Optimising Estate Agent Fees When Selling a House: How to Fairly Split the Commission and Save Up to 50%
Are you about to sell your property and wondering who is responsible for the agent fees and how high they can be? Since a change in the law at the end of 2020, the distribution of the agent's commission in house sales has fundamentally changed. Find out here how you can fairly distribute the costs and maximise your sales proceeds.
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The topic briefly and concisely
Since December 2020, the brokerage fees for the sale of apartments and single-family homes are generally shared equally between the seller and the buyer if the seller commissions the broker.
The amount of the broker's commission is not legally fixed but is freely negotiable and usually ranges between 5.95% and 7.14% of the sale price.
The broker's commission is payable only after the successful notarisation of the sales contract; if the sale falls through, there is generally no entitlement to a commission.
Selling a property is a significant step, often involving substantial sums of money. A central question in this context is the estate agent fees involved in a house sale. Many sellers are unsure about what costs they will face and how these are composed. Since 23 December 2020, there has been a clear legal regulation regarding the distribution of the estate agent commission, affecting both buyers and sellers equally. This article examines the current legal situation, outlines typical commission rates, and provides you with valuable tips on how to arrange the estate agent fees fairly, thereby optimising your profit. A solid property valuation is the first step towards a successful sale.
Legal Reform: Fair Division of Broker Fees Since 2020
The key question "Who pays the estate agent?" was newly addressed at the end of 2020. The "Act on the Distribution of Estate Agent Costs in the Brokerage of Purchase Agreements for Flats and Single-Family Houses" came into effect on 23 December 2020. It stipulates that if the seller commissions the agent, they must bear at least 50% of the commission. A complete transfer of costs to the buyer is thus no longer readily possible. This regulation applies to the sale of single-family homes and owner-occupied flats to consumers. For sellers, this means more transparency and a fairer distribution of costs. The precise division is recorded in the agency agreement, which has required written form since the change in the law. Knowledge of this regulation is a crucial element in minimising risks when selling a house.
This new regulation aims to relieve private property buyers financially, who previously had to bear the entire agent fees in many federal states, even though the agent was primarily commissioned by the seller. The level of commission itself remains negotiable. The new legal situation thus creates a binding basis for cost distribution, but not for the level of commission. This highlights the importance of carefully weighing the pros and cons of using an estate agent.
Regional differences and usual commission rates in Germany
What are the exact estate agent fees when selling a house? There is no nationally uniform fee structure for estate agents. The amount of the estate agent's commission is generally freely negotiable but is typically based on local rates. In most federal states, the total commission usually ranges between 5.95% and 7.14% of the notarised purchase price, including VAT. For a property with a purchase price of 300,000 euros and an assumed commission of 7.14% (incl. VAT), the total estate agent fees would amount to 21,420 euros. According to the new regulation, these costs are usually shared equally between the buyer and seller, so that each party pays 10,710 euros.
It's important to know that the property's location, not the client's residence, is decisive for the local commission. The commission rates can therefore vary depending on the federal state and even regionally. A precise valuation of your property by experts like Auctoa can help you establish a realistic negotiation basis for the commission amount. For an initial assessment, you can also use our ImmoGPT chat.
Here is an overview of the usual total commissions (including 19% VAT) and the respective shares for sellers and buyers in some federal states, based on data from early 2025:
Baden-Württemberg: 7.14% (3.57% each)
Bavaria: 7.14% (3.57% each)
Berlin: 7.14% (3.57% each)
Brandenburg: 7.14% (3.57% each)
Bremen: 5.95% (2.98% each)
Hamburg: 6.25% (3.12% each)
Hesse: 5.95% (or 7.14%), (2.98% or 3.57% each)
North Rhine-Westphalia: 7.14% (3.57% each)
These figures serve as guidelines; the actual commission when selling a house is always a matter of negotiation.
Take advantage of negotiation flexibility and actively manage brokerage costs
Although there are regional guidelines, the amount of the estate agent's commission when selling a house is always negotiable. Make use of this flexibility! Especially with high-value properties or when a quick sale is likely, many agents prove willing to compromise. Good preparation and clear arguments are crucial here. Get informed about the local rates and the services the agent offers. A transparent cost structure and a clearly defined scope of services are essential. Ask about the specific marketing strategies planned and how the chances of success are assessed. A sale without an agent is indeed an option to save costs, but it also means considerable additional effort and requires specific knowledge.
The following points can strengthen your negotiating position:
Market value knowledge: A current, neutral valuation of your property, such as that offered by Auctoa, provides you with assurance about the realistic value and thus a solid basis for price negotiations – including the commission.
Exclusive contract: Offer the agent a sole agency agreement. This gives them security and often motivates them to offer better terms, as they do not have to fear competition from other agents.
Condition and location: A very well-maintained property in a desirable location is easier to sell. This can be an argument for a lower commission, as the effort involved in selling may be lower for the agent.
Offering own contribution: Clarify whether you can take on certain tasks yourself, such as conducting some viewings, to lower the commission. However, this should be clearly defined in the agent's contract.
Professional advice, for example through the ImmoGPT chat from Auctoa, can help you optimise your negotiation strategy and ask the right questions before signing a contract. Remember that the cost of a valuation report can also be an investment in a successful sale.
When is the brokerage commission due and what happens if the sale does not go through?
