Unlocking Opportunities With a Good Property Agent In Singapore

Roles Of A Real Estate Agent: Why Do You Need One? 

Singaporeans may require a real estate agent's services for a variety of reasons. The most common of these are outlined below:

1. Buying or selling your property

Agents offer services such as marketing, handling paperwork and contracts, home search, price negotiations, etc. If you're buying or selling an HDB flat where there are several eligibility conditions and procedures, a real estate agent can help you navigate the complexities of the process.

2. Renting property

Agents can assist in finding the type of property that fit the needs, preferences, and budget of the client. They can make arrangements for home viewings, and provide expert advice on the rental market and leasing process. Additionally, they have a broad range of contacts which include landlords.

3. Real estate investing

Property agents can help identify the best areas and properties to invest in and provide guidance on investment strategies and risk management. They can provide market analysis and insights on market trends and regulations to guide investors in making informed decisions.

Buy or Sell With A Property Agent in Singapore or DIY-style?

This is a very common question, especially from first-time buyers and sellers and it is actually a good thought. Although you can buy and sell a property in Singapore without an agent, it is advisable to weigh the costs against the benefits before deciding to hire one or do it on your own.

Let's start with the pros: 

The right property agents are experts in their field

They have in-depth knowledge of the local real estate market, including current trends, property values, and regulations.

They can help you decide on the best time to buy or sell, the best property to invest in, give professional advice on financing, provide a comparative market analysis (CMA), etc.

They are also skilled negotiators so you can rely on your property agent to help you work out a better deal. The valuable assistance that agents can provide comes with their years of experience. 

Hiring an agent helps you save time and effort.

A property transaction, like buying or selling, usually takes a minimum of 6 months based on data.

The process can take longer if you are unsure of it or are learning as you go. If you're selling, you need to take care of advertising, staging, showing, pricing, and so on.

For buyers, even searching for a home on property portals can eat up so much precious time. On the other hand, an agent can offer a range of services, including but not limited to the ones mentioned.

Realtors have access to a vast network of clients and industry professionals,

They can use their marketing skills and resources to help you find the right buyer or property for your needs. Some property agencies in Singapore may even have access to exclusive listings that are not available publicly, giving you a wider selection. 

Buying or selling a property can be a stressful and complex undertaking.

Finding the right property, dealing with paperwork, complying with regulations, managing finances, and negotiating with interested parties are among the various tasks involved in the process. Working with a registered agent can help ease some of your load and make the experience less exhausting and more convenient.

And cons:

As much as property agents are beneficial, hiring one may also have some drawbacks.

Let's try to see if these outweigh the advantages listed above.

A real estate salesperson typically charges a percentage or an amount of commission,

This amount may be a significant cost for both the buyer and seller. If the seller is in a rush to sell or if the property is more difficult to sell, commissions paid by sellers may significantly increase. On the bright side, the agent's commission rates are generally flexible and negotiable depending on the circumstances.

Hiring an agent means you may have to rely on them to handle the transaction giving you limited control.

You will be outsourcing certain tasks like negotiations, paperwork, and the rest of the legwork. This takes a lot of trust in the agent and it can be a drawback for some individuals who prefer to have a hands-on approach to the process.

Although uncommon, conflicts of interest can be a possibility.

When hiring an agent, they are expected to offer their unbiased service in the best interest of their clients. However, they are incentivized to close deals, and there might be times when an agent's personal or professional interests conflict with or are not aligned with those of their clients.

Five Non-Negotiable Questions To Ask Your Property Agent

It would be sensible to get to know an agent before you hand over the reins for them to represent you and manage your affairs. In addition to doing your own research, it would be a great idea to personally qualify them by asking these key questions.

1. What is the extent of your experience?

Having an idea of a property agent's real estate career can help you gain confidence in their ability so this made it to the top 1 of our list. Ask them questions about their background, credentials, success rate, and membership with industry associations. 

Make sure that the agent you are considering is licensed and CEA-registered. The Council for Estate Agencies in Singapore is the governing body responsible for regulating the real estate industry in the country and maintaining a register of licensed property agents. You can also research the agent's real estate company via CEA's website and look for information about their track record, awards, and recognition in the industry.

2. How much do you charge for your services? 

This must be one of the most crucial questions to ask since it enables you to assess whether the total cost of the agent's services fits within your budget. Costs like commissions will have an impact on the net profit so it is important to know this information. By asking, you can also compare rates with another agent before selecting who you would like to work with.

3. How do you plan to meet my needs?

Knowing your agent's approach to property search or marketing is essential for both buyers and sellers. Many agents rely on their network, starting with their realty company when sourcing homes. If you're in the process of buying, it's critical to understand how the agent plans to identify the ideal property, how many listings will be shortlisted, and whether other buyers are searching for properties of the same kind. For sellers, it is crucial to know the agent's marketing approach, frequency of advertising, and media channels used to advertise the property.

