Real Estate Commission Explained: What You Need to Know

If you’re buying or selling a home in Shriram Chirping Woods, the word “commission” will pop up early. It’s the fee you give to the agent who helps close the deal. Most people assume it’s a fixed number, but the reality is a bit more flexible. Below we break down the basics, typical rates in India, and ways you can keep the cost from eating up your budget.

How Commissions Are Calculated

In India, the standard commission is usually 1% to 2% of the property’s sale price on each side – that means the buyer’s agent and the seller’s agent might each get that slice. For a ₹1.5 crore flat, a 1.5% fee works out to ₹2.25 lakh per side. Some developers embed the commission into the price, while others pay it separately after the sale closes.

Always ask the broker how they compute the fee. Some charge a flat amount, others use a sliding scale where higher‑priced homes get a slightly lower percentage. Knowing the exact figure helps you compare offers and avoid surprises when the cheque arrives.

Tips to Reduce or Negotiate the Fee

Negotiation isn’t a myth – agents expect it. Here are three easy ways to lower the commission:

• Bundle services. If you’re both buying and selling with the same agency, ask for a combined discount. Many firms will shave off 0.2%–0.5% for a dual‑handshake.
• Limit the marketing spend. Some agents spend big on ads and charge you for it. Request a capped marketing budget or handle some of the promotion yourself (social media, word‑of‑mouth).
• Choose a flat‑fee broker. Especially for rentals, a fixed ₹10,000‑₹15,000 fee can be cheaper than a percentage of a high‑value property.

Remember, the lowest fee isn’t always the best deal. An experienced agent can fetch a higher price or faster sale, which may offset a slightly higher commission.

Another practical tip: ask for a detailed invoice. Breakdowns show you exactly what you’re paying for – from listing fees to paperwork. If something looks vague, call it out and ask for clarification.

Finally, keep an eye on timing. Some agents lower their rates during slow market periods to keep business flowing. If you’re not in a rush, consider waiting for a seasonal dip to negotiate a better rate.

Understanding real estate commissions turns a tricky cost into a manageable part of your property transaction. Whether you’re buying a 2BHK in Mumbai or renting a farm in Karnataka, ask questions, compare rates, and negotiate smartly. The right approach can save you lakhs and still get you the professional help you need.