Property agents' 2+2 commission formula is wrong

http://www.straitstimes.com/ST%2BFor...ry_448032.html

October 30, 2009 Friday

Property agents' 2+2 commission formula is wrong


WHY do some property agents insist on a commission of 2 per cent from the seller and 2 per cent from the buyer, and accuse others who accept less of undercutting?

Till today, most agents will tell you it is standard. However, that 2+2 formula was when HDB flats changed hands at well below $50,000. It was to compensate agents for losses compared to private properties, which was then 2 per cent from the seller only, as they did about the same amount of work.

Incidentally, the cheapest private properties in Serangoon Gardens went for about $300,000. See the gap?

In the past 10 years, HDB prices have risen but some agents still demand 2+2 commission from unsuspecting buyers and sellers. From my observations, most who pay 2+2 commissions are illiterate HDB flat owners. The more educated ones pay only 1 per cent. I have paid less.

Lim Teck Seng

Quote:

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Originally Posted by mr funny

The more educated ones pay only 1 per cent. I have paid less.
Lim Teck Seng

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I will pay full com if the agents hit my target and adjust from there up or down accordingly, that is how an educated person would pay their agents, Mr Lim is just ngeow who may have missed out on the best possible price by good agents who hide buyers due to his ignorance.

There is nothing wrong to pay the agents more if they can sell for me at very good price and provide good service, I will be willing to.

It is a free market out there. Those "ngiow" buyers and sellers will end up with half-past six agents...

Isn't hdb standard commission 2 (seller) + 1 (buyer)?

Guess we leave this kind of comments to those professional from straitstimes forum. Can't win them. :doh:

I don't know why these people don't like to pay the agent.

In fact, I feel safer with my own buyer's agent helping me in negotiations.

Buying properties is like going to war. The more generals you have on your side, the better.

Quote:

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Originally Posted by jlrx

I don't know why these people don't like to pay the agent.

In fact, I feel safer with my own buyer's agent helping me in negotiations.

Buying properties is like going to war. The more generals you have on your side, the better.

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These people doesnt know how the agents work.

Self proclaimed educated,or smart Mr Lim Teck Seng pay lesser.

I kinda of like these type of losers,when i know i can offer and buy lower from their acting agents.

I guess he's smart, but compared to smarter seasoned buyers.:D
He is soooo far off.

Mr Lim still in his LALA Land think highly of himself as Smart and educated.

Quote:

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Originally Posted by jlrx

I don't know why these people don't like to pay the agent.

In fact, I feel safer with my own buyer's agent helping me in negotiations.

Buying properties is like going to war. The more generals you have on your side, the better.

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I thought going to war, u only need one SOLID general, but many soilders. :D

Back to agent. I believe not all agent will help in negotiating for the best price for the buyer/seller.

For seller, best price = lower price = less commission for the agent.

For buyer, best price = best commission for seller agent = some co-broke good offers will be "hidden".

If one find an agent he/she can trust, I will definitely pay him/her the full 2% if he/she meets my target selling price (of course target selling price must be reasonable, maybe slightly more than the latest cavet lodged).

Quote:

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Originally Posted by jonleelk

I thought going to war, u only need one SOLID general, but many soilders. :D

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Here are the soldiers ...

http://www.istockphoto.com/file_thum...llar-notes.jpg

If possible, you should have two generals on your side, including your enemy's general.