Commission for Real Estate Agents

[tvsh]

My few cents:
what about banning all real estate agents from this site who charges 2% comission? 1% comission is good enough or even more for the service they offer.


Thanks

I am not a real estate agent, but from what I know, agents have some properties for which they have contact with direct owners and some that have come through their network, which involves multiple agents and the commission would have to be shared. I was fortunate to have worked with brokers ( I should say a broker) who charged brokerage based on whether it is direct or through a link. So unless the buyer selects a property the broker would not know what brokerage would be reasonable and fair. In general, I have paid 2% commission for properties in Mysore, where the site values were lesser than Bangalore. When the value of the deal is high, agents would be willing to negotiate. So there is no point in sticking to 2% or 1%. I have paid less than 1% as well when the value of the property was high.

One should never work with a single RE broker/agent and never be in a hurry to close a deal. If one works with a few brokers and sees all the available properties in a specific locality and selects a plot, the chances of being taken advantage of is less.

[hvc]

Lots of ire against Real estate agents and commission they take. Good to see the burning fire for paying the hard earned money to agents and broker.

I am one of the fortunate buyer to find a direct owner to buy a site.
But I paid the cost it takes.
1) more than 6 months of struggle travelling 200 kms every weekend in search of sites.
2) Numerous Website, Newpaper ads search and calls to site owners.
3) Failed negotiations and document verification.
4) Sleepless nights, frustration, being helpless, backache.

Finally the sense of achievement is incomparable to the cost paid.

I don't say Real estate agents are bad. But they are not for good for the kind the money they demand and service they provide.
In the last 6 months I came across really nice, soft spoken agents but they never able to gauge my needs.
Chidu and co, If you want to be in the game for a long run, Please control the exorbitant land rates, provide prompt service, don't build false expectation and more important don't take you client ( either buyer or seller) as granted. Anything overvalued will be corrected with time.

How can you justify 2% commission by just introducing buyer to seller. In that case Magicbricks and 99Acres will be valued more the Google and Facebook.

[Jkulkarni]

I have purchased several properties in Bangalore, despite being on internet and involved in several forums like this, I have not been able to purchase a single property of my liking without involving an agent. Sad but true. Many times talks have failed because the seller had a very high expectation and negotiation did not proceed as both are not ready to budge. I think a mediator in between helps to negotiate. I have dealt with both professionals and cheats here. Good part is slowly the industry is changing, similar to financial investment consultants today there are real estate investment consultants who suggest properties that are appreciating, income earning and good for living. As an example I met a very professional property consultant who sold half of the flats in a Patel Neotown building and these people tell you good and bad about a property or a developer, they have deep understanding of the market dynamics.