Cost of buying agent: The total cost of the buying agent?

The costs of a buying agent

When purchasing a house with the help of a buying agent, the cost is typically charged as a brokerage fee. The average cost for buying agents in the Netherlands ranges from 0.75 to 1.25 per cent of the purchase price, either in the form of a percentage or a fixed fee. Some buying agents may also charge additional fees such as withdrawal or start-up fees on a no-cure no pay basis. With the current housing market scarcity, buying agents may need to accompany clients to multiple viewings and may require withdrawal costs or start-up fees to cover themselves. If a client withdraws their purchase plans, the buying agent may charge withdrawal costs.

Using a buying agent

Buying a house has become a lot more complicated in recent years. Unfortunately, finding a house that meets all your needs and is affordable is no longer a given. Even when negotiating, you need to pay close attention and know what to look for. A buying agent helps you with this.

Together with an estate agent, you will look for a house that meets all your wishes. During the viewings, the estate agent will give you sound advice about the house, so that you can make a well-considered choice. The majority of buying agents in the Netherlands are technically savvy; they can immediately see the condition of the house and whether there are any other (technical) points of interest. The role of a buying agent is ultimately to look after your interests during negotiations and ensure that you, the buyer, get the best deal. Therefore, this is a great advantage to going into the negotiations and getting them the best purchase price. This way, a buying agent can save you a lot of money, which is certainly not a superfluous luxury in the current housing market.

> Read more about the duties of a buying agent here

Weighing costs of buying agent against benefits

Regardless of performance, a buying agent is a costly expense. For many people, the costs of a buying agent outweigh the benefits. If you want to use a buying agent to buy a house, it is wise to make clear agreements about the costs beforehand. In addition, it can be financially attractive to agree on a bonus structure with the estate agent. If the buyer agent can then negotiate a better price, he or she will receive a bonus. This way, everyone can come out of the purchase of the house positively.

Unexpected costs buying agent

Before you go into business with a buying agent, it is advisable to discuss all costs thoroughly, right down to the small print. The moment you discuss the costs with the buying agent, ask for the costs including VAT and what the conditions are. Discuss which tasks the buying agent will perform for you. This way, you can avoid unexpected costs. Common costs of a buying agent are:

• Extra payment per viewing
• Start-up costs when entering into the assignment
• Withdrawal costs when withdrawing the assignment
• Additional costs for preparing the purchase agreement

Find a no-cure, no-pay buying agent

The moment you withdraw your search from the buying agent, there may be costs involved. After all, the buying agent has already been busy finding your perfect home. Therefore, ask the estate agent what the withdrawal costs are or whether the buying agent works on a no-cure, no-pay basis. In some cases, a buying agent charges start-up fees. While it regularly happens that the withdrawal costs are the same as the start-up costs. Are you interested in a buying agent who works on a “no cure, no pay” basis? Always ask at an early stage. That way you don’t waste each other’s time.

Traditional versus Internet buying agent

When you start looking for a property, it is important to know what kind of estate agents there are. For instance, you have internet agents and traditional buying agents. An internet agent does not know the neighbourhood well in most cases, this can be a disadvantage unless you have done good additional research yourself. However, internet agents can help you well with administrative tasks and negotiating. This will already save you a lot of time! For a traditional buying agent, the costs are in most cases a bit more, but he often has a lot of knowledge of the area and knows the other local estate agents. This way, he also knows what kind of negotiating techniques different estate agents use and which houses will be on the market in the neighbourhood.

Commission or fixed amount with a buying agent?

An estate agent charges a fee for his services, which is often referred to as a commission. In general, the commission is a percentage of the purchase price. Percentages are more common for sales. When buying a house, it is more common that the buying agent uses a fixed amount and that this is also agreed upon in advance. This way, there are no surprises when the buying agent charges unforeseen costs.

Start-up costs buying agent

Previously, it was standard “no cure, no pay” or a fixed amount, but nowadays, more and more buying agents charge start-up costs when buying a house. But why do buying agents charge start-up costs? Because there is currently a huge housing shortage and not many properties are for sale, it can take even longer before you can buy a suitable property. Because estate agents want to offer high service, often go along to viewings and make sure that the buyer does not stop looking after a long time. This is why buying agents often charge start-up costs, as they often also have to incur costs themselves and can cover only costs. This gives the buying agent more security, to cover certain costs.

5 tips on negotiating buying agent costs

Tip 1: Discuss the buying agent costs before you start viewing with the buying agent.

Tip 2: What are the buying agent withdrawal costs? It could just be that you will buy a house somewhere else without a buying agent and you will still have to pay that. Above all, discuss this in advance.

Tip 3: Don’t accept the first proposal offered by the buying agent; often there is still room for negotiation or make a counter-offer.

Tip 4: Make sure the price includes VAT, as many estate agents do not include VAT in their charges.

Tip 5: Put it on paper: Many buying agents work with an order for services, in which you can record the agreements made.

Buying agent costs deductible

When buying a house, several costs are deductible and others are not. Below is a clear overview of which costs are deductible and which are not. Buying agent costs are not deductible, but many other costs are. If you bought your first home last year, it is wise to have a professional do your tax return. Especially since you have many expenses that are tax deductible, which can save you a lot of money. Looking for a good tax advisor? Then make an online appointment at “Mijn onlinebelastingadviseur“.

Deductible expenses

• Mortgage adviser
• Notary fees for mortgage deed
• Land registry fees for mortgage deed
• Valuation costs
• NHG (National Mortgage Guarantee) application costs
• Penalty interest
• Construction interest
• Costs of new construction deposit, renovation loan or conversion deposit

Non-deductible costs

• Buying agent costs
• Notary fees for the deed of purchase
• Costs of renovation (unless national monument, then other conditions)
• Repayment of owner-occupied house debt
• Costs of bank guarantee for payment of deposit

Starter exemption transfer tax

If you are a starter between 18 and 35 years of age and are going to buy a property for the first time, it is possible to buy a property with a starter’s exemption. This means you can buy a property without the 2% transfer tax. This is only if you acquire a property in 2023 under €440,000. For example, when the purchase price of a property is € 439,000. You are not entitled to the exemption.

Other costs of buying a house

The buying agent fees are not the only costs involved in buying a house. The “buyer’s costs” (k.k.) add up considerably, so you need to have saved well in addition to the mortgage. The table below lists the average costs of various services and taxes when buying a house.