Almost every client I meet asks some version of the same question at some point in our conversation: how much is agent commission, and who actually pays it. It is a fair question, and honestly one that does not get explained clearly enough. After more than 15 years in this industry and leading a team of 400 agents, I have seen how much confusion sits around this topic, especially for first time sellers and upgraders. This post is meant to demystify the commission structure in Singapore, without the sales pitch.
There is no fixed rate anymore
Many Singaporeans still assume there is a standard, government mandated commission rate, something like two percent for the buyer’s agent and one percent for the seller’s agent. This used to be a recommended guideline from CEA, but it was removed in 2023. Today, commission is entirely negotiable between the client and the agent, and there is no official benchmark that everyone follows.
This shift means the rate you agree to depends on the scope of work, the complexity of the transaction, and frankly, what you and your agent agree upfront. It is worth knowing this before you start any conversation, because some agents may still quote the old guideline as if it were fixed, when it no longer is.
Who typically pays, and when
For HDB resale transactions, it is common for the seller to pay their own agent, and the buyer to pay their own agent, if both parties engage separate representation. In some cases, especially where an agent represents both the buyer and seller in the same deal, known as dual representation, the arrangement can differ, and this should always be disclosed clearly before you sign anything.
For private property, whether condo or landed, the convention has generally been that the seller pays their agent, and if the buyer engages their own agent, the buyer pays that agent separately, or the two agents co-broke and split a commission agreed with the seller. None of this is fixed by law. It comes down to what is stated in your agency agreement, so read that document carefully rather than relying on what you have heard from friends or family.
What the commission is actually paying for
The percentage figure often gets criticised without much thought to what sits behind it. A proper transaction involves far more than finding a buyer or a listing. It includes pricing the property correctly using recent transacted data, preparing and vetting all the paperwork, coordinating with lawyers, banks, and HDB or URA where relevant, managing viewings, screening buyers for genuine intent and financial readiness, and negotiating on your behalf through what can be an emotionally charged process.
For sellers, there is also the marketing spend, professional photography, listing exposure, and the time invested in following up leads that may not convert. For buyers, a good agent should be doing due diligence on the property itself, checking for issues like MOP timing, outstanding en bloc considerations, tenancy agreements, or renovation restrictions that are easy to miss if you are transacting for the first time.
The commission is essentially compensation for time, expertise, and the risk an agent takes on, since most agents in Singapore are only paid upon successful completion, not for the hours spent along the way.
How to think about value, not just the percentage
I always encourage clients to look past the number and ask what is included. A lower commission with minimal marketing effort, no negotiation strategy, and slow follow up can end up costing you more in the long run, either through a lower sale price or a missed opportunity. A slightly higher fee attached to a clear marketing plan, proper pricing strategy, and consistent communication may be worth more in practice.
It also helps to ask direct questions before engaging anyone. How many transactions has this agent closed in the past year. What is their marketing plan for your specific property type. How do they intend to price it, and based on what data. These questions tell you far more about the value you are getting than the commission percentage alone.
I would also caution against choosing an agent purely because they quote the lowest fee. This is not to say a lower fee is wrong, but the decision should be based on the full scope of service, not the number in isolation.
A few things worth clarifying before you sign
Always ask for the commission structure in writing, as part of your agency agreement, before any work begins. This protects both you and the agent, and avoids awkward conversations later. If GST applies, confirm whether the quoted commission is inclusive or exclusive of it, since this can make a meaningful difference on a larger transaction.
If you are working with an agent who represents both buyer and seller in the same deal, make sure the dual representation is disclosed to you clearly, and that you understand how their commission is being split or structured in that scenario. Transparency here protects your interests and keeps the relationship professional from the outset.
Commission conversations do not need to be awkward or unclear. If you are planning to buy or sell in the near future and want a straightforward explanation of what a fair arrangement looks like for your specific situation, feel free to drop me a message on WhatsApp or DM. No pressure, just a clear conversation so you know exactly what you are paying for.