Wednesday, August 30, 2006
[RealEdge] TodayOnline Forum : Pay commission before moving in
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| Pay commission before moving in Wednesday August 30, 2006 Will agent accept offer if buyer does not pay service fee? Letter from Ivan Tan and Karen Ong WE refer to Chiam Moi Leng's letter, "Should buyers pay agents who don't represent them?" (Aug 29). We are buyers who were not given a choice in this matter of paying the agent his commission. We had sourced our resale flat through the newspaper classified ads, and by the time we had made an appointment to view the flat, there were three couples ahead us. The agent told us that these three earlier buyers were making their final viewing and might sign the option to purchase if they were satisfied. He also told us about his commission. In the end, we signed the option to purchase. My point is, we felt forced into paying the commission, as it was presented to us as compulsory. We wonder, had we told the agent we were not going to pay his commission as we planned to do the paperwork ourselves would our offer for the flat have been accepted? Also, is it true that in order to sell the flat, the agent will advise the flat's owner to paint the kitchen ceiling and toilets to hide defects, as buyers always look at the condition of these? We moved into my resale flat last month, and have already filed a complaint to HDB that our kitchen ceiling is leaking. Why was the leaking ceiling not taken into consideration during the official valuation? Was it because of the new coat of paint? Review the 3% commission rate Letter from James Chi When agents act for a seller and a buyer comes along after viewing a print ad, the latter is actually helping the agent to close his/her deal and should not have to pay a commission. For the sale of a $250,000 flat, the agent or agency effectively earns $7,500 or 3 per cent. I was told that even when the buyer has not been serviced (ie taken around for flat viewing), he still has to pay the agent 1 per cent commission for walking into the sale. In the past, buyers and sellers were each made to pay 1 per cent, which is fairer. So, what was the rationale behind upping the agent's commission and charging the buyer? Shouldn't the agent be grateful to the buyer for walking into the sale? For agents who act only for the buyer, I suggest a sharing arrangement from the seller's payout. The relevant authorities should review at commission rates payable to housing agents, as 3 per cent (from seller and buyer collectively) seems too much. | |
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// posted by Shajahan @ 9:26 AM 