Property Agent Commission

[LPPL]

No no I def not advocating diy....I'm jus saying pple like lppl and I'm sure there are quite a few shd jus sell their ppty themselves..no need to whine here...options always there :)

Who is whining? You? I started by saying that in this market, I am surprised agents would despise a $15k com for mass market condo. If you think that is peanuts, that is you, but I believe many would agree that selling a condo costing less than a million, $15k is more than reasonable compensation. Of course we can diy anytime, but the point is not about whether seller can diy, the point of this thread is to discuss about agent commission, not whether people can diy.

[Still2016]

Bro, the method describe by OrionOng which he posted in 2009 is already "obsolete". With the formation of CEA in Oct 2010, dual representation is illegal and will be dealt with very heavy penalty. So far, I have not come across any agents who dare to dual represent or take comm from both sides.

 

BTW, I take offence when you imply that this profession has no real skills and doesn't contribute to the economy. Please, agents also pay income tax. And it takes knowledge to pass the RES exam and finally practice. Customers also expect us to remember all the unique HDB regulations, industrial laws,purchasing processes, etc  all at our finger tips in addition to the knowledge of current property trends. This is why agents have to fulfill  mandatory continuous education if they want to renew their yearly practice license

 

Honestly,  I felt more fulfilled in this line than my previous senior corporate job in terms of touching lives.   Here, I can reach out to people who need help, find their dream homes or help them to sell to upgrade and see their smiles. Then there are people who need to sell quickly due to divorce, death, accidents, bad loans, medical, bankrupts, etc who  needed that sale money to survive and we come in to help often not even knowing if we will ever get paid.  But when  we did ultimately relieve their pain, that satisfaction goes beyond any comm in the world. If you think that this job doesn't contribute to the economy, at least believe that it contributes to mankind.

 

A lot of my co-broke agents are degree holders, some are masters;  the auntie, uncle agent era are slowly fading out. And I hope it will move towards that way with more and more difficult RES exams. The agents are dealing with people's life savings and need to be properly qualified and certified. And hopefully with more qualified agents out there, the perception of agents will improve.

 

I believe Odyssey 2011 did not meant it with an ill intention. But it is reality that it is difficult to find a reasonable good property agent. The fact that it is commission based, the self interest kicks in like it or not. In the cut throat killed or be killed environment, most property agents are out for themselves and do what it takes (varying degree) to close a deal.

 

Just how many of these property agents really want to be property agents if they can help it especially if they have degrees. I can safely say many are property agents because they cant find a job in the field that their degree obtained. Property agent work like insurance agent work have low entry. If you a degree holder definitely one must be able to pass the CEA examinations. Even bank frontline customer service officer needs a degree in the private banking arena. A degree today is just a licence or entry point to somewhere.

 

I believe Odyssey2011 is right, it is a matter of time and it would be sooner than later when many of the middleman jobs would be done away. The fact that technology is advancing so quickly, I wont be surprised that doctors would also be obsolete in time. A doctor takes so many years to learn and he or she is an apprentice learning to pick up signs and symptoms and then try to fit these into his or her vast knowledge of disease pattern. Advancement with technology and AI will out-perform a doctor in diagnosing a disease anytime soon.

 

Reality is something that is going to hit us real hard for those who are not prepared for the next decade. Hence, my personal advice is, save and create as much wealth ($) as you can while you are young. Don't be a fool when you still can be financially independent and start to spend money that does not add value to your lives especially buying expensive depreciating assets such as expensive cars and watches. For those who are going to inherit great wealth from their parents that is a different story. Those who have accumulated enough reserves for their future needs can haolian but for the rest, just remember you pay for what you do / don't do now, in the future. Good luck.

[LPPL]

I believe Odyssey 2011 did not meant it with an ill intention. But it is reality that it is difficult to find a reasonable good property agent. The fact that it is commission based, the self interest kicks in like it or not. In the cut throat killed or be killed environment, most property agents are out for themselves and do what it takes (varying degree) to close a deal.

