In the Singapore real estate market, we should engage a real estate agent to help buyers and sellers. In this article, we look at the crucial role agents play and their cost.
Importance of Real Estate Agents
Real estate agents play a key role to buy and sell properties in Singapore. They provide expert guidance so that buyers and sellers can navigate through the market properly.
Types of Real Estate Agents
In Singapore, agents are classified into buyers as well as seller agents.
- A buyer’s agent works for the buyer, while the seller’s agent works for the seller.
- In Singapore, agents are not allowed to represent both parties in one transaction to avoid conflicts of interest.
The Role of Real Estate Agents
To help home buyers find homes that meet their needs; provide information on the state of the market; and negotiate prices. Their vast knowledge and experience make the process simpler so clients save time and enjoy less stress.
Seller’s Agents
They supply sellers with important market information to set the right price for their home. They work to come up with a marketing strategy and screen buyers and negotiate for you. They also ensure compliance and efficiency throughout the process by assisting in legal matters.
Transactions Without an Agent
Though buying or selling property isn’t impossible without an agent, it can certainly be a nightmare, especially for those without experience.
- It can lead you to overlook serious defects in a property.
- Skip out on a proper background check.
- Misjudge prices.
It is a good idea to seek professional help in even a situation involving friends or family as it will keep problems at bay.
Agent Fees
According to the Council for Estate Agencies (CEA), commission rates are not regulated; and therefore this fee is determined by the market.
- Agent fees are usually charged as a percentage of the transacted price of the property, and can be negotiated before signing a service agreement.
- Ensure payment of fees to the agency and not to individual agents directly.
Fee Structure
HDB Flats
- New flats: No agent fees.
- For second-hand flats, seller pays 2% + GST to their agent, while the buyer pays the same to theirs.
Condominiums
- New Developments’ Buyer Agent Commission Paid By Developer.
- Usually on resale, seller pays 2% + GST, which is shared with buyer’s agent.
Choosing the Right Agent
When choosing your agent, what do you look for?
- The services on offer.
- Their fees.
- What are their past experiences?
Ask to clarify all details of fees and costs and GST. Keep in mind that the agency, not the agent, earns the commission.
Conclusion
To enhance the property transaction process and safeguard your interest, it is a good idea to engage an experienced agent from the very first step. This collaboration can save you considerable time, effort and money.
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