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How much does a real estate agent get in commission?
Real estate agents, also referred to as real estate brokers, charge commission for connecting buyers with sellers and tenants with landowners. An agent gets commission from their client, who is either a seller, a buyer, a landowner, or a tenant. However, if an agent deals with both parties to broker a deal, both parties are liable to pay commission to the agent.
Let’s look at the percentage of commission that an agent gets for providing their services in Pakistan.
Find the best real estate agents. Free service. Personal recommendations.Commission on sale/purchase deal
The percentage of commission that an agent gets in property sale/purchase deals remains mostly in the air and there are no hard-and-fast rules. Some say that the broker’s commission is 2 per cent of the property price decided between buyer and seller. However, our research has unveiled that agents mostly get 1 per cent commission when they close a sale/purchase deal. Buyers and sellers expect negotiation on even that 1 per cent of commission.
Commission on rental deal
In case of rental property, an agent’s commission varies for residential and commercial properties. When an agent successfully closes a residential rental property deal, they get one-half of a month’s rent as commission. However, in case of commercial property, agent’s commission is equal to a month’s rent.
Variation in commission percentage
There is no particular rule that defines the percentage of commission a real estate broker is entitled to earn upon successfully closing a deal, which is why it varies from one area to another. Plus, there is a lot of impact of negotiation on the percentage of commission that an agent gets.
If you are an agent and have faced the same issues I have highlighted here, share your experience with us in the comments section below.
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About the Author: Zain Nadeem
19 Responses to How much does a real estate agent get in commission?
Paying the commission is okay and both seller and buyer pay it happily upon successful deal but what about the amount the agent grab other than commission in almost every deal and that amount is much bigger than the commission. Will you please throw light on this aspect and also advise the clients how to avoid paying that additional amount which is included in the sale price but goes to the agent.
Great article! When selecting a real estate agent, it’s important to consider the experience level, success rate, and credentials instead of just choosing the lowest commission rate. Thanks so much for sharing!
good information here thanks for sharing
Paying the commission is okay and both seller and buyer pay it happily upon successful deal but what about the amount the agent grab other than commission in almost every deal and that amount is much bigger than the commission. Will you please throw light on this aspect and also advise the clients how to avoid paying that additional amount which is included in the sale price but goes to the agent.
Hello, how much an agent should charge commission to their investors?
Hi i m state agent i do well but some time both parties deal directly even i worked hard offer for deal visits the site but they cheat me and dont give my comission.is there any law or roles plz tell me ….
Make sure you get enough evidence of your step by step services given. Next you engage a lawyer and file a petition against this inhumane practice.
Drag them to the court.
I want to ask one thing. I has taken a house in peshawar on rent from a state agent. the rent is 30000. he took 25000 as commision. Now when every thing is done. i paid security and one month advance rent and his commision, he is saying that they have rule that they take half rent yearly as a commision for rental. is it just or ethical by any means. Because commision is for intriducing two parties for rental and it is for one time. I did not seek such thing any where in pakistan. I lived in lahore for 3 years and before in karachi on rent but never heard of this bull shit.
Good Topic for those who wants to buy,purchase or sale house , shops, building etc.
But some facts are very important for buyers and sellers.
Always deal the through realestate agent. why? he knows market well, he knows the documentation of house shop etc. he knows owner etc.
When you are going to finalize your deal, met direct to concerned and pay and get sign thumb etc in presence.
As far as estate agent comission is concerned,
For house/flat sale purchase in CDA sectors is 01 percent from each party.
For house/flat rental comission will be half of one month rent from each party.
For shop / building /comercial property sale purchase is 02 percent from each party.
For shop / building/comercial property rental comission will be one month rent from each party.
The issue of brokerage fees is always a thorny issue when it comes to land dealings.The best way for an agent is to get the commission from the seller after the deal goes through.Its not ethical to have it two ways-from the seller and buyer at a go.if the commission is to come from the buyer it is when you had been contracted earlier and you had an agreement beforehand.
any thing sales or purchase in rawalpindi islamabad contact 03455574209
for sales purchase
No brother. No law on this currently being applied to.
Any property sales or purchase in Sialkot contact 0302 6132 711.
this is as WHOLE FRAUD NATION
what about the responsibilities of a dealer in case of a fradulant or bad property sold to the buyer? When a dealer fixes his commission doesn’t he be liable and/or responsible for a bad deal?
Sales, purchase and rental of plots, commercial, shops, building, house, apartments in karachi contact : zohaib 0313-2916241
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