How to Choose a Good Real Estate Agent and Save on Fees

Legally, intermediary services are referred to as "brokerage," and professionals in this industry are called brokers. Becoming a licensed broker requires passing an examination, yet most people working in real estate agencies don't hold this qualification.

Currently, the three main types of agencies that have survived in the market are:
• Large chain brokerage companies, represented by Lianjia and 5i5j.
• Internet-born agencies with e-commerce characteristics.
• Small, nameless local agencies clustered around neighborhoods (some of which operate illegally).

Whenever possible, choose a large platform agency. Although their entry barriers are low, staff quality isn't always high, and problems do occur, they still have more resources than small agencies. If you're scammed, a large agency can compensate you for your losses, whereas small or illegal agencies may simply disappear.

The goal of brokerage services is to facilitate the formation of a contract between both parties—essentially signing and transferring money. Everything that happens afterward, such as mortgage applications, property transfers, or lawsuits, is technically unrelated to the agent. However, because transactions are dominated by brokerage companies, they invest considerable time and effort to secure listing information from property owners and use their control over this information to steer transactions. It's nearly impossible to rent or buy a home without going through an agent. This has led to the assumption that clients should receive full-service support from their broker. If any issues arise during the transaction, agents face pressure to refund fees and meet performance targets, forcing them into disputes between buyers and sellers.
In China, buyers and sellers typically share a single agent: one person from the brokerage provides end-to-end service throughout the entire process—from facilitating the transaction, showing properties, and signing contracts to handling loans and title transfers.

Brokerage services cover several stages: property viewings, contract signing, and transfer processing.
Property viewings are free of charge, while contract signing incurs a fee. Transfer processing involves the remaining administrative work. Under the Contract Law, brokerage services are premised on the establishment of a contract. In other words, once both buyer and seller sign the agreement through the agent, the agency has theoretically fulfilled its obligation, and payment is due.

So, don't rely too heavily on any single agent. View properties through multiple agencies, choose larger firms, and pay brokerage fees in installments.

Brokerage fees are stipulated in the intermediary service contract. These contracts are usually prepared by the agency, and there are multiple signing occasions.
The first signing occurs during property viewings, where you'll be asked to sign a viewing confirmation form. Anti-circumvention clauses are typically buried within this document. If you lack purchasing experience, it's advisable to avoid signing this upfront; waiting until after you've secured a deal is perfectly fine. Whether signing guarantees the agency can win a lawsuit or not signing ensures defeat is not absolute, but it does affect the odds.
The second signing happens after you've negotiated terms with the seller and agreed to proceed. At this point, the agent will present a stack of documents. At minimum, you'll be signing two contracts: one for the purchase agreement between you and the seller, and another for the intermediary service contract. Some agencies combine these into a single "brokerage and sales service contract."
The second signing determines the percentage rate for your brokerage fee.
Remember the so-called "document preparation fee" mentioned earlier? In a proper setup, there should be three documents. The first is the government's standard purchase and sale contract template, which generally cannot be altered. In some cities, this template must be purchased, so it's pre-printed. Because there are numerous checkboxes and blank fields, the way you fill them out matters significantly.
This filling-out process is typically handled by the agent, which is where the document preparation fee originates. To expedite the signing process, these critical selections are often simplified—prioritizing shorter transaction timelines and faster deal closures.
The second document is a supplementary agreement, either handwritten or provided by the agent. This can modify terms that the government template doesn't allow changes to and incorporate specific requirements from both parties, making it particularly important.
The third document is the intermediary service contract, which also has its own nuances.
The third signing pertains to online registration, face-to-face interviews, and appointment scheduling—though these are less critical than the first two.
Sometimes, additional supplementary agreements need to be signed midway through contract execution. Signing a contract is essentially documenting mutual agreement in writing; at any point, either party can request amendments if circumstances change.
So, when should you negotiate brokerage fees?
1. Before property viewings.
2. After viewings but before signing the contract.
3. After signing the contract.
The answer is: 2.
The key to negotiating at this stage is simple: use different agents to view the same property.

After viewing properties, you'll understand the neighborhood, floor level, and layout. At this point, visit the property management office or nearby agencies directly and ask whether they have access to the specific listing. Then inquire about their brokerage fee structure. They might respond with references to government regulations stating a 3% standard, company policies on commission rates, or tiered pricing based on agent seniority and authorization levels. Keep in mind, these are all talking points. Agents are well aware that services are largely comparable across agencies; their real advantage lies in exclusive listings. Once you mention the exact property location, they'll recognize you've viewed it elsewhere. If they don't pick up on this immediately, simply tell them directly that you've already seen the property through another agency and are now discussing commission terms—if the price is right, you'll sign with them; otherwise, you'll explore other options.
Under these circumstances, agents will typically reduce their fees to secure the deal. By cycling through multiple agencies, you can negotiate lower rates and, depending on your negotiation skills, aim for around 1.5% to 2%, or even as low as 0.6%.