Why Property Agents are Necessary for your Property Transaction
Updated: Nov 6, 2020
Should you or should you not engage in a property agent for your property transaction? This question is quite a common one among those who are looking to purchase or to sell their property.
Engaging in the service of a property agent comes with several benefits – lowered level of stress to manage the property transaction, property agent has more experience and knowledge with dealing of the property, no emotions involved, and more.
Before jumping into the advantages of having a property agent to deal with the property, let us understand how property agents work in Singapore and the possibility to do without a property agent for a HDB resale flat.
Property Agents in Singapore
In Singapore, there are two main models which property agents work with – commission based and fixed rate. In some property agencies, the fixed rate can go as low as $2,000. As for the commission-based model, agents tend to charge the sellers 2% and buyers 1% (only applicable for HDB resale flats).
A portion of the people in Singapore view property agents as someone they can do without while doing a property transaction. It is largely due to a misconception that the agents will not take into consideration the needs of the seller or buyer and will only work to get the most commission that they can. However, this is not true. Most agents really take the time to understand their client and try their best to get the best price for their property.
Engaging in an Agent for a HDB Resale Flat
In an effort to simplify the transaction for HDB owners, HDB has set up a resale portal to bring both sellers and buyers together. By using the portal, both the seller and buyer will not have to engage in the services of a property agent anymore.
For those who still prefer to go with an agent instead of going through the HDB portal, most agents will charge a commission of 2% for sellers and 1% for buyers, if they operate on a commission basis.
Advantages of Having a Property Agent
1. Lowered Level of Stress of Seller/Buyer
Without a property agent, the seller or buyer will have to go through the hassle of having to deal with the various documents in order to transfer, or receive, the ownership of the property. They also have to negotiate with the other party to settle on a suitable price.
Without a property agent to handle the documents and price, the seller/buyer might be confused as to what needs to be done, especially for first-timers. As a result, stress might slowly build up over time and the transaction might not be maximised to its fullest potential (i.e. best price for both the seller and buyer).
2. More Experience and Knowledge with Properties
Property agents go through many property transactions in a month. Handling multiple transactions helps the agents build up their experience. The tests that they have to do before being certified as a property agent builds on their knowledge in the property market. Additionally, they also undergo training to ensure that they are kept up to date with the property market.
In comparison to a non-property agent who only goes through one or two property transactions in their lifetime, a property agent is definitely more knowledgeable and experienced with getting the most out of the property. They will be able to dish out tips and advice to their clients based on their past experience and knowledge gained over the years as well.
3. No Emotions Involved
Property agents will work towards the goal of selling/buying the property at the best possible price, without any emotions involved.
Imagine this: you are a seller who has been offered $50,000 lower than your expected price for your property. Considering that you have spent a huge sum of money to renovate the flat, will you be willing to accept the offer or negotiate for a better price? Are you able to handle the low offer by the buyer emotionally? Do you have the experience to negotiate for a better offer?
With an agent, he/she will be more experienced in handling the low offer and negotiate for a better one on your behalf. This will allow you to maximise your returns on the property.
4. Connections with Property Buyers/Sellers
Property agents do more than handling the documents and negotiating for the best offer. They also connect sellers and buyers together, which is an important step. Without their wide connections, property viewing and negotiations cannot take place at all. This is something that most people neglect when considering whether they should engage in the services of a property agent.
5. Incentive to Get a Better Price
Agents who work on a commission basis will be more incentivised to push themselves to get a better price for the property. They will be more motivated to promote the property and negotiate for a higher price. Without a property agent, it will be hard, but do-able, to advertise your property and negotiate with the buyer.
The agent will also communicate with the clients and keep them updated about the status of the property (number of interested parties, prices offered, etc.). They will also arrange for property view at a time that is convenient for all, saving the seller from the hassle of having to contact the buyer themselves.
Property agents might be someone that sellers/buyers think they can do without, but in fact, an agent is very much needed when buying or selling a property. They will be able to assist in connecting you to the other party, viewing property, negotiating on the best price, handling the documents, and ultimately taking into consideration your welfare. It can also reduce the stress that will be faced when handling the property transaction without an agent.
When it comes to choosing a property agent, there are many avenues to search for them. However, there is no guarantee that they will have your best welfare at heart. Always be sure to check their reviews and speak to them to understand what they offer.
For those looking for a reliable property agent, drop us a message at 8666 4333. You can be sure that we will get you the best price for the property that you are selling or purchasing..
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William Lee / Eileen Au
Ideal Home is well-liked by both local and international clients for their friendly yet professional approach in the way it goes about helping them with their real estate goals in Singapore. They welcome the opportunity to have a no-obligation chat with you to see how they can help you to achieve your real estate goals in Singapore.
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