Buying from a private seller: benefits, risks and saved agency fees

Buying from a private seller: always a good deal?

Buying a home from a private seller, without an estate agent, is increasingly popular: classified ads, PAP‑style platforms, social media. The main argument: avoid agency fees. But is that really an advantage when you hesitate between buy or rent?

The answer depends on your situation, your project and the financial parameters of the purchase. The buy-or-rent.net / acheter-ou-louer.com simulator includes a key variable: montant_fa, i.e. the total agency fees. Understanding its impact is essential when you compare buying from a private seller vs using an agent.

This article is general and educational. It is not personalized financial advice.

1. What does the agency fee amount (montant_fa) really represent?

In a standard transaction, agency fees are usually 3–5 % of the sale price, sometimes more for small units. In the buy-or-rent simulator this cost is captured by the parameter montant_fa.

1.1. A simple numerical example

Take a flat advertised at €300,000 including agency fees. The agent charges 4 % commission:

• Net seller price: 300,000 / 1.04 ≈ €288,460
• montant_fa (agency fees): ≈ €11,540

In the simulator you would set montant_fa = €11,540. If you buy the same property from a private seller, without an intermediary, this montant_fa can theoretically drop to €0… provided the seller accepts a lower price.

1.2. Effect on your total budget

Agency fees are only one item in the full cost of buying a home:

• Notary fees: typically 7–8 % for existing property, 2–3 % for new build
• Loan rate: currently around 3.6 % in many eurozone markets
• Borrower insurance rate: often 0.25–0.45 % of the loan amount
• Property tax: from roughly €450 to over €5,000 per year depending on the city, with annual reassessment
• Renovation cost: especially if the energy rating is poor and you need energy upgrades

Cutting out the agency can free up several thousand euros, but that alone does not tell you whether buy or rent is better. You must look at all parameters (inflation, investment return on your savings, future rent increases, etc.).

2. Buying without an intermediary: tangible benefits

2.1. Direct savings on montant_fa

Let’s go back to our €300,000 all‑fees‑included example. Scenario 1: you buy with an agent. Scenario 2: you buy from a private seller.

Scenario 1: purchase with an agent

• Net seller price: €288,460
• Agency fees (montant_fa): €11,540
• Notary base (existing property): usually the price excluding agency fees, ≈ €288,460
• Notary fees at 7.5 % (assumption): ≈ €21,635
• Total acquisition cost (excluding interest and renovations): 288,460 + 11,540 + 21,635 ≈ €321,635

Scenario 2: purchase from a private seller

If the seller agrees to sell at the net price (€288,460) without an agent:

• Purchase price: €288,460
• Agency fees (montant_fa): €0
• Notary fees at 7.5 %: ≈ €21,635
• Total acquisition cost: 288,460 + 21,635 ≈ €310,095

Gross saving from buying from a private seller: 321,635 − 310,095 ≈ €11,540, exactly the agency fee you avoided.

Over 20 years, at a 3.6 % mortgage rate, borrowing €11,540 less cuts your monthly payment by roughly €65 and lowers total interest paid. You can invest that money at an investment rate of 3–5 % (for instance via ETFs), which materially affects the buy or rent comparison.

2.2. Extra negotiation room

Without an agent, the seller also saves the commission. Two situations:

• The seller keeps the full benefit and sets a high asking price.
• The seller agrees to share part of the saving with you.

For example, if agency fees would have been €12,000, you might negotiate a €6,000 price reduction. Your montant_fa drops to zero and your total cost still goes down. That reduction improves the outcome compared with continuing to rent and investing your savings.

2.3. Sometimes a faster process

Without an intermediary, you talk directly to the seller:

• More flexible viewing times
• Direct negotiation on price and conditions (repairs, fixtures, completion date)
• Less filtered information

In a market where mortgage rates can move quickly, shaving a few weeks off the process can lock in a better rate, which significantly changes the buy or rent calculation.

3. The risks and hidden costs of buying from a private seller

3.1. Asking prices are not always cheaper

Many private sellers think: “No agent, so I keep the commission.” As a result:

• Asking prices can be similar to typical ‘agency‑included’ prices in the area
• Negotiation room is sometimes limited

In that case, your montant_fa is €0… but you are effectively overpaying compared with a well‑negotiated purchase via an agent. Focusing only on fees and not on the total price can distort your view when you compare buy or rent.

3.2. Legal and technical risk

Without an intermediary, you must be extra careful about:

• Mandatory reports (energy rating, asbestos, lead, electrical safety, etc.)
• Legal issues (easements, shared ownership rules, planning regulations)
• Renovation cost (roof, heating system, insulation, windows…)

Underestimating renovation costs can be far more expensive than the agency fees you saved. Example:

• You save €10,000 of montant_fa
• But after completion you discover €25,000 of structural repairs that you had not budgeted

Net result: you are €15,000 worse off, on top of the time and stress. In a long‑term buy or rent comparison, these unplanned works can make renting financially superior for several years.

