agent commissions

[TonyG]

Can anyone explain what agents commissions are in Croatia and why commissions seem to vary?

[Peter Ellis]

In Croatia, as in many parts of Europe, agents charge both buyer and seller.

The majority of decent agents seem to charge 3% agency fee to buyers, sometimes including in that the legal fee for doing the contracts, although other fees will usually be charged for further work applying for Ministry of Foreign Affairs confirmation and Land Registry entry. There is usually no reduction if you want an independent lawyer to do your contracts.
We charge 2% agency fee and 1% if you want our legal department, which is affiliated to a member of the Croatian Bar Association, to do the contracts. By seperating it, we give you the choice. The costs for doing the MFA application and Land Registry entry are a mixture of state fees and legal charges, but should not be much more than 0.5% depending on the price of the property, as some of it involves fixed fees which are not ad valorem.

Any agent charging more than 3% should be treated with circumspection. Some of the less successful agents charge higher fees in an attempt to make a living from selling relatively few properties. You should also be aware that some less scrupulous agents charge what is in effect a hidden fee by increasing the price of the property over and above what the vendor is asking and pocketing the difference, as well as charging the buyer a higher than normal commission. However, a little research will normally reveal what is going on.
Some of these agents will try to protect their position by trying to get you to sign contracts with them saying that if you buy a property they have shown you, even if subsequently via another agent who is charging less, you still have to pay them, too.

Hope this helps.