Qn Regarding Commission For Hdb Resale

[currahee 1]

i am currently looking around for resale flats thru the ads on papers/internet..

but i just came across one agent who told me that i need to pay her 1% commission although i'm the one who approached her based on her ad.. she claimed this is the normal practice..

this is the first time b4 viewing that an agent bring this up. so is she right to say that the 1% commission from buyer is the norm? cos this is the 1st time i heard of this. i even clarified if i'm doing all my own paper work why am i supposed to pay her commission. she say the 1% is her way of serving me with her choice of units...

hope ppl can clarify here.. thanks.

[remixer 0]

i am currently looking around for resale flats thru the ads on papers/internet..

but i just came across one agent who told me that i need to pay her 1% commission although i'm the one who approached her based on her ad.. she claimed this is the normal practice..

this is the first time b4 viewing that an agent bring this up. so is she right to say that the 1% commission from buyer is the norm? cos this is the 1st time i heard of this. i even clarified if i'm doing all my own paper work why am i supposed to pay her commission. she say the 1% is her way of serving me with her choice of units...

hope ppl can clarify here.. thanks.

Quite alot of agents practiced that.so when u look for ad in newspaper or internet,look for house owners who advertise themselves.

As for me,I think i will be selling my flat on my own withouth the agent.

[zirhk3355 1]

What I will always advise people to do is to agree on the phone to pay. If the agent asks you to sign an agreement to pay commission prior to viewing the flat, you SHOULD NOT SIGN IT.

Instead, tell him/her that you are wary of such legal contracts and don't feel comfortable to sign; eg will you be compelled to sign if the deal don't go thru? Keep assuring them that you will pay the comm.

The point is, as long as you do not sign anything, you do not have any obligations to pay. Period.

But of course if the agent really works hard in your favour, eg bargain the price, come to your place to collect documents, everything do swee-swee, show you other units, go extra mile to run to law firms and banks, etc then you should also touch your conscience and ask yourself if you really want to deprive this good salesperson of his/her commission.

[lovenest 0]

yeah i came across such agents too and sad to so way my last choice flat i gave it up simply becos i was peeved with the agent who wanted 1% from me when i walked right into the door. he was the sellers agent.

now im searching again and my present agent really does his work bringing us around, giving advice and keeping us updated. so im actually hoping a deal will go thru with this agent for my current choiuce unit so that i can pay him his well-earned commission.

[wiliam112 0]

How much is 1% commission from the buyer?

commission de surendettement

Edited May 5, 2009 by wiliam112

[dean 5]

How much is 1% commission from the buyer?

commission de surendettement

1% of purchase flat price include cov exclude 7% GST.

actually viewing flat no need sign any agreement. there out got some nice housing agent can talk and help you bargain COV, also got bum bum housing agent.

you can pay agent 1% commission after 1st appointment.

[Babyblue 0]

1% of purchase flat price include cov exclude 7% GST.

actually viewing flat no need sign any agreement. there out got some nice housing agent can talk and help you bargain COV, also got bum bum housing agent.

you can pay agent 1% commission after 1st appointment.

1% comm after 1st appt?? my agent told me i need to pay only after i got my keys.

[dean 5]

1% comm after 1st appt?? my agent told me i need to pay only after i got my keys.

so after got keys must pay. 1% comm alot leh..

Edited May 7, 2009 by dean

[spoiltbabe 0]

initially we were told to pay the 1% commission on the day of 1st appt. My hubby discussed with the agent and we agreed to pay HALF of the commission on the 1st appt and the balance to be paid on the 2nd appt. Is another way to 'protect' ourselves and ensure the agent 'serves' us throughout the transaction

[plush 0]

can neg to pay after 2nd appt, but 1st appt also can pay

[Budget 0]

It was and is not compulsory to pay any commission. Unless in the case for sellers, an agreement (exclusivity) to sell is awarded to the agent. Even if no exclusivity is signed, sellers will normally have to pay the commission to their appointed agents. This is to cover for the marketing costs for your property.

Whereas in the case for buyers, I will think that its absurd to pay any commission if I bought the papers, read through the classifieds, found the property, all by myself. Alot of agents will say that its the market practice and we should pay the commision. BUT, for what reason does the agent deserve the commision when he did not do any work for me?

Of course, we have to be fair if we ask the agent to source the property. We should at least cover for their effort. BUT not when you are doing all the work yourself.

WE ARE NOT OBLIGATED TO PAY FOR ANY COMMISSION.

[spongebob 0]

thank ou for sharing

surendettement

[LinDa 0]

Just to share my experiences because I have bought and sold 2 resale flats and they are through different modes.

RESALE FLAT 1:

We had our own agent whom is a old family friend. He arranged all the viewings nicely - one night view at least 3 units for a few nights. Gave his opinions on the units seen. Finally decided on one unit, he negotiated the price. Saw through all the paperwork and accompanied us for the HDB appointments. Paid 1% commission.

When we wanted to sell it after six years, we tried to do it on our own initially by posting online. A few agents approached us wanting to bring their buyers to view our unit. I made known I was not willing to pay them any commission as their buyer will pay them since they are acting as the buyer's agent so will be against my benefit. A few of them subsequently did not arrange to bring their buyers. However, there was this agent whom still continously brought his buyers. He had a discussion with us wanting to market our unit ie newspapers. We came to an agreement that we will give him exclusive but reduced commission of 0.5% with increased commission to 1% if the unit is sold above a certain price. We finally sold it at a reasonable price but below the kicker so paid him 0.5%. He did all the paperwork for the sale and also accompanied us for the HDB appointments.

RESALE FLAT 2:

We wanted to find our second home on our own to save on commission. Started by sourcing online. Made appointments to view the units on our own. During the second week we started our search, we made an offer to the third unit we viewed. The seller had an agent (his cousin). The agent did not mentioned any commission when we arranged the viewing or during the viewing. When we made the offer, we also highlighted that we are not intending to pay him any commission. So if he wants to sell the unit to us, he have to accept it, otherwise we will continue to look around. As usual, he started telling us it is the market practice etc but we were not buying it. But in the end, he negotiated for a flat fee to do the paperwork which we are agreeable. I think it was about $500.

That was nearly three years ago and we decided to move even nearer to my parents so we are moving once again. Posted online again to advertise too. I guess nowadays, people are really getting more internet savvy. I managed to arranged many viewings with direct buyers. There was a few agents but I maintained my stance that I will not pay them any commission. As usual, they back off. Sometimes when I think about it, I pity their buyers for missing out on such opportunities. And what do these agents gain? Not much, because most sellers have agents and if they bring their own buyers to these units, they don't get any commission either (unless co-broke? i have no idea how they work). Anyways, I sold my place to a direct buyer. The buyer is happy to save nearly $5k commission and I'm even happier to save nearly $10k. We did the paperwork on our own. Being HDB flat, it's really very simple. HDB even conduct classes for DIY resale process!!

I find that the commission structure for buy/sell HDB flats should be reviewed and regulated. It's way too broad and way way too high. This increases the temptations for unscrupulous agents manipulate sellers/buyers. It's not like ages ago where the only medium was through newspapers and it was very expensive to advertise. Prices have come down a lot and online advertising is more of the norm now.

Edited July 5, 2009 by LinDa

[autobots 0]

thanks for sharing

surendettement

[checkthelabel 0]

great post guys thanks a lot

surendettement