Home » How much do Real Estate Agents Cost?

How much do Real Estate Agents Cost?

Find a new abode can be a time-consuming process, particularly if you have little knowledge of the property market in the area where you want to rent or invest. In this article, we shall study how much the real estate agents will cost you and the current rate of commission paid by real estate agents on property transactions in the country. 

The property agents, also known as brokers, typically charge a fee for linking buyers and sellers, as well as tenants and landlords, in order to facilitate a property transaction. After all, they assist you in finding a property that meets your budget and meets your requirements, which can be a difficult challenge for many first-time customers, whether they are sellers, buyers, landowners, or tenants. 

The Cost of Real Estate Agents

When hiring an agent to trust with the biggest purchase of your life, the real question is: How will this individual be paid? 

The good news is that both the seller’s representative and the buyer’s agent will be paid out of the seller’s profits at closing.

You don’t need to do anything for the agents’ pay when you pay the seller for your home. The seller is responsible for ensuring that the agents involved are paid, which is usually in the form of a fee, or a percentage of the sale price.

Dual Agency

One of the most common misunderstandings among buyers is that having the seller’s agent handle the whole transaction will save them money on agent commissions. This is usually the person you encounter at an open house or speak with if you call the number on the “For Sale” sign. 

This is referred to as “dual agency.” Although the agent will promise to lower the home price to compensate you for not bringing your own agent, the ostensible savings may be outweighed by the lack of someone who can advocate for your best interests and bargain accordingly. Many places don’t allow dual agency because it can lead to conflict when the same individual tries to advocate for both sides.

Changes in Price Agreement

Your agreement with the seller can change in the days leading up to the closing of the home sale. There can be two circumstances under which this may happen. 

  • The seller may agree for a price reduction. For example, the house was to be sold at PKR 770,250 but the seller agrees to give you a 6% discount. Though there are chances that the amount will be covered in the down payment. 
  • Inspections of the house may show significant weakness in the building that necessitates a price reduction. 

We know that the seller determines the commission sum for the buyer’s agent, yet as a buyer, you will have some flexibility about the amount your agent is paid. For example, if you strongly believe that your agent has failed to serve your interests or if you discover that the agent has made a significant error, you have the right to request that your agent credits a portion of the commission to your expenses.

An agent is not obligated to cut his commission at closing, however, you can negotiate it if you believe you have a compelling case for the agent to credit you. Any such reduction must be cleared with your lender prior to closing if you and your agent have an agreement on it.

Now let us dive into the sea of truths and facts, to know the percentage of commission that real estate agents get for providing their services in Pakistan in various situations.

Get free guidance from the top real estate companies especially in Capital Smart city.

Commission on Purchase Deals

For Islamabad

An agent’s fee in a residential property sale/purchase transaction in Islamabad is normally about 1% of the final property price. Similarly, the amount of property agent’s commission is set anywhere from 1-2 percent of the property price in certain cases, based on a shared agreement of the parties involved. 

For Lahore

In the Lahore real estate market, real estate agents’ commission rates on residential property sale/purchase deals range from 0.5 to 2% of the final property price, depending on the type of property. However, in the vast majority of cases, property agents in Lahore receive 1% of the overall property value as their fee.

For Karachi

The real estate agents in this city receive 2% of the total property price as commission if the value of a property is less than PKR 1 crore. However, if the property’s value exceeds PKR 1 crore, the real estate agent’s commission rate is set at between 1 and 2 percent.

Commission on Rental Deals

For Islamabad

In Islamabad, an agent receives half of a month’s rent as commission when they close a rental contract. Some, on the other hand, make a full month’s rent; it all depends on the type of property and the client-agent relationship.

For Lahore

The real estate agents in Lahore get paid one month’s rent when they close a rental contract. The sum is divided according to the terms and conditions of the agreement reached between the parties. 

For Karachi

For a rental lease, a property agent’s commission is equal to one month’s rent, which is paid separately by both tenants and landlords. However, there is an exception at some places. Property agents in the Gulshan-e-Iqbal Karachi area have been observed charging tenants just one month’s rent as a commission. 


The cost of real estate agents in Pakistan is less about the cost only and more about the value they have and the contribution they make to the real estate industry of Pakistan. The strengthening of this industry resultantly lifts the economy of Pakistan to the heights it deserves. 

Author Bio

M Junaid Lead Writer, Content Marketer at Sigma Properties [Real Estate], A writer by Day and reader by night

Zaraki Kenpachi