French unrealistically high realtor commissions: A proposed solution?

A new report recommends that the government intervene and lower the average realtor commission in France from 5.78% to the European average of around 4%. The very high realtor commissions in France compared to the European average led to the recommendation to lower them.

The report, published on June 7, claims that if commissions were reduced to 4%, households would save 3 billion euros a year. According to the report, average commissions in France are 5.78%, well above the European Union average of 4%. Some other European countries also have commission standards that are lower than France's.

Evaluating the data for 2019, real estate website PropertyWire reported the following figures:

• Denmark - 1.25%
• UK - 1.42%
• Ireland - 1.75%
• Greece - 2%
• Spain - 2.75%
• Belgium, Luxembourg, Netherlands - 3%

Even in countries with relatively higher rates, they are still lower than in France (4% in the Czech Republic, Portugal and Sweden, and 4.5% in Germany and Italy). Differences in rates can have a significant impact on the cost of selling a property.

Some realtors, such as Rudy Harosch of Orpi Optimum, defend the high rates in France, citing the complexity of the French market and the procedures involved. However, the council's report argues that the "loi Hoguet" law (the French real estate code) is no longer up to date because it does not cover new types of real estate agencies, such as online realtors or "personal agents."

The report also recommends strengthening the protection of consumers' economic interests and simplifying the working conditions for realtors. It suggests standardizing real estate advertising, creating a simplified plan for diagnostic documentation, and making data on real estate sales and realtor commissions available to the public. All recommendations will be submitted to the government, but it has the right to consider them or not.