Folks - I just posed this question accidentally on another thread. Realizing this is a distinct topic I'm posting it here separately.

I'm dealing with a broker to purchase a plot and before going too far ahead with him I wanted to check if he would charge me a commission. He is asking for 1% of the sale value. However, two friends who bought plots within the last year in Gurgaon told me they did not pay any commission and that the brokerage fees is always paid by the seller (it is implicit in the final sale price). This is my first transaction in this market and guidance on this will be much appreciated.
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  • Originally Posted by shoonye
    Folks - I just posed this question accidentally on another thread. Realizing this is a distinct topic I'm posting it here separately.

    I'm dealing with a broker to purchase a plot and before going too far ahead with him I wanted to check if he would charge me a commission. He is asking for 1% of the sale value. However, two friends who bought plots within the last year in Gurgaon told me they did not pay any commission and that the brokerage fees is always paid by the seller (it is implicit in the final sale price). This is my first transaction in this market and guidance on this will be much appreciated.


    nothing like that , it depends on your negotiating power , generally buyer seller both have to pay commission since there might be a different broker for the buyer and a different one for the seller and even if the broker is same forboth parties , both do end up paying commision . 1% is generally the market trend , but rest depends on your negotiating powers , jitna khichta hai utna khich do usko !!
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  • Yes, quite correctly said, everything depends on yr. negotiating skills .

    Originally Posted by ISHANb
    nothing like that , it depends on your negotiating power , generally buyer seller both have to pay commission since there might be a different broker for the buyer and a different one for the seller and even if the broker is same forboth parties , both do end up paying commision . 1% is generally the market trend , but rest depends on your negotiating powers , jitna khichta hai utna khich do usko !!
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  • You will have to pay 1% to the broker if the transaction is over 1 CR.

    I have dealt with a lot of brokers in Gurgaon and 98% of them do Golmal.

    Double check on the price of the plot. The broker may put his m-o-b-i-l-e on hand free and speak to many people in front of you; giving an impression that he is getting you the right price but these are clever tactics.

    Call 6-7 brokers and say that you want to SELL YOUR PLOT in the sector of your interest. REMEMBER, YOU ARE NOT BUYING TILL YOU DO EXTENSIVE PRICE CHECK AND DUE DELIGENCE.

    Then these brokers will give you the current selling price idea. Make sure you visit the plot physically and not rely on the maps only.

    Also, if it's a HUDA plot, check the documents in the plot file thoroughly. Make sure all outstanding have been cleared. (Check from Sector Clerk) or get the Seller to put it down in writing or in the sale agreement.

    1) Conveyance Deed
    2) Possession Certificate
    3) Re-allotment Letter in the name of last owner (from whom you are buying)

    Verify these documents physically before showing any further interest.

    Many of these brokers make 10-20 Lacs commission as they never get the buyer and seller to meet. The Modus operandi is that they pick up plot files from the market and sell them at a very high price. :bab (45):

    Insist that you want to do the meeting with the Seller directly. Make sure you check the file and the name of the real seller and verify in person.

    Almost 2/3 of plots in Gurgaon are empty. Make sure you really like the location and then the price of course.

    If possible, avoid a HUDA plot and opt for a smaller plot in Sushant Lok or DLF.

    HUDA SECTORS SUCK BIG TIME.
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  • Yes, it depends on the way you negotiate.
    Don't believe whatever broker says.

    For them, if you are a buyer then the property you are interested is gold and your property sucks in case you are a seller. They do this all the time for buyers to buy it at a higher price and seller to sell at a depressed amount. These days sometime you don't even see the seller/buyer, because your broker is doing the dealing for you and so they make a lot of money even w/o commission because there is always some part that you need to give(or seller accepts) in cash.
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  • Thank you

    Thank you everyone for the responses and advise. This is my first RE transaction and I'm feeling a little jittery in going through with the deal :-)
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  • Hi Guys,

    I have booked a flat from a broker in original booking, and he promised me 2.75%, Need to know if I'm supposed to get any document for this from broker, or what is the price breakup or how is it adjusted.
    thnx in Advance
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  • Originally Posted by imsaurabh
    Hi Guys,

