Agent Fees

[TravieJackie]

May I know what's the usual agent fees rate for selling a private property (condo)?

[Arcachon]

https://www.cea.gov.sg/docs/default-source/consumers/commissions.pdf

https://www.cea.gov.sg/

Commission Rates - Fixed or Negotiable?
Consumers often ask “Is commission rate fixed?” The answer is “No”.
Commission rate is in fact negotiable.
In a public perception survey commissioned by the Council for Estate Agencies
(CEA) last year, consumers showed low awareness that the commission payable to
an estate agent/salesperson is negotiable.
CEA does not fix commission rates or provide commission guidelines so as to allow
market forces to drive competitive pricing in the industry. Salespersons will then
have the incentive to price their services competitively, and you, as a consumer, can
negotiate the best rates for the services you require.
Salespersons are expected to act ethically and should not impose any commission
or fee on you without having explained and obtained your agreement. You are free
to negotiate the quantum and components of fees and expenses, and terms with the
salesperson.
You are encouraged to compare fees and services offered by different salespersons,
before deciding on your choice of a salesperson. This will facilitate and encourage
competition among salespersons. To allow you to make informed choices,
salespersons can provide a breakdown of their fees vis-à-vis the level of services
and options they provide.
The salesperson cannot collect commission or fees from more than one party in a
transaction. If he collects commission from you, he cannot collect a commission or
co-broking fee or payment from the other party or from the latter’s salesperson.
Please note that:-
 CEA is unable to help you negotiate or reduce commission payments.
 Commissions should be paid to your estate agent and not directly to your
salesperson.
 A GST-registered estate agent is allowed to charge and collect GST. Clarify
with your salesperson if the GST payable is factored into the commission
amount stated in the agreement.
 Salespersons earn their commission only upon successful transaction and
receive payment after the transaction has completed.
When engaging a salesperson, consumers are advised to use CEA’s prescribed
estate agency agreement as it protects the interest of both parties. The commission
amount or rate agreed upon should be recorded and a copy of the agreement given
to you. If you and the salesperson wish to include mutually agreeable terms and
conditions that are not printed in CEA’s prescribed estate agency agreement, these
additional terms should be added in the space provided or on a separate pink sheet
of paper. The additional terms cannot conflict with, or vary from, the printed
prescribed terms.
There are prescribed agreements for the sale, purchase or lease of residential
properties in Singapore. The agreements can be found at www.cea.gov.sg.
Having signed one of the prescribed estate agency agreements, you can make use
of CEA’s Dispute Resolution Scheme in the event of a dispute which cannot be
resolved with your estate agent/salesperson. You can seek to resolve disputes
through mediation or arbitration.
Mediation is a process where the mediator facilitates the consumer and estate agent
to resolve a dispute and come to a mutually acceptable agreement. The decision is
left to the parties and not dictated by the mediator. Arbitration is a process where
the arbitrator will consider the issues of both parties and make a decision binding on
both parties.
Case Study - Consumer engaged a salesperson to sell her
property. The salesperson found a buyer and transaction closed at
the offered price. However, there was a dispute between the
consumer and salesperson on whether the offered price included
the furniture in the property. The case went for mediation under
CEA’s Dispute Resolution Scheme and was resolved with a
reduction in commission payable by the consumer.
Case Study – Consumer engaged a salesperson to sell his
property and a dispute ensued as the cash proceeds was $5,000
instead of the $20,000 advised by the salesperson. The dispute
was mediated and a reduced commission was eventually paid.
Today, the salesperson is professionally qualified and when engaged, they deliver
their service with compliance to requirements stated in the agency agreement, the
Code of Ethics & Professional Client Care and the Regulations. They are therefore
entitled to their commission when the transaction is completed.

[Arcachon]

May I know what's the usual agent fees rate for selling a private property (condo)?

3 click, cut and paste free, more you need to pay.

[TravieJackie]

3 click, cut and paste free, more you need to pay.


What do you mean by this?

