Sharp drop in fees of estate agents, surveyors and notaries

14/11/2012 15:00

As a result of the prolonged crisis on the Dutch housing market, fees of estate agents, surveyors and notaries in the Netherlands continue to decrease. Prices of services related to buying, selling and valuation of commercial properties were also substantially lower in the first half of  2012 than twelve months previously.

House market price developments similar to those for related services

House prices - excluding new construction - fell further in the first half of 2012. Fees of estate agents, surveyors and notaries also decreased substantially. Estate agents and surveyors were about 5 percent cheaper in the first half of 2012 than in the same period last year. Fees for notaries were already under pressure because of the introduction of a free tariff structure. Following a brief price increase in 2011, fees have now fallen again. The price decreases are related to the fall in house sales and the increased competition in the sector of estate agents and notaries.

Prices of houses, and of services of estate agents, surveyors and notaries

Prices of houses, and of services of estate agents, surveyors and notaries

Private individuals paying less and less for estate agents and surveyors

Prices of estate agents’ services for private houses were again lower in the first half of 2012 than in the same period last year. The fall was largest for services related to sales: 5.3 percent in the first and 4.2 percent in the second quarter. Prices for private valuations fell by significantly less than those for sales-related services. In 2010 prices for private valuations rose sharply as a result of new requirements for valuations.

Prices of services of estate agents and surveyors related to private houses

Prices of services of estate agents and surveyors related to private houses

Largest price fall for estate agents and surveyors of commercial properties

In the first half of 2012 the largest price decrease was reported for services peformed by estate agents for commercial properties. In the second half of 2012 customers paid 8.7 percent less for services connected with the purchase of a commercial property. Sales-related services cost 8.2 percent less. Prices for valuations of commercial properties fell by much more than those for valuations of residential properties.

Prices of services of estate agents and surveyors related to commercial properties

Prices of services of estate agents and surveyors related to commercial properties

Ömer Eryigit and Glenn Muller