When you decide to sell your HDB flat, many of us start finding out what options are available: selling the flat yourself (a DIY seller) or engaging a property agent. If you decide to DIY, you probably need to spend a lot of time and effort to do something with which you are not familiar. If you decide to engage a property agent, the bottom line is: Is the property agent able to help you achieve your goals? Sell at the highest possible price, have peace of mind, and lower the selling cost.
A service fee structure that charges a single fixed fee for property agent service, irrespective of the final selling price.
Example:
The property agent charged a flat fee fixed for partial agent service, regardless of the final selling price of the property.
The property agent’s service fee is charged based on the percentage of the final selling price of the property, typically 1% to 2% of the selling price. You are free to negotiate the service fee with the property agent.
Example:
The property agent’s service fee for selling HDB flat is 1% of the final selling price. Take the median price of a 4-room HDB flat sold at $500,000; your cost for the property agent’s service fee is $5,000. Check out our full property agent service fee for selling HDB flat, which is only 0.5% of the final selling price.
A flat-fee property agent helps you save money but mostly requires you to perform some work yourself. Some flat-fee property agents require you to conduct property viewing yourself, and you are not trained as a property agent to answer enquiries from the buyers, especially objections. As for a percentage-based service fee, the higher the selling price, the higher the service fee, but most of the time you receive full property agent service. Whether flat-fee or percentage-based service fee, if the property agent has a strategy to simulate demand, generate multiple offers, and secure the highest offer for your property, eventually you are not the one paying the agent’s service fee.
It's crucial to understand what services are included in flat-fee or percentage-based property agents. Some flat-fee property agents were just helping you advertise your property online and arrange viewing appointments; they do not conduct property viewing. Basically, you are paying the property agent to advertise your property online and do the paperwork. Bear in mind that the advertisement itself does not sell your property; it is the salesperson who sells it. Conducting property viewings by the property agent is one of the important factors in achieving your goals.
Some argue that sellers engaging a flat-fee agent will receive more sale proceeds. Market forces influence your flat selling price, especially in the internet arena where property prices and conditions are transparent to buyers, official transacted data released by the authorities is easily available to buyers, and most property buyers are willing to pay for the market price unless your flat is in high demand. If the property agent has a strategy to simulate demand, there are chances for you to sell at a breakthrough price and receive higher sale proceeds.
It's important to note that the real estate industry is diverse, and there are various business models within the flat-fee and percentage-based service fee structures. Ultimately, your goals are to sell at the highest possible price, have peace of mind, and lower your selling cost. The key is to carefully evaluate your needs, interview potential property agents, and understand the agent’s experience, sales strategies, pricing strategies, and agent’s service fee. Choose the one that best aligns with your goals and preferences.
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