[TravieJackie]

https://www.cea.gov.sg/docs/default-source/consumers/commissions.pdf

https://www.cea.gov.sg/

Commission Rates - Fixed or Negotiable?
Consumers often ask “Is commission rate fixed?” The answer is “No”.
Commission rate is in fact negotiable.
In a public perception survey commissioned by the Council for Estate Agencies
(CEA) last year, consumers showed low awareness that the commission payable to
an estate agent/salesperson is negotiable.
CEA does not fix commission rates or provide commission guidelines so as to allow
market forces to drive competitive pricing in the industry. Salespersons will then
have the incentive to price their services competitively, and you, as a consumer, can
negotiate the best rates for the services you require.
Salespersons are expected to act ethically and should not impose any commission
or fee on you without having explained and obtained your agreement. You are free
to negotiate the quantum and components of fees and expenses, and terms with the
salesperson.
You are encouraged to compare fees and services offered by different salespersons,
before deciding on your choice of a salesperson. This will facilitate and encourage
competition among salespersons. To allow you to make informed choices,
salespersons can provide a breakdown of their fees vis-à-vis the level of services
and options they provide.
The salesperson cannot collect commission or fees from more than one party in a
transaction. If he collects commission from you, he cannot collect a commission or
co-broking fee or payment from the other party or from the latter’s salesperson.
Please note that:-
 CEA is unable to help you negotiate or reduce commission payments.
 Commissions should be paid to your estate agent and not directly to your
salesperson.
 A GST-registered estate agent is allowed to charge and collect GST. Clarify
with your salesperson if the GST payable is factored into the commission
amount stated in the agreement.
 Salespersons earn their commission only upon successful transaction and
receive payment after the transaction has completed.
When engaging a salesperson, consumers are advised to use CEA’s prescribed
estate agency agreement as it protects the interest of both parties. The commission
amount or rate agreed upon should be recorded and a copy of the agreement given
to you. If you and the salesperson wish to include mutually agreeable terms and
conditions that are not printed in CEA’s prescribed estate agency agreement, these
additional terms should be added in the space provided or on a separate pink sheet
of paper. The additional terms cannot conflict with, or vary from, the printed
prescribed terms.
There are prescribed agreements for the sale, purchase or lease of residential
properties in Singapore. The agreements can be found at www.cea.gov.sg.
Having signed one of the prescribed estate agency agreements, you can make use
of CEA’s Dispute Resolution Scheme in the event of a dispute which cannot be
resolved with your estate agent/salesperson. You can seek to resolve disputes
through mediation or arbitration.
Mediation is a process where the mediator facilitates the consumer and estate agent
to resolve a dispute and come to a mutually acceptable agreement. The decision is
left to the parties and not dictated by the mediator. Arbitration is a process where
the arbitrator will consider the issues of both parties and make a decision binding on
both parties.
Case Study - Consumer engaged a salesperson to sell her
property. The salesperson found a buyer and transaction closed at
the offered price. However, there was a dispute between the
consumer and salesperson on whether the offered price included
the furniture in the property. The case went for mediation under
CEA’s Dispute Resolution Scheme and was resolved with a
reduction in commission payable by the consumer.
Case Study – Consumer engaged a salesperson to sell his
property and a dispute ensued as the cash proceeds was $5,000
instead of the $20,000 advised by the salesperson. The dispute
was mediated and a reduced commission was eventually paid.
Today, the salesperson is professionally qualified and when engaged, they deliver
their service with compliance to requirements stated in the agency agreement, the
Code of Ethics & Professional Client Care and the Regulations. They are therefore
entitled to their commission when the transaction is completed.


Thank you!

[TravieJackie]

So, is 2% usually the norm? I know it's negotiable but the average norm is 2% right, for a small property?

[Arcachon]

So, is 2% usually the norm? I know it's negotiable but the average norm is 2% right, for a small property?

Getting the right RES(agent) is free for buyer or seller.

Getting the wrong RES(agent) will cost you more than 2%.

For a layman, 2% is the norm.

[teddybear]

It has always been 1% for me for long long time.
But you do raise an issue and quite possibly many agents are asking for 2% in view of small quantum (since they spend almost same effort trying to sell a expensive house and a cheap house but the reward is big difference!)

Well, If agent can have their way, some would also want 5% from you (regardless of the market price of your house), so it is up to you............


So, is 2% usually the norm? I know it's negotiable but the average norm is 2% right, for a small property?

[TravieJackie]

Teach me some negotiation skills. please... I have yet to meet with my agent though but will definitely negotiate for a lower rate. First time seller so am asking from you guys who are more experienced here.

[Arcachon]

Teach me some negotiation skills. please... I have yet to meet with my agent though but will definitely negotiate for a lower rate. First time seller so am asking from you guys who are more experienced here.

Go for RES course, learn the fine art of real estate.

http://www.lma.com.sg/course-res