About Property Advisor
A real estate consultant or advisor is a unique role involved in the process of selling or purchasing properties. As a real estate consultant, you will possibly set an hourly rate for your services and set a consulting agreement with your customers. Unlike a traditional real estate agent, consultants are optional for clients; however, you can provide clients with value-added services, including market analysis, lease management, and asset management. Your clients may range from individual investors or business owners to financial lenders and third-party intermediaries.
A real estate consultant’s primary responsibility is to provide clients assistance throughout the selling or purchasing process to help them achieve their goals or their dream homes. That assistance can include conducting analyses on current market trends and possible favorable investments, including varied financial portfolios. Whenever a buyer is interested in a property, the consultant may also assess its current condition and comparatives to determine its worth.
Property Advisors in Pakistan
In Pakistan, real estate agents are generally known as property dealers and property advisers. They are the deal maker between sellers and buyers of property for earning a commission. Usually, they make a commission from both sides about one % of the value of the transaction. Though, if two property dealers are involved in a transaction, each one gets a commission from his or her side. The dealer from the selling party receives a commission from the seller, and the dealer from the buying party receives a commission from the buyer.
Often, a property dealer is the individual who gets the paper-work done in a deal for the buyers and sellers. For example, the dealer receives the sale document written and registered for the parties to the contract of sales, i.e., the buyer and seller of a property.
Exploring a new house can be a hectic process, especially if you have incomplete information about the property market where you desire to invest or rent. Let us give you an update on the ongoing rate of commission of real estate agents on property deals that takes place in the major cities of the country.
Property agents, also known as brokers, typically charge a commission for aiding a property deal by connecting tenants with landowners, buyers with sellers. After all, they assist you in finding a property that matches your budget and suits you, which can be a daunting task for many first-timers, who could be a landowner, tenant, seller, or a buyer. If a property advisor deals with two parties to sign a deal, both are responsible for paying commission to the agent; however, this can differ if the concerned parties have agreed upon a different set of conditions before the deal takes place.
Let us take a look at the percentage of commission of real estate agents for providing their services in Pakistan.
Commission on Sale/Purchase Deal
The rate of commission that an agent receives in property sale deals for residential properties or commercial in Islamabad usually floats around one percent of the final property price. So, in some situations, based on a shared understanding of the concerned parties, the rate of property agent’s commission is set anywhere within 1-2% of the property price. Though, in most cases where realty deals involve commercial properties, the amount of commission can go up to two percent of the total property value.
In the real estate market of Lahore, it has been seen that the rate of commission of real estate agents on residential property sale deals is around 0.5 to 2 % of the decided property price depending on its type. Though, in many cases, the commission amount collected by property agents in Lahore is kept at one percent of the total property value.
The case of Karachi is quite different from the above cities. The real estate agents in this city get two percent of the total property price as commission amount in sale/purchase property deals if the value of a property is under PKR 1 crore. Though, if its value significantly goes above PKR 1 crore, then the rate of commission of a real estate agent is placed anywhere within 1 and 2 percent. This practice is observed in a majority of the cases involving the purchase and sale properties in Karachi.
How to Find a Legit Agent
Finding an agent might seem like a difficult task. But choosing the right one is paramount, yet ignored for a minimal saving. Not all agents are the same, just as not all restaurants, car repair places, and other trades are the same.
- Select those who have sold houses in your region.
- When they are quoting, ask them what level of service you can expect. Who will do the viewings? How do they financially verify their offers and buyers? What standards have they set for buyers, as a minimum requirement? A reliable agent will be able to answer all these questions and more.
- They should also be capable enough of providing you with documented proof of how they have arrived at the figure they think your property will achieve. If they cannot, then that agent is not suitable for you. The agent’s fee must be based upon the service they will deliver. Do not be fooled by high values and low fees.
- Once you have selected an agent, you will sign a contract, which will be legally binding. It is quite essential to keep in your consideration that you will need an agent you can work with if your sale is to go as smoothly and quickly as possible.