How Much Commission Do Real Estate Agents Charge in Pakistan?

What to Expect on Agent Commission

Commission rates in Pakistan aren’t centrally regulated the way they are in some markets, so “standard” varies more than buyers and sellers often expect. Here’s a realistic picture.

Typical Range

Commission is commonly around 1% of the transaction value from each side (buyer and seller), though this varies by city, property value, and individual dealer or agency. On lower-value or rental transactions, a flat fee (rather than a percentage) is also common practice.

What the Commission Should Actually Include

A fair commission covers real work: sourcing genuine buyers or properties, arranging viewings, negotiating on your behalf, and helping the transaction actually close cleanly — including flagging documentation issues before they become your problem. If an agent isn’t doing any of that, question what exactly you’re paying for.

Red Flags in Commission Practices

• Commission demanded upfront before any real work has been done
• Refusal to put the commission rate in writing before the deal proceeds
• Pressure to accept a much higher rate “because this deal is special”

Curious what services should come with a fair commission? See our piece on the role of a real estate advisor in a transaction.

FAQs

1. Is commission always paid by both buyer and seller? Commonly, yes — around 1% from each side is typical, though this isn’t fixed by law and can be negotiated.
2. Should I pay commission before or after the deal closes? Standard, fair practice is payment on successful completion of the transaction, not upfront for work not yet done.
3. Is a lower commission always a better deal? Not necessarily — weigh it against the actual service and diligence you’re getting, especially on document verification and negotiation.