Yes, estate agents get commission which, in most cases, already serves as the fee for the services they have rendered. Majority of real estate companies in Ireland implement this payment arrangement.
However, the past years, some agents have adopted a fixed-rate system. Here, the agent sets his fees based on the value of the house. For example, for a property valued at €500,000, the agent gets paid €5,000 plus VAT. This amount won’t change even if the property’s price goes up or down depending on the negotiations.
How Much Commission Do Estate Agents in Ireland Get?
Most real estate agents in Ireland charge a commission of 1.5% to 2.5% of the agreed sale price of the house. This is still exclusive of the VAT which is currently at 23% of their commission. The owner also shoulders this VAT payment.
Exactly how much the agent will charge would depend on several factors, one of which is the property’s value. Basically, the higher the value, the lower the rate of commission. So, the agent’s commission may be set to 1.75% for a house that’s sold at €500,000, while a lower percentage, say 1.25%, is charged for one that costs €1.2 million. Simply put, if the agent sells your house at a higher price, she is going to earn more.
Please take note though that, in most cases, realtors have a standard minimum fee for low-value properties. Instead of charging a certain percentage, the agent sets a fixed price.
Another factor that can affect the rate of commission is the property’s location. The percentage charged is often higher for houses situated away from Dublin and other urban areas. Why is this the case? One reason is the difficulty of selling properties which are not in prime locations. To find buyers, agents may need to do more work for these types of houses. In addition, the higher rate of commission is also meant to cover the travel expenses of the agent.
The agent’s scope of work may also affect the percentage of commission. Agents whose task is to simply look for buyers charge lower rates of commission than those who provide assistance from start to finish. However, non-full service real estate firms aren’t that many these days. Furthermore, while they may charge more, full service agents are better since they make the selling process less stressful for homeowners.
Are There Estate Agents Who Charge Lower Commissions?
Yes, there are real estate agents whose rate of commission is lower than the industry average. For example, MTS Property, one of the reputable real estate companies in Dublin, only charges 1% of the agreed sale price plus VAT. This fee is already for a full service! MTS Property’s real estate agents help take care of various tasks for their clients – preparing the house, advertising, handling the property’s viewings, screening the buyers, etc.
So, do not immediately pick the first real estate agent you meet. Moreover, do not think that just because a real estate company has higher fees that it will do a better job. There are estate agents in Ireland like those from MTS Property that charge lower fees but deliver top-notch service.
Do Estate Agents Charge Other Fees?
There are real estate agents who charge other fees on top of the percentage-based commission. What are the fees for? These fees cover marketing expenses which may include photographer fees and brochure printing. Some also charge for advertising expenses, i.e., payment for newspaper ads or website listings.
There are also those whose fees already include advertising expenses just like MTS. It is also not unusual to find agents who do not charge clients for marketing peripherals, particularly brochures.
Basically, the practices vary per agent which is why it is best that you ask your prospective realtor all about her fees and commission before hiring her. This is to avoid confusion about payments later on.
MTS Property’s estate agents charge a lower rate of commission – it’s just 1% of the agreed sale price! You get low fees but excellent service, what more could you ask for? Call us now at 01 495 9020!
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