 

Just how many of these property agents really want to be property agents if they can help it especially if they have degrees. I can safely say many are property agents because they cant find a job in the field that their degree obtained. Property agent work like insurance agent work have low entry. If you a degree holder definitely one must be able to pass the CEA examinations. Even bank frontline customer service officer needs a degree in the private banking arena. A degree today is just a licence or entry point to somewhere.

 

I believe Odyssey2011 is right, it is a matter of time and it would be sooner than later when many of the middleman jobs would be done away. The fact that technology is advancing so quickly, I wont be surprised that doctors would also be obsolete in time. A doctor takes so many years to learn and he or she is an apprentice learning to pick up signs and symptoms and then try to fit these into his or her vast knowledge of disease pattern. Advancement with technology and AI will out-perform a doctor in diagnosing a disease anytime soon.

 

Reality is something that is going to hit us real hard for those who are not prepared for the next decade. Hence, my personal advice is, save and create as much wealth ($) as you can while you are young. Don't be a fool when you still can be financially independent and start to spend money that does not add value to your lives especially buying expensive depreciating assets such as expensive cars and watches. For those who are going to inherit great wealth from their parents that is a different story. Those who have accumulated enough reserves for their future needs can haolian but for the rest, just remember you pay for what you do / don't do now, in the future. Good luck.

It is in the govt's ability to phase out property middleman if they want, but my guess is they are not doing so because that would cut out a chunk of their earnings (gst from agent commissions, agent yearly membership fees, higher transaction cost which converts to more stamp duty collected from inflated home prices which factor in agent commissions). If they can come out with an automated system which can allow them to earn more than status quo (just like gantrifying carparks), the govt would be the first to scrap the property middleman. Edited April 21, 2017 by LPPL

[Stary]

 

Just how many of these property agents really want to be property agents if they can help it especially if they have degrees. I can safely say many are property agents because they cant find a job in the field that their degree obtained. Property agent work like insurance agent work have low entry. If you a degree holder definitely one must be able to pass the CEA examinations. Even bank frontline customer service officer needs a degree in the private banking arena. A degree today is just a licence or entry point to somewhere.

 

 

The way you put it is like saying those who choose to be self employed with degrees (businessman, entrepreneur, agents, etc,) are all because they can't find jobs!! 

 

 3 of my agent friends had great jobs before they quit and became agent. I  do not think they became agent because they can't find jobs! LOL!! I must show them this   

 

And btw, US agents charge about  6% comm and you guys are arguing that 2% comm is too expensive for our local agents. No wonder AMDK!  

Edited April 21, 2017 by Starry

[Kusje]

USA 6% is it because houses are so damn cheap there?

[Odyssey2011]

It is in the govt's ability to phase out property middleman if they want, but my guess is they are not doing so because that would cut out a chunk of their earnings (gst from agent commissions, agent yearly membership fees, higher transaction cost which converts to more stamp duty collected from inflated home prices which factor in agent commissions). If they can come out with an automated system which can allow them to earn more than status quo (just like gantrifying carparks), the govt would be the first to scrap the property middleman.

 

Govt can if they intended to re-shape/re-invent/reset/modified and to safe the already fading away middle-man jobs, but it took decades to end in current shape so they can't turn it around within years by themselves, they simply can't work alone (rather ask real estate companies and representatives who is holding up the change).

These estate agent is not a civil service, govt can't change their working life in total.

[Stary]

USA 6% is it because houses are so damn cheap there?

 

Have you seen the property prices in bay area or in New York?  Singapore kind of prices are cheap there!

 

But Ang Moh agent no 6% won't do!

 

In New Zealand, they charge 7% comm.

 

My expats colleagues used to ask me how does agents here survive on 2% comm when most HDBs are so cheap?  

