The Alur law of April 1 2017 imposes on real estate professionals, an agent, real estate agency, real estate agents to display a public price which indicates whether the price is net seller or ISP (Agency fee included).
Net Seller Price or ISP Price, what are the differences between the two prices of real estate ? So here's what you need to know, owner seller side, but also on the buyer side. Also discover how these prices impact notary fees !
The net seller price = What the owner actually receives from the sale
The net seller price corresponds to the amount that the owner of the property will receive once the sale has taken place..
The price Agency Fees Included (FAI) = Net Seller + Agency fees
If you decide to contact a real estate agency (for a real estate sale in Aydat or elsewhere in France), the commissions of these will be incremented to your selling price. A price FAI therefore corresponds to the price of the Net Seller good + agency fees (Fees, commissions or fixed amount).
Agency fees correspond to a commission (A percentage of the price, of 3% has 10% according to real estate agencies). Note that there are now commission-free real estate agencies, the amount to be paid does not depend on the value of your property but rather on the workload for the professional. So you will be offered a fixed package, because of course all work deserves pay.
Reduce agency fees
Know that the % of commissions announced by your agent is negotiable. Since February 2022, the fees announced are the maximum fees applicable by the professional, this therefore means that they can be negotiated. Reducing real estate agency commissions is entirely possible, everything is discussed. This ensures on the one hand a sale for the agency. This also helps reduce the final sale price and will allow more buyers to position themselves., for generally more attractive offers. Seller side if there has been a negotiation on the price, This helps to rebalance things a little..
Fees payable by the seller or buyer ?
There are two types of mandates : Agency fees payable by the seller, agency fees payable by the buyer, the amount is similar. As a buyer you tell yourself that it doesn't change anything for you ? that in any case it is you who will pay these agency fees ? Well yes you are right but further down in this article you will discover that there is a subtlety and that concerns notary fees.
Estimating the price of a property
When you decide to use a real estate agent or real estate agency to estimate the price of your house, you will get a price. If you accept a sales mandate, simple or exclusive be vigilant and ask carefully whether the price announced for the estimate is FAI or net seller. The amount of the commission makes the difference, for you seller in a sense, for the buyer in the other. This nuance will influence the price and cause it to change by several thousand or even tens of thousands of euros.. In case it was an FAI estimate, you risk being disappointed at the time of sale.
Notary fees (or acquisition costs)
Notary fees are the responsibility of the buyer (environ 7% has 8%), they are not negotiable but can however be optimized, through the negotiation of emoluments, deduction of furniture and housing equipment. These are essentially taxes which will be returned to the public treasury. (80% the amount). 10% are dedicated to disbursements, 10% concern the fees of the notary or the notary office.
For information the amount of notary fees varies depending on whether the agency fees are the responsibility of the seller or the buyer. If agency fees are the responsibility of the seller, notary fees will be calculated according to the total amount (Net seller price + Agency fees). If agency fees are the responsibility of the buyer, the buyer will pay notary fees calculated only on the net seller price, so it’s much more interesting for him. He will pay the agency fees separately as stipulated on the sales mandate.. Note that it is sometimes possible to request the rewriting of the mandate so that it passes from “costs payable by the seller” has “costs payable by the buyer”, This generally involves several hundred or even thousands of euros saved..