Pte Property Agents Fee

[sophia 0]

I was approached by an agent to sell my house. After agreeing to allow buyers in to view my place, there was an offer by one of them. I was wondering if I need to pay the agent any commission as both buyer and seller (me) are using only one agent? Is the commission a 'fixed' percentage or is it pegged to the amount the house is worth? ( the house is to be sold for $1.1 m) Plse help.

[yoongf 11]

Firstly, do not be intimidated by the agent by whatever he says. No black and white, no comm required. Contrary to popular belief, there is no law or whatever that says need to pay comm. If agent say he got buyer, then ask him get comm from buyer.

Typically is between 1 to 2% depending on quantum. 7 digit value usually is 1%.

When an agent acts for both buyer and seller, there is no guarantee that u are getting the best offer. Therefore, I wld not proceed with the deal until I get more freebies, or I really need to let go.

Usually, I tell the agent.. I did not appoint u.. therefore I pay no comm. They will then try to get the buyer to absorb the comm. If buyer dun agree.. no deal.

The value add of an agent is to get u the bestest price. Why pay comm if it's just a procedural effort to make appt to view? it's cheaper to get yr maid to place ad, answer calls and open door.

[Warrior88 0]

R u a serious seller ? seems not.

Not actually sure of yr valuation, but if agent can sell yr hse at

very high COV, says 200k above COV, then this comm.....

Perhaps, he may be more motivated to market yr hse at a good price.

Sometimes, end of the day, agent cut half the comm to offer the buyer

so as to close the deal.

[vampree 0]

R u a serious seller ? seems not.

Not actually sure of yr valuation, but if agent can sell yr hse at

very high COV, says 200k above COV, then this comm.....

Perhaps, he may be more motivated to market yr hse at a good price.

Sometimes, end of the day, agent cut half the comm to offer the buyer

so as to close the deal.

hmm .. reminds me of the agent I had which drove me up the wall, down the other side and plunge straight deep down into an ravine !

he simply refused to lower his commission to close the deal and can't even broker a deal between buyer and seller to compromise ...

with such agents around, no surprise some 'super agents' make the commission they make ...

[sophia 0]

I am not in an urgent need to sell my house. However, if the right price is offered, I am willing to let go of the property.

Yoongf: so there really is no law to say I must pay the standard 2%....... I suppose she is oredi getting her cut from the potential buyer..........

[zirhk3355 1]

The basic reasoning always apply: A person should only get paid if s/he had done work for you.

Hence, if the agent is someone with ready buyers, you conveniently come along with a house to sell and conveniently a buyer made an offer, then the agent had not done any work for you and does not deserved to be paid.

However, if the agent had marketed your house in the media, seek out buyers and even co-broke with other agents to bring buyers to your house, then bargained for the best deal amongst all the prospectives, then s/he deserves some incentives.

Anyway, you can even bargain on the comm to 0.5%, depends on the amount of work done.

[sophia 0]

The basic reasoning always apply: A person should only get paid if s/he had done work for you.

Hence, if the agent is someone with ready buyers, you conveniently come along with a house to sell and conveniently a buyer made an offer, then the agent had not done any work for you and does not deserved to be paid.

However, if the agent had marketed your house in the media, seek out buyers and even co-broke with other agents to bring buyers to your house, then bargained for the best deal amongst all the prospectives, then s/he deserves some incentives.

Anyway, you can even bargain on the comm to 0.5%, depends on the amount of work done.

Thanks for the fair clarification. I'll see how much she has done to close this deal before considering the amount of commission to give.

[zirhk3355 1]

Thanks for the fair clarification. I'll see how much she has done to close this deal before considering the amount of commission to give.

I will go further than that: Propose that you will pay a higher comm if she can close at $X amount; eg at $1.1m, you pay x%. If she can close at, say $1.2m or higher, you will pay 2x%. Since you can get $100k more, no issue to pay double the original comm, right?

Let her work for her comm lah!

[heynsl 1]

sorry for the interrupt...

i thought that for pte property, the seller is the one paying the 1% commission to the agent and not the buyer???

whereas for hdb property, it is both the seller & buyer pays 1% each to the agent???

[zirhk3355 1]

sorry for the interrupt...

i thought that for pte property, the seller is the one paying the 1% commission to the agent and not the buyer???

whereas for hdb property, it is both the seller & buyer pays 1% each to the agent???

You are talking about market practice.

Going by IEA's guidelines (remember, its guidelines, not regulations), its supposed to be 2% for seller and 1% for buyer, for BOTH private properties and HDB flats.

The rest is up to negotiation between the agent and seller/buyer. But you are right, now the market practice is usually buyer does not pay comm for private properties.

[vampree 0]

You are talking about market practice.

Going by IEA's guidelines (remember, its guidelines, not regulations), its supposed to be 2% for seller and 1% for buyer, for BOTH private properties and HDB flats.

The rest is up to negotiation between the agent and seller/buyer. But you are right, now the market practice is usually buyer does not pay comm for private properties.

agree with zirhk ... offer to pay minmial comm and higher comm if she/he can fetch higher price than what you are prepared to sell ...

but i also share the thot that buyer (private property) dun pay agent comm ?

[zirhk3355 1]

but i also share the thot that buyer (private property) dun pay agent comm ?

What do you mean you "share the thot"?

Actually I am not in favour of pte ppty buyer not paying comm, on the simple basis that HDB buyer usually needs to pay comm.

Its not that I got too much money want to pay the agents lah; but thinking further, I always believe in value for money lor. If not paying any comm, the agent will only listen to the seller. At least I pay for an agent, I will have someone to fight for my rights...okok, I know you all will say I am naive or being fooled by agents, but just bein optimistic lah...

[Warrior88 0]

Pay comm ? Em... Why we pay .. for this reasons

1. Paperwork ( no need if u hv time to run the errands )

2. Negotiation with seller / seller agent ( no need if u r good nego ppl )

3. Market trend & information ( no need if u hv time to check good lobang )

4. Arrange viewing , taking calls ...etc

But legal fees is a must....

If high supply, no need buyer agents, easy buy & nego

But low supply, agent must do cold calls to check availability.

Also, in the case of overseas buyer, agent helps to do the screening.

[vampree 0]

What do you mean you "share the thot"? !!

Actually I am not in favour of pte ppty buyer not paying comm, on the simple basis that HDB buyer usually needs to pay comm.

Its not that I got too much money want to pay the agents lah; but thinking further, I always believe in value for money lor. If not paying any comm, the agent will only listen to the seller. At least I pay for an agent, I will have someone to fight for my rights...okok, I know you all will say I am naive or being fooled by agents, but just bein optimistic lah... !!

kekeke .. my take on agent is "never believe them". As long as you have a sellprice in mind and they achieve it, then pay them. Of course getting more is a bonus and they shd get that little extra too.

As a buyer, I will stick to what I can offer despite what the agent might have to say about the propective house.

I even had one that used my house to sell my neighbours ! I din realised that he was marketing both our places... sigh.

[titan 0]

Correct me if I'm wrong.......

I did not pay any agent fee when I purchase my apartment last yr. The comm is paid by the seller and not buyer for private properties.