 

 

 

 

Edited April 22, 2017 by Starry

[Odyssey2011]

The way you put it is like saying those who choose to be self employed with degrees (businessman, entrepreneur, agents, etc,) are all because they can't find jobs!! 

 

 3 of my agent friends had great jobs before they quit and became agent. I  do not think they became agent because they can't find jobs! LOL!! I must show them this   

 

And btw, US agents charge about  6% comm and you guys are arguing that 2% comm is too expensive for our local agents. No wonder AMDK!  

 

Just assume your 3 agent friends are clear example which reflect the truth and real glamorous life and big bucks earning of all property agent, then the current alarming statics and figures showing agents quitting is all fake, if so property agent shouldn't kpkb and just carry on operating like usual good old days. Then again, why so much unhappy sentiment gearing toward agent? It seems clear somewhere is choking, and it takes till now when the world eliminating "middle-man"concept cast in stone to wake this industrial up, yet it seems like there are usual minority old and season property players acting dumb hiding away defencing their own benefit first.

Although it is a dog eat dog world out there, but it is more important to ensure smooth operation of each industry to help the economy. 

Edited April 22, 2017 by Odyssey2011

[Still2016]

The way you put it is like saying those who choose to be self employed with degrees (businessman, entrepreneur, agents, etc,) are all because they can't find jobs!!

 

3 of my agent friends had great jobs before they quit and became agent. I do not think they became agent because they can't find jobs! LOL!! I must show them this

 

And btw, US agents charge about 6% comm and you guys are arguing that 2% comm is too expensive for our local agents. No wonder AMDK!

Bro, please read carefully, I said most and NOT all property agents. Obviously nobody with a PEA size brain will jump into a conclusion that all self employed are all because they can't find a job.

 

You go and buy a property in the USA or Canada and compare buying a property in Singapore, then you will understand why there is a commission % difference.

 

I disagree with you about AMTK. If you have not notice our prime minister salary is the highest in the universe but the most powerful nation President earns a fraction of what our prime minister earns.

[Stary]

Bro, please read carefully, I said most and NOT all property agents. Obviously nobody with a PEA size brain will jump into a conclusion that all self employed are all because they can't find a job.

 

You go and buy a property in the USA or Canada and compare buying a property in Singapore, then you will understand why there is a commission % difference.

 

I disagree with you about AMTK. If you have not notice our prime minister salary is the highest in the universe but the most powerful nation President earns a fraction of what our prime minister earns.

 

Please la, I doubt even most! On one hand you say degree these days is just to get an entry job. If that is the case, you really think those with degree can't even find an entry job and must end up doing insurance or property? If really like that, then I think our authorities have failed big time because our graduates have to do insurance and property because they can't find jobs!!       

 

Why wouldn't it occur to you that they simply prefer to be self employed and doesn't like 9-5 jobs? 

Edited April 22, 2017 by Starry

[Throttle2]

Bro....I don't know about other self employed, but for property agents (since we are on a property agent thread), the estate agencies declare their income for tax filing just like a company would declare their staff annual salary.

 

And please don't be so pessimist. Honest people does exist, I see and work with them everyday. From owners to agents, they are all honest people making a living. Even for landlord and tenants, nobody is ripping each other if they are being managed and communicated correctly.

 

How we view the world is in our mindset. If we are positive, we attract positive people. If we are negative about the world, then we will always attract negative people who will then work on a self fulfilling prophecy that the world must be bad.

Bro, you fall in the small percentage.

In every profession there is a small percentage.

Outlier.

 

While the agents i personally know also report and pay taxes.

They cheat by claiming expenses on every father mother gentlemen receipt they can get their hands on.

Wahahaha

 

Its our society and how it breeds.

Look at the number of people who are still taken by silly get rich instantly schemes.

Are they uneducated? Stupid? Illiterate?

No but just greed leading to stupidity and dishonesty

 

It is what it is.

