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How is the agency fee calculated?
Oct 13, 2022
Singapore
By   Internet
  • Guide
  • Buyer
  • commission
  • brokerage
Abstract: To ensure that more agents are involved in the sale, the developer will require the appointed real estate agency to open up the information to multiple agents and pay a portion of the commission to the agent who brings in the buyer.

Do I need an agent to buy or sell a house in Singapore?

 

Yes, you do.

 

Before you start a real estate transaction, make sure you understand the transaction process. After a few days of running around various areas and properties, you must have found out that a real estate agent can give you a lot of help in buying a house in Singapore.

 

They can help you understand a lot of issues that you have never considered, provide you with information that you have never heard of, and advise you on the best time to make a move in the fickle real estate market with a deep understanding of real estate policies and various types of properties.

 

 

Which party usually bears the brokerage fee for new and second-hand properties? What is the typical agent fee charged for new and second-hand properties?

 

Second-hand HDB flats

 

The seller pays 2% to the seller's agent and the buyer pays 1% to the buyer's agent. If you buy or sell by yourself, you do not have to pay any fees to the other agent. If the agent tries to charge you, it is a serious violation.

 

Brand New HDB Flats

 

Buyers apply directly on the HDB transaction system, so there is no agent fee to pay.

 

Private Apartment Second Home

 

When buying or selling a second home, the seller will usually pay a 2% commission to the seller's agent, depending on the circumstances, and in some transactions up to 3%-4% or more. The seller's agent shares this commission with the buyer's agent.

 

The buyer does not have to pay a commission.

 

If the buyer's and buyer's agents communicate that they are willing to pay their own agent's brokerage fee, it is not illegal for the agent to charge it - although this is not usual practice.

 

Brand New Condo Developments

 

The developer will pay a commission to the buyer's agent. The details depend on the developer's arrangement, and the rates vary from project to project.

 

That said, even if a brand new condo purchased from a developer is referred by their own agent, the buyer does not have to pay an agent's fee.

 

Some new real estate developers usually appoint 2-3 real estate agents to represent the sale.

 

To ensure that more agents are involved in the sale, the developer will ask the appointed real estate agent to open up the information to multiple agents and pay a portion of the commission to the agent who brings in the buyer.

 

The price of real estate transactions in Singapore is highly transparent. To ensure fairness and efficiency, developers will ensure that all purchases are priced the same.

 

Whether the purchase is made directly from the developer's own sale, directly from the developer's appointed agent, or through a buyer's agent, the transaction prices usually do not differ much.

 

Is there anything else I should be aware of?

 

Make sure there are no hidden fees.

 

Even if it's an agent you trust a lot, it's very important to verify and keep communication flowing before any transaction.

 

A skilled agent will try to be as transparent as possible when talking to you about agency fees, listing all possible fees and stating that there will be no hidden fees. One thing to be aware of is the GST that needs to be paid.

 

Check if the commission includes GST.

 

If your real estate agent is a GST registered company, it can charge GST to its clients.

 

You should check with your agent to see if the commission amount listed in the agreement already includes the GST due.

 

Commissions paid to real estate agents.

 

According to the CEA guidelines for hiring a real estate agent, you should pay the real estate agent a commission, not an agent's fee or any payment directly to your agent. This will protect your interests to the greatest extent possible.

 

The agent does not handle any payments for the transaction.

 

Real estate agents and real estate brokers are not permitted to assist any party in handling payments involved in a transaction, including the purchase price, down payment, stamp duty, down payment and proceeds of sale.


The commission and possibly the valuation fee are fees for the brokerage services, not the amount of the property transaction.

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