Can you negotiate an estate agent’s commission in France?
Agency fees can be paid by either the buyer or the seller
Agents are usually more motivated to sell when using a mandat exclusif
Henry Saint John/Shutterstock
Reader Question: We are looking to sell our property but the estate agent recommended to us wanted a high agency fee. Can we negotiate this or are we stuck with it? We have not yet signed a contract with them but want to sell quickly.
The majority of sellers in France use estate agents to promote their properties, benefitting from expertise in the sector to get a good deal.
However, the use of agents does come at a fee, which has led some people to opt to sell privately in a bid to avoid these.
Agency fees (frais d'agence, also commonly known as the commission) are typically paid by the seller though sometimes by the buyer, or a mix of both, depending on the agreement in place with the agency.
On average, an estate agent’s fee is around 5% of the sale price of the property but can fall anywhere between 3% and 10% of the property’s value.
Generally, the higher a property’s value the lower the percentage of commission.
Fees vary
Unlike several other aspects of a property transaction – including ‘notaire fees’ paid out by property purchasers – agent fees are not regulated.
This means amounts can vary between rural and urban settings, areas, and between agents.
They are also liable to vary depending on the range of services the agent provides.
However, they can indeed be negotiated between the seller and the agency.
Even where the fees are paid directly by the buyer, negotiating the percentage fee is useful for a seller as they will gain a larger revenue from the sale (buyers have a certain budget they are willing to pay to acquire the property, fees included).
As property advertisements are usually shown with agency fees included (FAI, frais d’agence incluses), lowering fees can also drop the advertised price, potentially attracting more interest.
If you obtain proposals from several agencies before deciding, you can cite other agencies’ rates as a way of asking for a better deal.
Sellers are often in a strong position, especially in areas considered to be under housing pressure (where demand outstrips supply).
If you opt to sign an exclusive mandate (mandat exclusif) with an agency – giving them the sole rights to advertise the property – you are more likely to be able to negotiate.
This is because agents will be more inclined to focus on selling your property as they are guaranteed the commission and fees, as opposed to an open mandate where several agencies are competing to sell the property.
However, caution is advised against being too aggressive with demands, as this can cause agencies to walk away from your property or be less motivated to work on selling it quickly if they feel their commission is low.
While traditional agencies operate on a percentage basis, some newer internet-based firms now offer fixed fees, which may be of interest, especially for more valuable properties, however it is important to consider what is included in the service proposed.
