Should you hire a real estate agent or a handyman?
For many Singaporeans, buying or selling a home is a key step and possibly the biggest transaction they will ever have to deal with in their lifetime. This involves a lot of legwork, requires careful research and thought, and can be a tedious task.
Many tech-savvy Singaporeans turn to online real estate portals and ad websites to research and explore their options. With so much information available online, this begs the question: can you DIY the whole process?
The obvious consideration here is the cost. Some people go the DIY route because they want to save money on paying a commission to a real estate agent. However, sometimes they can end up being cheated in the market or have difficulty dealing with the paperwork and legal issues resulting from not being aware of the buying and selling process.
Basically, if you don’t get it right, you could end up with a costly mistake – and it can cost even more than the commission fees you were trying to save on.
While it is not mandatory to hire a real estate agent, hiring one makes a lot of sense if you have little or no knowledge or experience in managing real estate transactions.
If you think you should bypass realtors because they are just posting ads on various platforms, you are completely wrong. Here’s why it pays (pun intended) to hire a real estate agent.
What does a real estate agent do Truly Make?
A real estate agent is like an intermediary who receives a commission for finding the right match between buyers and sellers.
However, many people seem to have a misconception about what real estate agents can help. They are often mistaken for financial advisers because their assignment might include calculating your finances and assessing your eligibility to buy or sell a property.
Agents also often advise on areas relating to home loan guidelines and restrictions, stamp duties, and various fees payable when buying or selling a property, as well as market trends. so you can decide if it’s the right time or the right price to sell or buy.
On top of that, how can a real estate agent help you?
1. You get professional pricing advice and price negotiation assistance
If you are a seller, one of the main roles of a real estate agent is to advise you on how to sell your home for the highest possible price in the shortest possible time.
There is a lot of analysis that goes into pricing. The price is too high and you risk seeing your ad become outdated after several months on the market; priced too low and you might not get your money’s worth (or buyers might think something is wrong with the property).
While agents can’t dictate the price or market value of your property, they can provide you with all the relevant facts and figures to help you set a realistic price range for your property. Data sets can include variables such as the average selling prices of homes in your area, the average psf cost of homes similar to yours, and the average time homes in your area spend on the market.
Likewise, if you are a buyer, a good agent can advise you on the prices of the properties that interest you, thus preventing you from paying more than you should. They’ll likely have a good idea of the prices of similar properties in the neighborhood and can help you negotiate a better deal when you’re ready to express your interest in a property you love.
With sellers naturally wanting to sell their property for the highest price possible, and buyers wanting to negotiate lower prices, the negotiation process can become quite difficult and time consuming. Agents with good persuasive skills can help manage this and achieve the best outcome for both parties.
2. An agent can market your home, shortlist properties, and coordinate viewings for you, saving you valuable time
Trying to visit or market your property on your own can be time consuming and require a lot of coordination work.
It may take many house visits before you finally find your dream home. Given that this is now a buyer’s market (since there are so many choices), decision fatigue can be a real problem.
An agent can shortlist the properties that match your criteria and coordinate the tours for you, saving you valuable time. If you are a typical Singaporean who works full time with long hours, finding accommodation can take a lot longer than you can waste.
If you are a seller, your agent can help you take visually appealing photos, or create videos or virtual tours to market your home and use them to advertise your home on various platforms to reach potential buyers.
An agent can also help screen out buyers who are not serious to avoid unproductive visits, increasing the chances of a likely sale.
3. Real estate agents have access to information you are not aware of
Realtors have access to information, ads, and platforms that you won’t have.
As a DIY seller, there are some platforms that you might not be able to advertise on because you don’t meet specific requirements, such as being a registered real estate agent or paying some sort of fee. subscription.
This limits the exposure and visibility of your property, which in turn affects the potential offers you will receive. Real estate agents could use the marketing channels available to them to maximize your property’s visibility in the market.
If you are a buyer, the real estate agent can give you “inside information” about upcoming developments or properties to put up for sale that match your criteria.
They also usually have access to details that the general public may not be aware of, such as how long a unit is on the market and newly available units that may not yet be listed online.
The real estate agent would likely have their own database of buyers and sellers, and would also be able to tap into their network of agent databases to help you find the right fit.
4. The agent can explain and go through the documents for you
Successful real estate transactions require in-depth knowledge of specialized laws and regulations, and the associated paperwork is certainly not a piece of cake.
The real estate agent can explain all the clauses of the various documents involved in the real estate transaction to you, making sure you understand everything before signing. This is important because you will be legally bound by these documents once you enter your name in them.
The agent should be able to answer your questions about the terms and conditions of the documents, but if you have more in-depth legal questions, you should seek the advice of a lawyer.
The agent can also help verify if the transaction is legitimate, for example by confirming ownership of the property and verifying the details of the property, or verifying the buyer’s eligibility to purchase the property in order for the sale to be made. do not fail.
Hire a qualified real estate agent
With around 30,000 real estate agents in Singapore, how do you go about choosing the right one?
When looking for an agent, it is important to make sure that they are registered with the Council of Real Estate Agencies (CEA).
CEA is a statutory council that regulates the real estate agency industry in Singapore. They authorize and register real estate agencies and agents, respectively.
It is important to note that only registered real estate agents are legally authorized to handle real estate transactions.
Aspiring real estate agents must meet certain criteria, including passing the real estate salesperson exam, and not have a history of fraud, dishonesty or breach of fiduciary duty.
You can verify your agent’s credentials by entering their name, registration number (this can be found on their name card and real estate agent card) or mobile phone number on the public register of CEA.
The public ledger also has a list of each agent’s latest transactions so you can see how active agents are and which neighborhoods they know about.
While an agent commission is an additional cost, it could be a reasonable expense to save you from having to educate yourself about all the procedures, legal requirements, and paperwork involved.
So yes, you are paying for their expertise and knowledge, but How many do we have to pay them?
You will be happy to know that an agent’s commission is in fact negotiable; there is no minimum or maximum percentage set by the CEA.
That said, you should discuss the commission rate with your agent. before all work begins. Factors that could influence the commission rate include the extent of work you require from the agent and the time frame within which you would like the transaction to be completed.
Once this is decided, make sure that the agreed commission rate, the scope of the work, as well as the conditions involved are all documented in the CEA’s prescribed real estate agency contract. This is a contract that serves to protect your interests and those of the agent.
Your agent will also ask you to complete a specific client form. This form is mandatory and is part of the steps real estate agents should take to prevent money laundering and combat terrorist financing in Singapore.
Other important things to note:
- You can have an exclusive or non-exclusive relationship with your agent. This means that you can appoint one or more agents for the real estate transaction.
- Commission charges should be paid to the real estate agency, not the agent. There might be GST on the commission, so it’s best to check with the agent and document it in the real estate agency contract.
- You should never give cash to the agent for payments related to the real estate transaction, such as down payment for HDB apartments, transfer fees, etc.
- You must be your agent’s only customer in the transaction. The agent cannot represent both the seller and the buyer to avoid conflicts of interest.
Ultimately, buying and selling a property can be a tedious and unfamiliar process. If you don’t know what to do, or if you just don’t have the time for it, then it might be worth paying a real estate agent to handle the transaction for you.
For more advice on hiring real estate agents, you can visit the CEA website here.
This article was written in collaboration with the Council of Real Estate Agencies.
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