Buyer or seller: who pays the real estate broker?

Buyer or seller: who pays the real estate broker?

Whether you are a buyer or a seller, real estate brokers can help you through all stages of buying or selling properties of all kinds, giving you complete peace of mind but once the process is complete who pays the real estate broker?

This article will show who pays the real estate broker, various payment options, and the advantages of working with an expert with in-depth knowledge of the real estate market.

Who pays the real estate broker? And how do you value the commission?

Instead of getting hourly paid fees most real estate agents earn money only when a real estate deal is done.

While some real estate brokers charge fixed fees for their services, most real estate brokers charge a percentage of the sale price of the property once the transaction is completed.

Certainly, at first glance, the amount may seem large, but keep in mind that the real estate agent does not see a single pound until the buyer finds a home that the seller likes and accepts the offer and all parties meet at the contracting table. This process can mean weeks or months of work.

The real estate broker also works on a large number of trades and may only succeed with limited deals and other deals spent time, effort and marketing campaigns and has not already caused significant losses to the real estate broker.

In case of sale or purchase:

As a buyer if you work with a real estate broker in a purchase process, the completion of the contract will pay the real estate broker's fees and the commission paid by the buyer according to Egyptian law that conforms to market custom is estimated at 2.5% of the total property price.

. If the real estate broker is also representative of the seller, he or she will also pay the real estate broker's fees and the commission paid by the seller according to Egyptian law, which conforms to market custom, is estimated at 2.5% of the total price of the property.

In the case of rent, the real estate broker's fees are as follows:

- Fees (commission) the value of one month's lease for contracts for one year or more on the lessor and one month on the lessee.

- Fees (commission) of 10% of the value of the lease contract for a period of one to three months paid by the lessor and 10% paid by the lessee.

- The commission of the allowance is estimated at 5% of the average value of the two mutual properties of both buyer and seller.

- The commission for selling a business is estimated at 5% to 8% of the value of the transaction.

- Participation commission, auction commission, all other types etc. You can contact us through Link Form

For more details please refer to your real estate broker if you have any questions.

 How to pay a real estate broker?

The Real Estate Brokerage Act allows supervision of real estate brokers' activities. However, it did not specify what amounts the real estate broker could claim as a broker in a real estate transaction which is something you should agree on together. Your broker will make you sign a brokerage contract to sell, buy or lease that provides for marketing fees and real estate brokerage.

This amount can take different forms such as:

Percentage of sale or purchase price - also known as commission.

Lump sum or fixed number

Pay and cost model (hourly calculation)

A combination of these options

When to pay the real estate broker?

Payment is made to the real estate broker when signing the sale contract or when the deposit contract is signed i.e. when the purchase is accepted please note that this amount is taxable.

What are the main advantages of working with a real estate broker?

- Assessment of the fair value of real estate.

- Propaganda marketing of the property.

- Detailed analysis of the real estate market.

- Personal tips based on experience.

- Proposing and drafting legal documents.

Buying or selling a property without a real estate broker will be vulnerable to certain risks which is why a real estate broker is key to a successful and smooth real estate transaction.

Are you ready to put your real estate plans into action with the help of a professional specialist? It will be a quick, simple, anxiety-free deal at your