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Critically, Irish, European, and UK estate agents don’t handle any legal paperwork or processes.  

“At that stage, you engage a solicitor,” said Dempsey. And that’s when most property transactions grind to a crawl. Because there are very few dedicated real estate solicitors in Ireland, many juggle property transactions within a general practice that includes divorces (which can be a decade-long odyssey in a nation that frowns on marital dissolution), lawsuits, wills, contracts, and all manner of legal errata. 

“There’s a lot of property transactions, some 40,000 in Ireland last year,” Dempsey continued. “The problem is that solicitors are handling so many diverse legal cases, they’re jacks of all trades and masters of none.” Yet in a country with such ancient roots, property law often requires tenacity and focus. Title and deed searches, which lie at the heart of conveying properties, often resemble archaeological digs. Solicitors sift through thick stacks of documents, some dating back 300 or 400 years. Borders drawn on antique land registry maps sometimes conflict with modern digital survey maps. And the language in deeds from many decades ago might not conform to contemporary legal standards. There are similar issues in the UK and on the Continent. 

“If your solicitor dedicated their time exclusively to your sale, it would be a much more fluid and quicker process,” Dempsey noted. Eventually, when the title searches are complete, and the voluminous Irish Law Society’s Pre-Contract Questionnaire and Legal Seller’s Pack are buttoned up, the seller is ready to start fielding offers. From start to finish, an Irish property transaction averages 7 months. 

And of course, legal services are not free. Solicitors typically charge 0.5% of the total sales price. So, for an average-priced home in Dublin selling for around €532,000, the cost is roughly €2,700 ($3,000). Further, this service is taxed at 23%, as is the estate agent’s 1.5% commission. The total price tag is approximately €13,321 or $14,463.28. A comparably priced Minnesotan home—$578,000—would cost the seller $34,680 after paying a 6% commission split between the listing agent and the buyer’s agent. So, while there’s little doubt the European model saves sellers money at the closing table, how many Americans would be pleased with a 7-plus month closing timeline?  

Buying a home in a land without buyer agents

Could it work in the United States? Before considering that, we need to look at the experience of most European and Commonwealth home buyers. As in the United States, buyers encounter properties in several ways, from websites like My Home and DAFT in Ireland or Rightmove and Zoopla in the UK, as well as print and online ads, and traditional lawn signs. When they’re ready to start touring homes (prep includes qualifying for a mortgage), they contact the home-seller’s brokerage. From there, the estate agent arranges showings. If a buyer wants to bid on a property, they’re entering unfamiliar territory—especially if they’re first-time homebuyers. 

Typically, European and UK buyers must take on much of the work that US buyer’s agents provide clients as a matter of course. This includes researching what similar properties have sold for recently; grilling the estate agent about the seller’s situation and motivation; and later, haggling and negotiating. 

In the UK and Europe, many buyers write their own offers, sending an email to the seller’s agent. Some buyers outsource this piece of the transaction to their solicitors (and in Scotland, all bids must be made by solicitors). Some unscrupulous agents will try to inflate offers by claiming a bidding war is under way. Less savvy buyers can be hooked into making offers that exceed the property’s market value. That’s why buyers are encouraged to hire a solicitor who can request proof of competing bids.  

In the UK, a seller can accept a buyer’s offer but reject it without penalty if a better offer comes along. This perfectly legal practice is called “gazumping” and is the bane of many buyers. However, if all goes well, an offer is followed by a formal letter of acceptance from the estate agent. This takes the home off the market, quelling fears of gazumping.  

With this valuable document in hand, the buyer can hire a solicitor to draw up a contract. Similarly, the seller’s solicitor writes a contract. Eventually, in about 4 to 12 weeks (but often longer) contracts are exchanged and negotiations begin in earnest. Key elements include agreed-on price, mortgage details, contingencies, disclosure of material facts, and a closing date. Many buyers factor in inspections (aka “surveys”), which in the UK cost anywhere from £250 to £600 pounds ($320 to $770) depending on the extent of survey. In Ireland, homebuyers can expect to pay their solicitors about €1,500 to €3,000 Euros plus the standard 23% value-added tax (VAT). This is an average, of course. Simpler transactions can be considerably cheaper. In the UK, solicitor costs are about the same, £1,500 pounds ($2,000).

