The structure of commission is not very clear amongst most buyers and sellers. If you are a buyer or a seller at Sobha International City, it is important you understand how the commission works. You need o remember that agents usually generate income on the basis of cooperation. Most clients are not aware of the real structure of this cooperation.
How the whole business works?
- Mostly, agents work for their respective brokers or brokerage companies.
- No agent will receive the fee if it has not been passed through the brokerage firm.
- Brokers are the only valid person to pay the agents with their commissions.
Process of compensation
In most cases, the division may slightly vary, depending on the terms and conditions. If you are new to this field then you may only get to keep around 30 percent of the total profit share. You may also have to pay for office, advertisement and rentals. If you are experienced then you may get to keep full amount in the form of your fee.
Most listing agents like dlf Magnolias Gurgaon or others are paid for marketing the selling property. The moment he or she manages to get any client, they are also offered the commission for the broker. The commission paid will also be shared between buyer broker and listing broker.
Dual brokerage division
In general, splitting of commission between two or more brokers may be in different proportions. There are chances that out of eight apples, one may get to keep four apples while other seven will have to share from amongst remaining apples. The split cannot always be in equal proportion. There may be chances that sellers may request for a big lion share as compared to the buyers brokers.
This mostly depends on who is ruling the current market. Buyers may not get well paid in sellers market. No matter what, the listing agent will always get to earn more commission as compared to buyers agent.
So pays the estate agent his commission?
In most parts of the country, it is the buyer who has to make the commission payment to the agent on behalf of the seller. The amount of the commission is usually decided on the basis of the sales price and profit generated by the sales.
If the sales price is reduced then it is obvious that the agent also gets less commission on the profits. If you are purchasing new home from Sobha International City Property developers then you may not have to pay any commission if no agent is involved in between.
In general, an agent who is rated as best will often charge you with more commission as compared to an agent who is new in the market. The bottom line here is that agents do not have any fixed commission structure. You can also not judge any estate agent on the basis of the commission demanded by him or her. Also keep in mind that you may never find any agent who is always open for negotiation.