Comission To Agent

[coffee - kohi 0]

Hi

I was reading the article on today's Straits Time about a court hearing between an agency and the buyer over commission.

For commission, it is usually paid by one party or both, in scenarios when there is only 1 agent, or 2 agents. How does it work?

[yokine9a 1]

When there is only 1 agent, this guy usually is representing the seller, so the seller will pay 2% commission to him, whilst buyer will pay 1% if the resale transaction is completed.

When there are 2 agents, usually one of them will represent the seller whilst the other guy will represent the buyer. Some people like to engaged agents when buying houses so that they can help to source for suitable houses. In this case, when the transaction is done, seller and buyer will pay 2% comm to their respective agents. They need not have to pay other parties' agent. We called this a "contra" deal.

This is what the current market is practising, which I find it stupid

[donut88 1]

When there is only 1 agent, this guy usually is representing the seller, so the seller will pay 2% commission to him, whilst buyer will pay 1% if the resale transaction is completed.

When there are 2 agents, usually one of them will represent the seller whilst the other guy will represent the buyer. Some people like to engaged agents when buying houses so that they can help to source for suitable houses. In this case, when the transaction is done, seller and buyer will pay 2% comm to their respective agents. They need not have to pay other parties' agent. We called this a "contra" deal.

This is what the current market is practising, which I find it stupid

the thing about paying the seller's agent 1% is crap.... how can the same agent represent both parties?

i never pay my seller's agent at all, and i do not have my own agent. i just push my way through the seller's agent's head that i'n not paying him anything. he LL, also have to accept my terms.

crap from the real estate market.

[coffee - kohi 0]

i agreed, i think it is quite stupid to pay, especially when u r the one calling them to arrange for meet up, nego etc.

the paper mentioned the seller needs to do paperwork. Excuse me, if you are going to sell your house, don't you need paper work? You are working for the agent, and it is only right for you to do it.

in any case, you are negotaitng based on seller terms, not mine (if i am buyer)...i want cheap cheap...seller want expensive expensive.....

doesn't that amount to conflict of interest??

the winner => agent

[zirhk3355 1]

I can't find the news? Is it the case with propnex agent and a buyer who refused to pay him comm?

I had never agreed with the current "market practice" of one agent representing both the seller and buyer; have you ever heard of a lawyer representing both the defendant and the plaintiff in court??

Those agents who tell you there is no conflict of interest and that s/he will protect the interest of BOTH sellers and buyers, is simply bullsh*tting you. Like abovementioned, buyer want low price, seller want high price. So how to "protect the interest of BOTH parties"??

If I am paying a lawyer to represent me and he tells me that he want to protect the interest of the other fella too, I will definitely sack him on the spot!

[coffee - kohi 0]

Nod

Main section, pg 23.

[coffee - kohi 0]

How many buy without agent? did you pay any agent fee??

i am thinking of flipping the paper and sourcing my own flat, it seems ridiculous to pay seller agent fee when i am negotiating to push the price down....best is at valuation...hahahahahahaha

[CutePinkElephant 0]

How many buy without agent? did you pay any agent fee??

i am thinking of flipping the paper and sourcing my own flat, it seems ridiculous to pay seller agent fee when i am negotiating to push the price down....best is at valuation...hahahahahahaha

sometimes using an agent hv a good point too even when the time to pay the comm very heartache hik hik

like my case, i found my home by myself but i let the agent to arrange the viewing for us.

after that when second viewing we go byself without our agent,and the owner tell us to save our money and let his agent do submission for us because he only trust his agent, we can just give his agent a small angpao for that. but we refuse and still want to use our own agent.

lucky....me,my agent fight for us,

because the owner want to do contra(and not let us know),so if their agent do submission they wil drag drag drag the time until they found their house.....

and now we r waiting for 1st appointment

[Sam Lee Poh Huat 0]

I can't find the news? Is it the case with propnex agent and a buyer who refused to pay him comm?

I had never agreed with the current "market practice" of one agent representing both the seller and buyer; have you ever heard of a lawyer representing both the defendant and the plaintiff in court??

Those agents who tell you there is no conflict of interest and that s/he will protect the interest of BOTH sellers and buyers, is simply bullsh*tting you. Like abovementioned, buyer want low price, seller want high price. So how to "protect the interest of BOTH parties"??

