Real Estate Agent’s Commission in Pakistan

Highlights of the Post:
Property dealer’s commission in Pakistan for sales/purchase
Property dealer’s commission in Pakistan for rental

Ever wondered how real estate agents get paid? Well, we have found the definite answer to your question with our simple guide on property dealer’s commission in Pakistan.  

If you are in the real market to buy, sell, or rent a property, there’s a high possibility that you’ll need a property dealer to help you through the process. Since most real estate agents in Pakistan earn commissions on the successful deals, it is sometimes hard to define how much money they make.

Property dealers – also known as brokers in the local lingo – charge a certain percentage of commission for assisting property hunters and investors. Their primary role is connecting the buyers with sellers and tenants with landowners. Since their primary work is facilitating real estate owners and finders, they charge their fees at the end of the service or deal.  

In this post, we will update you on the present commission rate of property dealers in Pakistan. Firstly, we will discuss the percentage of brokers’ commission on the sale and purchase of a property. Afterwards, we will take a look at the commission rate on rental deals.

Let’s begin!

Property Dealer’s Commission on Sale/Purchase of Property in Pakistan 

Real estate agent's commission on sale/purchase of property
Commission on sale/purchase of property varies from city

Commission on sale or purchase of property in Pakistan may vary from one city to another. For better understanding, we have discussed the rates in three major cities below:

For Islamabad

Property dealer’s commission in Islamabad is usually around 1 percent of the selling price of residential properties. In some cases, the agents may charge more than 1 percent and anywhere between 1-2 percent of the final property price. On the other hand, the commission for commercial properties hovers around 2 percent of the total property value.

For Lahore

The commission rate of property dealer on residential property is around 0.5 to 2 percent [of selling price] in Lahore’s real estate market. The rates may vary from the type of property. Mostly, the agents charge around 1 percent of the total property value. 

For Karachi

In the real estate market of Karachi, the rate of commission of broker is comparatively different. It has been observed that the commission rate of property dealers hovers around the selling price of the property. Let’s say that a property is worth PKR 10 million, the agent will charge 2 percent of the total property price. Similarly, if the property value goes over 10 million, the commission of a real estate agent is set anywhere between 1 to 2 percent. The case remains the same for residential and commercial properties.

Pro Tip: The real estate market of Pakistan holds growth. You can easily convert crore into million by investing in properties that are available for sale.  

Real Estate Agent’s Commission on Rental Property in Pakistan 

The property dealer’s commission in Pakistan is different for rental properties. We’ve discussed the percentage for three major cities below:

For Islamabad

Property dealer’s commission on rental properties in Islamabad is different from sale/purchase deal. The percentage is half of the first month’s rent usually. In some cases, agents charge full month’s rent as well. This should be agreed mutually between the tenant/landlord and broker before closing the deal.

For Lahore 

The commission of a real estate agent in Lahore is more or less similar to Islamabad. When the deal has finalised, the agent charges first month’s rent as the commission from the landlord/tenant. However, in some cases, the commission varies between half and full month’s rent. Again, it depends on the 

For Karachi

If you are renting a house in Karachi via a real estate agent, you should be aware of the ideal commission rate in the city. Usually, tenants or landlords pay the value of a month’s rent of the property. However, in some areas of the city, agents only charge a commission from the tenants.

Pro Tip: In case you want to save some money on paying commission. Take a look at never-ending lists of properties at JagahOnline. 

This brings us to the end of our post on property dealer’s commission in Pakistan. Before we sign-off, we would like to mention a few more things. Whenever you are planning to involve a broker in real estate matters, it is always best to discuss the commission rate in advance. Both parties should agree on the same terms before the deal starts.

Since you are here reading about broker’s commission, you might also want help with financing your first property. Take a look at our recent compilation of banks providing home loans in Pakistan

For more insightful posts on Pakistan’s real estate market, keep visiting JagahOnline Blogs and JagahOnline Facebook

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