Auctioneer & Estate Agent Fees Ireland
Estate agent fees can be complicated, let us break them down for you. If you are looking to sell your property you will most likely engage the services of an Estate Agent to sell and help steer you through the process as smoothly as possible. Estate Agents fees are calculated by charging a percentage commission on the eventual sales price of the property or by way of a fixed flat fee. Auctioneer & Estate Agent fees vary around the country and can be determined by various factors or how the agent is feeling on that particular day!
How much are Estate Agent fees?
How much does to cost to sell a property or how much do estate agents charge are two of the most searched queries we see. Estate Agent fees in Ireland to sell a property range from 1 – 3% + VAT depending on the Estate Agent, type of property, location and ultimately your ability to negotiate the best deal. Moovingo charges a fixed fee with all pricing listed on our sales fees page (a rarity in the industry). There are no fees to an estate agent for the buyer unless they have hired a buyers agent.
Can you negotiate Estate Agent fees?
Yes. Estate Agent fees will amount to the largest cost of selling a property, so it is important to ensure you are paying a fair price. Estate Agents will not want to lose your business and may try to negotiate using numerous methods. Including their recent performances, free marketing or outlays, offering a no sale no fee or a scaled percentage fee based on performance. Before negotiating an Estate Agent’s fee consider any other costs they are charging and detail such as, how soon they can list your property on the market, will the Agent be available throughout the sales campaign, who will host viewings and how long you will be tied into a contract with them for. Get as much information as possible and use it to your advantage.
How are Estate Agent fees calculated?
As noted Estate Agent fees in Ireland range from 1 – 3% + VAT on the eventual sales price of the property or by way of a fixed flat fee. Some Estate Agents will structure the fee based on performance which can sound inviting but once you drill into the numbers there is a buffer zone where you may actually receive less money even if a higher price is achieved! Therefore this should be avoided and you should be working with someone aiming to get you the best price regardless.
In 2018 The Irish Times wrote an article How much does it cost to sell your house? and warned sellers:
“Don’t be fooled into thinking that the bigger the commission the agent will earn, the bigger their incentive to get a better price on your house. If your house sells for €300,000, for example, the agent will earn €3,000 if the commission rate is 1 per cent. If the house sells for €320,000 – which is a big increase for you – their commission will only rise by €200, so it may not be enough to incentivise them.”
It is worth noting that the €200 will likely be down around €50 before it reaches the Estate Agents pocket due to taxes and their agency taking a percentage. The question here is, will the agent want to spend further time on your sale or spend their time looking for their next big client!
Estate Agent Fee Calculator
You can calculate estate agent fees on the homepage of our website by setting the sale price and estate agent % commission fee.
What are the upfront costs for selling a house?
The percentage sales commission is typically exclusive of marketing and/or outlays. Outlays are due prior to a property being listed. Most Estate Agents will charge a fee here to cover expenses such as photography, a for sale sign, to be listed on property portals like Daft and MyHome and any other additional marketing such as newspaper adverts, 3D virtual tours and brochures. The Irish Times article quoted above notes Estate Agents charges a minimum of €500 – €700 for outlays which would not include any print advertising. This is in line with what our customers tell us they are getting quoted by most Estate Agents.
N.B Estate agent sales and marketing fees are exclusive of VAT. The standard rate is 23 per cent, temporarily reduced to 21% to assist businesses due to Covid 19. So please be aware all fees quoted are exclusive of VAT.
All in it is a hefty sum. For example, a house which sells for €350,000 will generate c. €7,000 in fees for an Estate Agent, and for a house which sells for €700,000 the cost will be around €13,500 (based on a 1.5% sales fee and standard marketing fees + VAT).
Since the introduction of property portals such as Daft.ie and MyHome.ie and data on the property market (such as the Property Price Register) an Estate Agent’s workload has dramatically reduced specifically in terms of sourcing potential buyers. An Estate Agent’s role in present times is more about advising the property seller through the sale process, presenting your property in its best light, efficient communication with buyers and the ability to negotiate a strong price with the right buyer.
Flat Fixed Fee Estate Agent
A straightforward fixed fee structure for selling a property has grown in popularity around the world with companies like Purplebricks.co.uk (UK), Homie.com (US) and Housell.com (Spain) becoming the largest and leading Estate Agents in their countries. These companies were all setup with the goal of providing the same high level of service one would expect when selling a home for a lower fixed fee. To do this they have no high street presence and work from a central location while their Agents serve their local area equipped with the latest technology and a support team.
The reality is most high street agents are adopting similar models with many closing their doors and working from central hubs for efficiency. The only difference is they don’t pass on any savings and continue to charge a big fee.
Will Moovingo get the best price for my property?
Good question. We strive to achieve the best possible outcome as we know the referrals gained from a happy customer is the best growth strategy any business can have. Our marketing is tailored for each individual property. From high quality photography and digital campaigns on all the right channels including Daft and MyHome to our highly visible For Sale boards, our team has the marketing and sales expertise to maximise the exposure of your property. Presenting your property in its best light, efficient communication with buyers and the ability to negotiate a strong price with the right buyer is at the core of Moovingo.
Do I have to do everything myself?
Not at all. A misconception about ‘online’ Estate Agents is that we are a DIY Estate Agent, or that we are FSBO (For Sale By Owner). Moovingo is a full-service licensed estate agent with real Estate Agents, much like other Estate Agents. What sets us apart is our business model that allows us to charge a low, fixed fee for selling a property, rather than a percentage of your property’s value. Whether your property sells for €555,000 or €5 million, our fees never change nor does our desire to get the best sales price.
How can you charge so little? What’s the catch?
No catch! Most Estate Agents spend the majority of their time seeking new sellers. At Moovingo, we generate new business through our in-house marketing team so our Agents don’t have to spend their valuable time looking for new clients – this eliminates their individual marketing costs and frees up their time to focus on you and your property. We leverage the best of the best technology including a Salesforce CRM, Intercom, G-Suite, Apple for all hardware and our own technology to help our business run smoothly. Our cutting-edge technology allows our team to focus on what they love to do – sell property, while a centralised team looks after marketing and administration – this cuts out the need to pay for multiple traditional branch offices. All these differences allow us to pass on impressive cost savings to our sellers.
Other costs of selling a house
You will also need to get a valid BER certificate (unless your property is BER exempt) to show the energy rating of the property. Expect to pay between €120 to €250 depending on the size and location of the property.
Solicitors fees vary and can be a percentage of the selling price or a fixed fee. Budget for between €1,200 – €2,500 + VAT and outlays. You can review our guide The Legal Steps Of Selling Your House which includes further information on the process and legal fees when selling a property in Ireland.
Some of the legal costs to note:
- Land Registry Fees to register the title, €700
- Land Registry Fees to register a mortgage, €175
- Searches. €70
- Courier/Registered post for title deeds: €30
- Commissioners Fees, €30
The Bottom Line
Estate Agent fees may be one of the least understood aspects of selling a home. If you decide to instruct the services of an Estate Agent, be sure you review both fixed fee and commission based Agents, ensure they are licensed with the PSRA, read the Letter Of Engagement and T&Cs carefully to understand the terms regarding payment and contract length. Seek out what other people are saying about them online through reviews and social media. Instruct the one you feel most comfortable with.
Why not start by booking a free property valuation with us now? Call 01 516 9999 or book in through the homepage on www.Moovingo.com.