With an estimated 24% of HDB re-sale transactions being conducted directly between seller and buyer in 2016, it is little wonder that real estate agents are starting to question their role in the market.
Central to this self-examination process, should be the justification of commission fees and where the agent really does value and support. It is certainly not the quality of client property photography or attractive and complete property descriptions across the industry that tops the service level standards.
As easily as the re-sale market can go direct and eliminate the need for an agent in the HDB sector, the same can be said for the rental of private condo’s and apartments in Singapore.
New online rental communities, such as RENTALS.SG, eliminate the need for landlords to engage an agent and pay high initial commission fees and importantly renewal commissions fees on a property rental transaction.
RENTALS.SG charges a low cost administration fee of just S$288.00 for a listing vs an average agent commission rate of S$4,600.00.
Aside from a very professional display on an easy to recall website, the service includes free photography of the property, a generic downloadable letter of intent and tenancy agreement, instruction on IRAS online registration and tenant background checks as an optional compliance service.
Tenants reach out to landlords through the website and both parties arrange to meet directly and without the presence of one or more agents.
Basically, there is nothing that the landlord cannot do that the agent does for a high commission fee and optional services for compliance, such as the background checks can also be purchased to avoid the sweat.
The ground swell of “go direct rentals” or “DIY rental” services is gaining rapid traction and the adoption rate is only set to rise.