In this article, we’ll look at the two main systems – the UK model and the European model – and then explain how Gibraltar has ended up with a hybrid that unfortunately takes the weaker elements of each. Finally, we’ll show how Richardsons’ approach delivers better outcomes by focusing on efficiency, marketing, and dedicated representation.
The UK Model – Seller Pays for Selling, Buyer Pays for Buying
In the UK, the system is straightforward. The seller hires an estate agent to market and sell their property. In return, the seller pays a commission – usually 2–3% of the sale price.
That fee covers only the selling agent’s services. The buyer does not automatically have an agent working on their behalf. If a buyer wants a professional to represent them – someone to search the market, negotiate, and manage the purchase – they are free to instruct a buying agent. But crucially, they pay that buying agent themselves, usually 2–3%.
The result? Both sides can choose full representation if they want it, but each pays for their own service. The seller pays their agent to maximise their sale, and the buyer pays their agent if they want help with the purchase. Each client funds their own professional, and the fee structure is transparent and fair.
The European Model - Seller Pays for Both Sides
On the continent, things look very different. There, the assumption is that every transaction involves two agents – a selling agent and a buying agent.
At first glance, this seems similar to the UK when a buyer chooses to hire representation. But the crucial difference lies in who pays. In Europe, the seller pays for both. The commission is typically 4–6% – double the UK rate – and it is understood from the outset that this higher fee will be split between the selling agent and the buying agent.
This split ensures both sides are compensated: the selling agent for marketing and securing buyers, and the buying agent for representing their client’s interests. From the buyer’s perspective, this looks appealing: they get professional representation without directly paying for it. But from the seller’s perspective, they shoulder the full cost, paying double what they would in the UK.
In other words, the only reason European fees are higher is because they are funding two professionals instead of one.
Gibraltar’s Hybrid – The Worst of Both Worlds
In Gibraltar, the system has evolved into an unusual hybrid. On paper, the commission levels look like the UK’s: sellers are typically charged 2–3%. But in practice, many agencies then split this fee with buying agents – who, unlike in the UK, often do not charge their buyers anything for their services.
The problem is obvious. Instead of having a larger European-style fee pool to split, or a clear UK-style system where buyers pay their own agent, Gibraltar agents end up dividing a much smaller fee. This dilutes the resources any single agent can allocate to a property.
A 2% commission in Gibraltar that is split between two agencies is not equivalent to the 4–6% fee split in Europe. It is half the money attempting to do the same job – meaning less investment in marketing, less time devoted to each listing, and a weaker incentive for agents to push hard for the best result.
In short, Gibraltar has inherited the higher cooperation demands of Europe, but stuck with the lower fee base of the UK. This is why sellers often experience an underwhelming service despite paying what seems like a fair rate.
Ultimately everyone loses.
The Richardson’s Difference – Dedicated, Invested, and Focused
At Richardsons, we believe this hybrid approach undermines sellers and weakens the professionalism of the market. That is why we have made a conscious decision to work differently.
Generally speaking, we do not act as sub-agents and we do not split commissions in a way that reduces our ability to serve our clients. Instead, we represent our sellers fully and exclusively. When you instruct us, you know that every pound of our commission is invested into selling your property – not diluted across multiple agents who may or may not prioritise your listing.
This means we can:
Invest properly in marketing and advertising – from high-quality photography and floorplans to targeted digital campaigns and print media.
Devote more time to each property – because we don’t spread ourselves thin with hundreds of listings, we can create bespoke strategies for each client.
Focus on results, not volume – by limiting our portfolio, we ensure every property gets the attention it deserves.
We see ourselves as partners with our sellers, not just middlemen. Our role is to maximise the value of your property and deliver a seamless sales experience, not to dilute our efforts through inefficient commission splits.
Why This Matters for Sellers
At first glance, the differences in commission structures might look like a technical detail. But in reality, they have a direct impact on sellers’ outcomes.
In the UK, sellers pay less, but buyers who want representation pay for it themselves. This keeps the system efficient and ensures clarity of responsibility.
In Europe, sellers pay more because they are effectively paying for both sides. The higher cost funds cooperation and buyer representation.
In Gibraltar, sellers pay the UK-level fee but agents often try to split it as if it were a European-level commission. This leaves everyone underfunded and the seller under-served.
Richardsons avoids this trap by staying true to one simple principle: we represent our sellers, and we do it properly. By retaining our full commission, we can invest more into marketing, dedicate more time to our listings, and ultimately achieve better results for our clients.
Conclusion
The differences between UK and European property markets come down to one key question: who pays for the buyer’s agent? In the UK, the buyer pays if they want one. In Europe, the seller pays for both sides, which is why fees are double.
In Gibraltar, however, we have drifted into an inefficient middle ground: low UK-level commissions, split like European ones. The result is weaker service and diluted effort.
At Richardsons, we reject that compromise. We choose to represent our sellers properly, without sub-agency splits, so we can commit the right time, energy, and marketing investment into every property. The result is clear: fewer listings, better marketing, stronger focus – and the best possible outcome for our clients.