Tag Archives: Singapore Accredited Estate Agencies

Fix commission for buyer’s agent based on ‘bargaining effort’

MS KOH Siew Buay made a good point yesterday in her Forum Online letter, “How we sold our flats without using property agents“.

The current debate over having one agent represent both seller and buyer has often been overshadowed by the discussion of the potential conflict of interest that can arise.

The point is that any seller or buyer can handle the transaction on his own. The law does not compel anyone to use an agent to sell or buy a house. It is probably more effective for sellers to engage the services of a property agent. This is because agents help facilitate the advertising needs of the seller. And it is best if an agent represents only one party.

If an agent does represent a buyer, however, his commission should not be pegged to a percentage of the sale price. This is because a lower price benefits the buyer, but will result in a lower commission for the agent. Naturally, this does not encourage the agent to seek a lower price for the buyer. This makes it difficult, too, for the agent to demonstrate that he had acted in the best interest of the buyer.

If an agent represents the buyer, his commission should preferably be fixed in a manner that rewards his effort at getting a lower price for his client.

Patrick Sio

Source : Straits Times – 17 Oct 2009


How we sold our flats without using property agents

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