Estate agent fees in Switzerland: how much is the usual commission?

1. How much does an estate agent cost?

In German-speaking Switzerland, the estate agent’s commission is usually 2% to 3% of the selling price. In addition to the sale price, the commission also depends on the type of property, its location and the package of services provided by the property specialist.

• Estate agent fees for single-family houses and apartment buildings: 2% to 3%

• Estate agent fees for plots of land: approx. 5%

• Estate agent fees for special properties: individually agreed rates

Good to know: a judge can reduce excessively high agent commissions.

What do estate agent fees cover?

Estate agents perform a range of tasks throughout the selling process. These include:

• Property valuation

• Seller’s pack

• List your property

Depending on what is agreed, this results in additional costs. However, professional estate agents do not charge any extra costs for standard agent services. 

2. Can the estate agent’s commission be reduced?

You can negotiate the commission and the scope of services. Get various quotes from property specialists offering similar services in your region. Record any additional costs and the price of the commission in a written brokerage contract.

If you wish, you can take on some tasks yourself when selling your property, such as the viewings or staging. This reduces the costs of working with an agent. Doing things yourself takes time, however.

Can I deduct estate agent commission from tax?

You can claim estate agent commission as a deduction from property gains tax. In the canton of Zurich, for example, it is only deductible if the amount is within the usual limits.

3. Who pays the estate agent fees?

In Switzerland, the seller typically pays. The buyer pays less often. Who pays the commission is ultimately negotiable.

4. When is the estate agent entitled to commission?

By law, estate agent commission is only owed when the sale contract is concluded (Art. 413 Swiss Code of Obligations). This applies only if the contract was concluded as a result of the agent’s activities. The payment is therefore due after the contract has been certified by the notary or the land registry.

What services are required for the estate agent’s commission to be due?

How exactly the agent must have contributed to the conclusion of the sale depends on the agency contract. In theory, there are different types of brokers.

• An agent that simply introduces the parties only has to put a buyer and seller in contact to earn their fee. They must be able to prove that they provided an opportunity to conclude the purchase contract (e.g. contract negotiations) (Art. 412 para. 1 c).

• By contrast, an agent who actively refers one party to the other must establish direct contact between their client and the third party.

• An agent who sets up the contract must work towards the actual conclusion of the purchase contract (Art. 412 Swiss Code of Obligations).

Are agent fees due even if the sale isn’t completed?

Some estate agents charge monthly fees of several hundred francs for their services, whether or not a sale goes ahead. Others require a fixed price instead of a commission when the sale is concluded. There may also be charges as soon as you instruct the agent.

If you agreed in the contract on covering expenses incurred by the agent, such as travel, then you must pay these costs even if no sale goes through (Art. 413 Swiss Code of Obligations).

5. When is no commission due?

You do not owe the agent any commission in these cases:

• No sale is concluded: if no purchase contract is concluded, you do not owe the agent any fee.

• You have found a buyer yourself: you are not obliged to sell the house to the prospective buyer proposed by the estate agent. If you find a buyer yourself, no agent commission is payable.

• The agent fails to comply with their duty of loyalty: if the agent violates their duty of loyalty, they are no longer entitled to the commission (Art. 415 Swiss Code of Obligations). An example of this is dual agency that has not been agreed upon with the parties.

• You terminate the agency contract: you may give the agent notice at any time. If the sale is not due to the agent’s activities, you do not have to pay any commission. Please note that there are pitfalls when terminating the agency contract.

Check alternatives to selling your house through an agent.

If you are planning to sell your house yourself, then of course you will not incur any agency fees. However, selling a house privately involves a great deal of effort. Estate agents will take care of this work for you. Find out more about selling property with a broker here: estate agent tips.