Fees Paid in Real Estate Transactions
The real estate business is a complicated industry involving a series of steps in the process of buying, selling, and renting a property. Real estate agents or property consultants remove many unknown points in this process, saving you time. Real estate agent commission is one of the steps in the real estate buying, selling, and renting processes. In this article, we will discuss what real estate agent commission is, how it is calculated, and what to consider when paying real estate agent commission.
What is the Real Estate Agent Commission?
Real estate agent commission is the fee paid to a real estate agent during a real estate deal. This fee is typically calculated as 4% of the property’s sale price. It is divided as 2% between the seller and the buyer. The real estate agent commission can be changed depending on the services given by the agent, market conditions, and regional differences.
How is the Real Estate Agent Commission Calculated?
The calculation of real estate agent commission is not unpredictable; it should be considered according to the Regulation on Real Estate Trade. For more information on the rates and details used in determining the commission, refer to Article 20 of the regulation. The Real Estate Agent Commission Law is a regulation that protects not only the real estate agent but also the buyer and seller.
Each party, the buyer and the seller is required to pay a total commission of 4% of the sale price. In addition to the commission amount, a 20% VAT amount is added.
| Property Value | 2.5 million ₺ | 5 million ₺ | 8 million ₺ | 10 million ₺ |
| Buyer’s Commission | 60,000 ₺ | 120,000 ₺ | 192,000 ₺ | 240,000 ₺ |
| Seller’s Commission | 60,000 ₺ | 120,000 ₺ | 192,000 ₺ | 240,000 ₺ |
| Total Commission | 120,000 ₺ | 240,000 ₺ | 384,000 ₺ | 480,000 ₺ |
Example of the commission calculation
What is a Real Estate Agent Commission Agreement?
It is a pre-sales contract signed by the buyer, seller, or both with a real estate company that guarantees the real estate agent commission fees for arranging real estate sales.
Key points to pay attention to in the agreement:
- Information of the parties (Buyer, seller, and real estate agent).
- Details of the property subject to the real estate purchase, sale, or rental deal.
- Detailed information on the subject and content of the agreement.
- Commission rates.
- Signatures of the buyer, seller, and real estate consultant.
What to Consider in Real Estate Agent Commissions?
It is important to pay attention to several factors related to real estate agent commissions. Real estate agents supply significant convenience in property buying, selling, and renting transactions. It is important to analyze the scale and quality of the services provided by the real estate agent carefully. The real estate agent commission agreement signed for these transactions should be carefully examined, and a fair agreement should be reached between the parties.
Understanding and managing commission rates will provide a positive experience for property owners and buyers.
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