Why Fixed Fee Agents Might Cost You More Than You Think

At first glance, fixed fee agents can seem like an easy win. After all, who wouldn’t want to save on commissions and keep more of the sale proceeds?

But fixed fee agents don’t work equally well for every property. In fact, if you’re selling certain kinds of homes, such as boutique condos, luxury projects, or niche properties like walk-up apartments, the hidden costs of using a fixed fee agent can far outweigh the upfront savings. Here’s why:

1. You run the risk of underselling your home, for certain types of properties

If you’re selling a standard, high-demand HDB flat in a popular estate, your buyer pool is already large and motivated. But boutique condos, high-end homes, or walk-up apartments appeal to a smaller, more specific audience.

Selling these properties is not just about putting them on the portals. It is about crafting the right story, positioning it for the right segment, and proactively reaching out to the right buyers. For example, boutique condos – where they may not have been transactions in years – are subject to price anchoring effects. If you’re just unlucky and the previous seller accepted a low offer, you need to have sufficient negotiating skills to get around this (e.g., argue it was over a year ago, your place is still lower than surrounding resale options on a price psf basis, and so on) 

Fixed fee agents, whose business model focuses on volume and fast turnover, are unlikely to give your property that kind of tailored care, and go to the extent of teaching you all this. Whether you sell your unit for $1.3 million or $1.6 million, their service fee remains unchanged – so they’d rather you quickly get it over and done with.

Also, a fixed fee agent is probably not going to linger in the lobby before a viewing, checking how many interested groups show up and gathering informal feedback from visitors. Those are the things that any good commission-based agent – who has a bigger stake in the final price – would try to do. 

The end result can be saving a few thousand dollars on agent fees, but losing tens of thousands from underselling. 

2. You need to factor in the cost of losing the replacement home

Selling your current home is often just one part of a bigger plan. Most sellers are also buyers, relying on the proceeds of their sale to secure their next home.

If you’re upgrading, for example, you need to consider that developers raise prices in later sales phases. If you want a further example, here’s a study of how those who bought later in a new launch ran the risk of greater losses. 

For resale units, you need to consider that the longer you wait, the greater the possibility that someone else comes along with a higher offer than yours. In a worst-case scenario, your planned replacement unit may end up being taken off the market. 

This means you need to ensure the agent is actively promoting your unit; but fixed-fee agents often take on a higher volume of clients to make their model work. While that doesn’t mean they can’t do a good job, it does raise the risk that your home isn’t getting the same amount of focus.

That opportunity cost is real, and can outweigh any upfront savings from using a fixed-fee agent.

3. Conducting home viewings has a cost

Fixed fee agents often don’t attend house viewings. Many will even downplay the importance of strong salesmanship during viewings to justify not being there.

You may be comfortable talking to strangers – but convincing them to make a strong offer is a different game entirely. You need to understand buyer profiles, highlight your unit’s selling points, anticipate objections, and back it all up with transaction data.

That takes time, preparation, and mental energy. And viewings don’t always happen during convenient hours – in fact, many buyers prefer evenings or weekends, when they’re off work. That means you could end up burning your own after-work hours or giving up family time on weekends just to accommodate them. This is on top of the transport costs, either in petrol or PHV rides (unless you’re lucky enough to be working from home). 

If you run a business, the constant viewings – and having to answer calls and emails – could mean sacrificing real revenue or deals, just to handle prospective buyers (some of whom are just time wasters) 

4. There is a cost to your listing going stale

There’s a vital two-week period for home viewings, when you’re the new kid on the block. This is when you’re most likely to get new offers, and better offers, from people already searching in the area. But go past this point, and your listing starts dipping into the “stale” category.

If the viewings don’t go well in those two weeks, or you waste time on the wrong viewers (you may not be as high on their list as you expect), you could end up with a series of ever-worsening offers. 

During house viewings, you may also notice that some house viewers are particularly critical. Some of them do this as groundwork for a lower offer later. Still, this can wear you down. Even if you know your home is worth your asking price, hearing negative feedback again and again can make you question your initial confidence.

Consider how much you can save, versus how much you can possibly lose

There’s no doubt that fixed fee agents are getting more popular in Singapore, and with how social media algorithms have evolved to favour video tours, bite-sized content, and direct engagement, the old reliance on property portals is starting to weaken, giving fixed fee agents a bigger foothold.

And to be clear, fixed fee agents can be just as qualified, experienced, and capable as commission-based ones. But the business model matters. It changes how they work and where their focus lies.

There are scenarios where fixed fee agents might make sense. For example, if you’re selling a highly sought-after property like Pinnacle @ Duxton or another hot project that practically sells itself. Or if you’re simply offloading a standard resale flat at market price. But then again, if your property is that easy to sell, you might wonder why you need an agent at all, when you could just use the HDB resale portal yourself and save even more.

In the end, it’s not just about paying less upfront. If your agent costs you a better sale price, or your time and peace of mind, are you really saving money?

Not sure which option is right for you? Reach out to us here. We’ll help you weigh your options.