Real Estate Fees: Seller or Buyer Responsibility – A Transparent Choice for a Smooth Transaction

When selling a property, the question of fees is crucial. Whether paid by the seller or the buyer, this decision can impact the final costs and the overall selling experience. At Côte d'Azur Sotheby’s International Realty, we prioritize transparency and personalized advice at the core of our approach. Our goal is to guide you through this choice, explaining the implications from the moment the agreement is signed, ensuring a smooth and surprise-free transaction.

Why is this choice important?

The distribution of fees between the seller and the buyer can have financial consequences, particularly regarding notary registration fees and the market perception of the property. This is why our real estate agents offer complete transparency from the very first step of the sale. When signing the agreement, we take the time to explain the pros and cons of each option, so you can make an informed and confident decision.

Personalized Advice When Signing the Agreement

At Côte d'Azur Sotheby’s International Realty, each transaction is unique. Depending on your personal situation, the type of property, and the profile of potential buyers, our agents will advise you on the best approach to set the fees:

Fees Paid by the Seller: This option allows for a simplified and more attractive presentation to buyers by offering a "Fees Included" price, making communication easier. It also helps in negotiations, providing full transparency on costs for all parties involved.

Fees Paid by the Buyer: While this option may allow the buyer to reduce notary registration fees, we will explain its implications for you and potential buyers in detail. We ensure that this approach aligns with your sales goals and financial situation.

What is the Difference Between Seller or Buyer-Paid Fees?

When a seller hires a real estate agent, the question of who will cover the agency fees arises. Here are the two possible scenarios:

Fees Paid by the Seller: These fees are included in the sale price and communicated as "Fees Included." The fee amount is not itemized in the listing.

Fees Paid by the Buyer: The real estate agent must specify the net price of the property and the total amount of their commission. This information is mandatory in property listings. Although agency fees are flexible (typically between 4% and 9%), how they are displayed and allocated influences the perception and process of the sale.

Impact on the Buyer

The total amount paid by the buyer remains the same, whether the fees are their responsibility or the seller's. However, the tax aspect may vary depending on the decision, as the buyer could save several thousand euros on notary registration fees if the fees are their responsibility. In certain situations, the buyer may prefer that the fees are paid by the seller, especially when obtaining a mortgage. When the fees are included in the property’s total price, they can be financed as part of the mortgage. However, if the fees are the buyer’s responsibility, they must be paid directly out of pocket.

Impact on the Seller

For the seller, whether they bear the agency fees or not, the net amount received from the sale is the same, regardless of how the fees are allocated. That said, by assigning the fees to the buyer, the seller can make their property more attractive, particularly by reducing the buyer’s notary registration fees.

Impact on the Real Estate Agent

Although the agent’s commission remains unchanged, how the fees are allocated can have a psychological impact on the market:

Psychological Effect: When the fees are paid by the buyer and itemized in the listing, it can create a psychological barrier, as the buyer may perceive the fees as an additional cost, even though the total price is the same.

Negotiation Effect: Knowing the exact amount of the fees, the buyer might be inclined to negotiate them, complicating the transaction. This is why many real estate agents prefer to include the fees in the overall price ("Fees Included") to simplify the sale.

Conclusion: Seller or Buyer Responsibility?

For the buyer, it is generally preferable for the fees to be their responsibility, as it reduces notary registration fees. For the seller, the impact is neutral, though they might choose this option to facilitate the sale. For the real estate agent, fees paid by the seller make the marketing process smoother. In most cases, real estate transactions are conducted with fees paid by the seller, as this choice simplifies communication and makes properties more attractive to buyers.