Developers reject 5% commission Agents Cry Foul

A real estate agent has lamented the […]

A real estate agent has lamented the reluctance of some developers to adhere to the acceptable 5-10 percent commission fee. Speaking in an interview with the Zambian Business Times—ZBT, Maroon Estates Limited Managing Director Kunda Mapamo called on the authorities to take keen interest in monitoring the market trends.

 “The most challenging is that commission; real estate owners bemoan a commission of 5-10%, and some of them even offer 3.5 percent of the sale, which is unfair for us estate agents.”

 Mapamo called for fair deals, observing that real estate agents just do one-off deals, and there is a need for all three parties involved to benefit handsomely.

 “If it’s rentals, we should just play fair; we bring Times— ZBT—and our commission is just one-off and all three parties, and if it’s selling, that’s a great amount; they should stick to the 5% at least. That’s fair. Most of the developers set even 2.5%, and most of them we are ok to work with, and the market is quite competitive,” he added.

Mapoma urged the Zambia Institute of Estate Agency (ZIEA) to take keen interest in the matter and sanitize the market.

 When asked why most property owners disregard the stipulated guidelines and one-off deals, it was found that most need them to feel they are entitled to prescribe the conditions since they own it.

“By its rentals, it should be at least 50 percent, but the tenant owners feel they are money-tied; hence the resistance. We are selling, and EA has been attempting to help, but it’s a volatile market.”

Article by Samuel Mutale