You might have heard the term "No Cure, No Pay." This phrase, commonly used in the legal world, roughly translates to: "no solution, no payment." The term also appears in the real estate industry, with KIJCK. makelaars operating on a no cure, no pay basis. But what does it mean? And how does a No Cure No Pay real estate agent differ from a traditional one? In this blog, we first outline the costs of a traditional real estate agent and then explain how No Cure No Pay agents differ.
What is the cost structure of a traditional real estate agent?
What is the cost structure of a traditional real estate agent? The costs of a traditional real estate agent consist of fixed and variable costs. Here's an overview of what these might look like:
Start-up costs.
Start-up costs are expenses incurred by the agent before your property is listed for potential buyers. This includes taking professional photos of your home, conducting a valuation, placing a "For Sale" sign in your front yard or on your facade, and creating an advertisement and description for Funda. These costs typically amount to around 500 euros but vary by agent. At KIJCK. makelaars, we do not charge start-up costs. They are included in our fixed rate of €3,950.
Commission
A commission is a fee paid to some agents for selling your home. It is often expressed as a percentage of the sale price, meaning the higher your home sells for, the more you pay. Generally, agent commissions range between 0.75% and 2% of the sale price. If your home sells for €350,000 and your agent charges a 1.5% commission, you pay €5,250. This amount is typically excluding VAT. At KIJCK. makelaars, we do not charge a commission. Visit our homepage to see how much you can save at different sale prices. The higher your sale price, the more you save.
How does a No Cure No Pay real estate agent work?
Unlike a traditional real estate agent, a No Cure No Pay agent charges only when results are achieved. You do not pay standard fees; you only pay a commission once your home is actually sold. Whether you pay a percentage-based commission or a fixed amount depends on the agent. At KIJCK. makelaars, we charge a low, fixed fee.
Note: Not all agents apply the same principle when advertising no cure, no pay. Some agencies still charge start-up costs or impose (high) withdrawal fees if you cancel the collaboration. At KIJCK. makelaars, we take the term literally: no solution? No payment! If your sale is unsuccessful, you owe nothing. Simple and transparent.
Selling your home?
Do you have questions or want to sell your home with KIJCK. makelaars? We're here to help. Contact us, and we'll handle the rest.