2024 Residential Property Market Outlook
TLDR The market outlook for 2024 suggests continued uncertainties affecting housing demand and risk appetite due to geopolitical tensions, macroeconomic...
Read More
TLDR
In the world of real estate, the value of property agents lies in their ability to create competition among buyers, manage transaction deadlines efficiently, allocate resources for targeted listings, and leverage their networking connections. Experienced agents can help sellers secure better deals, navigate time-sensitive transactions, and optimize marketing efforts to achieve higher prices. However, it’s crucial to choose agents with proven track records, strong industry connections, and a reputation for ethical practices to ensure successful property transactions.
The standard cost of a property agent is known to most of us, which is usually two percent of the sale price. However, we have seen some exceptions where agents charge as high as four or five percent for selling high-end properties.
On the other hand, discount brokers charge less than one percent. This makes us question if agents are worth the fees they charge.
The answer depends on the agent’s quality of service. In this article, we will explore the value-add of having a property agent and how they can contribute to your resale gains.
An agent’s ability to provide services in certain areas justifies their fees, be it usual or higher.
The Capacity To Seek Out And Create Competition Among Potential Buyers
A skilled seller’s agent should be able to attract potential buyers and encourage them to compete against each other.
Most leads for a seller’s agent come from online marketing, but this depends on the amount of money spent on it.
On the other hand, an inexperienced agent may only pass on offers as they arrive.
Experienced agents can manage your expectations and advise you when to accept or reject offers. They may suggest holding off on accepting offers if they feel that another buyer may offer a better deal.
However, some agents may prefer that you quickly take whatever offer is available so that they can earn their commission.
The agents who generate competitive bidding are the ones who add value to your property and achieve record prices through their efforts.
However, beware of agents who only act as personal assistants and relay whatever offers come in. It takes skill and experience to know when to squeeze out higher offers from interested buyers.
Efficiency, Particularly For Time-Sensitive Transactions
In some situations, some property agents charge high commissions but fail to sell the property for a better price. This is not necessarily a reflection of their poor work.
For instance, sellers who are about to miss an ABSD deadline need to sell their property quickly to avoid significant financial losses.
Such sellers may give improbable timelines to agents to find a buyer and conclude the sale. Agents who can achieve this, even at a slightly lower price, can positively impact the seller.
Therefore, it is worth paying a higher commission to experienced agents who can successfully handle such sales. Appointing inexperienced agents could result in delays that can be costly for the seller.
Allocation Of Resources Towards Targeted Listings And Optimizing Marketing Efforts
Real estate agents can get higher prices for properties by spending more on marketing. This includes paying to feature their listings on property portals, creating social media content, and using professional photography and staging.
You can tell which agents are spending more on marketing by seeing their faces plastered on property portals or their listings showing up on irrelevant searches.
Some agents prefer to focus on a smaller number of properties to give better service to clients. Agents who spend more on marketing can sell properties faster and at better prices, but they may require a deposit to cover upfront costs.
However, not all properties need extra marketing, and some agents may pressure you to pay for unnecessary videos just to promote themselves.
Networking With Other Real Estate Agents
In the real estate industry, an agent’s ability to secure a good deal for you may be influenced by their professional connections with other agents, rather than just buyers and sellers.
Realtors typically collaborate with each other by sharing listings they are marketing. Working together is beneficial as it helps them source properties and attract potential buyers.
Based on our observation, agents from larger agencies or those with a long-standing career tend to have a better network. They can provide more value in terms of securing quicker and better deals.
However, it may be difficult for people without industry knowledge to identify such agents, except by looking at the size of their agency or years of experience.
It is important to note that an agent’s reputation within the industry can also affect the outcome of your property transaction.
Some agents may not follow ethical practices, such as withholding information about their seller’s listings or not cooperating with other agents.
Such behavior could negatively impact future transactions and drive away potential buyers.
Proficiency In Managing Transaction Deadlines
If you want to have a successful property deal, you need a good agent who can manage timelines well. For example, an agent who can plan and manage your upgrade timeline so that you only move once can save you money.
You may also avoid paying the ABSD while upgrading, which will help with cash flow issues.
Some agents are experts in closing last-minute deals, which can save you thousands of dollars. Unfortunately, these agents often go unnoticed because their benefits are not obvious.
During a booming market, every property agent may seem like a genius. However, you should be skeptical and ask about their other transactions.