    I have booked a flat from a broker in original booking, and he promised me 2.75%, Need to know if I'm supposed to get any document for this from broker, or what is the price breakup or how is it adjusted.
    thnx in Advance


    Make sure you get a proper letter from them regarding cash back. They are very slippery characters and once the deal is done, they will not bother. I had a tough time with supposed to be reputed All Check Deals which kept on postponing payment of cash back. I booked through them only because it is part of naukri.com group. But they are even worse than other small brokers.
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  • Me and my cousin have recently purchased a 4BHK and 3BHK respectively in IREO Uptown.
    My cousin paid .05% commission (his broker asked for 1% but agreed on .05% after some negotiation).
    But my broker is insisting on 1% commission and refuses to take anything lesser.
    Can people pls advise what is the usual brokerage norm for resale properties.
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  • Originally Posted by sh-saxena
    Me and my cousin have recently purchased a 4BHK and 3BHK respectively in IREO Uptown.
    My cousin paid .05% commission (his broker asked for 1% but agreed on .05% after some negotiation).
    But my broker is insisting on 1% commission and refuses to take anything lesser.
    Can people pls advise what is the usual brokerage norm for resale properties.


    As others have pointed out, 1% is the norm and rest depends on your negotiating skills.
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  • Originally Posted by imsaurabh
    Hi Guys,

    I have booked a flat from a broker in original booking, and he promised me 2.75%, Need to know if I'm supposed to get any document for this from broker, or what is the price breakup or how is it adjusted.
    thnx in Advance


    Always try to get commission adjusted in BSP. Don't take it as a word of mouth and try to get something in writing (which majority of Gurgaon brokers won't give ). At best, they will give you a credit note which also some brokers don't honor later. In all, go with someone trusted through recommendations and always try to find out when exactly you should expect to get this back as some brokers pay only after 30% payment goes to the builder.
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  • Originally Posted by sh-saxena
    Me and my cousin have recently purchased a 4BHK and 3BHK respectively in IREO Uptown.
    My cousin paid .05% commission (his broker asked for 1% but agreed on .05% after some negotiation).
    But my broker is insisting on 1% commission and refuses to take anything lesser.
    Can people pls advise what is the usual brokerage norm for resale properties.

    I have paid around 0.7% in most of my transactions but always told them upfront i.e. prior to engaging them. I have paid even 0.5% if I have given him a mandate that I will only buy / sell via him only. Having said all that I think 1% is the norm and they do deserve it unless you are regular trader with them or have given them mandate to dealing with them only.
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  • Originally Posted by ravika
    I have paid around 0.7% in most of my transactions but always told them upfront i.e. prior to engaging them. I have paid even 0.5% if I have given him a mandate that I will only buy / sell via him only. Having said all that I think 1% is the norm and they do deserve it unless you are regular trader with them or have given them mandate to dealing with them only.


    If hes getting the direct meeting with the seller , then he deserves 1% otherwise negotiate
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  • >>>>>>>>>>>>>>
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  • Thanx for everyone's replies. This same broker found us our rental apartment and got whatever brokerage he asked for.
    Im also looking for another property via this broker so didnt want to set a precedent of 1%.
    As for this deal, I did my research with great help from this forum, zeroed onto IREO Uptown, asked him to get a couple deals for that and closed within 2 days without asking him to show me anything else so I dont really feel that much brokering effort has gone for this particular deal.
    Guess will try to negotiate down to .075%.
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  • Does this broker discount happen in other cities also or its something unique to Gurgaon.
    Forgive my ignorance but hadnt heard of this broker discount for new launches when I used to live in Mumbai till last year.

    Originally Posted by ggnkaaadmi
    Always try to get commission adjusted in BSP. Don't take it as a word of mouth and try to get something in writing (which majority of Gurgaon brokers won't give ). At best, they will give you a credit note which also some brokers don't honor later. In all, go with someone trusted through recommendations and always try to find out when exactly you should expect to get this back as some brokers pay only after 30% payment goes to the builder.
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