When buying or selling property in Corfu, agency fees are an essential consideration. Real estate agents in Corfu provide a range of services that help facilitate property transactions, from property search to negotiation and closing. Understanding how agency fees work and who is responsible for paying them can save you from unexpected costs and ensure a smooth transaction.

This guide explains the agency fees in Corfu real estate, what services they cover, and who typically pays them—whether you’re the buyer or the seller.

1. What Are Real Estate Agency Fees?

1.1. Agency Fees Explained

Agency fees are the commission charged by a real estate agent for their services in the buying, selling, or renting process. In Corfu, these fees typically cover a variety of services, including:

• Property search and selection

• Property viewings and coordination

• Market analysis and valuation

• Negotiations between buyer and seller

• Contract assistance and document handling

Real estate agents in Corfu act as intermediaries between buyers and sellers, and their role is crucial in ensuring that both parties follow the correct procedures for property transactions.

1.2. How Are Agency Fees Structured?

• Percentage of the Sale Price: In Corfu, real estate agency fees are typically charged as a percentage of the final sale price of the property.

• Flat Fees: In some cases, particularly for rental properties, agents may charge a flat fee for their services.

The commission is usually paid at the conclusion of the sale or lease agreement, once the property transaction has been completed.

2. How Much Are Agency Fees in Corfu?

2.1. Fees for Property Sales

• Typical Fee: The standard agency fee for property sales in Corfu ranges between 2% and 5% of the sale price.

  Example:
  If the property sells for €300,000, the agency fee will typically be between €6,000 and €15,000.

The exact percentage may vary depending on the property value, the complexity of the transaction, and the specific agency. High-value or luxury properties may incur a lower percentage fee as the commission amount will still be significant.

2.2. Fees for Rentals

For rental properties, agency fees can range from one month’s rent to a percentage of the annual rent.

• Typical Fee: For long-term rentals, the agency fee can range from one month’s rent or 10% to 15% of the annual rent.

  Example:
  If the monthly rent is €1,000, the agency fee would typically be €1,000 for securing the tenant.

For short-term rentals, the fees may be structured differently, depending on the duration and type of rental agreement.

3. Who Pays the Agency Fees?

3.1. Seller Responsibility

In Corfu, sellers typically cover the real estate agency fees for property sales. This has been the common practice in the market for many years.

• Who Pays: Sellers usually pay the agent’s commission, and this is often factored into the overall price of the property.

• Why It Works This Way: The seller hires the agent to represent their interests and market the property, so they are responsible for compensating the agent for their work.

Example:
If you’re selling a villa for €500,000, the seller will usually pay an agency fee of €10,000 to €25,000 based on the negotiated percentage.

3.2. Buyer Responsibility

In some cases, the buyer may be required to pay part of the agent’s fee, particularly in more competitive markets or when the buyer hires the agent directly to help with the property search.

• Buyer-Paid Commission: This is less common in Corfu, but there are instances where the buyer agrees to cover some or all of the agent’s fee.

• Why This Might Happen: In rare cases, the buyer may be involved in the negotiation of the fee structure and may agree to share the cost of the agent’s services.

3.3. Split Commission Agreements

In some situations, particularly if there are multiple agents involved (e.g., the buyer’s agent and the seller’s agent), the commission may be split between the two agents, with each party paying their respective agent.

• Split Commission: This is common when both the buyer and seller have their own agents representing them.

Example:
If the total commission is 5%, the seller might pay 2.5%, and the buyer would pay the other 2.5%.

4. How to Negotiate Agency Fees

4.1. Negotiating Seller’s Fees

While agency fees are standard in Corfu, negotiation is possible, especially for high-value properties or properties that have been on the market for a long time.

• Tip: Sellers can discuss with the agency to reduce the commission rate, particularly if they are selling a premium property that is likely to generate a quick sale.

4.2. Negotiating Buyer’s Fees

In the case of buyers paying agency fees, negotiation can also take place, especially if the buyer is working directly with the agent to find specific properties.

• Tip: Buyers should clarify whether the fees are part of the purchase price or if the agent will be paid directly.

5. Conclusion: Understanding Agency Fees in Corfu Real Estate

Understanding agency fees and knowing who pays them is crucial for any property transaction in Corfu. Buyers and sellers should be aware of the commission rates and the responsibility for paying them, ensuring there are no surprises at closing.

For expert advice on navigating agency fees, contract terms, and real estate transactions in Corfu, visit Chase Real Estate Corfu.