Estate Agent Commission in BavariaHow Much It Is and Who Pays It

The Usual Commission in Bavaria

In Bavaria, the agent's commission on the purchase of a property is usually 7.14% of the purchase price including 19% VAT (6% net). For residential property, it is generally split: buyer and seller each pay 3.57%. The amount is not fixed by law; it is freely negotiable.

Worked example: Purchase price of a detached house in Kulmbach: €320,000. Commission per side 3.57% = €11,424. Total commission: €22,848.

The Equal-Split Principle Since 2020

Since 23 December 2020, special rules have applied to the sale of flats and single-family houses (including those with a granny flat) to consumers (§§ 656a to 656d of the German Civil Code, BGB):

• Acting for both parties: If the agent acts for both sides, the commission must be borne in equal parts by buyer and seller.
• One-sided instruction: If only the seller instructs the agent, they may pass on at most half of the commission to the buyer – and the buyer only has to pay once the seller has demonstrably paid their share.
• Text form: Agency agreements for flats and single-family houses must be concluded in text form (an email is sufficient).

When the Equal-Split Principle Does Not Apply

The special rules do not apply to:

• apartment buildings
• undeveloped plots
• commercial property and mixed-use properties with predominantly commercial use
• buyers who are not consumers (e.g. companies)

Here, the split of the commission can be freely agreed. For commercial and investment property, it is customary for the buyer to bear all or most of the commission.

Commission on Lettings: the Client-Pays Principle

Since 2015, the client-pays principle (Bestellerprinzip) has applied to residential tenancy agreements: whoever instructs the agent pays them. In practice, this is almost always the landlord. Tenants may only be obliged to pay if they themselves instructed the agent to search and the agent searched for the flat exclusively for them. The commission is then limited to a maximum of two months' net basic rent plus VAT.

For commercial leases, the commission is freely negotiable; two to three months' basic rent is customary.

When Is the Commission Due?

The commission only arises once a valid main contract has been concluded – that is, with the notarisation of the purchase contract. If the purchase falls through beforehand, no commission is owed. The agent must also have been instrumental in bringing about the contract (by providing evidence of the opportunity or by brokering it).

What the Commission Covers

Reputable agents provide a wide range of services for their commission: valuation, obtaining documents, photography, the sales brochure (Exposé), marketing, viewings, credit checks, negotiation, preparation for the notary and handover. The commission is success-based – if there is no sale, the seller pays nothing.

Tax Deductibility

For owner-occupiers, the agent's commission is not tax-deductible. For investors, the buyer's share increases the acquisition costs and is written off through depreciation (AfA) – though not the portion attributable to the land. Sellers of a let property can claim the commission as selling costs in the case of a taxable disposal.

Commission in Euros: Typical Purchase Prices in Upper Franconia

How much commission is actually due depends on the purchase price. The following overview shows the usual commission of 3.57% per side for residential property:

For comparison: the other purchase costs in Bavaria – 3.5% land transfer tax (Grunderwerbsteuer) and around 1.5 to 2% for the notary and land register – together come to 5 to 5.5%. With the commission share, a buyer therefore arrives at around 8.5 to 9% in purchase costs. You can find a full breakdown under Purchase costs in Bavaria.

Good to know: The agent's commission is not part of the basis for assessing land transfer tax. You only pay tax on the purchase price of the property – not on the commission.

Types of Agency Agreement

How the collaboration with the agent is governed depends on the type of contract:

At FrankenImmo, we work with a lean sole agency agreement with a clear term. This gives you one point of contact, a consistent presence on the market and full transparency – and you are free to decide once it ends.

Right of Withdrawal and Reservation Fees

If consumers conclude an agency agreement by email, telephone or online, they have a 14-day right of withdrawal. Reputable agents inform them of this in writing. Anyone who wants the agent to start work immediately can expressly agree to this – in which case a proportionate compensation for value may be due in the event of a later withdrawal.

Reservation fees: In 2023, the Federal Court of Justice (Bundesgerichtshof) ruled that a reservation fee agreed by an agent with a prospective buyer in its general terms and conditions is generally invalid (ref. I ZR 113/22). Buyers can usually reclaim such fees. We do not charge a reservation fee.

How to Recognise a Good Agent

The commission is money well spent if the agent achieves more than you would achieve alone. Look out for:

1. A licence under § 34c of the Trade Regulation Act (GewO) and evidence of the mandatory continuing education (20 hours in three years).
2. A transparent valuation with comparable sales – not a bait price to win the instruction.
3. A concrete marketing plan with a timetable, target group and channels.
4. Buyer screening before every viewing.
5. Availability and regular reports.

Our guide Questions to ask an agent shows which questions you should ask in the first meeting. Whether an agent is worthwhile for you at all is answered by Selling a property without an agent. And what an agent actually does is described in The role of the agent.

Commission on Commercial, Investment and Land Sales

Outside the equal-split principle there are no fixed customs, but there are typical ranges:

• Commercial property (purchase): 3 to 6% plus VAT, often borne by the buyer. More under Selling commercial property.
• Apartment buildings and income properties: 3 to 6% plus VAT, depending on volume and effort. See Apartment buildings.
• Plots: often, as with residential property, 3.57% per side; individually agreed for sales to developers. See Selling a plot.
• Commercial lettings: two to three months' net basic rent plus VAT.

Commission and Process: What Happens When

Important: if the purchase contract is subsequently cancelled because the buyer does not pay, the commission claim generally remains – the agent has provided their service. The situation is different in the case of rescission for fraudulent misrepresentation or if the contract was invalid from the outset.

Commission and Purchase Price in Negotiation

Many sellers ask: can the commission be "priced in"? For flats and single-family houses, this is only possible to a limited extent, because buyers keep an eye on the total purchase costs. A higher price to offset the commission often leads to fewer enquiries. It is better to talk about the value of the service: an agent who sets a realistic price, brings vetted buyers and sells quickly often secures higher net proceeds than a private sale. The worked example under Selling a property without an agent shows this.

What the Commission Includes at FrankenImmo

• free initial consultation and valuation
• obtaining the documents and the energy performance certificate
• professional photos, floor plans and sales brochure
• direct approach to registered buyers and investors, then portals
• credit check before every viewing
• viewings, negotiation, weekly reports
• preparation for and accompaniment at the notary appointment
• handover with a report and support after the sale

More about our services under Services and After-sale service.