4. Do you earn any referral fees in addition to the fees I pay for your services?

You would like to ask this question to identify conflict of interest situations. Many property agents have strong connections to businesses in the industry (e.g. banks, renovation companies), which may result in them receiving referral fees for referring clients to avail of their third-party services. Knowing this information will provide you with some insight into their potential interests. Agents are required by the CEA to avoid conflicts of interest and to disclose any possible conflicts in writing to their clients.

5. How many clients are you serving right now? 

Knowing how many clients an agent is serving at the moment can help determine their workload and availability to cater to your needs. This can help you assess if they have the capacity to provide their commitment and attention to your demands. Top producers who are likely to have too many clients might not have the time to dedicate to each one, which could have a detrimental effect on the level of service they provide. On the other hand, if they have very few clients, it could mean that they lack experience, such as in the case of new agents. 

Sales Commissions: Singapore Property Agents Reveal How Much They Earn Per Transaction

The CEA was established to oversee the real estate industry since 2010. However, they do not determine commission rates and you are free to negotiate the amount with your agent. There is no set amount or standard percentage for such fees but for reference, here are the typical rates as of 2022.

Non-landed private properties (e.g. condominiums)

The seller usually pays 2% but it can go up to 4%, especially for new launches. The buyer customarily does not pay the agent, regardless of whether they’re using a buyer’s agent or not. The seller’s agent splits the commission with the buyer’s agent.

Landed Properties

The seller usually pays 2%, but it is flexible and can be higher since situations tend to be more unique. The buyer customarily does not pay the agent, regardless of whether they’re using a buyer’s agent or not. The seller’s agent splits the commission with the buyer’s agent.

Resale HDB Flats

If the parties transact for the sale of an HDB resale flat, the seller usually pays 2% while the buyer pays 1% commission to their agents.

Co-Broking Commissions

Co-broking refers to when two or more real estate agents work together to sell or rent a property. One agent represents the buyer, while another agent represents the seller.

Both agents then split the commission from the successful sale or rental of the property.

This is a common practice in the real estate industry in Singapore, as it helps to connect buyers and sellers or tenants and landlords more efficiently.

Exclusive or Multiple Agents: What Are The Pros & Cons?

In an exclusive agreement, you agree to transact only through that agent. That means you buy, sell, or rent your property through an exclusive agreement with one agent/agency, which is usually valid for up to three months.

• An exclusive agent is likely to put in focused efforts, present a more personalized service and be more motivated.

• Having one point of contact means easier communication, reducing the potential for confusion and misunderstandings.

• During the validity period, you are responsible to pay a commission to the appointed agent even if you sell, buy, or lease the property through another agency or completed the transaction on your own.

• If you sell your house within three months after the validity period has passed, you are still required to pay a commission to the agent if the buyer was a party introduced by your exclusive agent during the time your agreement was still valid.
  
  

In a non-exclusive agreement, you may work with a number of agents or property agencies to assist with your real estate transaction. 

• You will have more people working for you if you hire multiple agents, which may be advantageous. However, it's possible that you may not be at the top of their priority since none of them have the sole authority to represent you.

• Having multiple agents could lead to duplication of effort, making it more challenging for you to oversee the process and possibly cause confusion to prospects. Conflicting or duplicate marketing ads may even lead to war which is not favorable to you.

• You only pay a commission to the agent/agency that successfully helped in completing the transaction.

• If more than one agent introduced the buyer to you, you need to specify who earns the commission.

Is It Better To Work With A Solo Agent vs A Team of Agents?



A real estate agent can either work independently or as part of a team. As a client, you should consider the pros and cons of each option before deciding to hire their services.

A solo agent is someone who works exclusively with a buyer or a seller during the entire process, from start to completion.

As a result, you are likely to develop a relationship with that person. Since the process involves discussing sensitive information like your finances, you may be more comfortable having this conversation with one trusted agent rather than with a group.

You can also count on a solo agent to take full responsibility for meeting deadlines and commitments. This also means that the agent will take all of the workload and if they are serving other clients concurrently, the agent may not be able to give you all of the focus that you demand.

On the other hand, if you decide to engage in the services of a team of agents, you can expect to be coordinating with different people who are usually assigned specialized tasks.

A team can consist of seller's agents, buyer's agents, admin assistants, and marketing directors. You would want to understand how the team is run for you to determine if this is the setup that suits your needs.

The biggest advantage of working with a team of agents is probably its cost-effectiveness. You will have more professionals working at your disposal at no extra cost.

However, the potential for communication breakdown is increased due to several people involved in the process but this can be remedied as long as there is openness and cooperation from both the client and the agents.