Estate agency fees: how they're set and who pays them

"How much do you charge?" It's every seller's first question, and the honest answer starts with what doesn't exist: there is no official fee scale for estate agency fees in Spain. They're agreed freely between you and the agency. Here's what you need to know to agree them well.

How they're usually expressed

The most common in sales is a percentage of the final sale price: if the flat sells for more, the agency charges more, and if it sells for less, it charges less. That way interests are aligned with yours.

There are also fixed-amount formulas, more frequent in specific services (just publishing the advert, just managing viewings) or in very high or very low-value transactions, where the percentage doesn't make sense.

What matters isn't the formula, but that it's in writing, with a clear figure, in the mandate contract. A "we'll talk about it later" about money is the prelude to a dispute.

Who pays them

• In a sale, the usual thing is that the seller pays them: it's who commissions the agency's service and who signs the mandate contract. The buyer doesn't usually pay anything to the seller's agency (unless they've hired another one themselves).
• In a rental, the law says something else: estate agency management costs are paid by the landlord, never the tenant. If you rent, they mustn't charge you.

And a tax detail worth being clear about from the start: IVA (VAT) is applied to fees. When comparing quotes, always ask whether the figure is with or without IVA.

When they're earned (when you have to pay them)

Fees aren't paid for trying: they're paid when what the contract says is fulfilled. The normal thing is that they're earned when the escritura de compraventa (the deed of sale) is signed — that is, when the sale is a fact.

Distrust anyone who asks you for full payment up front, before having lifted a finger. It is reasonable for the contract to provide for what happens in intermediate cases: for example, if you find a buyer on your own while an exclusive mandate is in force, or if the sale falls through at the last moment through the buyer's fault.

What the contract must say, word for word

Before signing the mandate, check that these appear:

1. The exact amount or percentage, and whether it includes IVA or not.
2. When it's earned (at the escritura, at the arras — the earnest-money deposit contract...).
3. What services it includes: photos, advert, viewings, negotiation, accompaniment to the notary's.
4. The duration of the mandate and how it's renewed or cancelled.
5. What happens if you sell on your own or with another agency.

If any of this is missing, don't sign yet. You have a full list of questions before signing the mandate and an explanation of exclusive vs. non-exclusive: the form of the mandate influences the fees.

Can they be negotiated?

Of course. Since there's no official scale, everything is negotiable: the percentage, the services included, the duration of the mandate. What you shouldn't negotiate down without thinking is the service behind it: an agency that charges less because it does less (phone photos, a copied advert, zero follow-up) can end up costing you more than a full one if your flat sits unsold for months or sells below its value. Compare fees and service, not just fees. Our guide to choosing an estate agent helps with that comparison.

Fees and exclusivity: do they go hand in hand?

Not necessarily, but they usually go together. An exclusive mandate implies the agency invests more in your home (professional photography, paid advertising, more viewings) because it has the security that its work won't be taken by another agency. That's why exclusivity usually comes with the full fee scheme and the non-exclusive with different conditions. Read carefully what each modality includes before deciding.

The cost of paying nobody

Selling on your own isn't free: it's your evenings taking photos, answering calls, showing the house to curious onlookers and negotiating with buyers who know more than you. For some it works; for others, the "saving" turns into months of flat standing unsold and a worse final price. Do the full sum — your time is worth something too — before ruling out the agency for the price.

Warning signs

• Fees only spoken, with no written contract.
• The percentage "changes" halfway through the transaction.
• Cash payments without invoice.
• Pressure to sign the mandate now, without letting you read it at home.

None of this is normal in a serious agency.

Golden rule: well-agreed fees are the ones that are in writing, understood at first reading and paid when the sale is real.

Selling in Cullera or La Safor? At Llevant Patrimonial we present our fees to you in writing from the first meeting, with no small print. Opening soon. And if you want to fine-tune the number of your sale, try our valuation.