Most real estate agents are well-trained professionals and can help you in many aspects that can be difficult and confusing for most consumers. If you are not familiar with the whole process, you should engage a professional agent to help you. But in any case, it is good to understand how the system works and what to expect in order to avoid confusion and disappointment.
Role of the Agent
You can hire an agent to work on your behalf either as a potential buyer/tenant, or as a seller/landlord. In many transactions, there are agents on both sides of the process.
So, what can you expect from a real estate agent?
For Sellers/Landlords,
Good agents:
Are able to advise you on the market price for your property
Are able to advise you on the market price for your property
Can create a professional marketing plan to sell/rent your property
Have access to internal agency systems that help market the property through other agents in the agency
Will market the property both online and offline at their own expense
Will qualify potential buyers on your behalf
Will organise viewings on your behalf
Will prepare all the contracts on your behalf
For Buyers/Tenants,
Good agents:
Are able to advise you on what is possible on your budget
Will search and qualify the available properties according to your criteria
Will have access to internal agency systems that find the property through other agents in the agency
Will organise viewings and accompany (or take) you to see the property
Will handle the negotiation process on your behalf (with your permission, of course)
Will prepare all the contracts on your behalf
Commission and Fees
Commission fees vary by transaction type. The general market practice of commissions is outlined below. However, these are just guidelines and the commission is negotiable.
Purchase of Private Apartment / Landed Property:
Seller – pays minimum 2% of transaction value
Buyer – pays 1% of transaction value, only if agency appointed as a representative
Purchase of HDB Apartment :
Seller – pays minimum 2% of transaction value
Buyer – pays 1% of transaction value as service fee
Rental of Private Apartment / Landed Property:
Landlord – pays one month’s rent for every 24 months of contract.
Tentant – pays commission only if rent less than S$3,000 - one month’s rent for every 24 months of contract.
Rental of HDB Apartment:
Landlord – pays one month’s rent for every 24 months of contract.
Tentant – pays one month’s rent for every 24 months of contract.
Note: The Agency is not supposed to take commission from both parties if only one agency is acting in the transaction.
If there are two agents (“co-broking”) in the transaction, the buyer’s agent gets the buyer’s commission and seller’s agent gets the sellers commission. If only one party pays commission, the commission is split between the agents as agreed by them - not necessarily 50:50.
Tips for Selecting Agents
These are some things that you may want to consider when you are selecting an agent:
- Knowledge of Property Types & Region – Many agents specialise in certain regions and/or certain type of properties. They may already have buyers at hand, or know other agents in the area with potential buyers. They also know how to promote the area to the buyers.
- Experience – somebody who just started is likely to make mistakes. Ask for a transaction record of similar properties.
- Personality – You are likely to working quite closely with your agent for a few weeks or months as such he or she needs to be someone you feel you can trust, get on well and who listens and understands your needs.
- Education/Certifications – Education and Certifications give more confidence that the agent is knowledgeable of the procedures and the law.
- Time Available – Make sure the agent has enough time to handle your contract.
- Marketing Plan – If you’re looking to let or sell your property make sure a proper online strategy forms part of the agent’s marketing plan. Also, ask how much time the agent is willing to spend time to prepare the property for sale - taking professional photos, communication skills to market your property, giving tips of cleaning/furnishing, etc.
You should engage only one agent to work on your behalf, particularly if you are looking to sell or let your property. Agents often have access to the same listings and using multiple agents may just result in confusion or visiting the same property twice. Also, you will get more commitment from the agent if he/she knows that you are dealing with he/she only.
