What is the commission % for agents selling your property?

[Leander]

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…

[Harleston]

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.

[teddy7171]

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.

[rosemummy]

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.

[teddy7171]

Hi rosemummy,


Oh, so dont need to pay a cent for getting a private property. :shock: We r looking for a condo lately n my agent is going to charge us 1% if managed to get one.

Aiya, never get to own any private so dun know. Glad to find out now, can save a lot of $$$$.

Sorry, one more question to be sure. My agent will share $$$$ with the seller's agent rite?

Thanks.

[rosemummy]

teddy7171:

Hi rosemummy,


Oh, so dont need to pay a cent for getting a private property. :shock: We r looking for a condo lately n my agent is going to charge us 1% if managed to get one.

Aiya, never get to own any private so dun know. Glad to find out now, can save a lot of $$$$.

Sorry, one more question to be sure. My agent will share $$$$ with the seller's agent rite?

Thanks.

Yes, that's correct. In a sense, the buyer is paying the commission as part of the price. But buyer don't have to pay any commission to the agent. The agent wiil co-broke with the seller's agent.

What I would suggest is for you to get some agents to source for properties for you. But don't let that stop you from looking at the Classifieds yourself. There're many properties available and your agent is unlikely going to be in contact with all the sellers or their agents. Seller's agents may also prefer to deal with direct buyers. There're also ads from sellers who do not want to deal with agents. If you're interested in the property, try to negotiate for a lower price ie sharing the commission saved between the 2 parties.

Another point you may wish to note is that tenants do not pay any commission to their agents if the rental is above a certain amount (I can't recall the exact figure - it's around $2,500pm). The agents have to co-broke, or the landlord agent has to get a tenant on their own. If you try renting out yourself, you'll have to pay the tenant's agent. It's very difficult, if not impossible, to get a good corporate lease without going through an agent.

[teddy7171]

rosemummy:

teddy7171:

Hi rosemummy,


Oh, so dont need to pay a cent for getting a private property. :shock: We r looking for a condo lately n my agent is going to charge us 1% if managed to get one.

Aiya, never get to own any private so dun know. Glad to find out now, can save a lot of $$$$.

Sorry, one more question to be sure. My agent will share $$$$ with the seller's agent rite?

Thanks.

Yes, that's correct. In a sense, the buyer is paying the commission as part of the price. But buyer don't have to pay any commission to the agent. The agent wiil co-broke with the seller's agent.

What I would suggest is for you to get some agents to source for properties for you. But don't let that stop you from looking at the Classifieds yourself. There're many properties available and your agent is unlikely going to be in contact with all the sellers or their agents. Seller's agents may also prefer to deal with direct buyers. There're also ads from sellers who do not want to deal with agents. If you're interested in the property, try to negotiate for a lower price ie sharing the commission saved between the 2 parties.

Another point you may wish to note is that tenants do not pay any commission to their agents if the rental is above a certain amount (I can't recall the exact figure - it's around $2,500pm). The agents have to co-broke, or the landlord agent has to get a tenant on their own. If you try renting out yourself, you'll have to pay the tenant's agent. It's very difficult, if not impossible, to get a good corporate lease without going through an agent.

Hi rosemummy,

Oh, so the selling $ of the house is inclusive of the commission for the agent. In another words, I die die still pay commission.

Thanks a lot.

[rosemummy]

teddy7171


Well, if you, as a seller, don’t have an agent, the buyer will definitely ask for a lower price. That’s why, in some sense, the buyer is paying for the commission. If an agent brings a buyer, and you don’t have an agent, you’ll have to pay the agent if you want the deal.

The price don’t include the commission. The seller pays it separately to the seller’s agent. But it’s priced in as far as the buyer is concerned.

[chloecube]

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[yqyq]

We paid 1% only and signed One mth exclusive, will let other agent market if he failed to do so at that time.


Do survey the market price around your area and can even pretend as buyer to view similar units near your surrouding to find out the market value and condition…