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There is a standard percentage that property agents in Singapore expect to earn as a commission. Upon appointing the exclusive agent to represent in your property dealings, you and your agent will agree on the amount of commission payable after the property transaction.
The Singapore Institute of Estate Agents (IEA) has finalised and published the recommended commission/fee for real estate transactions, a copy of which can be viewed online. Click IEA Commission Guidelines to view.
Some commission-related questions you could ask
What kind of Internet Marketing will you do? There are many high profile web sites you will want your agent to advertise on. Ask which ones he/she will use and ask for specific statistics. What about the agent's company and personal web sites? What newspapers do you advertise in? What is the Singapore real estate prices? Ask if the agent advertise your property in the classified newspapers? What is the frequency of advertisements?
What is the effect of your marketing to other agencies? Very few properties are sold through advertising or open houses, but it does happen. Most often, those ads generate calls from potential buyers or sellers, who end up as clients for real estate agents - and you want agents to bring potential buyers to your property. Advertising your property to other agents has a higher impact than direct advertising to consumers.
Lastly, ask yourself...
What is more important to you - getting the most amount of money from your sale, or paying the lowest sales fee? Once you decide which is more important, how much commission to invest in your property sale becomes clear.
Don't be fooled by discount brokers. Commission fees provide income for three items only - Profit, Overhead and Marketing. Overhead is a variable fixed cost and that leaves only Profit and Marketing.
Where do you think discount brokers cut back to make up for their reduced fees? It is surely not Profit... They cut back in Marketing which means that as a result of reduced marketing you are highly likely to receive much less for your property. In fact, studies have shown that sellers who pay higher commissions actually get MORE than the difference the discounted fees were supposed to save them.
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for further details on how we can assist you in maximizing the equity you receive from the sale of your property.
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