Property agent commission can be a head-scratcher. In Singapore, there are no fixed rules on how much you should pay your real estate agent, so it’s not surprising that many property sellers, buyers, and tenants here are often uncertain about how much property agent fees they should give or should they even pay one in the first place.
To help you, we crafted a comprehensive guide detailing the best market practices in paying property agent fees, whether you’re the property owner, buyer or tenant. If you’re searching for a property agent, browse our agent directory to find the right expert for your needs.
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Understanding Co-broking for Property Agent Commission
But before we dive in, it’s important to understand co-broking. Co-broking is a common industry practice in the property market, whereby two or more real estate agents representing the owner or the tenant/buyer work together in the same deal to achieve the best possible result for their respective customers.
Clause 1.8.3 of CEA’s Professional Service Manual prohibits an agent from collecting both compensations (i.e. the commission from his customer and the fee for co-broking from the agent of the other party). Sharing property agent fees is only allowed when one party obtains a commission.
While the agents need to agree on the co-broking fee, they still need to look after the interests of their respective clients. That’s because a property agent is not allowed to represent both the property owner and buyer/tenant in a single transaction. Doing so results in a conflict of interest. That’s also why co-broking laws are in place to prevent a conflict of interest.
Property Agent Commission for Sellers
- HDB resale flats: 2%
- Non-landed private housing (i.e. condominiums): 2% to 4%
- Landed property: From 2%
For landed properties, there is more wiggle room for negotiating the seller’s agent commission. As there is a variety of landed homes, the seller’s agent would negotiate their property agent fee with you based on the uniqueness of your property.
Why Hire a Seller’s Agent and Pay Seller’s Commission?
If you’re selling your property, you must appoint an agent to search for a buyer. Technically, you can sell the home on your own, but it can be helpful to engage a professional’s help to save time and frustration.
The property agent will search for people to buy the unit, coordinate and schedule visits, and show the unit to potential buyers. Before viewings, they will market your home, take pictures, and assist you in staging your property. When you get bids, they will negotiate for the best price and handle all necessary paperwork.
Thinking of selling your home? Get the ball rolling by getting a home valuation and searching for the right agent. Let us help you sell your property confidently.
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If you still want to go the DIY route and sell your home without an agent, you’ll want to start by reading as much as possible on how to sell your property.
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Property Agent Commission for Buyers
- HDB resale flats: 0%
- Non-landed private housing (i.e. condominiums): 1%
- Landed property: 0%
For those who are buyers, you’ll notice you don’t have to pay any property agent fees to your representing agent for HDB resale flats and landed properties. This is because the seller’s agent splits the commission with your agent.
Why Hire a Buyer’s Agent and Pay Buyer’s Commission?
Getting a buyer’s agent to represent you can save a lot of hassle, especially if you’re purchasing a home for the first time. Aside from looking for suitable properties and coordinating viewings, the buyer’s agent will offer you professional advice, negotiate in your best interests, and handle the necessary paperwork.
Not sure what you’re looking for? There are tons of listings for sale, which you can browse on the PropertyGuru website. Alternatively, you can use the search and filter functions to narrow down the property type, location, size, build year, and property price to find your dream home easily.
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Agent Commission for Rental
| Two-year lease and rent is over $3,500 per month | If the tenant has no representing agent and contacts the landlord’s agent on their own accord, the landlord gives a one-month agent commission for rental to their agent. The tenant doesn’t pay any agent fee for rental.
If the tenant and landlord have agents, both agents should split the one-month agent commission for rental from the owner. The tenant doesn’t pay any agent fee for rental. |
| One-year lease and rent is over $3,500 per month | If the tenant has no representing agent and contacts the landlord’s agent on their own accord, the landlord gives a half-month agent commission for rental to their agent. The tenant doesn’t pay any agent fee for rental.
If both the tenant and landlord have agents, the tenant and property owner should each pay half a month’s agent commission for rental to their respective agents. |
| Two-year lease and rent is less than $3,500 per month | The landlord pays a one-month agent commission for rental to their hired agent. The tenant also pays a one-month agent commission for rental to their agent.
However, if the tenant’s agent is not involved in the transaction, the tenant doesn’t pay any agent fee for the rental. |
| One-year lease and rent is less than $3,500 per month | The landlord pays half a month’s commission to his agent. Likewise, the tenant also pays a half-month agent commission for rental to their hired agent.
However, if a tenant’s agent is not involved in the transaction, the tenant doesn’t pay any agent fee for the rental. |
Again, there are no standard or mandated rates on agent fees for rental. Nonetheless, there are best market practices based on rental amount and lease duration.
Why Hire a Tenant’s Agent?
For tenants, an agent will look for a property that best fits their requirements and schedule viewings. They will assist you during the rental process and accomplish the necessary paperwork.
Whether you’re waiting for your BTO flat to be completed and want to use the PPHS (Open Market) Voucher to rent in the interim or are looking for a cheap room for rent just because there is a whole range of rental listings on PropertyGuru, you can browse.
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Why Hire a Landlord’s Agent?
If you’re a potential landlord, you’ll want a property agent to look for tenants and represent you during negotiations. Hiring a property agent is almost necessary for those who have moved overseas and cannot be physically present to rent their home.
With the help of a good property agent, you can have peace of mind that your home is in good hands and the paperwork is in order. Also, your representing agent could help you, the landlord, or the occupant(s) with maintenance problems that arise during the tenancy.
However, know the agent is not required to do so and is doing so out of goodwill. According to the Council for Estate Agencies (CEA), a property agent’s role ends once the tenancy agreement is signed and the property has been handed over to the renters.
How to Negotiate Property Agent Commission
The listed figures may differ from actual property agent fees. As mentioned, these are only best practices and suggested numbers. There are no existing rules on property agent commissions.
Some factors affecting how much you may pay are the intricacy and urgency of the transaction. For instance, some landlord’s agents may insist on not splitting the rental commission if securing a tenant is not difficult. Or the property agent fees for the seller’s agent may increase if you desperately need to sell your property in a short time frame. Foreign buyers may also be asked for a higher commission due to the increased difficulty of finding the right property.
That being said, what you can do is agree on the property agent fee before officially appointing a property agent. If there is a fee disparity, always clarify with the necessary agents.
If your property agent works for a GST-registered property agency, you must pay the 9% GST rate. Some agencies may absorb this charge, but it doesn’t hurt to ask. And remember, the property agent commission is only payable to the property agent’s agency after the agent has fulfilled all their duties, not directly to the property agent themselves!
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