Looking to sell your property and considering a fixed-fee property agent instead of paying percentage-based commission?
You’ve probably heard of fixed-fee (or flat-fee) property agents who advertise a single, upfront price – usually around $1,999 – instead of the typical percentage commission.
It looks like an attractive option that will help you save thousands of dollars, but what does it entail exactly? And is it best suited to your situation?
Before you get started on anything, it’s essential to first understand what you’re getting in exchange for that flat fee, and what you may be missing out on as a result of that.
What is a fixed-fee property agent?
A fixed-fee property agent essentially charges one flat amount to help you sell your property, regardless of what the final sale price is.
Whether you’re selling your property for $500,000 or $1.2 million, the agent’s fee stays the same. This is different from the 1% to 2% commission model that most Singaporeans are used to.
A fixed-fee model is easy to understand and more straightforward to budget for. It’s cheap compared to a 1-2% commission, but before you jump at it, know that cheap may not necessarily mean good value. It really depends on what you need and how involved you can be in the entire sales process.
When is a fixed fee actually cheaper than a percentage?
Let’s do the math so you can see the differences much clearer.
| Sale price | Flat fee ($1,999) | 1% commission rate | 2% commission rate |
|---|---|---|---|
| $300,000 | $1,999 | $3,000 | $6,000 |
| $500,000 | $1,999 | $5,000 | $10,000 |
| $800,000 | $1,999 | $8,000 | $16,000 |
| $1,500,000 | $1,999 | $15,000 | $30,000 |
Almost every HDB resale flat and private property in Singapore sells well above $200,000. That means in dollar terms, having a flat $1,999 fee is definitely cheaper for the vast majority of transactions, as outlined in the table above.
If you’re looking to sell your property for the lowest commission possible, then having a fixed-fee agent would be a no-brainer. However, the fee you pay your agent is only one part of the equation. The important part to be aware of is what that fee structure incentivises your agent to do for you and your property listing.
What’s usually included when you use a fixed-fee agent and what isn’t?
The scope for fixed-fee agents tend to cover the basics needed – they’ll get your listing live and support it administratively, schedule viewings for your property, and provide you with basic guidance on paperwork. They’ll also act as the point of contact for any questions of course.
What’s usually not included, is the professional photography and videography, full marketing spend to actively push your listing, listing across multiple portals for maximum exposure, and more. You’re also commonly expected to run your own viewings and engage with potential buyers directly, as well as handle the negotiations actively.
While this means you have to handle a fair portion of the process yourself, it’s not necessarily a dealbreaker. If you just need some basic support for the sale of your property, and are comfortable picking up the rest of the load, the fixed-fee agent method could be a good fit for you.
Are there enough funds to properly market your property?
Marketing a property requires a lot of effort, time, and cost. From professional photography to home tour videos, 3D virtual tours, boosted placements on PropertyGuru, and social media advertising, these marketing efforts all require a good team of experts to execute.
Unfortunately with a fixed agent fee, there’s very little margin to spend on marketing. If the agent spends the fee on marketing, there would be barely any left for themselves. Because of this, it’s unlikely that you’ll get much, as the fee you’re paying isn’t sufficient to cover the marketing costs and the effort required from the agent.
As a result, what you can expect from engaging a fixed-fee agent will be standard, unboosted listings on property portals, using whatever photos you provide. This means your listing might not get as much exposure to potential buyers, regardless of how good your property is.
Will the agent work to get you the best sale price possible?
This is one aspect most sellers overlook, but it matters the most.
With a fixed-fee model, your agent gets paid the same amount regardless of whether your flat sells at your asking price, or $30,000 under. There’s no financial incentive for them to push for a better offer, or negotiate harder on your behalf.
To make the numbers work, a fixed-fee agent needs to rely on volume. This means completing sale transactions as quickly as possible, for as many clients they can get. With such a working model, it’s hard for them to provide genuinely dedicated and personalised service to you.
Plus, they aren’t just focused on your listing – they have plenty of other things to do as well, such as finding new clients, booking and scheduling viewings, managing paperwork for all their cases, and more. All of these also become difficult to outsource if there are little to no profit margins for each sale.
Compare that to a percentage-based model, where the agent’s payout is tied to the final sale price. Their incentive is fully aligned with yours to get the best possible price because it will result in a bigger payout for them too.
For example, say you’re selling a $600,000 flat. A percentage-based agent earns more if the flat sells for more, so they’re likely to hold out for an offer at your asking price. A fixed-fee agent earns the same $1,999 whatever the sale price, so they may be more willing to accept a lower offer, say $585,000, to close the sale sooner.
In this example, you’d net about $11,000 more with a 1% agent than with the fixed-fee agent, even after paying commission. With a 2% agent, you’d still net about $5,000 more.
| Scenario | Sale price achieved | Agent fee | Net proceeds |
|---|---|---|---|
| 2% commission agent | $600,000 (full asking) | $12,000 | $588,000 |
| 1% commission agent | $600,000 (full asking) | $6,000 | $594,000 |
| Fixed-fee agent | $585,000 | $1,999 | $583,001 |
What happens if my flat doesn’t sell – do I still have to pay the fixed fee?
Usually not. Several of the fixed-fee providers in Singapore collect nothing upfront and charge their fee only when your sale completes.
That’s also the default under CEA’s prescribed estate agency agreement: commission is paid on completion. If the sale falls through and it isn’t your fault, you owe nothing. For HDB flats, that includes a sale that fails because you turn out to be ineligible to sell.
Where you could still end up paying is the extras. The same agreement says marketing is at the agent’s cost, unless you agree otherwise in writing. So an agency can add a separate marketing fee, deposit or early-termination charge, as long as it’s written into the agreement’s Additional Terms and initialled by you.
So, when does a fixed fee make sense?
There are quite a few scenarios where using a fixed-fee agent makes sense. It can work well if:
- Your property is already in a desirable location, or has a very attractive condition, and is likely to sell easily without an aggressive marketing push.
- You’re comfortable handling your own viewings, answering questions from buyers directly, and some paperwork.
- Your priority is a low, guaranteed agent cost, not maximising the final sale price of your property.
- You’re fine with light-touch service from your agent, and your property being on the market for a potentially longer time.
However, it wouldn’t make sense if:
- Your property would benefit from real marketing investment, not just a standard approach.
- You want an agent actively negotiating on your behalf to achieve the best sale price possible.
- You’re busy, don’t have much time to oversee the process, and want someone else to run it effectively end-to-end for you.
- You have a higher-value or less straightforward property, and stand to benefit more from having a well-executed sale with percentage-based commission, rather than a flat fee.
The money that you “save” from using a fixed-fee agent could mean an overall loss for you, especially if you compare it against what a better-resourced agent can do for you.
As seen in our example above, a fixed-fee agent that sells your flat for 15k below market value gets you net proceeds of only $583,000 while a commissioned agent can get you $594,000 – which is $11,000 more.
That’s exactly how Propseller can help. Our Real Estate Consultants work on a success-based commission starting from 1% – because we’re paid only when you are, and we’re only paid more when your flat sells for more.
This means our incentives stay aligned with yours throughout the entire journey, and that fee also includes professional photography, 3D virtual tours, boosted listings across multiple portals and more, all included.
Propseller has achieved a strong track record of helping our clients sell their flats for 2% above market value on average, and 100% at market value for private properties.
Curious to find out what your flat could sell for, with a Propseller agent and our team of experts behind it? Reach out for a free consultation with us today and see the difference for yourself!