In a down market, quality agents are easier to identify because they continue to do their job through difficult times. You can also use commissions to incentivize agents to get higher offers for your property.
Should You Buy, Sell or Wait?
If you’re reading this, you must be trying to figure out the best course of action right now: is it the right time to buy or sell?
It’s difficult to give an exact answer since everyone’s situation is unique and what works for one person may not necessarily work for you.
I can bring you a wealth of on-the-ground experience and a data-driven approach to provide clarity and direction. From beginners to experienced investors, our top-down, objective approach will help you on your real estate journey.
I can help you by:
- Offering Strategic Real Estate Advice – I can help create a comprehensive plan to guide you through your property journey.
- Connecting Your Home with the Perfect Buyers – Through stunning visuals, an effective communication strategy, and an in-depth knowledge of the market, we’ll ensure your home is presented in the best possible way to fulfill your goals.
You May Also Like …
5 Resources That Can Help You Find Your Dream Home In Singapore
It's 五新房产, Finding your dream home can be a daunting task, but with the right resources, it can be a...
Read More
What Is An Affordable Home In Singapore?
TLDR Affordable housing in Singapore is about more than just having a roof over your head—it’s about survival and opportunity....
Read More
Property Unpacked: Is GLS Impacting Property Values?
TLDR The Government Land Sales (GLS) program in Singapore is critical for developers to obtain development land, with sites released...
Read More
5 Proven Strategies for Increasing the Value of Your Singapore Property
In Singapore's competitive real estate market, adding value to your property can be the key to making a profitable investment....
Read More
Three Singaporeans Share Their Experiences of Co-Owning a Property with Friends
TLDR In Singapore, some individuals venture into property investments with unrelated partners, driven by opportunities and personal circumstances. Jim, leaving...
Read More
Is Price Per Square Foot (PSF) Still a Reliable Metric in Singapore’s Property Market?
TLDR Price Per Square Foot (PSF) is increasingly a poor measure of property value in Singapore due to regulatory changes...
Read More
What Has Been The Most Significant Development In The Real Estate Market In 2022
TLDR In 2022, the real estate market saw significant interest rate hikes affecting home loan rates. Despite concerns, the market...
Read More
5 Tips : How To Buy A Property In Singapore As A Foreigner
Singapore's property market is a popular choice for both locals and foreigners looking to invest in real estate. However,...
Read More
Discover Singapore: 5 Must-See Attractions for a Culture Lovers’ Paradise
TLDR Singapore stands out as a top destination for culture lovers, offering a rich blend of heritage and modernity through...
Read More
Step-By-Step Guide To Buy Resale HDB (Updated March 2023)
TLDR The process of purchasing a resale HDB flat involves steps such as checking eligibility, calculating affordability, registering intent to...
Read More
3 Steps to Protect Yourself from Real Estate Scams in Singapore
Lately, there has been an increase in scams related to real estate. Scammers are pretending to be real estate agents...
Read More
Unlock The Secrets To Successfully Selling Your Home In Just 7 Simple Steps!
TLDR When preparing to sell your house in Singapore, research the average prices in your area to set a realistic...
Read More
Could It Be Wise to Sell Your Property After Just 3 to 4 Years?
TLDR In this blog post, the writer delves into the Singapore property market, particularly focusing on the effectiveness of quick...
Read More
5 Factors : The Benefits Of Investing In A Property With Good Access To Green Spaces In Singapore
Real estate investment has always been considered a sound investment decision, as it offers long-term growth potential and a reliable...
Read More
A Comprehensive Guide for Buying Landed Real Estate in Singapore
TLDR When it comes to buying landed property in Singapore, there are three main types: terrace houses, semi-detached homes, and...
Read More
Top 5 Factors : Why Investing In A Property With A Good View Can Be A Profitable Move In Singapore
Investing in a property with a good view in Singapore can be a profitable move for several reasons. Here are...
Read More
Top 5 Cafes in Singapore for Brunch
Singapore, a melting pot of cultures and flavors, offers an incredible array of culinary experiences to tantalize your taste buds....
Read More
Top 5 : Dangerous Ideas Singapore Property Investors Have
Singapore's property market has long been considered a safe and lucrative investment option for both local and foreign investors. The...
Read More
Discover the Best Breakfast in Singapore: Top 5 Must-Try Spots!
Trying out some of the best breakfast places, I've put together a list of the top 5 must-try breakfast spots...
Read More
