What Is Real Estate Agent's %Age Share In A Deal (Islamabad)?

Buying Property Buying Process
#1

Dear all,

I am in process of making a deal with an estate agent in Soan Garden Islamabad. The plot size is 35 x 64 and the deal is final in 30 lac. I am going to pay money this week.

The agent said, I have to give him 60 thousand? It is 2% of the land. As per my impression the %age should be 1%?

One more agent told me for smaller plots (less than 30-40 lac), we charge 2%, and for big plots (1 Kanal, 1 Crore etc), we charge 1%.

How can I know that it is 1% or 2%? Does the society office has this info?

Thanks a lot, Slaam

Dr. Musi

#2

The standard commission rate is 1%, u should have agreed with ur agent before making the deal. Most of the agents make their margin in the deal also beside commission.

#3

1% is the fixed rate.No matter how big or small the deal is…No body charges 2%…

#4

Society has nothing to do with it. He is mis guiding you, some dealers rip people where ever they can. Commission must be 1 percent whether it is a deal of 1000 or 1 crore in Islamabad and most of the Pakistan, so give him only 1 percent.

#5

Its always 1% and if the dealers is charging more than its his responsibility to let you know in advance that he will charge 2%.that responsibility relies on him because he is the one providing the services not you.

#6

It depends really, some dealers take advantage if they think your a foreign investors. I had a similar issue many years ago, but after years of experience I agree with the above members that the agent should charge a fix fee regardless of the society. It is commonly 1% of property value. Some brokers I have used charged me a fix fee for example: 20 thousand rupees regardless of price of plot, whether I buy or sell from them, it was for each transaction, plot value I sold was 47 lakhs. So its worth it if I buy or sell something expensive.

My advice is that you should do your homework before investing Dr Musi, you should have asked a couple of other estate agents before making the deal. But its a good deal though for your plot, its reasonable rate for market value.

#7

Just to clarify i am told that sometime 5 or 10 people claim to be owner of same plot which u have paid money for . All of them have paper and so so. How true is it?

#8

@All, Thanks a lot for valuable suggestion. I am new to Pakistan, been to UK for very long, and I was assuming that people are fair here according to set rules. The agent never told me he will charge me 2%, and I was assuming it is 1% as standard. He told this thing to my brother and I will ask agent again. The worse thing is that, I have already paid Bayana (2 lakh)

@Sheikh I surveyed a lot about soan garden and the price was consistent. The plot is at really good location and for building house, I am satisfied as the location is great. People might say it is a bit expensive, but my survey say, it is not. I will not pay him 60K, it is for sure, as I will be the person paying and transferring plot on my name and he never told me that he will charge 60K; (he said this to my dad).

Block E, Street 1A, Plot no 38-A

Thanks a lot guys

#9

You could have tried H block ext which is 5 mins walk from the highway and you can get a plot for around 22 lacs for 10 marlas

#10

True, but at the moment, H block is lacking facilities. But I have an eye in H block for future as well.

#11

I think H block has got potential to grow just because of its location

#12

1% is the general commission rate here in Islamabad. Unless you buy a plot of 5 lacs and the dealer normally asks normally for 10K commission. As a rule of thumb, one should agree with the dealer on commission before making any deal.

Regards

#13

Dear Dr Musi standard commission is one percent (residential property), we already discussed in another post few months ago commission should be decide before the deal dealers betray innocent buyers specially overseas buyers

#14

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#15

Well…would u like to pay 1 lac to the dealer …if the deal is done in 10 million??? i think 1% formula doesn’t work all the time…u have to be wise enough to decide the commission of the dealer …before finalizing the deal.

#16

Thanks everyone,

I know I was a bit stupid not to negotiate with dealer before I paid bayana of 2.5 lak.

Afterwards, I realized he is overcharging, but I dont want to loose the plot. At the end, I negotiated very hard and ended up paying 1.33% which means a loss of 0.33% (10 thousands in my case) .... But I learned from it!

@Blue Doctor I think Blue Doctor 's opinion is very valid. It is unwise to pay 1% for 10 Million property!

@Syed Ibrahim Why there is no standard set up by CDA etc, so If some dealer is overcharging, we can legally sue them?

#17

Dear blue doctor on 10 million whats ur opinion how much u have to pay to dealer? dear dr musi i agree there should be an implement, laws are there but not any implement ,, people try to avoid courts

#18

Ibrahim sab…in my personal opinion max 0.5 % commission may be paid to the dealer for a deal of 10 million and plus.

#19

Dear Bluedoctor:

you are right, but one lac is not that much high amount as you know. 10 million deals are not that easy to make too frequently.

Regards

#20

AOA, if its a small deal than your willing to pay 1% and if its a big deal than you are willing to pay o.5% so basically we are doing the same as property dealer so either you have a law of 1% or you dont than either side can demand any percentage. The law is made not to benefit any one but to be fair.

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