Thinking of buying a new launch condo in Singapore? Ever wondered why you need to go through an agent and pay commission? It’s a question many Singaporeans are asking, and the Reddit threads are buzzing with opinions. Let’s dive into what your fellow makan kakis are saying.
Makan Kakis’ Key Takeaways (Reddit Insights)
- Agents aren’t just ‘pushing sales’: Many Redditors feel agents are unnecessary, especially for popular projects. However, some point out that agents are also there to guide buyers through complex processes like loan applications and payment structures.
- Developers outsource sales for cost savings: Turns out, hiring and training a large in-house sales team is expensive. Developers often find it more cost-effective to outsource sales to agents. As one Redditor put it, “Paying them their commission vs employing a sales staff to do the same would save my boss 2/3 the cost.. so as a developer’s perspective, it totally makes sense to out source the selling to agents. No brainer.”
- Agents do more than just show units: Some Redditors shared that good agents do extensive research, compare layouts, and help buyers find the best unit even when their first choice is sold out. As one user noted, “the agent’s work goes beyond explaining what brand fridge what size rooms they have, they also do their homework to shift the buyers to the ‘next better unit’ just in case the unit they want gets sold before their turn.”
SG Context: The Latest Updates & What It Means For You
In Singapore, buying a new launch property involves understanding complex financial jargon, loan eligibility, and potential Additional Buyer’s Stamp Duty (ABSD). While BTO flats don’t require agents, private new launches almost always involve them. Recent discussions on Reddit highlight a frustration with the perception that agents are just there to earn commissions, overlooking the value they potentially bring. It’s also crucial to note that developers often factor agent fees into the overall price, meaning you’re likely paying for it whether you use an agent or not.
Real Talk from the Ground: Singaporean Experiences on Reddit
honestly, real estate agents is literally a scam job.
TimmmyTurner
BTO don’t need agent leh. Thus I conclude agents are there just to push sales.
saoupla
Because as a previous mortgage loan specialist that stands at showflat for hours, a lot of people thought they can buy but ends up they can’t…The salesperson will advise them to the eligibility (such as EC and ABSD) and structure of payment. And ask the mortgage banker comes in and on the spot calculate for them and give them an estimated on how much they can borrow based on their declared income. On the spot there and then they will know if they can buy or not.
chikaipii
I mean… I can already hear annoying aunties and uncles saying “your problem or my problem” 🤣🤣
dwarfishspy
It’s not that simple.. not everyone wake up next day and say okay i want to make a $1-2m commitment.. like the other person say… most will walk in, walk out and say “ siao ah $2800psf… i stay in my HDB and live stress free better”
i_saw_what_you_did_
Chiong Ah! Your Practical Action Plan for Singaporeans
So, what should you do if you’re looking at a new launch?
- Do your research: Don’t rely solely on agents. Check online reviews, compare prices, and understand the location and amenities.
- Get your finances in order: Know your loan eligibility and CPF usage limits. Get an IPA (In-Principle Approval) from the bank early to avoid disappointment.
- Ask questions: Don’t be afraid to ask agents about the development, payment structure, and ABSD implications.
- Consider different perspectives: While some agents might push for units that give them higher commissions, there are also many who work hard to help you find the right home.
- DYOD (Do Your Own Due Diligence): As one Redditor wisely said, “Correct agents always push for developments that net them the most money… So when they bad mouth certain properties, you gotta just listen but DYOD”.
Ultimately, the decision to engage an agent is personal, but being informed can help you make the best choice for your property journey in Singapore. Remember, it’s a big commitment, so do your homework and don’t be afraid to ask for help!
Source: Why do we need agent at new launch?