Commission To Brokers Doubled

Published: November 10, 2008 at 12:27 PM | Author: Administrator
News Source: Business Standard - 29 Oct 2008

Share

In high-end areas of Mumbai like Bandra and Khar, presently brokers charge commission as high as 4 per cent. "Builders call us within hours when we take a potential buyer to check out their building," says a broker from Bandra. The keenness to sell on the part of builders is quite evident. For instance, brokers say, a very renowned builder in Khar area, whose old properties also command a premium in the secondary market, is now willing to double his commission from 1 to 2 per cent. According to another broker, a builder with a tower-project in Oshiwara has approached a set of brokers to market it. The main reason for the same is the cash crunch that many builders are facing. Many of them are paying in excess of 30 per cent interest for loans they have taken from financiers. Property experts say, this is a last-ditch effort by many builders. Even last Diwali, the number of deals was down 30-40 per cent. Another season with shortage of buyers would mean that many builders would find themselves in serious financial trouble.