Cost of Hiring Real Estate Agents

If you have a property to sell or thinking about buying a real estate property, there are lot of factors that you’d have to take into account like putting out an advertisement both in the print and electronic media. But choosing real estate agents, who’d broker the deal on your behalf, is without doubt, the single most important factor.Since a lot of money changes hands when a property is bought or sold, your choice of the agent like real estate agents will mean the difference between a good or bad deal.

Real estate agents charge a commission for clinching a deal and is calculated based on the total transactional value. But what are the cost components that are taken into account for arriving at the cumulative commission figure?

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The cost

Real estate agents take a commission for brokering a deal that usually includes the basic service fees, a percentage of the sales proceeds (the price at which a property is ultimately bought or sold), and the GST (goods and services tax).

The amount that you ultimately pay the agent will of course depend upon your negotiation skills, the ultimate price at which the real estate agent is able to close the deal. And if you’re selling via the open house route i.e. by auction then you’ll have to pay the advertisement or promotional costs apart from the agent’s commission.

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