When a property agent provides services in the real estate industry; he/she definitely deserve some amount as commission. But most of the sellers and buyers often get confused about how much they should pay. Well! There are several factors associated with the property agent’s commission. If you are taking services from these professionals to buy, sell or rent a property, below we have highlighted few details to ease your confusion for commission payment.
Types of property agents:
The Sellers’s/ Landlord’s Agent:
Property sellers and landlords often need an agent to plan the promotion and presentation of their unit through various means. These agents also bring buyers from different locations while scheduling and managing the viewing process. Even the legal issues and negotiation related affairs are also handled by these agents.
The Tenant’s/Buyer’s Agent:
These property agents work for searching appropriate properties for the clients and coordinate viewings as per their need. They also take responsibility for negotiating with the landlord’s/seller’s agent.
Common practices for the commission:
The rates for agent’s commission are listed below as per the complexity involved in various property deals:
For rented and leased properties:
In this case, landlords or sellers are responsible for paying agent’s commission; tenant doesn’t pay any fee. In Singapore, it the rented property is above S$3,500 with two years lease, landlords pay an amount equal to one month’s rent. Whereas, if the property of the sameamount has only one year’s lease, landlords pay half month’s rent in the form of agent’s commission.
If the property is rented for a two-year lease, but the amount is below S$3500, landlords pay one month’s commission, and for a one-year lease, the fee is half a month’s rent. However, if the tenant has also hired an agent to assist in property search, they also pay one month’s rent and half month’s rent as commission in respective cases.
It is important to understand that there is no hard and fast rule about this commission amount; the terms are described only on the basis of common practices.
Commission for condos:
In case an agent provides services to the seller for finalizing the deal of a non-landed private property as like condos; the seller has to pay 2% of the actual amount to the agent. The seller’s agent usually divides this money with the buyer’s agent.
HBD resale flats:
Those who are seeking property agent’s services for processing HDB resale flats need to pay a reasonable amount in the form ofcommission. As per the common scenario in Singapore, sellers usually pay around 2% of the total amount whereas buyer’s pay 1% of the total amount to the agent as his professional fee or commission.
For the simple landed properties, sellers need to pay around 2% of the total amount to the agent as commission. However, the buyer does not pay any amount because mostly the seller’s agent takes responsibility to split the amount between both service providers.
If you are in search of some trustworthy property agent to sell or buy property; it is important to talk about the commission amount in advance to ensure complete peace of mind.
The information above were extracted from the article link below, visit the site for more details now,
Do you know that if you are buying a new launch condo directly from the developer, you do not have any to pay any professional fee to the property agent? The interest rate for the bank loan of a development under-construction is also lower than that of a resale condo in the initial stage. Take a look at the list of some of the latest new condo in Singapore below,
- The Florence Residences
- Parc Esta
- Whistler Grand
- Kent Hill Ridge Residences
- 120 Grange (Freehold Condo)