Did you know that the costs for an estate agent when selling a house are often negotiable and can amount to up to 7% of the sale price? The legal reform of 2020 has changed the rules. We'll show you how you can save thousands of euros.
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The topic briefly and concisely
The broker commission in Germany is typically between 3% and 7% of the purchase price and has mostly been shared equally between the buyer and seller since 2020.
If the seller commissions the estate agent, they must legally bear at least 50% of the incurred commission themselves.
The amount of commission is not legally fixed and can be negotiated; regional differences and the value of the property are decisive factors.
Are you faced with the decision to sell your property and wondering which costs are unavoidable? The estate agent's commission is one of the largest expenses, yet many owners are unaware of its savings potential. Since a change in the law at the end of 2020, it has been clearly regulated that sellers who commission an estate agent must cover at least 50% of the costs themselves. This article serves as your digital compass: it breaks down the commission models, highlights regional differences of up to 3%, and provides you with data-driven strategies to minimise the costs of an estate agent when selling your house and maximise your net proceeds.
Understanding the Legal Basis of the Broker's Commission
The distribution of costs for an estate agent in a house sale has been regulated since 23 December 2020 by the 'Law on the Distribution of Estate Agent Costs for the Brokerage of Purchase Contracts for Flats and Detached Houses'. The key point of this regulation in § 656c BGB is that an estate agent who works for both buyer and seller can only demand their commission equally from both parties, in other words, 50% from each. If only the seller engages the estate agent, they must bear at least half of the commission themselves and can pass on a maximum of 50% to the buyer. A purely verbal agreement is no longer sufficient for the estate agent contract; it requires written form, such as an email. This legal basis significantly strengthens the position of sellers. It prevents the entire commission burden from being passed onto the buyer, as was previously customary in some federal states. However, the exact amount of the total commission is not legally fixed and remains open to negotiation. Thus, it is clear how the costs are distributed, but not how high they will ultimately be in the end.
The three common commission models in detail
From legal regulations, three commission models have become established in practice for the sale of single-family homes and condominiums. Each model directly impacts the sales strategy and the costs for the real estate agent when selling a house.
The double commission (§ 656c BGB): This is the standard legal case. The agent concludes one contract each with the seller and the buyer and acts for both parties. The commission is split exactly in half, often 3.57% of the purchase price each.
The pure internal commission: Here, only the seller enters into a contract with the agent and takes on all the costs. The property is offered commission-free to the buyer, which can enhance the attractiveness of the offer by up to 7%.
The transfer agreement (§ 656d BGB): The seller commissions the agent alone but agrees to pass on a portion of the costs to the buyer. The buyer's share may not exceed 50% of the total commission, and the seller must prove that they have already paid their share.
The choice of the right model strongly depends on the market situation and the saleability of your property. A data-driven professional valuation helps you assess the attractiveness of your property and choose the appropriate commission model.
Regional Differences: The True Cost of Estate Agents
Although the percentage distribution of brokerage fees is now regulated nationwide, the total amount of commission varies significantly from state to state. These local rates are not binding, but they serve as a guideline for 9 out of 10 brokers.
High commission (total 7.14%): In states like Berlin, Brandenburg, Hesse, or Bremen, this rate is widespread. Sellers and buyers usually pay 3.57% each here.
Moderate commission (total 5.95% to 6.25%): In Hamburg or parts of North Rhine-Westphalia, the total commission is often slightly lower.
Lower commission (total approximately 4.76%): In some regions, rates below 5% can also be found, though this is less common.
With a sale price of 400,000 euros, the difference between a total commission of 7.14% and 5.95% is already 4,760 euros. Knowing these regional differences is a crucial advantage when negotiating the brokerage fees for the sale of a house. Knowing these market-based ranges is the first step towards optimising your costs.
Negotiation strategies to reduce broker costs
The broker's commission is not a fixed price but is generally open to negotiation. Especially with high-value or easily marketable properties, you as the seller have a strong position. With the right preparation, you can often reduce your costs for an estate agent when selling a house by 10% to 20%.
Use these arguments for your negotiation:
Evidence of market value: Present an independent, data-supported evaluation. A precise analysis from Auctoa or our ImmoGPT chat shows the agent that you know the value of your property and reduces their valuation effort.
