Being a real estate agent is a little strange. You work for customers who never pay you anything, even if you find them their dream home!
As a buyer or tenant, you should never have to a broker anything. Brokers receive a commission from the owner of the property. The industry standard is 5 percent, but this is almost always split between multiple parties who helped facilitate the transaction. For rental properties, one month worth of rent for a one year contract is standard. This is not recurring; in other words, if the tenant chooses to renew, the owner does not have to pay any more commission.
Since a real estate agent's income is tied to the purchase amount, the temptation is always there to keep the price as high as possible. That is why often brokers and sellers will work together to inflate the price and dupe the client. This is especially true if the client is a foreigner and "out of the loop" (ignorant of market conditions and unaware of the gossip making the rounds in the city).
At ZION CEBU, we'd rather receive a smaller commission than no commission at all - which is what happens more often than not if the price is kept too high. But more importantly, it's also a question of principle. You have my guarantee that we will always strive to ensure the lowest possible amount. ZION CEBU shall be known for fighting on behalf of customers and for adhering to the highest standard of ethics. And that is why ZION CEBU will eventually become the most successful real estate firm in Cebu.
