How much do real estate agent services cost
When concluding real estate transactions, the question of commission almost always arises: how much does the realtor charge, what exactly do clients pay for, and who should pay for their services—the seller, buyer, landlord, or tenant? Due to the lack of clear legislative regulation surrounding real estate commissions, there are still many myths, misunderstandings, and conflicts between the parties to the transaction.
In this article, we will examine the commission charged by realtors when selling and renting real estate, who usually pays for their services, what determines the amount of remuneration, and in what situations the work of a realtor is truly justified.
Real estate agent commission when buying or selling property
The realtor's commission for the purchase and sale of real estate in Ukraine is not regulated by law and is determined by agreement between the parties. This means that there is no "mandatory" percentage — the rate is formed by the market and takes into account the specifics of the particular transaction.
In practice, the commission for selling or buying an apartment is usually between 3% and 5% of the property's value. It can go up if the property is complicated, needs active promotion, negotiations with several parties, or long-term support for the deal. The percentage is calculated based on the actual price of the property specified in the purchase agreement, not the initial price in the advertisement.
The percentage that a real estate agent charges when buying or selling property may vary depending on several factors:
property type — apartment, house, commercial real estate;
price and liquidity of real estate;
scope of services — only searching for a buyer or full transaction support;
the complexity of paperwork and legal nuances;
region and level of competition in the market;
the experience, reputation, and working style of the realtor or agency.
To avoid misunderstandings, it is recommended to discuss the commission amount and list of services before starting cooperation and to be sure to include them in the contract. This allows you to understand in advance what exactly you need to pay for and what obligations the realtor assumes.
The amount of the realtor's commission when renting a property
The cost of real estate agent services for renting housing also does not have a fixed rate and is determined by agreement between the parties. However, a stable practice has developed in the rental market in Kyiv and other cities of Ukraine, which most agencies follow.
In most cases, the realtor's commission is 50% of the cost of one month's rent. This is the most common option for long-term rentals of apartments and houses. In some situations, the commission may be higher and reach 100% of the monthly rent. This is possible if the property is inexpensive and in high demand, the realtor fully accompanies the selection and registration process, and it is important for the tenant to quickly find housing with minimal risks.
Who should pay for the services of a real estate agent?
Ukrainian legislation does not contain any provisions that clearly define who is responsible for paying for the services of a real estate agent. In practice, it all depends on the format of the transaction and whose interests the specialist is working in.
Who pays for real estate agent services for different types of transactions:
When selling real estate. The commission is most often paid by the seller if the realtor is involved in appraising the property, advertising, showing it, and negotiating with buyers. If the agent accompanies the buyer, selects properties, and checks documents, the buyer pays the commission.
When purchasing real estate. If the buyer engages a real estate agent to search for and facilitate the transaction, they pay the commission. If there are real estate agents on both sides, each side pays their own agent.
When renting out property. When the owner orders a tenant search service and entrusts the realtor with organizing viewings, the commission is usually paid by the landlord.
When renting accommodation. In practice, the commission is usually paid by the tenant, as the real estate agent selects options based on their request, arranges viewings, and assists with the conclusion of the lease agreement.
The key rule is that the person who orders the service pays. It is important to discuss the terms of payment, commission amount, and list of the realtor's responsibilities in advance and set them in writing before starting cooperation.
When to contact a real estate agent
The services of a real estate agent are not mandatory, but in some situations they are justified and help save time, spare your nerves, and reduce the risks of the transaction. This is especially true when you have no experience working with the real estate market or the ability to control the entire process yourself.
It is advisable to contact a realtor if:
no time to search for properties, viewings, and negotiations;
urgent transaction — it is important to sell, buy, or rent real estate quickly;
complex property — non-standard layout, multiple owners, inheritance, encumbrances;
no experience in negotiations and understanding of market value;
Support is required throughout the process, from the initial viewing to the signing of the contract.
If the client has the time and experience, some of the tasks can be performed independently, involving a lawyer to check the documents if necessary. In other cases, working with a realtor is a fee for convenience, speed, and organization of the transaction from start to finish. The specialists at the Mayak real estate agency have extensive experience in concluding real estate transactions in Kyiv. If it is important for the process to be risk-free, profitable, and completed in a short time frame, it is worth turning to professionals.
