condition, demand, presentation, advertising, buyer competition and offer management. Look beyond commission and ask how the property will be marketed, viewed and negotiated.