Based on common practices in Singapore, the commission structure your agent proposed seems within the expected range, but on the higher end. Here's a breakdown:
Standard Commission Rates:
Seller pays: Typically 2% of the selling price (excluding CPF utilized)
Buyer pays (optional): 1% of the selling price
Your Situation:
Selling price: $515,000
CPF utilized: $25,000 (assumed based on commission calculation)
Agent commission on advertised price: $9,800 (2% of $490,000)
Additional commission on CPF used: $12,500 (50% of $25,000)
Total commission: $22,300 (before GST)
Is it Compliant?
Yes, the commission structure itself is compliant with standard practices. There's no regulation mandating a fixed rate; it's negotiable between you and the agent.
Is it High?
Here's why it might be considered on the higher end:
Additional commission on CPF used: This isn't the most common practice. The agent's commission is usually based on the final selling price after CPF deduction.
What can you do?
Renegotiate: You can discuss the additional commission on CPF used. Highlight that the standard practice is for commission based on the final selling price.
Compare with other agents: Get quotes from other property agents to see what commission rates they offer.
Here are some resources that might be helpful:
Property Agent Commission Market Rates for Sellers:
https://www.propertyguru.com.sg/property-investment-questions/may-i-know-how-much-is-the-agent-fee-for-rental-and-selling-a-property-458481 Singapore Estate Agents Association: https://www.seaa.org.sg/
Ultimately, the decision is yours. If you're comfortable with the agent's service and the overall commission amount, you can proceed. But if you feel the commission is too high, negotiate or seek quotes from other agents.>> pm me >> i can sell for a lower commssion !!
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From: ABLE Toh- Your Property ASSISTANT :)
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