Real estate brokers demand 3-5% from property deals

From one per cent brokerage, real estate brokers moved to two per cent and now the demand has gone up to three and in several cases brokers are demanding as high as five per cent brokerage of the deal. The demand was made at a recently concluded event organised by Confederation of Real Estate Broker Association of India (CREBAI).

CREBAI President, Vikkram Mehta, said, "I request the government to approve a minimum 2 per cent brokerage mandatory on sale or purchase of realty throughout India. If the valuation of a property is more, a minimum of 2 per cent should be paid or else it can be in the range of 3-5 per cent."

The high brokerage is mostly asked from the developer, not the home buyer, the question is why will a developer pay this high brokerage? Answering the questions, Prakkash Rohira of Karma Realtors said, "Builders want deals to happen and they know brokers can get them customers. Plus the norm is slowly moving towards two per cent brokerage and soon it will be three per cent. However, if a broker gets bulk deals, the builder gets larger profit and hence doesn't mind shelling the extra buck as brokerage. At times it's better to have something than nothing."