Luxury real estate agents' commissions in France

In luxury real estate, understanding how real estate agent commissions is essential to securing an investment or making a successful sale. In France, the luxury market encompasses properties with high heritage value: villas with sea views, castles, character houses, Provençal farmhouses, and historic properties .

Unlike traditional real estate, the sale of a luxury property requires high-end services , often justifying a commission of 5% excluding VAT (6% including VAT) . These fees compensate for considerable work: valuation of the property, international marketing, prospecting for qualified buyers, organization of private visits, negotiation and legal follow-up until the final signature.

This article details the luxury commission market, existing models, the factors that influence them and best practices for demanding sellers and buyers , in order to secure an optimal transaction.

1. Why commissions are higher in luxury

1.1 Tailor-made work

Selling a luxury property isn't just about posting an ad. Specialized agencies offer a comprehensive service :

• Professional photography and high-end videos to enhance every detail.

• Home staging and temporary development to attract international customers.

• Targeted marketing : publications in specialist magazines and international networks.

• Organization of private visits for qualified buyers.

• Legal and tax support up to the authentic deed.

Each step requires specific know-how and an international network, which justifies commissions often higher than traditional standards.

1.2 The market standard

In the luxury sector, commissions are generally set at 5% excluding VAT (or 6% including VAT) .

• This rate remains stable regardless of the value of the property.

• It guarantees the seller a high-end and complete .

• It reflects the time, investment and expertise required to complete the transaction.

Beware of agencies that offer commissions that are too low: this can mean a reduced level of service , less visibility and a risk that the property will remain on the market for a long time.

2. The different types of commissions

2.1 Simple mandate vs. exclusive mandate

• Simple mandate : the seller can entrust his property to several agencies, but only the one that completes the sale receives the commission.

• Exclusive mandate : a single agency is mandated, allowing complete support, targeted marketing and confidentiality , fully justifying the 5% commission excluding tax.

In the luxury sector, exclusive mandates are preferred because they allow the property to be protected and its attractiveness to serious buyers to be maximized.

2.2 Sharing of commissions

The total commission can be shared between:

• The seller's agency

• Buyer's agency (if different)

Example: A villa sold for €5 million with a 5% commission excluding VAT generates €250,000 in fees. If two agencies are involved, they each receive €125,000, which is then shared between the agency and the sales agent.

Some high-end networks allow experienced agents or representatives to receive up to 70% of the commission , depending on their performance and seniority.

2.3 Agent status and remuneration

• Salaried agents : fixed salary + commission on sales.

• Independent agents or mandataries : remuneration exclusively on commission, often between 50% and 70% for luxury goods.

• Assistants or junior agents : receive a lower share but benefit from training and the agency network .

Status strongly influences motivation and quality of follow-up, particularly important for high-end transactions .

3. Factors influencing commissions in the luxury sector

3.1 Value of the property

The more expensive the property, the higher the absolute amount of the commission, even if the rate remains around 5% excluding VAT .

Example :

• Villa €2 million → commission €100,000

• Villa €5 million → commission €250,000

• Château €10 million → commission €500,000

3.2 Location

Properties located in prestigious or sought-after areas attract international buyers :

• French Riviera: Eze, Cannes, Saint-Tropez, Cap d'Antibes

• Paris: central districts and historic sites

• Mountain resorts: Courchevel, Megève

Location directly influences commission and sales strategy.

3.3 Services offered

Agencies offering premium services justify the commission:

• Professional enhancement of the property (photos, videos, home staging)

• Targeted international marketing

• Legal and tax assistance for foreign buyers

• Organization of private visits and total confidentiality

4. Best practices for sellers

4.1 Choose a specialist agency

• Check experience in luxury and international network .

• Review recent references and sales .

• Choose an agency capable of promoting the property and attracting qualified buyers .

4.2 Opting for an exclusive mandate

• Provides comprehensive monitoring and high-end marketing .

• Helps protect the property and maximize its value.

4.3 Check transparency

• Commission clearly defined in the mandate

• Details of services included

• Avoid agencies that sell their commissions at the expense of quality

5. Tips for buyers

• Understand that the commission is not an additional cost to the buyer , unless otherwise stated.

• Check that the agent has experience and knowledge of the prestige market .

• Take advantage of selection of high-end properties and tailor-made services.

6. Concrete examples

7. Trends and prospects

• Digitalization of the market : virtual tours, online marketing and international networks.

• International demand : American, Russian and Middle Eastern buyers on the French Riviera and Paris.

• Tailor-made services : concierge, VIP services and comprehensive legal support.

In the luxury real estate market, commission isn't just a percentage: it represents the investment in expertise, time, and services required to sell or acquire a prestigious property. The 5% excluding VAT / 6% including VAT guarantees high-end support and secures the transaction, while discounting commissions can cost much more in terms of visibility and quality of service.

For prestigious sellers and buyers , using a specialized agency ensures peace of mind, efficiency and excellence in each transaction.

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