If I am paying a lawyer to represent me and he tells me that he want to protect the interest of the other fella too, I will definitely sack him on the spot!

Haha.. Well i guess this big property company PRXXNEX r slapping their own faces by making public jus over a merely $4K. Well, if not for this case i wldnt hv know abt this "must-pay" commission to the seller agent. But do note that the mentioned case was based on a landed property transaction; no common practice to pay commission to seller agent due to larger $$ involved. Whereas the grey part of HDB resale transaction is as GREY as ever.. hope HDB clear some light soon

Cant agree more with zirhk3355 that "protect the interest of BOTH parties" is totally crap.. Even during a recent conversation with my older colleagues; they warned me that if i m selling my flat, do u think all agents wld b trying real hard to sell higher fm sellers pt of view? A 10k more for the seller is merely $300 more for the agents. An example:

Assume for seller agent to close a deal for "both interest",

Asking price of flat: $210k

Offered price of flat: $200k

2% commission on $210K: $4.2K

2% commission on $200K: $4K

1% "must-pay-com" on $210K: $2.1K

1% "must-pay-com" on $200K: $2k

Therefore, in order not to waste any more time for the "interest of both parties". Seller agent MIGHT try to convice seller to sell at his loss of 5k-10k. Fm my above example, one cld c the agent point of interest for BOTH parties, with of cos $6-6.3k of commission already in their pockets.

So b warned when signing ur exclusive rights with them.. by my wiser colleagues.

[zirhk3355 1]

Oh ya this brings up another myth that the agents always try to make us believe: They will find the BEST price for us (be it seller or buyer). The above example speaks for all.

An agent is only good for bringing the clients to you, doing the running around for this and that, perhaps also imparting some knowledge on the paperwork and also using their templated contracts and agreements, which is good because they are usually vetted by lawyers. That's about all.

As for the price, you have to decide; never let an agent influence you on that.

[waileong 0]

In truth, the agent doesn't care that much about the price, as long as it's not too difficult to close the deal. Whether the selling price is $10k more than what the buyer wanted or $10k less than what the seller wanted, what diff does it make? 0.5% of $10k is what? $50? 1% is $100? If an agent has to wait an extra week or three to earn $100, he'd rather be out selling yet another property.

All they care about is closing the deal asap, so they can claim the commission asap.

Most agents are always persuading their sellers to lower their expectations, or persuading their buyers to offer more, not because they want to earn less (in the case of the seller agent) or to earn more (in the case of the buyer agent), but simply to close the deal asap.

You have been warned.

[lovee_cdc 0]

do we (as a buyer) also need to pay 1% of the COV? i just knew this thing ...

[yokine9a 1]

do we (as a buyer) also need to pay 1% of the COV? i just knew this thing ...

Not 1% of the COV, is 1% of the total buy price.

You need not have to pay this 1%. Try to negotiate your deal with the seller directly.

[donut88 1]

How many buy without agent? did you pay any agent fee??

i am thinking of flipping the paper and sourcing my own flat, it seems ridiculous to pay seller agent fee when i am negotiating to push the price down....best is at valuation...hahahahahahaha

i bought my unit without agent.

seller got agent, but i dun have. and the selling agent tries to "extort" commission from me. i told him to fly kite.

and i very 'kan'. i signed the resales forms, paid the option fees, and then tell agent to fly kite abt the commision.

its his fault that he didnt tell me early that he's charging me commissions. its only after excersing the option 2 weeks later then he tell me.

its too late for him to ask liao. stupid agent, bird brains.

and he got no right to cancel the transaction coz he's just an agent, not the house owner.

[zirhk3355 1]

i bought my unit without agent.

seller got agent, but i dun have. and the selling agent tries to "extort" commission from me. i told him to fly kite.

and i very 'kan'. i signed the resales forms, paid the option fees, and then tell agent to fly kite abt the commision.

its his fault that he didnt tell me early that he's charging me commissions. its only after excersing the option 2 weeks later then he tell me.

its too late for him to ask liao. stupid agent, bird brains.

and he got no right to cancel the transaction coz he's just an agent, not the house owner.

That's the way to do it man! Good for you...