3.3. Time and skills required

An agent charges a commission but usually handles:

• Marketing and advertising the property
• Screening calls and organising viewings
• Collecting documents and basic checks
• Coordinating with the notary or closing attorney

When you buy from a private seller, you must compensate with:

• More time for research, viewings and discussions
• More checks (planning rules, building management, service charges, property tax, etc.)

This “time cost” does not show up in the montant_fa parameter, but it is real. It can also delay the purchase, extending the period during which you pay rent that increases according to an index such as the French IRL.

4. How does montant_fa affect the buy or rent decision?

4.1. Buying with an agent vs from a private seller

Imagine you are hesitating between:

• Continuing to rent a flat for €1,000 per month, with annual rent increases of 2 %
• Buying the same flat, either via an agent or from a private seller

Simplified assumptions:

• Net seller price: €250,000
• Agency fees (montant_fa): €10,000 (4 %)
• Notary fees: 7.5 % on the price excluding agency fees
• Loan rate: 3.6 % over 20 years
• Borrower insurance: 0.30 %
• Property tax: €1,200 per year, +2 % annually
• Investment rate on your savings if you keep renting: 4 % per year
• Annual inflation: 2.5 %

Scenario A: buy with an agent

• montant_fa: €10,000
• Total acquisition cost (excluding interest): 250,000 + 10,000 + 18,750 ≈ €278,750

Scenario B: buy from a private seller

• montant_fa: €0
• Purchase price: €250,000 (seller agrees)
• Notary fees: €18,750
• Total acquisition cost: €268,750

You save €10,000 up‑front. If you invest that €10,000 at 4 % per year, after 10 years you end up with roughly €14,800. This extra capital can offset part of your property tax and maintenance costs as an owner, which you wouldn’t pay as a tenant.

This is exactly the kind of scenario you can model with the buy-or-rent.net / acheter-ou-louer.com simulator by adjusting the montant_fa parameter between a “with agent” and a “private seller” purchase.

5. Should you always aim for montant_fa = 0?

5.1. When agency fees can be worth paying

Paying agency fees can still be rational if:

• The agent secures a purchase price well below what the seller would have accepted in a private sale
• The agent reduces legal and technical risks through better due diligence
• The agent spots issues (major repairs, weak building finances, legal disputes) that help you avoid a bad deal

Example: the agent negotiates the property €15,000 below the price the seller wanted privately, for €10,000 in fees. You are still €5,000 better off overall. In that situation, a positive montant_fa actually improves your outcome compared with a poorly negotiated private purchase.

5.2. When it makes sense to minimise montant_fa

Cutting agency fees to a minimum is particularly attractive if:

• You already know the local market and have time to search
• You are comfortable with basic legal and technical checks
• The market has plenty of private listings

Then, simulating a montant_fa close to €0 in the buy or rent calculator shows the potential financial benefit of this approach compared with long‑term renting and investing your capital.

6. Practical tips to make a private‑seller purchase safer

6.1. Structure your negotiation

• Compare the price per square metre with several recent sales nearby
• Explicitly factor in the agency fee saving you bring to the seller when making your offer
• Include clear contingencies in the contract (financing, absence of major legal or structural issues)

6.2. Still use professionals where it matters

Even without an agent, you can and should:

• Work with a notary or closing attorney (often one for each party at no extra global cost)
• Hire a building surveyor or engineer to estimate renovation costs
• Talk to a mortgage broker to optimise your loan rate and insurance

These costs are usually small compared with the agency fees you may have saved, and they substantially reduce the risk that could otherwise tilt the buy or rent balance in favour of renting.

7. Private seller vs agent: why simulation matters

The key question is not just “how much do I save on agency fees?” but rather:

• What is the total cost difference between:
• Staying a tenant (with rent indexed to inflation, and your savings invested)
• Buying with an agent (montant_fa > 0)
• Buying from a private seller (montant_fa ≈ 0)

The buy-or-rent.net / acheter-ou-louer.com simulator lets you play with:

• montant_fa (agency fees saved or not)
• Loan rate and insurance rate
• Investment rate on your savings if you rent
• Annual inflation and property tax increases
• Renovation cost after purchase

Combining these parameters quickly shows that there is no universal answer to the buy or rent question. The right choice depends on your time horizon, risk tolerance, savings capacity and local market conditions.

Conclusion: buying from a private seller can be great – with the right numbers

Buying directly from a private seller, without an intermediary, can be a powerful way to reduce montant_fa and your overall acquisition cost. But this saving is only meaningful if:

• The final price really reflects the agency fee you helped to avoid
• You keep legal, technical and renovation risks under control
• You objectively compare this option with renting and investing your capital

The best approach is to quantify each scenario with a dedicated tool. Test different assumptions for montant_fa (€0, €5,000, €10,000…), with and without an agent, and compare them with renting over 10, 15 or 20 years.

To clarify your own buy or rent decision and measure the real impact of buying from a private seller, simulate your situation on buy-or-rent.net.