Attractiveness of the property: A property in a prime location or with modern amenities promises a quick sales success, justifying a lower commission rate.
Obtain multiple offers: Talk to at least two to three agents. The competition can positively influence the commission amount for you.
Offer personal contribution: Offer to procure documents such as the land registry extract or the energy certificate yourself. This reduces the agent's workload.
A sale with an agent is often the better choice, but only if the conditions are right. A clear basis for negotiation is your greatest leverage.
Don't overlook other cost factors when selling a house
While the broker's commission is a significant cost, it is not the only expense for sellers. To realistically calculate the net proceeds, you must consider other potential expenses that can quickly amount to several thousand euros.
These costs typically arise on the seller's side:
Energy certificate: Legally required and costs between 50 and 500 euros, depending on the type.
Cancellation of land charge: If the loan has been paid off, notarization and land registry fees amounting to approximately 0.2% of the land charge sum are incurred for cancellation in the land register.
Prepayment penalty: If you prematurely repay an existing loan, the bank requires compensation, often amounting to 1% of the remaining debt per remaining year of fixed interest.
Speculation tax: If you sell the property at a profit within 10 years of purchase, income tax is due. An exception applies if you have lived in the property in the year of sale and the two preceding years.
Notary costs for contract notarization and real estate transfer tax (3.5% to 6.5%) are almost always borne by the buyer. Having precise knowledge of all items helps to minimize risks when selling a house.
Conclusion: Cost Control through Knowledge and Preparation
The costs for a real estate agent when selling a house are a flexible item that you can actively shape. The statutory 50/50 split has ensured fairness, but your greatest leverage remains negotiating the commission rate, which varies between 3% and 7% depending on the region and property. By knowing the market value of your property through an objective appraisal, comparing multiple offers, and using regional commission rates as a reference, you establish an excellent negotiating position. Also, take into account all additional costs to precisely plan your final sales return. A data-driven preparation is the surest way to a financially successful property sale.
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Additional useful links
The Federal Ministry of Justice provides Section 652 of the German Civil Code (BGB), which regulates the entitlement to broker fees.
The German Bundestag offers an archived article on the restructuring of brokerage costs, highlighting the legal changes.
The Federal Statistical Office provides comprehensive information on construction prices and the property price index in Germany.
A press release from the Federal Statistical Office informs about the latest developments in construction or property prices.
The Consumer Advice Centre offers important information on permissible and impermissible brokerage fees in real estate to strengthen consumer rights.
The Deutsche Bundesbank presents its indicator system for the residential real estate market, providing important data and analyses on market development.
The German Real Estate Association (IVD) publishes an article on a court ruling regarding the broker's evidence obligation in the case of equal commission sharing.
FAQ
When is the brokerage commission due?
The broker's commission is only payable upon the successful completion of a notarised purchase contract. The claim only arises if the broker's activities were instrumental in concluding the contract.
What services are included in the broker's commission?
The commission generally covers all essential marketing services. This includes the property valuation, creation of a brochure, organization and conducting of viewings, communication with prospective buyers, credit checks on potential purchasers, and preparation of the notary appointment.
Can I sell a house without a real estate agent to save costs?
Yes, a <a href="/blog/immobilienverkauf-privat">private property sale</a> is possible and saves on the estate agent's commission. However, consider the significant amount of time required for marketing, organizing viewings, and negotiating contracts. Additionally, estate agents often achieve a 5-15% higher sale price due to their experience and networks.
What is the difference between internal commission and external commission?
The internal commission is paid exclusively by the seller. The external commission is borne by the buyer (proportionally or completely). Since 2020, a pure external commission for residential properties has rarely been possible; usually, the commission is split (double commission).
Do I have to pay commission even if the sales contract falls through later?
If the notarial purchase agreement is rescinded for reasons that arise after the conclusion of the contract (e.g., right of withdrawal), the broker's claim to commission generally remains intact. However, if the contract is void from the outset, the claim to commission is also void.
How can Auctoa help me with broker fees?
Auctoa provides you with precise, AI-supported real estate valuation. With this objective appraisal, you can confidently enter negotiations with agents and negotiate a fair commission rate that matches the actual effort. Start now for free with our ImmoGPT chat to get an initial assessment.
