# Brokerage fee for Realtors...??



## Ktduggal (Feb 21, 2011)

It would be great if someone could just tell me what is the standard brokerage fee to be paid to real estate agents.... i got in touch with a couple of agents and all of them quoted different rates.... I tried doing some research but could not find any clear answer...
Also, my husband's employer, by the way told us that there is no need to pay them at all , as they do get a commission from the property owner...
I am very confused.... i was considering paying half month's rent ... 
Any suggestions ??? Thanks !!


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## Sonrisa (Sep 2, 2010)

as far as i'm aware, it's the owner duty to pay the agent once the agreement is signed. Never heard of the tenant paying the agency.


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## Suzzanne (Jan 8, 2011)

We were expected to pay a month's rent to the agent!! But he did sort out resident passes to Rehab etc as well as finding the villa!!


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## Sonrisa (Sep 2, 2010)

I am surprised that you were asked to pay to the agent at all. I have used agencies in Maadi the three times I have moved locally and never been asked to pay anything at all...althought I gave a good bakeesh everytime(by good I mean 100LE not 2000 or so USdollars!).

My guess is that like everything in Egypt, there are no fixed fees or standards, and if the agents smells $$$, he will try to get his share.


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## PoleDancer (Apr 14, 2010)

Ktduggal said:


> my husband's employer, by the way told us that there is no need to pay them at all , as they do get a commission from the property owner...


That was my experience. I believe the property owner paid them a month's rent.


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## Ktduggal (Feb 21, 2011)

My God... really!! i am so surprised reading all these replies.... I dont know what to do now ... sticky situation ...hmmm .... As i have already finalised an apartment ... thankfully , this particular agent has not even brought up the brokerage fee so far ... i think i'll just keep mum ... and wait ... and in case he does noy ask at all , i'll just pay a handsome baksheesh....
Thanks guys... you helped me save a lot of $$$...


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## kevinthegulf (Aug 16, 2009)

Ktduggal said:


> My God... really!! i am so surprised reading all these replies.... I dont know what to do now ... sticky situation ...hmmm .... As i have already finalised an apartment ... thankfully , this particular agent has not even brought up the brokerage fee so far ... i think i'll just keep mum ... and wait ... and in case he does noy ask at all , i'll just pay a handsome baksheesh....
> Thanks guys... you helped me save a lot of $$$...


My experience and conversation with others, is that we have never paid the estate agent- the owner pays
Trust no one though- if there lips are moving- they are lying
Kev


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## seawind77 (Oct 2, 2010)

It depends on your and brokers negotiating skill. Do not pay more than a rent. If you good enough you can try less. If you found the place not from regular brokers (I mean like any local guy or apartment service guy) dont pay more than half rent.


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## rehanshaik (Dec 16, 2010)

seawind77 said:


> It depends on your and brokers negotiating skill. Do not pay more than a rent. If you good enough you can try less. If you found the place not from regular brokers (I mean like any local guy or apartment service guy) dont pay more than half rent.


Actually, according to Egyptian law - I am (i think!) reliably informed- the broker charges the owner and NOT the tenant. I have rented twice now in 3 years, never paid, and have found the following...

1. As an expat deal only with the big companies. Ie those with some form of governance standards. Or known in the expat community. Many many "brokers" out there...

2. Be clear up front on what you expect from them and what you will pay...Nothing!! Ie that u expect them to make their commission from the landlord. Remember expats are gold dust and mean big commissions.

3. Rule of thumb. The friendlier they are, the more suspicious i become.

4. Choose the landlord as well as the apartment. Both are important. 

5. Be clear on the deposit well in advance of any agreement. I managed to negotiate down to 50% of 1 mth. 1 month is apparently normal. Any thing more is Walkaway. Generally they do not return deposits!!

6. Try to keep in-advance payments to a minimum. I gave in to his price in exchange for a 3 month payment cycle. This works for me and means he is responsive. Easier said than done but point is everything can be negotiated. Don't let them tell u otherwise.

Hope helps.
3 year expat...cairo


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## Ktduggal (Feb 21, 2011)

rehanshaik said:


> Actually, according to Egyptian law - I am (i think!) reliably informed- the broker charges the owner and NOT the tenant. I have rented twice now in 3 years, never paid, and have found the following...
> 
> 1. As an expat deal only with the big companies. Ie those with some form of governance standards. Or known in the expat community. Many many "brokers" out there...
> 
> ...


Kevinthegulf and Seawind ... thanks a lot for your inputs ... i am definitely not going to get conned now 

Rehanshaik ... I did start dealing with big companies at first, and tod them upfront that i am not going to pay any commission ... result - they kept showing me crappy places.. and when i got around telling them that this wasn't what i had in my mind .. they would show me something completely out of my budget ... 
So, i started dealing with another agent ... thankfully , this guy showed me some great houses , and we are almost finalised at a place in Maadi now ... 

I met up wth the landlord , and the guy is great , very accomodating and flexible ..
I made sure to reduce the advance from 3 months to 1 month , but i am just concerned about not geting the advance back .. ( as you mentioned, that they seldom pay back the advance)... Doesn't the contract mention , that i will get the advance back after the end of the contract or somethig??

Considering that the agent has done a great job, i think i'll give him a couple of 100$$ incase he insists .... btw, the agent is very friendly (hmmm i am getting suspicious now )... lol...

lets see how everything pans out ... 

till then !
Thanks


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## rehanshaik (Dec 16, 2010)

Ktduggal said:


> Kevinthegulf and Seawind ... thanks a lot for your inputs ... i am definitely not going to get conned now
> 
> Rehanshaik ... I did start dealing with big companies at first, and tod them upfront that i am not going to pay any commission ... result - they kept showing me crappy places.. and when i got around telling them that this wasn't what i had in my mind .. they would show me something completely out of my budget ...
> So, i started dealing with another agent ... thankfully , this guy showed me some great houses , and we are almost finalised at a place in Maadi now ...
> ...


Great...good luck
Re deposit. Yes mentioned in the contract but they find ways of retaining bits or all of it through claiming damage repairs etc. Depends on integrity of LL but don't hold ur breath!

Re showing u crappy places and then out of budget places....amazing....,Do they have a school somewhere teaching this stuff!!! WHat I did was to tell them i was coming to them because the last guy was wasting my time showing crappy places and declare a budget 20% below what i was prepared to pay. He's going to show u stuff at the topend of ur budget anyway..also let them know ur in a hurry to sign and shopping around, but won't tolerate bull****. 

Hierarchical business culture here so you must come across as the dominant party. Ie doesnt pay to readily respond to their "friendliness". Respectfulness though, v important.

Hope helps.


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