Have you ever wondered how much a real estate agent makes per sale? Or how do they get paid? Well, in this blog, we will provide you with an update on the current Real Estate Agent’s Commission rates in Pakistan for all transactions involving real estate in Pakistan.
Buying, selling, or renting your property is a tiresome process, from finding a suitable place as per your expectations to finding a property that matches your affordability can be a daunting task and you will eventually need a licensed real estate agent who can help you with the entire purchase/sale process.
For finalizing the deals between sellers with buyers and tenants with landlords they charge a fee (i.e. commission). The commission is a certain percentage of a property’s selling price.
Read: How To Deal With Real Estate Agents When Buying
Real Estate Agent’s Commission in Pakistan
Estate agents also known as brokers receive commissions from both the buyers and the sellers. The commission on sale/purchase may vary from city to city. The fees associated with sales or purchases are distinct from those associated with rentals.
1. Estate agents’ commission on sale/purchase
The commissions for an estate agent’s services are different for residential and commercial properties. Below, we’ve discussed the percentage of commission in three main cities for a clearer understanding:
i. In Islamabad
For residential: A real estate agent in Islamabad gets a 1% commission on the selling price of a residential property. However, the commission is negotiable with the mutual understanding of both parties and can be more than 1 percent.
For commercial: The commission for a commercial property can go up to 2% of the total value of the property in Islamabad.
ii. In Lahore
For residential: In Lahore’s real estate market the commission of a residential property is nearly the same as Islamabad’s. the commission percent can be set anywhere between 0.5-2% of the property value.
For commercial: The commission rate for commercial properties is negotiable between 1-2% of the property but in most cases, it hovers around 1%.
iii. In Karachi
For residential: The commission of real estate agents in Karachi depends on the selling price of the property the higher the selling price, the higher will be the commission as per the mutual understanding of both parties.
Usually, it hovers around 1-2% of the property but if the property value is up to 1 crore then the commission will be 2%.
For commercial: The same practice is being observed for commercial properties in
Karachi involves sale and purchase.
Read: Pros And Cons Of Renting A House
2. Estate Agents’ commission on Rental
The commission for rental properties is different in Pakistan. Below, we’ve discussed the percentage of commission in three main cities for a clearer understanding:
i. In Islamabad
For residential: Typically, the proportion is equal to half of the first month’s rent. In some cases, agents often request the entire month’s rent as well.
The commission on a rental property is taken from both tenant and the landlord.
For commercial: The commission for commercial properties is one month’s rent from both the tenant and the landlord. So, an agent gets 2 months’ rent after finalizing a rental deal.
ii. In Lahore
For residential: The commission a real estate agent gets in this city is comparatively the same as in Islamabad. After the deal is finalized, the agent gets 1 month’s rent in total from the tenant and landlord.
For commercial: A real estate agent gets 2 months’ rent from both parties after finalizing the deal.
iii. In Karachi
The strategy used by agents to earn their commission on rental sales is largely the same throughout the City of Lights, regardless of whether the neighborhood is upscale or affordable.
Typically, a property agent’s commission on a rental contract is equal to one month’s rent for that specific property, which is paid separately by both landlords and tenants.
Real estate agents are typically used by both buyers and sellers. Agents are compensated for their efforts with a commission, which is a set proportion of the sale price.
Although the commission is often the responsibility of the seller, it is normally taken into account when determining the home’s listed price. Remember that commissions can always be negotiated.
We suggest you discuss the commission in advance and connect with an online property broker agency that can help you find an agent tailored according to your needs.
Read: 5 Tips While Buying A House For Large Families In Pakistan
FAQs
How do real estate agents get paid?
They make money through commissions after a successful deal from sellers and buyers.
What percentage do most real estate agents get for residential property?
An estate agent gets 1% of the selling price for residential properties.
What percentage do most real estate agents get for commercial property?
An estate agent gets 2% of the selling price for commercial properties.
What percentage do most real estate agents get for rental commercial property?
An estate agent gets 2 months’ rent from both the tenant and landlord for commercial properties.
What percentage do most real estate agents get for rental residential property?
An estate agent gets 1 month’s rent from both the tenant and landlord for residential properties.
Is 1% a good real estate agent fee?
Yes, it is an affordable amount the real estate agent charge for their services.
