Real Estate Agency Fees

How to calculate real estate agency fees?

Real estate agency fees correspond to the fees charged by the real estate agent. Without their intermediary, the selling or leasing property owner may not have found a buyer or tenant. The real estate agency provides its client-owner with legal expertise, a network on the ground, and analytical tools. In return, they are compensated.

What are the fees for a real estate agency to sell a house?

Unlike notary fees, there is no law regulating real estate agency fees. These fees can be borne by the buyer or the seller, and their amount must be clearly defined by the real estate agency. It is a customary sum in exchange for its expertise and services provided for the property's sale. These fees cover the agency's structural costs, communication, drafting the sales agreement, advice, and expertise, etc.

For the sale of a house, the real estate agency calculates its fees in tiers. This percentage may vary based on the selling prices of properties and, in some cases, depending on the geographical area. The agency determines this in the sales mandate.

At Celaur Immobilier, the fees are distributed as follows and may vary by agency:

- SALES: less than €29,999 - €3,000 including taxes
- Minimum of €4,000 for built properties.
- SALES: €30,001 to €49,999 - €4,000 including taxes
- SALES: €50,000 to €69,999 - €5,500 including taxes
- SALES: €70,000 to €84,999 - €6,500 including taxes
- SALES: €85,000 to €99,999 - €7,500 including taxes
- SALES: €100,000 to €119,999 - €8,500 including taxes
- SALES: €120,000 to €149,999 - €9,000 including taxes
- SALES: €150,000 to €169,999 - €10,500 including taxes
- SALES: €170,000 to €199,999 - €11,000 including taxes
- SALES: €200,000 to €214,999 - €12,500 including taxes
- SALES: €215,000 to €249,999 - €13,000 including taxes
- SALES: €250,000 to €299,999 - €15,000 including taxes
- SALES: €300,000 to €399,999 - €17,000 including taxes
- SALES: €400,000 to €499,999 - €20,000 including taxes
- SALES: €500,000 and above - €25,000 including taxes

Property Appraisal: starting from €145 including taxes

What are the fees for a real estate agency for a rental?

For a rental, each real estate agency is free to set its rates. According to the ALUR law, fees are generally based on a percentage calculated on the value of the property. Only the distribution of costs between the landlord and the tenant, as well as the tenant's share, is regulated by law.

These fees are applied according to the decree of 01/08/2014 and the ALUR law of March 4, 2014, and are capped at a price including taxes per habitable square meter. They also depend on the geographical area where the property is located.

Corrèze, Lot, and Haute-Vienne are classified as non-tense areas by the decree. Thus, for all properties for rent, the maximum rental fees are €8 including taxes per square meter.

The preparation of the entry inventory with the creation of a photo dossier is also part of the agency fees. This service is billed separately. Therefore, for the drafting of the entry inventory, the agency will charge €3 per square meter.

The main services included in the agency fees for a rental are:

• conducting visits,
• drafting the lease agreement
• creating a dossier with photos
• intermediary commission between tenant and landlord
• conducting the entry inventory

At Celaur, agency fees for a rental are capped at one month's rent.

What are the fees for a real estate agency for property management?

In the context of a property management contract, the real estate agency's remuneration is calculated based on the rent (including charges) collected by the owner. These management fees, freely set by agencies, generally represent 7 to 8% of the gross rents received by the landlord over the 12 months of the year. To give an idea, the real estate agency takes approximately the equivalent of one month's rent per year to manage a property.

In property management, Celaur Immobilier applies a percentage of 7.2% including taxes on the amount of the rent excluding charges collected. Thus, for example, for a property with a rent of €450 excluding charges, your agency will be paid €380 for a year.

The property management service includes rent collection, issuing receipts, and payment of charges. For the same landlord, these fees may be subject to negotiation based on the number of properties, the geographical location, and the rent amount for each property offered.

Who pays the agency fees?

In a sales mandate, agency fees are commonly borne by the seller. However, the mandate may contain a clause stating that the payment of agency fees can be shared between the seller and the buyer. In a rental, agency fees are theoretically shared between the tenant and the landlord, but if the property is under property management, the landlord pays the agency fees in full.

Who pays the agency fees for a purchase?

When buying a house, the almost systematic common practice is to include agency fees in the sale price. The property's price is then announced including agency fees (F.A.I.). In this case, the agency fees are paid by the seller. However, unlike notary fees, which must be paid by the buyer, no rule dictates whether the buyer or the seller should bear agency fees. In practice, real estate agencies are free to decide. It will depend on what is specified in the sales mandate.

• Fee borne by the buyer

  In CELAUR agencies, if you entrust the sale of your house or buy a property, agency fees will always be borne by the buyer. In the listings, the actual price of the property is specified, to which the commission amount must be added. This practice is advantageous for the buyer as it helps reduce notary fees. They are calculated only on the actual value of the property excluding agency fees. In a sales mandate borne by the buyer, agency fees are not part of the acquisition costs

• Fee borne by the seller

  Whether the fees are displayed as borne by the seller or the buyer, it is always the buyer who pays them in reality. When agency fees are borne by the seller, the sale price is announced with agency fees included (FAI). These fees are paid by the seller to the agency. For the buyer, they are counted in the acquisition costs. Putting the fees at the seller's expense implies an additional tax cost for the buyer with the notary.

Who pays the agency fees for a rental?

For a rental, agency fees are to be shared between the tenant and the landlord. The law states that the part of the agency fees paid by the tenant cannot exceed that paid by the landlord. For landlord-owners and tenants, Celaur Immobilier has set its agency fees equally. But if the landlord chooses to entrust the property management of their property, they will fully bear the fees charged within the contract.

• Fee borne by the owner

  Regarding the fees charged to landlord-owners, the ALUR law does not impose a regulatory ceiling. Landlord-owners are exclusively responsible for the commission and negotiation fees. Other fees (visit, lease, file, entry inventory) are shared with the tenant.

• Fee borne by the tenant

  The tenant must bear a portion of the agency fees. The fees cover organizing visits, compiling the dossier, drafting the lease, and establishing the entry inventory. For all these services, the tenant cannot be charged more than €11 per square meter. However, exit inventory fees are the responsibility of the landlord, but in case of disagreement, they will be shared equally.

Can agency fees be negotiated?

Currently, fee negotiation should remain exceptional as the DGCCRF considers it unfair competition. Starting from April 1, 2022, the fee schedule will correspond to maximum fees. It will then be possible to set a conventional commission between the agency and the buyer without exceeding the maximum fee amount. At Celaur, the calculation of agency fees is different in price ranges for any type of property (house or apartment) and any nature (new or old). The basic values of the scale indicated by your agency may, however, vary depending on the location of the property, more so if demand exceeds supply in the area concerned.

• The rental of the property: its preparation and marketing, the search for tenants, the entry of tenants
• Administrative, financial and accounting management: drafting of the acts, preparation of a pre-state of the places of entry, the inventory of the places of entry and the inventory of the places of exit, verification of the conformity of the insurances mandatory, call, processing and collection of all rents, charges and security deposit, rent adjustment, regularization and recovery of annual charges, implementation of litigation procedures, representation before the competent administrations, annual declaration of property revenues
• Technical management: quote preparation, execution of repairs, payment of associated invoices, follow-up of works, intervention with insurance in case of disaster