How much do Philippines Real Estate Brokers charge if you hire them to sell your house?

Posted in QA on March 17th, 2010 by admin | 20 comments
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The typical rate of a Philippines Real Estate Broker is from 3-5% of the selling price of the real estate property (commission). This means No Sale, No Commission. So be nice to your real estate broker =)

In addition to the information above, here’s short excerpt from lawyers.com

A “real estate broker” is someone who, for a commission or fee, is employed by home owner to negotiate the sale, purchase, lease or exchange of real property to a third party. The legal relationship between the real estate broker and the home owner is that of an agent and principal; an agent is someone who acts on behalf of someone else, the principal. Consult trustworthy professionals while preparing to take on rental properties.

Most states require people who provide services to buy or sell real estate (other than their own) for a commission to be licensed as real estate brokers. Real estate agents and salespersons must have a sponsoring broker like a Texas house buying company, with whom they are associated, and who supervises their activities. Commissions on sales must be paid to the agent’s broker. In lay terms, “real estate broker” and “real estate agent” are often used interchangeably. However, these people may have different authority and licensing requirements under state law. Often the advice of a real estate broker is very valuable. Some things that you can expect from a real estate broker are as follows:

  • Information on the home sale process beginning with preparation of the home for listing through settlement
  • Advice on how best to prepare the home for sale
  • Assistance in setting the sale price for the home
  • Advertising
  • Facilitating showings
  • Presentation of offers and advice on evaluating the strength of each offer
  • Assistance in negotiations
  • Representation at closing

Hope that piece of information helped to be more aware of what brokers are and what they can do for you. What other Philippines Real Estate Questions do you have? We’ll try to find an answer for you!

In the next article, read how we buy houses with new market techniques.

  • arnel F. lim says:

    Good Day, may I ask what is the zonal value in Las Pinas?ty

  • admin says:

    hello Arnel, what exact place in Las Piñas City? Each subdivision/barangay/area has a different zonal value.

  • Rose Gumban says:

    Good Morning. What if the seller will not give the agent atleast 3% commission? Is he violating any law? Any suggestion on how to be able to get that commission thats due for the agent? Thank you.

  • admin says:

    Before an agent sell a property, there should be a written authority to sell on inclusive or non-inclusive basis. This is also some sort of contract between the seller and the agent which specifically states the amount of commission…3% or 5% and period of authority. If the agent is able to sell the property based on his own effort, he is entitled to receive the commission. He could sue the seller if he is not given the commission later. If it’s all verbal agreement, the seller may or may not honor the agreement depending on his relationship with the agent.

  • Tony Valisno says:

    I have a house in Tanauan Batangas and I would like to sell. I live in the US now and do not know any brokers there in the Philippines. Could you recommend one that is trustworthy and established?

    Details of the house:
    3 bedroom, 2 baths, eat in kitchen, living room, roof patio
    Built 2007, in gated community, developer Filinvest. Brand New, never occupied.

    My email address is avalisno@hotmail.com

    thanks,

    tony

  • admin says:

    We’ll send you an email, thank you!

  • Carina dela Merced says:

    For renting out condominium units, what is the rate of commission usually provided to the broker? A broker approached us for a 1mo rental fee as her commission if she can rent out the condo for 12mos. Is she asking too much? The condo unit is in a prime location so advertising the unit on our own doesn’t seem to be a problem. Are there brokers who can do the paperworks (at a less commission rate) even if the seller/renter is able to find a tenant on their own?

  • admin says:

    that’s the standard commission for leasing properties. if you prefer, you can also just advertise on your own, so you’ll learn the leasing ropes yourselves. Thank you!

  • Christiane Santiago says:

    We have a property to be leased for five years. How much commission should i give the agent (not licensed). He was telling me that they should get a commission yearly for the duration of the lease. Is that the law? What is the commission rate?

  • admin says:

    Hello Christiane! It’s normal to provide commission for every year for the duration of the lease. Some leasing companies ask for 1 month for the 1st year, then half of 1 month for the succeeding years(assuming the contract is 5 years). It really depends on your agreement with the agent. Hope we helped. Thank you and God bless!

  • paul says:

    I would like to sell my house in Leyte how much is your commission

  • Boni Sta. Ana says:

    We have a unit available for lease. A broker approached us and was able to finalize a lease for 3 years. We didn’t have a contract with the broker, do we need to pay broker’s fee? if we do, how much should it be? Is is only once per contract?

    Thank you very much.

  • admin says:

    If you used the services of the broker, it is but decent to pay the broker his/her due commission. Usually it’s 1 month for every year of lease.

  • admin says:

    Hello Paul, Kindly go to http://www.rpmlx.com to find a broker in Leyte who can help you. It would not be advisable to get a broker from so far away from your location. Thank you!

  • Ruby says:

    I have 2 adjacent vacant lots in Neopolitan Brittany which I intend to sell. I would need the help of a broker. Could you please refer to someone you know.

  • Gilberto says:

    Sir, i already given my broker a 1 month’s rent commission. my tenant’s contract will end this june. My broker is asking for a commission again since my tenant will renew his contract. it my broker still entitled to a 1 month commission?

  • admin says:

    the 1st year = 1 month, 2nd year = half a month. But this really depends on your agreement with the broker.

  • admin says:

    kindly visit rpmlx.com and look for a broker within the vicinity of Neopolitan Brittany. Thank you!

  • Erica Gatdula says:

    Hi. How much usually is the commission for a non-exclusive contract with a broker or agent?

  • admin says:

    depends on your agreement, non exclusive or exclusive, it doesn’t matter. Standard is 5%, from there you can dictate as the seller how much commission you want to give, and if the broker will agree to it.

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