Watching Singapore’s ever-rising property prices, are you wondering if now is the right time to make a move? The moment you consider buying a property, you need to think about whether you are prepared, both in terms of knowledge and finances. There’s a lot to learn in real estate. After viewing multiple properties with an agent, the sheer volume of professional jargon, acronyms, and complex purchasing procedures has likely left you feeling completely bewildered.
With the confusion and questions of a first-time homebuyer, you’re probably thinking: Should I get an agent? Do I have to pay agent fees? And how much should I pay? Next, we will break down all the information you need about property agent fees in Singapore:
• Do you need an agent to buy a property in Singapore?
• Do you have to pay agent fees when buying a property in Singapore?
• Types of property agents in Singapore
• Who typically bears the cost of agent fees? How much are the agent fees for buying a property?
• Are there any other important things to note?
Table of Contents
Do You Need an Agent to Buy or Sell Property in Singapore?
Before you start any real estate transaction, it’s essential to understand the process. After spending days visiting various districts and properties, you’ve surely discovered how helpful a property agent can be when buying or selling property in Singapore. They can help you understand issues you’ve never considered, provide information you’ve never heard before, and offer advice on the best time to act, leveraging their deep understanding of real estate policies and extensive knowledge of various property listings in the ever-changing market.
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Do You Have to Pay Agent Fees When Buying or Selling Property in Singapore?
After hiring a licensed real estate agent, you might wonder, “Do I have to pay agent fees?”
The answer is—it depends. Except for purchasing resale HDB flats, buyers generally do not need to pay agent fees.
When selling property in Singapore, a real estate agent earns a commission (agent fee) upon the successful completion of a transaction—this is their reward for the work and effort put into closing the deal. They only receive payment after the transaction is finalized. For buyers, the situation is different. Please refer to the section below, “How Much Are the Agent Fees” for details.
Since there is no standardized agent fee in Singapore, many newcomers are unfamiliar with it. Generally, this commission is a certain percentage of the transacted property’s selling price. You can reach an agreement on the commission with the agent you hire. The Council for Estate Agencies (CEA) in Singapore does not provide guidance or regulations on the commission rates charged by agents for buying and selling homes, so agent fees are entirely influenced by market supply and demand. You need to carefully evaluate the quality and assurance of an agent’s services. Once you have chosen an agent with competitive pricing and services, you can sign an agreement for the services provided. You should pay the commission to the real estate agency, not directly to the agent.
Although the Council for Estate Agencies (CEA) does not regulate commission rates, you can file a complaint with the CEA if a property agent violates any rules.
Therefore, you can benefit from the insurance provided by the agent for the transaction and are also entitled to the protection offered by the CEA for the agreement between you and your agent.
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Types of Property Agents in Singapore
Buyer’s Agent vs. Seller’s Agent
Property agents in Singapore are divided into buyer’s agents and seller’s agents. Different agents represent their own distinct positions and interests. A buyer’s agent is appointed by the buyer and represents the buyer’s interests. A seller’s agent is appointed by the seller and represents the seller’s interests.
It’s worth mentioning that a seller’s agent or salesperson has no obligation to proactively point out any shortcomings of the property to the buyer. In contrast, a professional buyer’s agent is obligated to draw the buyer’s attention to the project’s flaws or potential issues. At the same time, because a buyer’s agent accompanies the buyer to view different projects, they have a clearer understanding of the buyer’s needs.
Multiple Agents
Both buyers and sellers can engage multiple agents. Two or more agents can act as either buyer’s agents or seller’s agents according to an agreement, and they will split the commission fee as agreed upon after the deal is closed. If you appoint several agents, you should inform them of any decisions and progress as early as possible to avoid overlapping services or disputes, which will better protect your interests. An agent must follow your instructions or seek your consent before taking any action.
Prohibition of Dual Agency
To avoid conflicts of interest, the Singapore government does not allow a property agent to represent both the buyer and the seller in the same transaction. This means that an agent cannot collect commissions from both parties in the same deal.
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Who Typically Pays the Agent Fees for New and Resale Properties, and How Much Are They?
Agent fees for property sales and purchases usually vary depending on the type of property being transacted. Fees for new properties and resale properties also differ.
We have listed the different agent fee structures for various property types—please note that the rates below refer to a percentage of the property’s selling price.
HDB Flats
- Resale HDB Flats
The seller pays 2% to the seller’s agent, and the buyer pays 1% to the buyer’s agent. If you buy or sell on your own, you do not need to pay any fees to the other party’s agent. It is a serious violation if the other party’s agent attempts to charge you a fee.
- Brand New HDB Flats
Buyers apply directly through the Housing & Development Board’s (HDB) flat portal, so no agent fees are payable.
Private Condominiums (Condo)
- Resale Private Condos
When buying or selling a resale property, the seller typically pays a 2% commission to the seller’s agent (this can fluctuate depending on the specific situation, with some transactions having commissions of 3%-4% or even higher). The seller’s agent shares this commission with the buyer’s agent (co-broke).
The buyer does not pay any commission.
If a buyer, after discussion with their agent, agrees to pay their own agent’s fee, it is not a violation for the agent to collect it—though this is not the common practice.
- Brand New Condo Projects
The developer pays the commission to the buyer’s agent. The specifics depend on the developer’s arrangements, and the rate varies by project. This means that for a brand new condo purchased from a developer, the buyer does not need to pay any agent fees, even if introduced by their own agent.
Developers of some new launch projects typically appoint 2-3 real estate agencies for sales representation. To ensure more agents participate in the sales, developers will require the appointed agencies to open up information to multiple agents and pay a portion of the commission to the agent who brings in the buyer (i.e., the buyer’s agent). Property transaction prices in Singapore are highly transparent. To ensure fairness and efficiency, developers guarantee that the purchase price is consistent across all channels. Whether you buy directly from the developer’s in-house sales team, from an agent directly appointed by the developer, or through a buyer’s agent, the final transaction price usually doesn’t differ significantly.
Are There Any Other Important Things to Note?
Confirm There Are No Hidden Fees
Even with an agent you trust completely, it is very important to verify details and maintain clear communication before any transaction. An experienced agent will strive for transparency when negotiating fees, listing all possible costs and declaring that there will be no hidden charges. One important thing to note is the Goods and Services Tax (GST).
Confirm if the Commission Includes GST
If your real estate agency is a GST-registered company, it can charge GST to clients. You should clarify with your agent whether the commission amount specified in the agreement already includes the payable GST. For example, if the commission is $1,000, the agency can charge the client $1,080 (with the current GST at 8%).
Pay Commissions to the Real Estate Agency
According to the CEA’s guide on engaging a property agent, you should pay the commission to the real estate agency, not directly to your agent or make any other payments to them. This provides the maximum protection for your interests.
Agents Do Not Handle Any Transaction Monies
Real estate agencies and agents are not allowed to handle any transaction-related funds for any party, including option fees, down payments, stamp duties, deposits, and sales proceeds. Commissions and possible valuation fees are payments for the agent’s services and are not considered property transaction funds.
To protect your interests, it is recommended that you work with a professional and reliable agent from the very beginning of your property buying journey to save both time and money.
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