Commentary The Trend of Commission Cashback – Why It Happens And Why It Can Be Harmful

  • April 4, 2021
  • 6 min read
Join our Telegram group for instant notifications
Join Now

Aidah

Aidah Omar is a marketing consultant and digital strategist for various SMEs in Singapore for the past 8 years. Over the last 5 years, she has worked with property agents from various agencies. She has a 2-year old daughter who is obsessed with dinosaurs and Peppa Pig.

avatar
Marco
Marco

In my view, the trend of commission cashback is rooted in a matter of fact: nowadays the property agents NO LONGER add as much value to property transactions as before. We’re in a booming era of knowledge economy, especially in Singapore. The main force of buyers is formed by those young people who are well educated and savvy at information search. There are also abundant data about property market easy and cheap to be obtained. So many buyers don’t necessarily know less than property agents about the properties in which they are interested. As a result, a property agent’s effort… Read more »

P.Lee
P.Lee

I think it’s great that you have shone light on this unwanted practice, however you seem to have put the responsibility on buyers and agents to take the moral high ground and reject such practices. Perhaps you can consider if developers have to bear some of the blame too. When developers have units that they cannot sell, more often than not it is because their asking price is too high. Given the liquidity in the housing market, it is not so much that the unit has traits that makes it un-marketable, it is more because the unit is un-marketable at… Read more »

Stacked Homes
Stacked Homes

Well said P. Lee. I think you bring a great perspective to the table! It’s also true that developers could possibly lower their price (and some do!), but perhaps maintaining their reputation would also be important as the first few buyers would really end up on the losing end if they actually sell for less. Moreover, if we assume a commission of 3% earned, and if the agent gives back 2%, that’s just a discount of 2% on the listing price. The developer would not be thinking that publicly dropping it by 2% will end up with a great sale.… Read more »

Latest Posts

international plaza bungalow
Property Picks 6 Most Interesting Homes In Singapore And Where To Find Them
October 3, 2022
westlake gardens landed estate lake 3
Property Stories Touring Westlake Gardens: Scenic Freehold Landed Living At MacRitchie Reservoir & Near Famous Schools
October 2, 2022
Resale condo or landed home 1
Advice We Are In Our 50s With $5m Assets & Earn $480k Per Year. Should We Keep Our Condo And Decouple Or Sell It To Purchase A Landed Home?
September 30, 2022
new launch regrets
Buying My Biggest Regrets After Buying A New Launch Condo: We Share 5 Most Common Regrets Homebuyers Have
September 29, 2022
5 Unique Freehold Walk Up Apartments Near An MRT Station
Units Of The Week 5 Unique Freehold Walk-Up Apartments Near An MRT Station
September 29, 2022
Evertonenclave 69
Interior Tour An Old 1980 Everton Park Transformation: How A Couple Achieved A Monochrome Look With A $110k Reno Budget
September 28, 2022
coronation road landed home skylight
Interior Inside A Coronation Road Landed Home In Singapore With An Incredible 7m High Family Hangout Space
September 27, 2022
City View @ Boon Keng DBSS
HDB Reviews City View @ Boon Keng DBSS Review: Million Dollar City Fringe Living With Great Views And Convenience
September 27, 2022
bedok walk landed estate
Property Stories A Landed Home For Just $780k? Touring Jalan Chempaka Kuning & Bedok Walk: Landed Estates With A Lot Of Character
September 25, 2022
kopiandmilktea 8
Interior A $13k Condo Renovation Breakdown: How This Creative Homeowner Self-Designed & Decorated Their 732 Sqft Home
September 24, 2022
chuan park condo
En Bloc Chuan Park En Bloc Saga: 4 Key Lessons To Learn For Future En Bloc Hopefuls
September 23, 2022
clover by the park
Advice We Make $350k Per Year And Are Both 30. Which Of These 3 Condos Is Best With Primary Schools In Mind?
September 23, 2022
HDB Executive Apartment Jan Sep 2022 Map
Resale HDB An Updated List Of 22 Executive Apartments In 2022: How Much Have Prices Increased & Where To Find Them
September 22, 2022
avoid absd legally
Investment 7 Ways To Avoid ABSD Legally In Singapore (Updated For 2022)
September 22, 2022
5 Charming HDB Units Above 1000 Sqft That Are Ready To Move In
Units Of The Week 5 Charming HDB Units Above 1,000 Sqft That Are Ready To Move In
September 22, 2022
1 Opening Shot
Property Stories A Case Study On The Old Normanton Park: 3 Little Known Factors To Think About Before Buying A Home
September 21, 2022