Good day everybody.
My name is Kerr Chuen and KC in short. I am from ERA and I am new to this forum.
I understand alot of people here have engaged bad agents before and also have some questions to ask about paying the commission.
This is a mini FAQ that I have put together after reading most of the comments in this forum.
Q. Do I have to pay 2% to the agent selling my property?
A. The standard pay-out is 2%, but it is negotiable to a lower fee. Upon agreement of the commission, the seller agent would let you sign a commission agreement or an exlcusive to sell form.
Q. Do I have to pay the seller's agent if I engage him directly?
A. Yes. You have to pay the seller's agent even though you go to him direct. On the other hand, there are agents who don't collect and spoil the market. Some even collect 0.5% or lesser.
Q. How will I know if I have engaged the right agent?
A. For sellers, I recommend that you build up a relationship with the agent to see if he is sincere in helping you. After qualifying him/her, sign an exclusive form with them.
Q. Must I use the banker that the agent refer?
A. No. As agents, we do get referal fees from the bank if we refer a client to take up a loan with them. The money earned is from the bank and it does not affect your loan amount nor interest charged. We do have a wide range of banks for you to chose from, the rates are definitely the same if you approach the bank personally or through our referals. After all, we agents are trying to earn a living.
Q. Do I have to pay the 7% GST on top of agent fee?
A. Yes. You do need to pay the 7% GST on top of agent fee. Do remember that GST goes to the government and not into the agent's pocket. On the other hand, there are agents who will absorb the GST and let it eat into his/her own pocket.
The FAQ list will grow as time goes by. If I have made any mistakes in my FAQ, I sincerely apologise as it is a genuine mistake. If you have further enquiries, please do feel free to post them here or call me. I will be glad to assist you.
Thanks!
P.S: Moderators, if my post is inappropriate in any way, please delete it.
Chow Kerr Chuen
Electronic Realty Associates
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