Real Estate Agent Commissions in Singapore: Here Are the Fees

When buying, selling or renting property in Singapore, working with a qualified real estate agent can make the process much smoother.

However, it’s important to understand how agent commissions work to avoid any surprises.

Below, we’ll break down everything you should know about realtor commission rates in Singapore, from different property types to the roles of buyer’s and seller’s agents.

Sales Commission Rates in Singapore

Unlike some countries, Singapore does not have fixed or legally regulated commission rates for property agents. Commissions are freely negotiable between the agent and client.

With that said, some standard practices have emerged over the years.

For property sales, the total commission is typically between 1% to 4% of the sale price. This is usually paid entirely by the seller.

If there are agents representing both the buyer and seller, they will split the commission between them – an arrangement known as co-broking. The exact split depends on the agreement between the agents, but 50/50 is common.

Here’s how commissions typically break down by property type:

HDB Resale Flats:

• Seller’s agent: 2%
• Buyer’s agent: 1%
  (paid out of the seller agent’s 2% commission)

Private Condos and Landed Houses:

• Seller’s agent: 2%
• Buyer’s agent: No commission
  (seller’s agent splits their 2% commission with buyer’s agent)

So, in most cases, sellers pay 2% to their agent, who then shares 1% with the buyer’s agent. Buyers don’t pay any commission directly.

The realtor fees for buying a condo in Singapore are generally less compared to landed houses as well.

It’s worth noting that for very high-end or luxury properties, agents may accept a lower commission rate given the large absolute amounts involved.

For multi-million dollar condos and expensive GCBs, commissions as low as 0.5% are not unheard of.

Rental Commissions in Singapore

For rental properties, the standard commission is one month’s rent for a two-year lease, and half a month’s rent for a one-year lease.

This is usually paid by the landlord to their agent.

If the monthly rent is above S$3500, the commission is split between the landlord’s and tenant’s agents.

But for rentals below this amount, the landlord’s agent often keeps the full commission even if a tenant’s agent is involved.

Responsibilities of Property Agents

While the commission structure is quite straightforward, it’s helpful to understand what services you can expect from seller’s agents (also known as listing agents) and buyer’s agents.

A seller’s agent is responsible for:

• Evaluating the property and advising on pricing strategy
• Creating a comprehensive marketing plan
• Advising the seller on property presentation and staging
• Listing the property with compelling descriptions and photos
• Screening potential buyers for genuine interest and financial ability
• Conducting viewings and open houses
• Negotiating offers and counter-offers on the seller’s behalf
• Ensuring legal and regulatory compliance throughout the process
• Overseeing the transaction through to completion
• Providing after-sales support if needed

It’s worth noting that for very high-end or luxury properties, agents may accept a lower commission rate given the large absolute amounts involved.

By comparison, a buyer’s agent in Singapore will:

• Understand the buyer’s needs and shortlist suitable properties
• Schedule and accompany buyers on viewings
• Provide market analysis to help buyers make competitive offers
• Negotiate with the seller’s agent to get the best terms
• Assist with due diligence like document review
• Offer professional advice on the property’s condition and potential
• Help with paperwork, loan applications, and other formalities
• Arrange necessary inspections like pest control
• Guide the buyer through to successful closing

While there is indeed some overlap, a good agent, whether acting for the buyer or seller, can help navigate the complexities of the property transaction.

Factors Affecting Commission Rates

Beyond the standard rates, several factors can influence the size of commission in Singapore that an agent may charge or be willing to accept:

• Urgency of the sale or purchase
• Ease or difficulty of selling the particular property
• Whether the buyer is local or foreign
• Property type, price point, and market demand
• Agent’s experience level and track record
• Scope of services provided by the agent

For example, if a seller is in a rush to sell, they may offer a higher commission to incentivize agents to prioritize their listing.

Conversely, for a property that’s hard to sell, the seller may negotiate for a lower commission.

Luxury condos and GCBs often come with lower commission percentages but higher absolute amounts. And deals involving foreign buyers can mean more work for the agent, justifying a higher fee.

Ultimately, commissions are negotiable, so it’s always worth having an open discussion with your agent about their rates and what they include.

Look for an agent who has experience with your type of property and transaction, and who you feel comfortable working with.

How to Save on Agent Commissions

If you’re looking to save on property agent commissions, there are a few possible strategies:

• Negotiate: Don’t be afraid to negotiate the commission rate, especially if you’re selling a high-value property or are willing to do some of the work yourself.

• Shop around: Interview multiple agents and compare their rates and services. But beware of agents who offer very low rates – they may lack experience or provide inferior service.

• Consider a flat fee: Some agencies offer fixed-fee services rather than a percentage commission. This can provide more certainty over costs, but make sure you understand what services are included.

• Sell or buy without an agent: It’s possible to handle your own property transaction, but this is not recommended for most people. Singapore’s property market is complex, and the potential savings may not be worth the risk and hassle.

Take the time you need to research agents. Look for a realtor with experience selling/buying your type of property, and who you feel comfortable working with.

The best approach is to find a balance between saving on commission and having the right expertise in your corner.

It’s always a good idea to communicate clearly with your agent about your expectations and required services.

Co-Broking: Collaborating for Success

One common practice in Singapore’s real estate industry is co-broking, where two or more agents or agencies work together on a transaction.

Typically, one represents the seller and the other the buyer, and they split the commission according to a pre-agreed ratio.

Co-broking offers several benefits, especially for sellers:

• Wider exposure for the property to potential buyers
• Access to a larger combined network of clients
• Shared marketing efforts and costs
• Potential for a faster sale due to increased buyer reach
• Competitive advantage over non-co-broking listings

From the buyer’s perspective, co-broking provides access to more properties that match their criteria, as their agent can tap into other agencies’ listings.

It’s important to note that co-broking is not the same as dual agency, where a single agent represents both sides of the transaction.

Dual agency is generally not allowed in Singapore as it presents a conflict of interest.

Should You Use a Realtor in Singapore?

Navigating property transactions in Singapore is undoubtedly easier with a top quality agent by your side.

By understanding how commissions work and what to expect from your agent, you can make informed decisions and achieve a successful outcome.

While there’s room for negotiation, realtor commissions in Singapore are relatively low compared to many countries – typically 1-4% for sales and one month’s rent for a two-year lease.

This is in contrast to places like Thailand and Vietnam where commission rates are in the 3-5% range, so locals prefer to sell property based on referrals from family and friends to avoid the high fees.

Whether you’re a buyer, seller, landlord, or tenant, take the time to find an agent who specializes in your type of property and transaction. Discuss your needs and expectations upfront, and don’t hesitate to negotiate on commission and services.

Finally, Singapore’s high service standards and popular realtor portals like PropertyGuru and 99.co make the process more accessible for both locals and foreigners alike.

FAQs: Property Commissions in Singapore