Searching for a new home can be a tiresome process, especially if you have incomplete information about the property market where you desire to rent or invest. In this blog, we shall give you an update on the ongoing rate of commission of real estate agents on property deals that takes place in the country.
Property agents, also known as brokers, usually charge a commission for facilitating a property deal by connecting buyers with sellers and tenants with landowners. After all, they help you find a property that fits your budget and suits your needs, which can be a daunting task for many first-time clients, who could be a seller, a buyer, a landowner, or a tenant. If a real estate agent deals with two parties to broker a deal, both are liable to pay commission to the agent; however, this can vary if the concerned parties have agreed upon a different set of conditions before deal takes place.
Let’s take a look at the percentage of commission of real estate agents for providing their services in Pakistan in the light of different scenarios.
Commission on Sale/Purchase Deal
For Islamabad:
The rate of commission that an agent gets in property sale/purchase deals for residential properties in Islamabad usually hovers around 1 percent of the final property price. Similarly, in some situations, based on a mutual understanding of the concerned parties, the rate of property agent’s commission is set anywhere between 1-2 percent of the property price. However, in most cases where realty deals involve commercial properties, the amount of commission can go up to 2 percent of the total property value.
For Lahore:
In the real estate market of Lahore, it’s been observed that the rate of commission of real estate agents on residential property sale/purchase deals is around 0.5 to 2 percent of the decided property price depending on its type. However, in the majority of cases the commission amount collected by property agents in Lahore is kept at 1 percent of the total property value.
For Karachi:
The case of Karachi is a bit different from the aforementioned cities. The real estate agents in this city get 2 percent of the total property price as commission amount in sale/purchase property deals, if the value of a property is under PKR 1 crore. However, if its value significantly goes over PKR 1 crore, than the rate of commission of a real estate agent is set anywhere between 1 and 2 percent. This practice is observed in a majority of the cases involving sale and purchase of properties in Karachi.
Commission on Rental Deal
For Islamabad:
The percentage of commission that an agent gets on closing a rental deal in Islamabad is half of one month’s rent. However, some also rake in a full month’s rent; it mostly depends on the type of property and mutual agreement between the client and agent.
For Lahore:
It’s a common observation that upon closing a rental deal in Lahore, the commission of real estate agents is one month’s rent. The amount is split based on the terms and conditions of the agreement struck between the concerned parties. Furthermore, in some cases pertaining to rental property deals in Lahore, the commission varies between half month’s and full month’s rent, however, again, it depends on the terms agreed upon by the agent, tenant and/or landlord.
For Karachi:
Be it a posh locality or an affordable neighbourhood, the modus operandi of agents to get their commission on rental deals is more or less uniform across the City of Lights. Usually, the commision of a property agent on a rental deal is a month’s rent of that particular property, which is paid by both tenants and landlords separately. There is one exception, though. It’s been observed that in the area of Gulshan-e-Iqbal Karachi, property agents charge one month’s property rent as commision only from tenants. However, it might not always be the case and the situation may vary, depending on the terms of agreement between the real estate agent and tenant/landlord of the property.
Meanwhile, if you are also planning to go for a property hunt, then take a look at these tips to find the best real estate agent that will assist you in closing a perfect deal and also beware of these six most common property frauds in Pakistan.
Have any questions regarding our topic? Let us know by leaving us an email at blog@zameen.com. For more informational updates regarding the real estate trends across the country, subscribe to Pakistan’s best property blog.
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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?
e.g 2% or 25%? Or???
Thanks
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.
Hi all,
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
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
Assalam u Alaikum!
Very Simple and informative article, i am also real Estate Agent,i read most of the comments and would like to clear that an agent must be Honest to his field and Customers Because cheeting or Fraud to any person is not allowd in our religion,ISLAM nor ethically as a nation.Also i want to say that the clients whether seller or buyer should pay his/her right of 1% according to the decided price between seller & Buyer.After all its Long Term relationship and Long term Business.
Thanks
Adnan
yar koi mjy files ki booking pr jo percentage hoti ha ous ka smja dia or rebate kya hoti ha?