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Old 26th August 2008, 18:31   #1
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Default Buying Flat - Pay commision to agent?

I am trying to buy a flat near old madras road in BLR that an agent showed me.

He said he charges 2% commision on the sale of each flat which the BUYER (me) should pay to him.

But shouldnt the SELLER be paying the commision to the agent, since he helped him find a customer and sell the flat?

.......dont like this crap.......

When i was in Gurgaon, it was the builder who paid the agent.
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Old 26th August 2008, 18:35   #2
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Hey bro, I stay on the OMR too. Where are u buying the flat (if I may ask). Most brokers charge 1% and not 2 % of the amount. Do haggle with him or else try to look for another guy who might get you the same thing at 1%
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Old 26th August 2008, 19:15   #3
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here in b'lore the agent gets commission from bother seller & buyer (tenant and landlord). but 1% is good, 1.5% seems to be norm and 2% is a lot. it also depends on the area. in central areas where the supply is less the commission can be more. my suggestion would be to pay just 1% (or even some flat amount like 30K irrespective of the deal size) and put more people on the job if you can.
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Old 27th August 2008, 10:39   #4
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Brokers get commission from the buyer AND seller in Bombay too. But the fees are always negotiable. If the transaction size is substantial, it is best to agree on a reasonable fixed amount. As a buyer, I pay a minimal amount. As the seller, it is higher.

Last edited by GTO : 27th August 2008 at 10:40.
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Old 27th August 2008, 10:46   #5
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Quote:
Originally Posted by GTO View Post
As a buyer, I pay a minimal amount. As the seller, it is higher.
Not doay you wont. It still is a sellers market atleast in South Mumbai.

Brokers in some areas (where I live) are offering prospective sellers a zero brokerage fee if they can get the rights to sell their apartment. They often share their commision with other agents and the buyer's 1-2% is all they get to work with. Again the transaction size is huge (10 cr+) so it still works out.

Thnk about it. 2%of 10cr = 20 lakhs. 20 lakhs shared by even 3-4 brokers is about 5-6 lakhs each. One such deal per month and they'd be happy.

Last edited by navin : 27th August 2008 at 10:48.
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Old 27th August 2008, 12:27   #6
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Quote:
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It still is a sellers market atleast in South Mumbai.
Only the real hot properties, Navin, where demand far outstrips supply (certain buildings / localities). For example, you will be amazed to see the long list of empty properties in Churchgate.
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Old 27th August 2008, 12:37   #7
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In Bangalore I paid 1% commission and not 2%
Seller paid 2%
You should negotiate. For purchases many brokers agree to 1% commission from Buyer

However if you never hired the broker, then you don't have to pay anything. For example if I had gone directly to builder or owner, I would never have had to pay even 1%
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