1. What is Real Estate Commission?

Real estate commission is the fee paid to agents for facilitating property transactions. In India, this is typically a percentage of the final sale price and is usually split between the buyer's and seller's agents.

2. How Commission is Calculated

The standard commission calculation formula is:

Where:

• Sale Price — The final agreed price of the property (INR)
• Commission Rate — The percentage fee charged by the agent (typically 1-2% in India)

Example: For a ₹50,00,000 property at 2% commission, the agent fee would be ₹1,00,000.

3. Typical Commission Rates in India

Details: Commission rates vary across India:

• Metro cities: 1-2% of sale price
• Tier 2 cities: 1.5-2.5%
• Commercial properties: 1-3%
• Rental agreements: Usually 1 month's rent

4. Using the Calculator

Tips: Enter the property sale price in INR and the commission rate as a percentage (e.g., 2 for 2%). The calculator will compute the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Who pays the commission in India?
A: Typically the seller pays the full commission, which is then split between the buyer's and seller's agents.

Q2: Is commission negotiable?
A: Yes, commission rates are often negotiable, especially for high-value properties or repeat clients.

Q3: Are there GST charges on commission?
A: Yes, 18% GST is applicable on the commission amount in addition to the calculated fee.

Q4: What's included in the commission?
A: Commission covers agent services including marketing, negotiations, paperwork, and facilitating the transaction.

Q5: How does this compare to international rates?
A: Indian rates are lower than many Western countries where 5-6% is common, but higher than some Asian markets.