The brokerage commission is success-based. This means that the claim to the commission only arises once the purchase contract for the property has been notarised. Simply viewing the property or a prospective buyer's interest is not sufficient. Typically, the broker issues their invoice after the notary appointment, and payment is due within a period specified in the contract, often 7 to 14 days after signing. There is no set order for who pays first; buyers and sellers usually settle their shares simultaneously or sequentially. If the seller partially passes the commission onto the buyer (under § 656d BGB), the seller must pay their share first and provide proof before the buyer is obliged to pay.
What happens if the purchase contract unexpectedly fails, for example, if one party withdraws due to contractually agreed reasons or if financing collapses before the notarial contract is signed? In this case, the claim to the brokerage commission usually lapses. The broker's fee is linked to the successful conclusion of the main contract (purchase contract). However, if the purchase contract later becomes invalid due to a defect, this can also lead to the commission being waived. Always clarify the exact conditions for due payment and any possible exceptions in advance in the brokerage contract. A property sale without a broker involves different cost structures that need to be considered.
Scope of the broker's services: What is included in the commission?
The brokerage costs in-house sales cover a wide range of services that are intended to significantly simplify and professionalise the sales process for you as the owner. A good agent not only takes work off your hands but often achieves a better sales price through their expertise and network. The typical services included in the brokerage commission generally include:
Market Valuation: A well-founded estimate of your property's current market value. This forms the basis for realistic pricing.
Document Procurement and Preparation: Compilation of all necessary documents such as land register excerpts, energy certificates, etc.
Preparation of the Sales Brochure: Creation of professional sales documents with high-quality photos and detailed property descriptions.
Marketing: Development of an appropriate marketing strategy and placement of adverts on relevant online portals, in print media, and use of their own client network.
Viewing Management: Organisation and conduction of viewing appointments with potential buyers.
Credit Check: Checking the creditworthiness of potential buyers.
Negotiation Conduct: Support during price negotiations between you and the buyer.
Contract Preparation: Preparation of the draft purchase agreement in collaboration with a notary.
Attendance at Notarial Appointment: Presence and support at the notarial appointment.
Handover Management: Often also support during the property handover after contract completion.
The exact scope of services can vary and should be detailed in the brokerage contract. Clear agreements help to avoid misunderstandings and ensure that you receive the desired services for your money. For heirs, who are often faced with complex decisions, a broker can be a valuable support to successfully manage the sale of property as a private individual.
Conclusion: Make informed decisions and optimise costs when selling a house
The brokerage costs in selling a house represent a significant expense, which has been made fairer by the legal reform of commission sharing since the end of 2020. Typically, sellers and buyers split the costs, which usually range between 5.95% and 7.14% of the sale price. It is crucial that you, as a seller, know your rights and options: The commission rate is negotiable, and a clearly defined scope of services in the broker agreement protects against surprises. A professional, data-driven property evaluation, like the one offered by Auctoa, provides a solid foundation for all negotiations and a successful sales process. Also, use interactive tools like the ImmoGPT chat for quick answers to your questions. This way, you make well-informed decisions and secure the best possible proceeds for your property.
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Additional useful links
Gesetze im Internet explain in the Civil Code (§ 652 BGB) the creation of the broker’s commission claim.
Gesetze im Internet regulate in the Civil Code (§ 656c BGB) the commission claim when buying or brokering housing.
Deutscher Bundestag offers information on the legal new regulation of broker costs.
Statistisches Bundesamt provides comprehensive data on construction prices and the property price index.
Statistisches Bundesamt offers specific tables on house prices and building land.
Deutsche Bundesbank delivers statistics and analyses on real estate and construction service prices.
IHK München informs about the distribution of the broker’s commission.
Sparkasse offers a guide on the broker’s commission for property sales.
Haufe provides a professional article on broker law and the discussion around the Bestellerprinzip (ordering principle) in property purchases.
FAQ
What happens to the broker fees if the house sale doesn't go through?
If the purchase contract is not notarised, there is generally no entitlement to the broker's commission, as this is performance-based.
Does the sharing of broker fees apply to all types of properties?
No, the statutory splitting of the broker commission specifically applies to the sale of apartments and single-family homes to consumers. It does not apply to undeveloped land, multi-family houses (if the buyer acts as an investor), or commercial properties.
What services are typically included in the broker fees?
Typical services provided by estate agents include market valuation, creating a property listing, marketing, arranging viewings, checking buyers' creditworthiness, conducting negotiations, and supporting clients up to the notary appointment. The exact scope is defined in the estate agent's agreement.
Does the estate agent contract have to be concluded in writing?
Yes, since the change in the law at the end of 2020, the broker contract must be in text form, meaning it must be concluded in writing, for example by letter or email. An oral agreement is no longer sufficient.
Can I deduct the brokerage fees from my taxes?
When selling a privately used property, the broker fees are usually not tax-deductible. It's a different situation if a rented property is sold or if the sale takes place in the context of a commercial activity; in such cases, the costs may be claimed as advertising expenses or business expenses.
What is the difference between internal commission and external commission?
The external commission is borne by the buyer and is often indicated in the property listing. The internal commission is paid directly by the seller to the agent. Since the 2020 regulation, it is common for the commission to be split equally for sales of residential properties to consumers, when the seller commissions the agent.
