Property agents are paid to negotiate on your behalf. This does not mean that their fees are fixed.
The first rule is easy: find out who is legally responsible for paying before talking about the amount. In many markets, the agent is paid by the landlord and the buyer pays his or her own representative. In some the fees are shared or charged to both sides or built into the price.
‘Agent fees’ can be more than just commission. Administration fees, marketing fees, referencing fees, inspection fees, renewals, conveyancing referral and mortgage services. Please provide a written itemized schedule. A nebulous percentage is not a contract.
Renting: know the rules first
Check fees are legal, and ask:
– Is the fee charged once or annually?
– What kind of service is it?
– VAT included?
– Can the landlord pay it instead?
– Will a longer tenancy, faster move-in or stronger references justify a reduction?
A tenant with stable income, excellent references and flexibility on the start date has leverage. So does a landlord with a desirable property in a slower market. Do not rely on verbal assurances: have every concession written into the tenancy agreement.
Buying: negotiate the package, not just the percentage
Sales commissions are usually paid from the transaction proceeds, but that does not make them irrelevant to a buyer. The commission can influence the asking price, marketing strategy and willingness to accept an offer.
For sellers, obtain proposals from at least three agents. Compare:
– Commission rate and minimum fee
– Sole-agency versus multi-agency terms
– Contract length and notice period
– Marketing included in the fee
– “Ready, willing and able” clauses
– Whether commission remains payable if the property is sold privately or after the agency agreement ends
A lower commission is not automatically cheaper. An agent who achieves a materially higher sale price may deliver better value. Ask each agent to explain their recommended price using comparable completed sales, not optimistic listings.
Buyers should clarify whether their agent is paid by commission, a flat fee or both.