View Full Version : Agent's commission
I understand the standard agent's commission is 2% + GST but will there be any agent willing to accept 1% + GST only? Anybody encounter before?
If you sell below market value, I guess agent more than happy to sell for you.
We pay agent 2% because if they can find a buyer willing to pay above market value, the 2% is well worth the service.
But then in this market, an agent able to find a buyer to buy above market not many, most become Taxi driver or Uber driver already.
Then choose NON GST agency agent to help you market your unit and sell. Don't need to pay GST.
Ask your agent friend to help you. I am sure they are willing to offer a flat fee or 1% commission but with some condition. But in this market condition, some seller even need to give 3% to clear the unit as soon as possible. Good luck.
Shared this before. All my friends and I have always worked with our regular and even new (to us) agents at 1% commission whether the market was up or even now when market is down. Treat the agents well, fairly and with all info upfront transparently. We don't want to shortchange or disadvantage anyone unfairly. A friend just sold recently with 1% commission too.
proud owner
10-11-15, 21:55
I understand the standard agent's commission is 2% + GST but will there be any agent willing to accept 1% + GST only? Anybody encounter before?
i am not aware that the STANDARD comm is 2% ( with or without GST) ...
It has always been 1% (with GST if applicable) ..
Yesterday evening, my agent's partner said that he is willing to accept the 1% commission + GST but hope to get exclusive right but I told him that I'm not comfortable with the exclusive right, in the end, he said he will still help me to market my unit.
will you let your friend as an agent to market your unit or prefer someone you don't know?
do you let your friend has exclusive right or you find as many agents to find tenants for you?
just do the calculations and set the targets according lor...
e.g. if sell 1.5m commission 3%, 1.45m, commission 2.5%. 1.4m commission 2%, anything lower 1%
provide incentives to work hard mah...and no exclusive rights...what for need that? in fact should find 2-3 solid agents to sell for you
will you let your friend as an agent to market your unit or prefer someone you don't know?
do you let your friend has exclusive right or you find as many agents to find tenants for you?
Actually, the agent who helped me to secure the tenant is not my friend, because he is so helpful, so I treated him like my friend. Since my tenant knows him, so I am thinking it will be much more convenience for him to talk to the tenant and arrange for viewing but I might be trying to get another 1 or 2 agents to help me if my current agent has problem in getting a buyer for me at my requested price.
If my unit is not rented out, I would prefer to get more agents to help me but now different, it might cause inconvenience to my tenant if too many agents involved. I have bad experience with the exclusive right, so now whether friends or not friends, no exclusive right.
Proud owner, I was trying to pm you but I think your quota is full, maybe need to erase some messages.
Administrator, is it possible to increase the space for our private messages as it filled up so fast. Some of the conversations are good and would like to keep it but sometimes no choice, need to clear it for incoming messages. If I am not wrong, the space given is the combination of the incoming and outgoing mails.
desirenlure
11-11-15, 21:13
There is no stipulated amount of the sales commission payable to the agent, so there is no such a thing as "standard 1% or 2%" commission for the sale of a property. The sales commission for the agent is always negotiable between the two parties but there are some facts that I, as an owner takes into consideration in selecting my agent and deciding on the commission:
1. It is very difficult to find a buyer to buy a private property at the asking price. When the market is bullish, the owner always thinks he can get a price higher than the market and when the market is bearish, they try to hold the price so that they are not guilty of setting the low. Unfortunately, the buyer thinks the other way around, so it comes down to hard negotiation to close a deal and it is a lot of effort.
2. In the case of co-broke, your agent has to pay commission to the buyer's agent which means his/her share of takings has to be worth his/her while.
3. When the owner is spending time with his/her family, the agent may need to work to sell the property for you.
4. The owner is also paying for the agent's network whom he/she has built over the years. If you want others to respect your work, respect his/hers too.
Lastly, it comes down to trust and the business relationship between the owner and his/her agent; work with one whom you can trust and you will not mind paying for one's service.
PS: I do not work in the real estate industry.
proud owner
11-11-15, 22:32
Proud owner, I was trying to pm you but I think your quota is full, maybe need to erase some messages.
didnt realize it is full.....
i have removed some messages .....
There is no stipulated amount of the sales commission payable to the agent, so there is no such a thing as "standard 1% or 2%" commission for the sale of a property. The sales commission for the agent is always negotiable between the two parties but there are some facts that I, as an owner takes into consideration in selecting my agent and deciding on the commission:.
Thanks for the advice. I thought it is 2% commission across and that's what I heard from most agents. I also understand that some agents do accept 1% commission too. I sold my HDB flat many years back and this agent only accepted 1% commission.
When the owner is spending time with his/her family, the agent may need to work to sell the property for you.
Lastly, it comes down to trust and the business relationship between the owner and his/her agent; work with one whom you can trust and you will not mind paying for one's service.
PS: I do not work in the real estate industry.
I'm sure the agents will like to have more units on hand so that their clients can have more choices. During the time when I was looking for tenants, one of my agents brought her client to my unit and she told me, this client actually was looking for other locations but she was thinking to give him more choices, so she brought him here.
MortgageGuru
12-11-15, 08:13
There is no stipulated amount of the sales commission payable to the agent, so there is no such a thing as "standard 1% or 2%" commission for the sale of a property. The sales commission for the agent is always negotiable between the two parties but there are some facts that I, as an owner takes into consideration in selecting my agent and deciding on the commission:
1. It is very difficult to find a buyer to buy a private property at the asking price. When the market is bullish, the owner always thinks he can get a price higher than the market and when the market is bearish, they try to hold the price so that they are not guilty of setting the low. Unfortunately, the buyer thinks the other way around, so it comes down to hard negotiation to close a deal and it is a lot of effort.
2. In the case of co-broke, your agent has to pay commission to the buyer's agent which means his/her share of takings has to be worth his/her while.
3. When the owner is spending time with his/her family, the agent may need to work to sell the property for you.
4. The owner is also paying for the agent's network whom he/she has built over the years. If you want others to respect your work, respect his/hers too.
Lastly, it comes down to trust and the business relationship between the owner and his/her agent; work with one whom you can trust and you will not mind paying for one's service.
PS: I do not work in the real estate industry.
Good post there!
Not a real estate agent myself but you have few good points there!
so on average how much commission have u been paying your agents?
There is no stipulated amount of the sales commission payable to the agent, so there is no such a thing as "standard 1% or 2%" commission for the sale of a property. The sales commission for the agent is always negotiable between the two parties but there are some facts that I, as an owner takes into consideration in selecting my agent and deciding on the commission:
1. It is very difficult to find a buyer to buy a private property at the asking price. When the market is bullish, the owner always thinks he can get a price higher than the market and when the market is bearish, they try to hold the price so that they are not guilty of setting the low. Unfortunately, the buyer thinks the other way around, so it comes down to hard negotiation to close a deal and it is a lot of effort.
2. In the case of co-broke, your agent has to pay commission to the buyer's agent which means his/her share of takings has to be worth his/her while.
3. When the owner is spending time with his/her family, the agent may need to work to sell the property for you.
4. The owner is also paying for the agent's network whom he/she has built over the years. If you want others to respect your work, respect his/hers too.
Lastly, it comes down to trust and the business relationship between the owner and his/her agent; work with one whom you can trust and you will not mind paying for one's service.
PS: I do not work in the real estate industry.
Powered by vBulletin® Version 4.2.2 Copyright © 2024 vBulletin Solutions, Inc. All rights reserved.