Commission Structure in Real Estate: What You Really Pay and Who Gets Paid

When you buy or sell a property in India, the commission structure, the fee paid to real estate agents for facilitating a property transaction. Also known as real estate brokerage fee, it’s not a fixed cost—it’s a negotiated part of every deal, and it’s often hidden in plain sight. Most people think the buyer pays it. That’s not always true. In most cases, the seller covers the full commission, but that cost gets baked into the final price. So whether you’re buying or selling, you’re paying for it—just in different ways.

The real estate commission, the percentage paid to agents for connecting buyers and sellers in property deals typically runs between 1% and 2% in India, depending on the city, property type, and agent’s experience. In luxury markets like Bangalore or Mumbai, it can go higher. But here’s the thing: that percentage isn’t split evenly. The listing agent, the buyer’s agent, and the brokerage all take a cut. Sometimes, the buyer’s agent gets half. Sometimes, the seller’s agent keeps it all. It’s not standardized. And unless you ask, you won’t know how it’s divided.

agent commission, the portion of the real estate commission paid directly to the individual agent is what keeps agents working. But many agents don’t earn much after their brokerage takes 40-60% of their share. That’s why some push high-end properties—not because they’re better, but because the payout is bigger. If you’re selling, you might think a higher commission means better service. It doesn’t. A good agent works hard whether they make 1% or 2%. What matters is their network, their honesty, and how much time they actually spend on your deal.

The property sales commission, the total fee charged for completing a residential or commercial property transaction isn’t just about money. It’s about transparency. Some brokers hide fees in fine print. Others charge extra for marketing, paperwork, or inspections. You should never sign anything without knowing exactly where every rupee is going. Ask for a written breakdown. If they hesitate, walk away.

And don’t assume the biggest agency is the best. Small, local firms often offer better service and lower fees because they don’t have corporate overhead. They know the neighborhood. They’ve sold homes on this street before. They remember your name. That’s worth more than a fancy logo.

What you’ll find in the posts below are real examples of how commission structure plays out in different situations—whether you’re selling a luxury apartment in Hyderabad, renting out a 2BHK in Pune, or negotiating a deal with a foreign landlord. Some agents charge flat fees. Others work on sliding scales. Some offer discounts if you both buy and sell through them. One post even breaks down how a 2% commission on a ₹1.5 crore property actually translates to ₹3 lakh—and who pockets what. There’s no guesswork here. Just clear, practical details you can use before you sign anything.