Real Estate Agent Commission Rate in Pakistan

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Customers (homebuyers and sellers) are rarely charged by the hour while dealing with real estate agents. Instead, in order to make money, real estate agents typically take a percentage of the home’s sale price, which becomes the real estate agent commission. Some agents will work for a flat charge rather than a commission, saving the customer money. You should find out how much the agent will charge you when selling your home. The charge is negotiable, but the agent may refuse to bend. In that instance, you have the option of accepting the agent’s rate or declining to use that agent. Whatever you choose, the percentage you agree to pay is determined when you sign a contract with your agent to sell your house, which normally lasts 90 to 120 days, so make sure you understand what you’re signing.

What is Real Estate Commission?

A real estate commission is a proportion of the purchase price of a property that is paid to the real estate agents and brokers that helped in the acquisition and sale of the property. Real estate agents normally earn money from commissions, and they do not receive a commission (or payment) unless the house sells. After the home is sold, the total real estate commission is normally split between the listing agent (or seller’s agent) and the buyer’s agent, as well as their respective brokers. State-by-state and agent-by-agent, commission percentages differ. The real estate commission rate, which is generally built into the home’s selling price, is typically paid by homeowners with the money generated from the property sale.

How Much Commission Do Real Estate Agents Receive?

A rough estimate of real estate agent’s commission in different cities of Pakistan is as follows:


In Islamabad, an agent’s commission on a residential property sale or purchase is typically roughly 1% of the final property price. Similarly, the rate of property agent’s commission is established anywhere from 1-2 percent of the property price in various cases, based on a common understanding of the parties involved. However, in most real estate transactions involving commercial properties, the commission can be as high as 2% of the total property value. In Islamabad, an agent receives half of a month’s rent as commission when they close a rental agreement. Some, on the other hand, make a full month’s rent; it all depends on the type of property and the client-agent agreement. Read more about blue world city Islamabad.


Depending on the type of property, real estate agents’ commission rates on residential property sale/purchase deals in Lahore range from 0.5 to 2 percent of the final property price. However, in the vast majority of situations, property agents in Lahore collect 1% of the total property value as commission. It’s common knowledge that real estate agents in Lahore get paid one month’s rent when they close a rental agreement. The amount is divided according to the terms and circumstances of the agreement reached between the parties. Furthermore, the fee fluctuates between half and full month’s rent in some circumstances involving rental property dealings in Lahore, depending on the parameters agreed upon by the agent, renter, and/or landlord.


Karachi is a little different from the other cities mentioned. If the value of a property is less than PKR 1 crore, real estate agents in this city receive 2% of the entire property price as commission. However, if the property’s worth exceeds PKR 1 crore, the real estate agent’s commission fee is set at between 1 and 2 percent. In the vast majority of situations involving the sale and purchase of properties in Karachi, this practise is observed. Agents’ methods for collecting commission on rental arrangements are more or less identical across the City of Lights, whether in a fancy neighbourhood or a more inexpensive one. Typically, a property agent’s commission on a rental contract is equal to one month’s rent, which is paid separately by both tenants and landlords. However, there is one exception. Property agents in the Gulshan-e-Iqbal Karachi region have been recorded charging tenants merely one month’s rent as a commission. However, depending on the conditions of the agreement between the real estate agent and the tenant/landlord of the property, this may not always be the case and the situation may vary.


To summarise, the buyer’s negotiating skills have a big impact on the agent’s commission margin. Sigma Properties strongly advises that the commission rate be agreed upon ahead of time. A buyer, on the other hand, has no right to pay anything to an agent other than his compensation.

Author Bio

Muhammad Junaid is a senior Analyst and Search Engine Expert. Extensive experience being a lead writer in Sigma Properties |Taj Residencia. Work for years with local and international enterprises. Also, represent well-known brands in the UAE.


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