Explanation of start-up costs of a real estate agent
Start-up costs are the fees that a real estate agent charges a seller before starting the sales process. The real estate agent uses the fee for all preparatory actions: taking photos, measuring the property, and paying for websites like funda.
Amount of start-up costs
Start-up costs charged by real estate agents range between 300 and 700 euros.
Difference between start-up costs and commission
Unlike a real estate agent's commission, start-up costs are charged regardless of whether the property is actually sold.
A commission is the amount charged at the actual transfer of the property. The amount for the commission is usually paid by the notary from the sales proceeds.
Start-up costs are due at the beginning of a sales process, even before a real estate agent starts working.
Why real estate agents charge start-up costs
Most real estate agents do not take the photos, floor plans, and measurements themselves. They often hire expert professionals for this. These professionals need to be paid. Additionally, websites like funda are not free for real estate agents. They pay advertising costs to get the property on the website.
Real estate agents sometimes have dozens of properties for sale. They cannot advance all these costs. Therefore, real estate agents charge a small amount upfront, the start-up costs, and a larger amount at the time of a successful sale, the real estate agent's commission.
Not all real estate agents charge start-up costs
Start-up costs are common but do not always occur. Some real estate agents find it fairer if a client only has to pay upon a successful sale. These real estate agents advance the costs for the photos and funda themselves. With these real estate agents, a seller is only obliged to pay a fee upon an actual sale of the property.
More information about what real estate agents cost:
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Frequently asked questions about start-up costs
What are start-up costs?
Start-up costs are the fees you must pay a Real estate agent at the beginning of the sales process.
This is different from the commission. The commission is the fee that a Real estate agent charges upon a successful sale.
Not every Real estate agent charges start-up costs. Some Real estate agents only charge a fee upon a successful sale.
How high are start-up costs normally?
Start-up costs vary per Real estate agent. Usually, the start-up costs range between €350 and €650.
Why does a Real estate agent charge start-up costs?
With this fee, the Real estate agent covers the expenses they must incur to begin the sales process.
Most Real estate agents do not take the photos, create the floor plans, or conduct the measurements themselves. Often, they hire expert professionals for this. These professionals need to be paid. Additionally, websites like funda are not free for Real estate agents. Real estate agents pay advertising costs to list the property on the website.
