All About Real Estate Commissions & Real Estate Service Charges

Real Estate commissions are service charges that a real estate agent or broker charge

for assisting you in buying, selling or renting a property, and thats the main source of their income. Normally, a real estate agent will talk of these commission rates as a fixed percentage of the whole amount. In reality, these commission rates are not fixed and you can (in fact you should) negotiate and reach a deal before you finally hire an agent. To know what the average commission rate is in the market, you must consult a number of real estate agents and compare their services because at times real estate agents refuse to offer some specific services, when they are working on a reduced commission rate. Therefore, when youre fixing the commission, you should ask the agent to provide you with a list of services that you can expect to get in this fee.

Do you really need a real estate agent?

Even before you go out searching for a real estate agent, make sure you really need one. For example, if you are hiring them solely for property search or you want them to show you available homes for sale or rent, you can easily do it yourself, as a number of websites now offer free property listings for almost all cities in the world. You can just search for the property with your required specification and contact the property owner directly. Similarly, if you are looking for an agent to sell your property, you can try doing it yourself by placing an ad in those property portals. That doesnt imply that real estate agents are of no use, its just that you dont always need to hire a full-service agent all the time.

Normally real estate agents ask for a specific percentage as their commission; however there are companies who demand a flat rate. You can make a choice between both of these options if youve got a clear idea of the amount that will be involved. Do not make huge upfront payments or youll be stuck with that agent for a long time even if he/she fails to deliver, and always check for the real estate license issued by the concerned authorities before making any sort of payment. The situation of the market also affects the rate of commission, if the market is slow then you may get a real estate agent at lower commission rates, if there are lots of transactions taking place, you may find it hard to hire an experienced real estate agent at low rates.

by: William

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