Based on common practices in Singapore, the commission structure your agent proposed seems within the expected range, but on the higher end. Here's a breakdown:
Standard Commission Rates:
Seller pays: Typically 2% of the selling price (excluding CPF utilized)
Buyer pays (optional): 1% of the selling price
Your Situation:
Selling price: $515,000
CPF utilized: $25,000 (assumed based on commission calculation)
Agent commission on advertised price: $9,800 (2% of $490,000)
Additional commission on CPF used: $12,500 (50% of $25,000)
Total commission: $22,300 (before GST)
Is it Compliant?
Yes, the commission structure itself is compliant with standard practices. There's no regulation mandating a fixed rate; it's negotiable between you and the agent.
Is it High?
Here's why it might be considered on the higher end:
Additional commission on CPF used: This isn't the most common practice. The agent's commission is usually based on the final selling price after CPF deduction.
What can you do?
Renegotiate: You can discuss the additional commission on CPF used. Highlight that the standard practice is for commission based on the final selling price.
Compare with other agents: Get quotes from other property agents to see what commission rates they offer.
Here are some resources that might be helpful:
Property Agent Commission Market Rates for Sellers:
https://www.propertyguru.com.sg/property-investment-questions/may-i-know-how-much-is-the-agent-fee-for-rental-and-selling-a-property-458481 Singapore Estate Agents Association: https://www.seaa.org.sg/
Ultimately, the decision is yours. If you're comfortable with the agent's service and the overall commission amount, you can proceed. But if you feel the commission is too high, negotiate or seek quotes from other agents.>> pm me >> i can sell for a lower commssion ！！
------------------
"If you need more assistance with property matters:
like renting / selling, buying / or investing, I'm here to help!
WhatsApp me at >>9856 9255 or through this link.:https://wa.me/6598569255.
(Unfortunately, this platform doesn't allow direct contact, but you can easily reach me )
You can check out my reviews here:
https://www.propertyguru.com.sg/agent/able-s-k-toh-61591.
For buyers, I offer solutions for sourcing resale and new private homes at no charge.
I can connect you with reputable bankers for private housing loans free of charge and with no obligation.
I also have partners to assist with mortgage home insurance matters.
Let's seal this affinity by technology; please PM me your contact for assistance with your real estate needs. So, I believe in Affinity (Chinese word: 缘份） :), let's SEAL this AFFINITY Not by blood but by Technology > Please PM, Private Message your contact so that I CAN BE (EXTRA) PAIR OF HANDS / BRAIN and LEGS to Assist you NOW or FUTURE REAL ESTATE NEEDS!
*** You can reach me at my Singapore mobile: (+65)>>9856 9255>> or email me at Able.selling@gmail.com.
From: ABLE Toh- Your Property ASSISTANT ：）
“ i am ABLE to Help As Much As You are ABLE To PM (Private Message) me ”
XXXXX The End XXXXXXX
Read More
