As a buyer, how much does it cost to work with a real estate agent?

Does working with a real estate agent make the property more expensive when buying from a real estate developer?

Many people, especially in the Philippines, try to bypass working with a real estate agent, thinking that the agents are making properties more expensive. One of the common myths is that prices are being marked up by real estate agents for the agents to earn more. Well, we can’t really blame them for that because it has been happening in the past, that time when the real estate industry has not yet been professionalized.

Contrary to what people believed, Real Estate Agents are professionals, licensed and accredited by the Professional Regulatory Commission (PRC). Today, the Real Estate Brokers need to take and pass the board exam to legally be able to deal and sell properties. While the Real Estate Salespersons are under the supervision of a Real Estate Broker, trained and certified by Broker Associations, accredited by PRC and DHSUD if they sell properties under a developer. [How to be a Real Estate Broker in the Philippines].

The Real Estate Brokers and Real Estate Salespersons will be accredited by real estate developers to make them legible to market and sell their properties. Selling properties without a license or accreditation is strictly prohibited by the law. [To learn more about the penal provisions and exemptions click here].

What do real estate brokers/salespersons do for you?

• They help real estate developers introduce their project to the market. Developers train them about the project to help them explain it to their clients.
• They help you communicate and negotiate better to developers.
• They help you gather and collect document requirements for the purchase.
• They are your point person contact for matters about the purchase of the property.
• They will help make sure that you get pre-approved or get approved to your home loans.
• They serve as your personal homebuying counselors, they represent you throughout the sale.
• They schedule and assist you with home showings.

So how much does it really cost to work with a real estate broker/salesperson as a homebuyer?

None. As a buyer, you are not billed for their work and efforts. They will give you the best service you deserve. Real Estate Brokers are licensed professionals just like teachers, doctors, nurses, etc., although they have different work and specializations. They do not directly receive compensation from buyers. But they go the extra mile to make sure buyers will have hassle-free purchases.

For Brokerage selling or resell properties, the seller is usually responsible for the professional fee of the Real Estate Broker. However, if it is the buyer who asked the broker to look for a property to buy, then the Professional Fee of the Broker/Agent can come from the buyer. Compensation can range from 3% to 5% as per industry practice.

All transactions must be disclosed, (following ethics) If the real estate agent receives compensation from both parties (buyer and seller), ethically the agent must inform both parties about it and the seller or buyer can choose to provide half of the agreed percentage of the sale or keep it full as it is. [Read about Real Estate Service Code of Ethics]

Interested to buy a property in the Philippines today? Contact our Filipino Homes Agents