10 dos and don’ts when working with your property agent
When it comes to something as important as buying, selling or renting your home, it pays to choose a property agent who can help to ease the process. Before jumping into your next property transaction, check out our top tips for working with your property agent.
1. DO look up your agent online
Check the Council for Estate Agencies’ (CEA) Public Register to ensure your agent is registered and to view their recent HDB transactions. You can also conduct an online search for your agent’s name and agency for reviews and client testimonials. This will give you insights into their service standards and marketing approach.
2. DO interview different agents
You may find plenty of agents who are knowledgeable, experienced and familiar with the local market. However, it is also important to find someone you can trust and who understands your requirements.
3. DO negotiate your agent’s commission and sign an estate agency agreement
There are no fixed guidelines for your agent’s commission, so be sure to factor in their experience, network, marketing tools as well as the scope of work and services you’ll need when negotiating. Formalise your agreement by signing an estate agency agreement, which can be found on the CEA website. After the transaction has been completed, you should pay the commission to the property agency, not the agent.
4. DO tell your agent what you need and listen to their advice
Industry experience will help your agent understand your overall needs, but he won’t understand your property preferences unless you tell him. On the other hand, it’s important to manage your expectations (especially about property prices) and be open-minded about their advice since they are more familiar with market preferences.
5. DO ensure that your agent only represents you
The agent you engage should only be working for you, and advancing your interests, not the other party’s. It is an offence for the agent to collect commission from both you and the other party in the same transaction. Any potential conflict of interest must also be declared in writing, for instance if the other party is the agent’s relative or friend, or if he is receiving a commission from the other party or some referral fees for recommending a certain housing loan to you.
6. DON’T choose an agent just because they claim that they can get a high selling price for your property
Overpricing your property can backfire. You may miss out on the buyers who are interested when your property hit the market, but then got put off by the price. Subsequent price reductions will send a wrong message and weaken your bargaining position.
7. DON’T write off an agent just because they’re new in the industry
Even if an agent has not been in real estate long, they may have a different background that may be helpful to you. For example, an agent with a finance background will likely have a good understanding of mortgage and financing to better advise you on those matters.
8. DON’T ask your agent to handle transaction money
Under the Estate Agents Act, your property agent is not allowed to handle certain transaction money related to the property. This includes deposits, option fees, sales proceeds, stamp duties, etc., but does not include commissions and valuation fees. Read this for a list of the money an agent can handle.
9. DON’T rely on traditional advertising and marketing
Traditional advertising just doesn’t cut it anymore. To appeal to a wider audience, innovative marketing tools such as photo editing, videos, and even virtual tours are increasingly being used, as are social media blasts and blogging. Your agent will be able to advise on how to get maximum exposure of your property to the market.
10. DON’T forget to fill in the Customer’s Particular Form
One of the documents your agent will ask you to fill in and sign is the Customer’s Particulars Form. This compulsory document is one of the measures property agents must take to prevent money laundering and counter terrorism financing in Singapore. It enables agents to verify their client’s identity and record their client’s essential particulars. Be a responsible customer by cooperating with your agent to complete the form.
This content was produced in partnership with Council for Estate Agencies.