Recently, we have all seen agencies advertising services at “1% + VAT." However, it is important for sellers and buyers alike to fully understand how these fee structures can sometimes work in practice. In many cases, the agency may also charge the buyer an additional 1% + VAT, and occasionally further administrative fees. This effectively means the total commission can amount to 2% + VAT, despite the marketing suggesting otherwise.

The concern is not only about the amount charged, but also about transparency. Buyers are often informed of these additional fees only after viewing a property, which can create frustration and impact negotiations. Naturally, buyers may then try to reduce their offer to compensate for these unexpected costs, which can ultimately affect the seller's final sale price.

The Valencian Government has already introduced regulations requiring agency fees to be clearly disclosed in property advertising, and this is expected to be more actively enforced moving forward. This is a positive step toward creating a more transparent and professional marketplace for everyone involved.

Another important aspect is collaboration between agencies. In many cases, agencies working under these fee models do not facilitate standard collaboration practices with other reputable agencies, which can significantly reduce a property's exposure to qualified buyers. Limiting collaboration can ultimately slow down the sales process in a market that is already showing signs of adjustment during the first half of 2026, despite continued increases in property prices in some sectors.

As professionals, we all have a responsibility to ensure that buyers and sellers clearly understand the services being offered, the fees involved, and the overall process from the very beginning. Transparency, honesty, and collaboration remain the foundations of a healthy and successful real estate market