Agent Fees, experts pls help
- Thread starter aIDa81
- Start date
tinkerball
Active Member
u only need to pay 1% of the flat selling price. for example if the flats price is 300k plus cov of say 10k so total is 310k, u need top pay agent $3100 in commission. my agent gave me a receipt of acknowledgement of her commision when we met the seller to pass the option to purchase cash. we can opt to pay it at one go or breakdown in 2 or 3 payment. ive decided to pay in 2 installments that is on the 1st and 2nd hdb appt. money is paid to agent directly. however avoid paying full before the whole transaction is completed in case anything goes wrong before u get ur keys and the agent simply decided to ignore u cos full commision already paid. if need to pay 7% gst then mati lahh can go broke like that.Hi all, wanna ask.
Besides the 1% commision additional 7% GST added to it?
Is there any blck and white eg guidelines?
another question do we have to pay them tru hdb, during 1st appt/ 2nd appt or anytime hhehehe
:shyxxx:
Oh tinkerbell u r my helpdesk support..
this agent of mine.. indicates 7% of GST.. and demands me to settle in full cash after 1st appt. aiyohhh who can I seek help ek? Can I just say to them agent normally charge 1% only how come the addittional 7% GST is imposed by them..
Thanks tinkerbell for highlighting
this agent of mine.. indicates 7% of GST.. and demands me to settle in full cash after 1st appt. aiyohhh who can I seek help ek? Can I just say to them agent normally charge 1% only how come the addittional 7% GST is imposed by them..
Thanks tinkerbell for highlighting
tinkerball
Active Member
something is not right here. my agent never mentioned any gst. her commision form is in black and white furthermore. so how much in cash commission u actually have to pay?Oh tinkerbell you r my helpdesk support..
this agent of mine.. indicates 7% of GST.. and demands me to settle in full cash after 1st appt. aiyohhh who can I seek help ek? Can I just say to them agent normally charge 1% only how come the addittional 7% GST is imposed by them..
Thanks tinkerbell for highlighting
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sufeit0115
Member
Hi Aida,Hi all, wanna ask.
Besides the 1% commision additional 7% GST added to it?
Is there any blck and white eg guidelines?
another question do we have to pay them tru hdb, during 1st appt/ 2nd appt or anytime hhehehe
:shyxxx:
We paid 1% commission + 7% gst (only on commission part) to the company where the agent is from (which is GST registered). We paid in full after the completion of 1st appt, that time kind of worried that the agent will switch attitude, but lucky he still volunteer to negotiate with the seller's agent to get us the keys before the completion of 2nd appt so that we can start renovation.
I would presume if the company is not GST registered, then you don't need to pay the 7% gst.
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Thanks Tinkerbell, guess u r lucky.. ur agent company doesnt charge u.
My hse is $277,000, if im not mistaken the total cost he charge was $3,600+ if I calculate its shd be ard $2963.90 I dont understand the difference..
Hi sufeit0115
I think our agent must be in the same company then.. sighzzzz what to do, I already signed the papers and paid deposit.. even b4 the HDB appt. First timers mah.. so what agent ask to do follow loh.. :shyxxx: Anyway I did ask ard and some told me that its true depends on the agent company...
My hse is $277,000, if im not mistaken the total cost he charge was $3,600+ if I calculate its shd be ard $2963.90 I dont understand the difference..
Hi sufeit0115
I think our agent must be in the same company then.. sighzzzz what to do, I already signed the papers and paid deposit.. even b4 the HDB appt. First timers mah.. so what agent ask to do follow loh.. :shyxxx: Anyway I did ask ard and some told me that its true depends on the agent company...
sufeit0115
Member
U should ask your agent how come the difference between $3600 & $2963.90. Did u pay any COV? The deposit u paid is option fee? I also paid 1K option fee to the seller to secure the deal before the HDB appointment.
tinkerball
Active Member
since a deposit has been paid guess there's nothing much u can do, however u can ask ur agent for the breakdown of how the total fees came about. but i felt asking for full payment on 1st appt is not right considering that the whole process is not completed and u have not gotten ur keys yet. there have been cases whereby sellers decided not to sell the flat right after going for 1st appt. some buyers chose not to take legal action against seller due to the legal costs involved. if i were u, when agent ask for full payment i would have make it straight point to tell them no keys no payment. as simple as that. it actually helps if u ask around 1st before selecting ur agent. can u pm me the company and agent name so the next time i want to buy a house again i can avoid this fella?
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PinkDiamonds
Well-Known Member
Yes you are supposed to pay 7% GST. Do remember the GST goes to the government.
BUT. The agent can choose whether to absorb the GST for you or not. For example, if the commission is $2,000, GST will be $140, so total u should be paying $2140. But, the agent can say, okay u give $2,000. The $140 GST, he will let it be deducted from his own comission.
Usually agents will ask you pay a deposit, like an option fee. This is to ensure that you stay true to the deal.
Also note that when you pay, the commission doesn't go directly into the agent's pocket. It is paid to the company, which will then give him his share of commission months later.