In summary, buyers in Europe and the UK do more work purchasing their homes, are at greater risk of being manipulated into paying higher prices and endure transactions that can stretch out six months or more before closing.  

Selling the Irish on the U.S. way of real estate

Another critical component the US real estate model offers is speed and efficiency, Dempsey observed. In fact, during his time serving as president of the Institute of Professional Auctioneers & Valuers (IPAV) in 2017, he worked with NAR and Chicago’s Mainstreet Organization of Realtors® to promote US real estate practices in Ireland. 

“We told Irish agents that if they began representing buyers, instead of worrying about the inventory they have on their books, they could look at everyone else’s inventory and say, ‘I can bring a buyer to that. I have the people who want to buy a property.’ They could expand their businesses. They could expand everyone’s businesses.”  

Working with Claire Killen, an Irish native and Minneapolis-based Realtor® who is also an NAR liaison to Ireland, Dempsey tried to sell the model to Irish estate agents. The reception was skeptical at best. Already claiming much lower commissions than their US colleagues, Irish estate agents were emphatically against shaving any Euros to pay a buyer’s agent. 

 “’We’re not willing to split it.’ That was the immediate response every single time we talked about the US model with Irish agents,” Dempsey said. No one was willing to explore variations or adaptations. The current model worked for them and had worked for generations of agents going back as long as anyone could remember. The NAR matter was a dead letter. And that was before the antitrust lawsuit stole the headlines. 

A future for Realtors® in the Emerald Isles?

Despite the reaction, there may be another way forward for buyer’s agents in Ireland. And perhaps it could also work for Realtors® this side of the pond in a post-NAR-settlement world.  

“Five years ago, there were one or two buyer’s agents in Ireland. Now there’s a dozen—maybe 15,” Dempsey said. “Now that’s not a lot—two hands and a foot full. But they’re making an income; they’re making a living. And estate agents are noticing, so that’s a start.” He notes that many seller’s agents already invest time in advising their clients about upcoming home purchases, offering guidance on market values and price, and pointing out “red flags” about properties they are interested in. 

“People are beginning to see the benefits of having representation and that’s why buyer’s agents are becoming more popular now,” Dempsey added. 

Like US Realtors®, Irish buyer’s agents consult with clients to learn their budget, lifestyle, work, and school requirements, locations, and types of properties. Then, they launch into property searches tailored to those specifications. They can also negotiate the sale and stick with the buyer all the way to the closing table. Unlike US Realtors®, however, Irish agents offer a menu of services that buyers can purchase selectively. 

Are US buyers, long accustomed to having their agent’s commission covered by the listing agent, ready to shell out cash? Currently, the court of public opinion is not favorable. Still, most consumers have never represented themselves in a real estate transaction. And those that try quickly find the process far more complex, time consuming, and expensive than they imagined. The cost of writing up contracts alone is exorbitant. Most Minnesotan real estate attorneys charge from $150 to $400 an hour—far more than humble Irish solicitors. 

It could be that as the costs of unrepresented homebuying become more apparent, consumers will begin to understand the value of an experienced and ethical buyer’s Realtor®.  

“A good buyer’s agent is not only good for the buyer, but the seller, too,” said Dempsey. “They’ve checked proof of funds and performance. They can help clear hurdles so we’re not doing our jobs twice. And that’s worth something. There’s real value there.” 

United States vs. Ireland

Comparative Costs for Real Estate Transactions 

Note: Rates in the Republic of Ireland, which is part of the European Union, are comparable to those in Continental Europe, and the United Kingdom. Calculated from cost of average home in Dublin. All currency converted to US dollars. Based on June 2024 exchange rate. 

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