Tag Archives: Agent Commission

How we sold our flats without using property agents

Posted on 16 Oct 2009 | 1 comment

I AM writing in response to Ms Kwok Yoke Pui’s letter on Tuesday, “Commissions and property agents”.

Ms Kwok said: “I would like to clarify that I am most willing to pay (the 1 per cent commission). The point is, I want to pay the agent who is representing me, not the seller’s agent.”

If this is so, perhaps Ms Kwok should appoint an agent and let the agent take her for viewings before deciding to view any unit. Commissions are agents’ income. If one buyer has to call 15 agents from different property firms for viewings before deciding to put in an offer, can you imagine how difficult it would be for an agent to close the sale and get his income?

Agents make it clear to buyers that they have to pay a commission before viewing. This is better than asking the buyer to pay after the sale has been concluded. Continue reading →

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Property agent’s priority is to get the best price

Posted on 14 Oct 2009 | Comments Off on Property agent’s priority is to get the best price

IT IS good to examine why the ‘one agent representing buyer and seller’ situation happens only in the HDB resale market and not the private property market.

The difference between an HDB resale and private property is that in the latter, once the parties agree on the selling price, the sale is concluded after the legal searches and transfer of titles are carried out. In an HDB resale, the agreed price is not conclusive. The HDB needs to give consent. Obviously, there is more administrative work to do after the agreement on price is inked.

However, administrative work is independent of price. Therefore, when the agent wants to charge an administrative fee that is pegged to a percentage of the agreed price, it gives a wrong impression that he is being rewarded for getting the best price.

I often hear property agents say that HDB resale flats are lower in price compared with private properties, and therefore deserve a 3 per cent commission for the fee to be sizeable to co-broke. Continue reading →

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Posted in CEA

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