 

Edited April 22, 2017 by Throttle2

[Throttle2]

The way you put it is like saying those who choose to be self employed with degrees (businessman, entrepreneur, agents, etc,) are all because they can't find jobs!!

 

3 of my agent friends had great jobs before they quit and became agent. I do not think they became agent because they can't find jobs! LOL!! I must show them this

 

And btw, US agents charge about 6% comm and you guys are arguing that 2% comm is too expensive for our local agents. No wonder AMDK!

 

I think some people decide to take fate in their hands so they become agents.

Its a risk they choose just like many things becos they are also lured by the possibility of big money.

Becos its not difficult to qualify as one, we get a wider pool and varying standards.

A higher percentage naturally of a lower standard lah....

Truths of life....

 

 

Hhhmmm, but why you talking about US?

 

My 12 yr old 911 can buy a 2 yr old 911 in US.

Can compare or not?

 

My stupid small house in Singapore can buy ocean view 6000sft mansion with swimming pool in Oahu.

Can compare or not?

 

And AMDK meh? Most that i know are not as DK as me leh.....hee hee hee

 

So dont talk about simi USA agent ok?

Not relevant.

 

Thank you.

Regards

[LPPL]

Have you seen the property prices in bay area or in New York? Singapore kind of prices are cheap there!

 

But Ang Moh agent no 6% won't do!

 

In New Zealand, they charge 7% comm.

 

My expats colleagues used to ask me how does agents here survive on 2% comm when most HDBs are so cheap?

Only an idiot would pay an agent 6% in Singapore for taking no investment risk other than some peanuts advertising cost, and that is if they even spend on newspaper advertising (which is becoming obsolete). Internet advertising is a fixed cost for agents no matter how many properties they advertise and that is considered an operational cost and should not be attributed to any one client they serve.

[Stary]

My stupid small house in Singapore can buy ocean view 6000sft mansion with swimming pool in Oahu.

Can compare or not?

 

 

Thank you.

Regards

 

Whether Oahu or New York, it is the same 6% comm!

 

And you think NY property cheaper than Singapore?

Only an idiot would pay an agent 6% in Singapore for taking no investment risk other than some peanuts advertising cost, and that is if they even spend on newspaper advertising (which is becoming obsolete). Internet advertising is a fixed cost for agents no matter how many properties they advertise and that is considered an operational cost and should not be attributed to any one client they serve.

 

Hahaha.....I think you don't know how propertyguru and SRX make money out of agents!

 

It is never a fix cost!  You think Propertyguru stupid is it? The more the agent  list, the more they repost for you (so that your house is on the top page), the more they pay by burning up their credits!! I think those "feature agents" in PG paid about 4 figure every month!  Internet advertising is more expensive than papers, otherwise how do you think Facebook earn their billions?

 

I got to get my agent friends come in to laugh at this thread sia.....    

Edited April 22, 2017 by Starry

[Hibeam2]

Whether Oahu or New York, it is the same 6% comm!

 

And you think NY property cheaper than Singapore?

 

 

Its incorrect to compare agent's commission in other countries (eg US) vs SG.

Its analogous to comparing pay of any other profession in US vs SG, say doctors or construction worker

Different costs of living, different interest rates, different tax rate etc, 

[Thaiyotakamli]

Why don't u guys take up cea course and be property agent?

 

 

Then u can sell ur house, do the paperwork and even can claim co broker fee when u buy house lol

[Leinad8919]

Why don't u guys take up cea course and be property agent?

 

 

Then u can sell ur house, do the paperwork and even can claim co broker fee when u buy house lol

Because some of them are busy doing their gardening & growing their own rice which is cheaper?

[Throttle2]

Whether Oahu or New York, it is the same 6% comm!

 

And you think NY property cheaper than Singapore?

 

 

If you dont understand or cannot comprehend, please dont reply.

Or you end up contradicting yourself

It really makes you look damn bloody stupid.

 

Dont , please, for your own sake.

 

 

Edited April 23, 2017 by Throttle2