BUT. The agent can choose whether to absorb the GST for you or not. For example, if the commission is $2,000, GST will be $140, so total u should be paying $2140. But, the agent can say, okay u give $2,000. The $140 GST, he will let it be deducted from his own comission.
Usually agents will ask you pay a deposit, like an option fee. This is to ensure that you stay true to the deal.
Also note that when you pay, the commission doesn't go directly into the agent's pocket. It is paid to the company, which will then give him his share of commission months later.
Yes sufeit, will ask them for the breakdown
1k for the option fee, and 1k for the other fee.. compulsory...even before the 1st appt.
tinkerbell, I hvnt paid agent fees yet.. will try to do yr method 50% hopefuly they r ok with that.i tnk u just stick with yr agent lah.. no gst hehe
Pink Diamonds, thanks im very clear now... btw congrats another baby is coming!!!
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tinkerball
Active Member
then let me know which company lahh. at least i know which one charges GST.:001_302:Yes sufeit, will ask them for the breakdown
1k for the option fee, and 1k for the other fee.. compulsory...even before the 1st appt.
tinkerbell, I hvnt paid agent fees yet.. will try to do yr method 50% hopefuly they r ok with that.i tnk you just stick with yr agent .. no gst hehe
Pink Diamonds, thanks im very clear now... btw congrats another baby is coming!!!
PinkDiamonds
Well-Known Member
Actually, it's not the company charges GST or not. EVERY agent company will charge GST.
As I've mentioned before, it is up to the AGENT whether you have to pay the extra 7% GST on top of his/her commission, OR the agent absorb it for you in his commission. Whether or not it's 7% GST of the commission or not, you are STILL paying GST.
Of course, if you are only paying like $1000 commission, don't expect the agent to absorb it for you. They will most definitely ask you to pay the 7% GST.
On a sidenote, if you pay the agent $2000, not all the money goes into their pocket. It is also deducted for the company and the manager as "commission" to them.
tinkerball
Active Member
ic..ic.. thanks for the info. guess im quite lucky.. but on hindsight my agent's fee is 3k.. so the gst absorbtion is definitely needed.
PinkDiamonds
Well-Known Member
Yes, I would think it would be reasonable for you to ask if your agent can absorb the GST.
Tinkerbell.. ITS ERAAAAAAAAAAAAAAAAAAAA
Hi Pink Diamonds
I have new stuff to ask. To be honest this agent did not source me the hse, he is the seller’s agent. I responded to him after seeing his ad.
He did not bring me ard to view hses, I even submitted my HLE’s and AHG on my own.. do you think it is stil wise for me to pay 1% +7% GST?
I asked him recently, I thought rules now “One agent cannot represent both buyers and sellers to avoid conflict of interest”, he replied saying that
The rules is announced but not effective yet. I don’t remember signing the commission part.. haizz, if I know I wld have done a bit of research rgding property agents LOL!
Another thing HDB registration for buying resale flat is $80,??this is applicable to buyers and sellers?? Wow then HDB must have make a lot of money!!!
Singapore everything is money!!!:shyxxx::shyxxx::shyxxx:
Hi Pink Diamonds
I have new stuff to ask. To be honest this agent did not source me the hse, he is the seller’s agent. I responded to him after seeing his ad.
He did not bring me ard to view hses, I even submitted my HLE’s and AHG on my own.. do you think it is stil wise for me to pay 1% +7% GST?
I asked him recently, I thought rules now “One agent cannot represent both buyers and sellers to avoid conflict of interest”, he replied saying that
The rules is announced but not effective yet. I don’t remember signing the commission part.. haizz, if I know I wld have done a bit of research rgding property agents LOL!
Another thing HDB registration for buying resale flat is $80,??this is applicable to buyers and sellers?? Wow then HDB must have make a lot of money!!!
Singapore everything is money!!!:shyxxx::shyxxx::shyxxx:
PinkDiamonds
Well-Known Member
Actually I think you can refuse to pay the commission to him. Ask him to take the commission from the seller. Since you say he never do much things for you, I don't think he should even ask commission from you!
tinkerball
Active Member
i submitted my HLE online before i look around the open market. as for AHG my agent submitted the papers for me. very efficient lady. my HLE was expiring the day after i view the flat so she rush out all the documentation to be submitted the next day. registration $80, valuation report $180, resale net$50. total $310 for these paperwork paid to HDB and yes i did get the breakdown in black/white. why u didnt get the guy to submit for u? IT IS HIS JOB. already choking on 3% commision somemore dun want to do paperwork. some more asking for 7%. hope that fella choke on his cash. too bad u already commit to this guy.
PinkDiamonds
Well-Known Member
I don't think there is any reason for him to sue you guys in court, unless there is some written official agreement. Also, for a few k of commission, doubt it'll be worthwhile for him to get a lawyer and everything.
Wah superb agent u got.. tinkerbell... what I meant was, he deserve the 1% commission if he search houses for us. of coz to earn $ he do the rest of the paper work, I did the HLE and flw up abt ahg myself.
I just emailed him to negotiate the price.. well hope he give me his best price
Oh my another resale $50 then this one he had not billed me yet.
Pink D, well hope so... thanks to both of u!! :tlaugh: