Hi Ah Yong,
Competitive commission rate of 1% for selling usually dictates how much an agent is willing to commit himself in investing into the advertising cost of your unit, which may limit the exposure to the pool of buyers who maybe interested in your unit. Knowing that, buyers with good cash profile may miss out your unit altogether, thus missing out an opportunity in closing at a higher price that can be achievable if you are giving a higher commission rate.
Think about this, for example, 5rm HDB value is $450k, based on 1% commission, you will be giving $4.5k commission and say the deal close at $30k COV. If you are giving 2% commission, I am confident that whoever represents you will assist you to achieve $45k COV, which you earn $15k more and only give out $4.5k additional in commission. Does that sound reasonable for you to give the agent 2% commissions for selling for you?
Regards,
Geryl LIM
Real Estate Consultant
CEA Reg R014783H
Mobile:
+65-81577565
Email: lim.geryl@yahoo.com.sg
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