How to Find a Good Agent When Buying or Renting a Property in Singapore

Singapore is a country with well-established systems in all industries, and the real estate industry is no exception. Therefore, when you are buying or renting a property in Singapore, you may not be familiar with the complex and stringent policies and procedures. At such times, it is essential to choose a good property agent to assist you. So, what do you need to know about property agents in Singapore? And how can you choose a reliable one? This article will provide you with relevant information.

The Entry Qualification for Property Agents in Singapore: CEA Certification

In Singapore, not just anyone can become a property agent. There are strict requirements for industry entry. Since 2010, the Council for Estate Agencies (CEA) in Singapore has stipulated that only those who pass the Real Estate Salesperson (RES) examination can enter the property agency industry. This exam is very rigorous, with a passing rate of less than 20%, ensuring that practitioners possess professional knowledge and skills in real estate, law, finance, and other aspects. After passing the exam, candidates will receive the Singapore Real Estate Salesperson Qualification Certificate.

However, this is just the beginning. Practitioners also need to register as members with the CEA and comply with its continuing education requirements. They are required to complete certain training courses every year to update their knowledge, understand the latest real estate market trends, changes in laws and regulations, and so on, to ensure that they can provide professional and timely services to clients. It is illegal for anyone to engage in real estate brokerage work without valid registration.

Therefore, the first step in finding your property agent is to confirm his or her CEA license. All registered property agents have a unique CEA registration number. You can check whether someone is a certified agent on the CEA's official website (https://www.cea.gov.sg/) by entering the CEA registration number, name, or mobile phone number.

The Public Register lists the following information:
• Agent's business name
• Agent's photo
• Council for Estate Agencies (CEA) registration number
• Registration date
• Disciplinary actions received
• Awards
• The real estate agency to which the agent belongs
• The license number of the real estate agency
• The agent's historical rental and sales transaction records

Note: Given the frequent occurrence of scam cases where scammers impersonate to be CEA agents, when dealing with agents, you must first verify whether the agent's personal information can be found on the CEA's official website and whether it matches the person himself or herself (especially the phone number he or she uses). Confirm the authenticity of the agent's identity to avoid being defrauded by impostors and suffering losses.

Working Experience and Duration in the Industry

Passing the exam and obtaining the license is just the first step. Some licensed agents may not have completed a transaction. You should consider this carefully, as the ability to pass exams is not equivalent to practical skills.

Generally speaking, agents who can survive in the fierce competition and maintain good performance have strong abilities in all aspects. They can help you quickly and accurately match properties and provide appropriate suggestions, saving you time and energy in looking for and viewing properties. Once you have your eye on a property, the agent will assist both parties in price negotiations to ensure that the transaction price is fair and reasonable. They can also voluntarily liaise with banks and lawyers to handle complicated procedures such as contract signing, loan applications (if necessary), and property handover. With professional knowledge and extensive experience, a good property agent can provide clients with a lot of valuable services, helping clients save money, time, effort and worry.

Agent Fee

If you are buying a property, the agent fee for the property transaction is usually paid by the seller, who pays the agreed-upon agent fee to the seller's agent (except for HDB flats, where both the buyer and the seller usually pay their own agent fees in HDB transactions). If the buyer has his or her own buyer's agent to assist with the purchase, then the buyer's agent and the seller's agent will negotiate the commission sharing ratio. For example, the standard commission for second-hand property transactions is typically 2% + GST. If the buyer's agent and the seller's agent negotiate to share the commission at the common ratio of 50%:50%, then, after the transaction is completed, each of the buyer's and seller's agents will receive 1% + GST of the agent fee (paid by the seller). If the buyer has no agent, then the seller's agent will receive the entire 2% + GST.

If you are renting a property, property agents in Singapore are typically categorized as landlord's agents and tenant's agents. For example, if you are looking at properties online and contact the agents listed there, these agents are considered landlord's agents. If a lease is reached, the agent fee is paid by the landlord, so the tenant does not need to pay anything. However, if you don't want to search for properties one by one, you can hire an agent to help you find a property. You just need to list your requirements and budget. In this case, the agent assisting you is your tenant's agent. Whether the tenant is responsible for paying the agent fee of the tenant's agent depends on the rent. Generally, if the rent is within S$6,000, the tenant is responsible for paying the commission to their own agent. For a two-year lease, the fee is typically one month's rent + GST, and for a lease of one year or less, it is 0.5 month's rent + GST. If the rent exceeds S$6,000 and the landlord's agent agrees to share the commission, then the tenant does not need to pay the commission to their own agent again. The S$6,000 is a commonly accepted amount in the market, but it is not absolute. During periods of high demand, even for properties with a rent of S$15,000, the landlord's agent may not agree to share the commission. Similarly, some very friendly landlord's agents may be willing to share the commission even when the rent is S$5,000. It depends on the actual situation encountered.

For clients who are not familiar with the market, whether they are buying or renting a property, if they attempt to handle the entire process on their own, it can be both time-consuming and labor-intensive, and it is also easy to make mistakes. For example, they may overlook major flaws in the property, fail to conduct basic background checks on the seller in advance, or not understand the market rent or property price levels, which may result in offering prices that are either too high or too low, ultimately saving a little but losing a lot, making it not cost-effective. Sometimes, there may even be a situation where a direct buyer and a buyer represented by an agent submit offers simultaneously at the same price, and the homeowner and the homeowner's agent tend to choose the buyer with an agent. This is because direct buyers usually lack experience in the transaction process, which may lead to a smooth transaction or even a failed one. In contrast, buyers with agents are less likely to make the mistakes that beginners make, and they can help ensure a smooth transaction. Therefore, whether you are a tenant or a buyer, it is recommended that you try to find an agent who represents your interests and helps you control every aspect of the transaction throughout the process, to avoid suffering losses due to a lack of professionalism during the renting or buying process. It is more reliable and reassuring to entrust professional matters to experts.

We recommend that you use Housebell. It has a vast number of genuine property listings, and all the listings are sourced from CEA-certified agents, ensuring safety and reliability while avoiding scams and unlicensed agents. If you have any questions, you can contact the online customer service for professional assistance.