The estate agent: fees, the PSRA licence and what to negotiate

What an estate agent does

When you sell, the agent:

• visits the home and gives you an appraisal: their view of what it would sell for, and the price to put it on the market at
• arranges the photographs, the floor plan and the listing on the property websites
• puts up the sign and runs the viewings
• takes offers, tells every bidder where the bidding stands, and keeps a record of it (the PSRA requires one)
• advises you on which offer to take: not always the highest, if another buyer is more certain
• holds the buyer's booking deposit in a client account, and returns it if the sale falls through before contracts
• passes the sale to both solicitors and chases it through to closing
• hands over the keys on closing day

When you buy, you deal with the seller's agent. They act for the seller, not for you. They will ask for your approval in principle and your solicitor's name before they take your bid seriously, and they are the person you go back to on the price after the survey.

When you need one

Most people choose an agent as the first step in selling, before the BER and the solicitor. The agent's appraisal is what tells you whether moving adds up: what your home is worth, less the mortgage, less the fees, is your deposit on the next one.

You can sell without an agent. It is lawful, and some people do it, usually on a home with an obvious buyer, like a neighbour or a family member. You still need a BER before you advertise and a solicitor for the contract. The private sale guide covers it.

Two moments when an agent's appraisal is not enough and you need a valuation from a registered valuer: when a court, Revenue or a lender needs a figure (probate, separation, capital gains tax), and when you are buying out a co-owner. The valuer page covers that.

Get two or three agents to appraise the home. They are free, and the spread between them tells you something.

What it costs

Agents charge in one of two ways:

• A percentage of the sale price, usually 1% to 2.5%, plus VAT at 23%. On a €400,000 sale at 1.5% that is €6,000 plus €1,380 VAT, €7,380 in all.
• A fixed fee, usually €999 to €2,995 plus VAT, from the online and fixed-fee agents. The service is usually lighter: you may do the viewings yourself.

Marketing is on top with most agents: the photographs, the floor plan, the sign and the listing, usually €0 to €800 plus VAT. Some agents include it in the fee. Ask.

The fee is paid from the proceeds on closing day. If the sale falls through before contracts, most agents charge nothing, but check the letter of engagement: some charge for the marketing anyway.

The percentage is not fixed by law. Agents compete, and a lower rate is often available if you ask, especially on a home that will sell itself. A good question is what they would charge at 1%, and what you would lose for it.

The table below gives the typical ranges from our costs config, not a quote. Put your own price into the estate agent fees calculator to see the sum.

The letter of engagement

The law (the Property Services (Regulation) Act 2011) says an agent must give you a written letter of engagement before they do any work, and you both sign it. It must say:

• the fee, and how it is worked out
• what marketing costs you pay, and whether they are paid if the home does not sell
• the advised market value and the asking price
• whether it is sole agency (one agent only), joint agency, or open
• how long the agreement runs, and how either side ends it
• what happens if you find a buyer yourself

Read it before you sign. Two things to watch: a long sole agency period (eight to twelve weeks is normal; six months is not), and a clause that pays the agent if a buyer they introduced buys later, after the agreement ends. That clause is fair for a few months; ask how long it lasts.

If an agent will not give you the letter, or wants to start the marketing before you sign it, they are breaking their licence conditions. Go elsewhere.

How to choose

Check the licence first. Search the firm and the person on the PSRA's register. The licence number should be on their letterhead and their adverts.

Then ask three agents to appraise the home, and compare:

• the appraisal, and what sales nearby they base it on (check them on the Property Price Register)
• the fee, the marketing cost and the sole agency period
• how they run viewings, and whether they do open viewings or by appointment
• how they handle bidding, and whether they use an online bidding platform
• how many homes like yours they sold in the last year, and how long each took

Be careful with the highest appraisal. Some agents win the instruction with a high number and drop the asking price six weeks later. The sales nearby on the register are the test.

A local agent with a lot of buyers on their list for your type of home is worth more than a big name with none.

What can go wrong

The common problems:

• The price was too high. The home sits, viewings dry up, and the drop in price looks like a problem with the home. Set the asking price from the register, not from hope.
• Bids you cannot check. The PSRA requires a record of every offer; you are entitled to see it. Ask.
• Pressure to take the first offer. The agent's fee barely changes between €400,000 and €410,000, but your proceeds do. Ask for a few more days if the viewings are still coming.
• The booking deposit in the wrong account. It must go into the agent's client account, and it is refundable until contracts. If an agent says it is not refundable, that is wrong.
• A sale that goes quiet. After sale agreed the agent should chase both solicitors weekly. If you hear nothing for a fortnight, ring.

Complaints about a licensed agent go to the PSRA, which can investigate and fine. Its compensation fund covers money lost through an agent's dishonesty.