AZE.US
Azerbaijan is again discussing the need for clearer regulation of real estate agents. For many people who want to buy, sell or rent a home, realtors remain one of the first points of contact. Yet the fees charged for these services are still often set without common rules.
In practice, some realtors ask for 1% of the transaction value, while others charge 2% or even 3%. A similar situation exists in the rental market. In some cases, clients are asked to pay not only after a deal is completed, but even for viewing an apartment.
Market participants say fees depend on the type of property, its location and the amount of work involved. According to realtors, the commission for selling apartments may range from 1% to 2%, while for commercial properties it can reach 3%.
Different approaches are also used in the rental market. In some cases, both the tenant and the property owner pay the intermediary separately. Realtors say that when a tenant makes a long-term advance payment, for example for several months or a full year, the commission may increase.
Vugar Oruj, chairman of the Society of Appraisers, says the work of realtors in Azerbaijan needs a more systematic approach. According to him, in international practice the activities of appraisers, realtors and auditors are often regulated by professional associations that set methodology, standards and rules of conduct for the market.
Oruj said the situation in Azerbaijan is different, and many clients still distrust realtors.
“The activity of realtors is not in a very good state. There is serious distrust among clients,” he said.
The expert believes serious measures should be taken in this sector, and market conditions should gradually be brought closer to international standards. At the same time, he stressed that the fee for a service should be determined on the basis of a contract between the client and the intermediary.
According to Oruj, in a free economy companies can independently assess the value of their work and set their own service fees. However, professional associations or relevant state institutions may define minimum and maximum commission limits, which would be in line with international practice.
The expert also noted that informal rates have already formed in the market, even though they are not fixed in a single official document. In many cases, commissions start from around 2%.
At the same time, he said current laws do not prevent companies from setting their own fees. The commission often depends on the quality of service, the cost of the work, the professional level of the company and client satisfaction.
Oruj added that the problem is not only the low level of professionalism among some realtors. Many citizens also do not fully understand what real estate services include.
A separate issue concerns payments for viewing apartments or other properties. According to the expert, some realtors ask for such payments to check whether a client is serious about renting or buying.
However, such payments can be considered lawful only if they are clearly stated in a contract between the parties in advance. If a realtor demands cash simply for showing an apartment without any official agreement, that practice is considered illegal.
AZE.US