Balancing Price, Profit, and Respect in Real Estate Deals

When working in real estate, there’s always a fine balance between closing a deal and ensuring fair profit. I often see that discussions about commission, or success fee, can take up too much focus during negotiations. Of course, it’s essential that we professionals get paid for our work, but it should never overshadow what matters most: making sure the client feels safe and well taken care of.

In Portugal, success fees usually range from 1 to 5 percent. Most agents charge 4 to 5 percent from the seller. If I receive 5 percent from my seller and a buyer’s agent is involved, I typically split it 50/50. If a third agent joins, it’s often 50 percent for me and 25 percent each for the other two. In some cases, it makes sense to split 40 percent to me, 40 percent to the agent with the client, and 20 percent to a middleman. It all depends on the situation and the size of the deal.

It’s also important to note that if there is a buyer’s commission involved, it should also be shared 50/50. Some buyer’s agents keep their commission secret and keep it all for themselves. That’s not the way we want to work – transparency and fairness are key to building trust and long-term relationships.

For me, it’s always about giving the client a positive experience. If I sometimes need to accept a bit less commission because multiple agents are involved, but it helps get the deal done and the client happy, it’s worth it. A happy client will come back, and in the end, satisfied clients are what build a healthy business.

But there has to be a limit. Too many intermediaries can quickly make the process unnecessarily complicated and lead to misunderstandings. Also, as an industry, we need to maintain a minimum standard to ensure respect for our time and expertise. Time is money, and deals need to be fair for both the client and the professionals who spend hours and effort making a deal happen.

My approach is simple: I’m happy to share commission if it helps secure a good deal for the client. But I also stick to a minimum that reflects the work I put in and ensures I can continue to deliver high quality. Only this way can we create long-lasting relationships and a market where everyone feels respected.