What is the commission % for agents selling your property?

With rising costs and increased learning needs, financing our children's education is no longer a simple walk in the park. Discuss with other parents about how they are managing their finances to cope with their expenses.

What is the commission % for agents selling your property?

Postby Canvas » Thu Apr 21, 2011 10:06 am

We are selling our pte apt to downgrade to a HDB. An ex-agent friend said standard % for selling pte apt is 1%. But another agent who is eager to market our unit, said the standard is 2%. He also said if there is an interested buyer who has an agent asking for co-broke, we should offer that buyer's agent 0.50% (at our expense). Now shouldn't the cobroke deal be between the agents and agents alone?

First time selling so quite confused. Help please! :pray:

Canvas
BlueBelt
BlueBelt
 
Posts: 371
Joined: Thu Jul 30, 2009 8:14 am
Total Likes: 0


Postby rosemummy » Thu Apr 21, 2011 2:53 pm

Agents will always tell you the market standard is 2%. But there are plenty of agents willing to do at 1%. If they co-broke, they pay the co-broke agent out of their commission. Why should you be paying a commission to the buyer's agent? For an agent to suggest that, I think he's really fobbing you.

rosemummy
BlueBelt
BlueBelt
 
Posts: 351
Joined: Fri Nov 19, 2010 3:40 pm
Total Likes: 1


Postby Canvas » Thu Apr 21, 2011 3:51 pm

Thanks rosemummy. Really appreciate your reply. Now I know what to do.

I am considering selling my unit myself too but my friend told me to be prepared for various "patterns" by agents, for example, they may bring their own friends to pretend to be buyers and offer low prices and pressurize me to sell low etc etc.

No offence to honest agents reading this post! 8)

Canvas
BlueBelt
BlueBelt
 
Posts: 371
Joined: Thu Jul 30, 2009 8:14 am
Total Likes: 0


Postby hquek » Thu Apr 21, 2011 4:00 pm

Canvas,

My family sold off an apartment recently and paid 1%.

Where possible, try to talk to the buyers directly. But agents won't like that.

Someone I know made a lower offer but got the flat (not mine, this is old history). Reason being the seller's agent thought he would earn commission from both buyer and seller. There was a higher offer but the buyer who had his own agent, so the seller's agent didn't tell the owner of the higher offer.

Good luck

hquek
Councillor
Councillor
 
Posts: 6535
Joined: Fri Jul 18, 2008 10:07 am
Total Likes: 70


Postby rosemummy » Thu Apr 21, 2011 5:23 pm

Canvas wrote:Thanks rosemummy. Really appreciate your reply. Now I know what to do.

I am considering selling my unit myself too but my friend told me to be prepared for various "patterns" by agents, for example, they may bring their own friends to pretend to be buyers and offer low prices and pressurize me to sell low etc etc.

No offence to honest agents reading this post! 8)


First, don't give exclusive. Second, set your own reserve price and if you are confident that the level you've set is reasonable, don't accept an offer that is lower than that. Third, the indicative price you give to the agents should be higher than your own reserve price to give room for bargaining. If you're firm on your pricing, tell them not to bring any prospective buyers unless they're ok with your price. Get the agents to screen the prospects so you don't waste too much time entertaining viewing requests.

I've never bothered selling myself because a lot of buyers, especially foreigners, do go through agents, and you'll miss out on those prospects. This is particularly the case for private properties. For rental, if you want corporate lease, it's very difficult to do it on your own.

1 tip for you. Never agree to a lower price if they ask. Tell them to make an offer with a cheque for you to consider. In this way, you cut off those trying to push the price down. It can be a downward spiral.

rosemummy
BlueBelt
BlueBelt
 
Posts: 351
Joined: Fri Nov 19, 2010 3:40 pm
Total Likes: 1



Postby rosemummy » Thu Apr 21, 2011 5:28 pm

hquek wrote:Canvas,

My family sold off an apartment recently and paid 1%.

Where possible, try to talk to the buyers directly. But agents won't like that.

Someone I know made a lower offer but got the flat (not mine, this is old history). Reason being the seller's agent thought he would earn commission from both buyer and seller. There was a higher offer but the buyer who had his own agent, so the seller's agent didn't tell the owner of the higher offer.

Good luck


For HDB?

For private, the buyer don't pay commission and seller agent can't be paid by buyer. But if they co-broke, they'll have to share the commission with the buyer's agent. So there's incentive for them to sell to their own direct client.

I believe the new guidelines would prohibit the agents for doing this?

rosemummy
BlueBelt
BlueBelt
 
Posts: 351
Joined: Fri Nov 19, 2010 3:40 pm
Total Likes: 1


Re: What is the commission % for agents selling your propert

Postby Leander » Fri Jun 03, 2011 6:40 pm

Hi,
Property agents will deduct 2% according to the market standard.But there are plenty of agents willing to do at 1%. If they co-broke they pay the co-broke agent out of their commission...

Leander
KiasuNewbie
KiasuNewbie
 
Posts: 3
Joined: Fri Jun 03, 2011 5:52 pm
Total Likes: 0


Re: What is the commission % for agents selling your propert

Postby Harleston » Sat Jun 04, 2011 5:03 pm

You should have to survey the market and take quotes from different agents and you will find low commission agent quite easily. As i think your agent is asking more commission than others.

Harleston
KiasuNewbie
KiasuNewbie
 
Posts: 5
Joined: Fri Jun 03, 2011 5:53 pm
Total Likes: 0


Re:

Postby teddy7171 » Sat Jun 04, 2011 8:16 pm

For private, the buyer don't pay commission and seller agent can't be paid by buyer. But if they co-broke, they'll have to share the commission with the buyer's agent. So there's incentive for them to sell to their own direct client.

I believe the new guidelines would prohibit the agents for doing this?[/quote]

Hi Rosemummy,

:? Do u mean that for private property, buyer doesnt need to pay agent fee even the buyer has own agent? So both agents split the 1% commission?

If this is the case, seller's agent would control the selling or not selling the property- coz will wait for direct buyer.

Thanks.

teddy7171
YellowBelt
YellowBelt
 
Posts: 20
Joined: Wed Mar 10, 2010 11:33 am
Total Likes: 0


Re: Re:

Postby rosemummy » Sun Jun 05, 2011 2:41 pm

Hi teddy7171

Yes, that had always been the case. The buyer don't pay any commission for private properties. The seller's agent is always motivated to look for direct buyers, even for HDB (in which case, they can earn commission for both parties). As owners, we just got to learn how to protect ourselves. Go to the agent for the service, but don't rely on them to act in your best interest. Never give exclusive. In this way, the agents are motivated to compete and close the deal faster. You only pay the one who managed to bring you a buyer prepared to pay the price you want. And you are free to also sell it on your own if you chance across a buyer. In my experience, agents don't wait around for direct buyers since they may not get to close the deal if they do so. And if they don't co-broke, others would and they lose the deal.

rosemummy
BlueBelt
BlueBelt
 
Posts: 351
Joined: Fri Nov 19, 2010 3:40 pm
Total Likes: 1


Next

Return to Money Matters