A real estate consultant is someone who gives specialized investment and financial advice to clients looking to buy, sell or invest in property.
Real estate Consulting Services in Ghana
KLEMS REAL ESTATE CONSULTANCY, Phone: 030 393 1708
EA Property Consulting, Address: Dr. Busia Hwy, Accra
Assenta Property Consulting, Phone: 030 266 2352
ORIENT PROPERTY CONSULTING, Phone: 024 576 7771
Westfields Real Estate, Phone: 030 700 7210
Assenta Property Consulting, Kumasi, Phone: 032 204 6706
What services does a consultant offer?
Strategy Consulting.
Business Consulting.
Financial Consulting.
Information Technology Consulting.
Management Consulting.
Sales Consulting.
Marketing Consulting.
What is the commission in Real Estate?
According to realtor.com, the real estate commission is the agent’s fee for service. It is a percent of the sale price negotiated at the time of the listing. Every seller has the right to negotiate the commission, just as every agent has the option to hold fast to their fee. Full-service agents charge more than fee-based, or flat-fee, agents.
What this means is that when you make the decision to undertake a real estate transaction; buy, sell, lease or rent a property, so many activities are triggered to ensure you have a deal. These activities which I have already explained in my earlier article on All you need to know about Real Estate Brokerage is something that must be paid for.
Unlike charges in other sectors, where service charges might be fixed, real estate service charges are not fixed but determined by the value of the property or transaction on the table. A portion of the full charge of the transaction is what goes to the agent or brokers facilitating the transaction.
This commission is what the agent or broker uses to cover his expenditure in facilitating the transaction or closing the deal. For instance, advertising and marketing, free site and property viewing, fuel cost, follow-ups on documentations, scrutiny of all paperwork, saving the client time, money and resources in ensuring the transaction is closed. Apart from this, the broker or the brokerage from where the agent works pay utility bills, graphic designers, social media marketers among others to stay in business.
Most of these expenses are made upfront at no cost to the seller or buyer in the hope that the deal will be closed so that the agent or broker gets paid. Most often if a deal is not closed the agent or broker gets nothing or something small if he or she is lucky. This something small does not even cover the expenses made so far.
What is the Ideal Percentage for a Commission?
There is no fixed commission as it depends on the percentage agreed between the seller or buyer and the agent or broker. The percentage could be as high as 10-15% (special cases) and as low as 1-3% depending on the cost of the property in question.
Your ability to decide on the right commission percentage is dependent mostly on many factors; the experience of the agent or broker involved in the deal; thus the one representing the seller (Sellers or listing agent) or the one representing the buyer (buyers or selling agent). If the agent or broker has a solid track record of closing deals lots of deals in a year, his commission could be quite high because he or she knows his worth and can demonstrate to you with his many deals he has in his bag. On the other hand, an agent who closes a deal once in a while will not be able to charge higher commissions and you the client, will not even be ready to give him that.
Another thing is that a property which has been listed for GHC 2million (about $420,000) will have a less percentage for a commission than a property which is going for GHC 700,000 (about $140,000). However, the actual money that will come to the agent or broker will be higher for the former than the later. At the end of the day it is all about the negotiations that are pre agreed upon before the transactions takes off.
Some clients instead of the percentage of the fee on the transaction are able to negotiate for a flat fee which the agent must of course agree to. Sometimes it is the agent or broker that makes this alternative suggestion. All the same it must be a fee that is mutually beneficial to all parties involved.