Property Agents' commission

[Icedbs]

diffulty is agent wont wanna do work unless exclusive is given

 

That's true, especially during tough market like now since the agent has to put in more effort to find a buyer.

 

To tackle this, I have thought of a suggestion which I did share with some of the agents. It works quite well with some of them who is flexible with non-exclusive as long there is some win-win.

 

I told them why not set a timeline with the owner who didn't want to give exclusive. .Say a timeline of a month.  Agent take the deal on a non-exclusive basis for a month. If the owner can sell the house himself within that month, then kudos to him and the agent can save some effort and move on. If the agent can sell it within that month, then no issue to take lesser commission since not much effort in closing the deal anyway (in current tough conditions, getting some $$ quickly is better then waiting for a big $$$ for months!) .

 

But once it crosses one month, owner should give exclusive to the agent since owner is aware that it is difficult to sell himself and same goes to the agent who certainly need to put in more effort to sell it too. This is a fair proposition to the owner  (or to DIYers) who didn't want to give exclusive at the start but still want to tap into an agent expertise for advice

Edited June 4, 2016 by Icedbs

[Mustank]

That's true, especially during tough market like now since the agent has to put in more effort to find a buyer.

 

To tackle this, I have thought of a suggestion which I did share with some of the agents. It works quite well with some of them who is flexible with non-exclusive as long there is some win-win.

 

I told them why not set a timeline with the owner who didn't want to give exclusive. .Say a timeline of a month. Agent take the deal on a non-exclusive basis for a month. If the owner can sell the house himself within that month, then kudos to him and the agent can save some effort and move on. If the agent can sell it within that month, then no issue to take lesser commission since not much effort in closing the deal anyway (in current tough conditions, getting some $$ quickly is better then waiting for a big $$$ for months!) .

 

But once it crosses one month, owner should give exclusive to the agent since owner is aware that it is difficult to sell himself and same goes to the agent who certainly need to put in more effort to sell it too. This is a fair proposition to the owner (or to DIYers) who didn't want to give exclusive at the start but still want to tap into an agent expertise for advice

Alternatively give a 3% commission but no exclusive

[Little_prince]

Just saw an agent trying to sell a condo near Chinese garden.

 

Claimed that the market crash already over and this is as bad as it will get. I had better buy quick before the other people realise this and the price shoot up to $1600-1800psf by next yr and $2000 psf in the near future.

 

I just rolled my eyes and walked off

[Matrix0405]

Straits Times is almost dead and useless for finding tenants. There is a housing agent tool that helps agents to read ST and log units that are for rent and sales. What is the name of this agent tool company?  

[Matoonia]

While I am not against people who DIY a property transaction themselves, I always could not really rationalise why they would not want to use an agent.

 

The commission that is paid is always included in the selling price. If a seller wants to sell a house for say $1m, the agent would always try to sell it above $1m so that his commission is already part of that price. And if the agent could not sell it above $1m, the seller can always reject that agent.

 

Also, if the agency agreement is not exclusive, there is no stopping the seller from trying to sell it himself and using the agent at the same time! Agents may hate me for suggesting this, but through this way, an inexperience seller can tap on an agent expertise (and advice) but at the same time, trying to look for buyer himself as well.

 

So I am not sure about this not using agent mentality. Is it because one does not like another fellow earning a commission out of him? Or is it an ego issue? If the agent is able to sell the house  above seller asking price, then what is the issue of using an agent? I feel that the biggest value an agent provides is to help to filter out all the "not qualified" buyers/sellers in order to avoid a transaction that may turn sour or could not go through at the end. All the DIY guidelines given in property blogs/property websites are like a recipe book; it tells you all the ingredient and steps to cook a decent dish, but it doesn't show you all the necessary technique, experience and considerations in tacking all the "what ifs" if a step doesn't turn out to be right during the cooking process itself.. That you will need an experience chef to tell you how.

 

Just my 2 cents, nothing against DIY or agentts

 

I think that the fundamental flaw is that agents are more incentivized in CLOSING, than really selling at the best price. Because at the end of the day, they are paid on commission, no deal=no commission. The only person who WANT to sell at the highest price is yourself. If really want to use agent, no exclusivity, so all the agents will cheong for you.

 

[HP_Lee]

There is more on the way. Once there is a good site equal to ebay sort, we can do it ourselves. That you will save quite a sum for a big ticket item like this. Agents target to close deals in the shortest period. They will hardly bolder to get you a good deal. That is why, many prefer to sell projects.

 

 

Oh! sorry, very new to this forum posting. 

Will read through the other posts. Thanks for pointing out!

Wow! thanks for listing these websites!

 

[LPPL]

Lawyers shld be the one complaining about lowball fees.

 

Study like sh*t to get good PSLE grades to get into a good Sec school. Then study again like sh*t to do well in O-Levels to get into a good JC. Then study like sh*t again to do well in A-Levels to get into Law school. The study again like sh*t to graduate. Then work and study like sh*t to pass the Bar. Then invest heaps of $$ to open a legal practice & run it. This whole long road and they charge $2.5k in conveyancing fees and have to keep the case on file for a few years. For a $1M property, that's only 0.25% in fees.

 

Powderful negotiator (or whatever fancy names they give themselves) onli has to pass O-level, sit for the salesperson exam and expects to collect 2% comm......? http://www.mycarforum.com/public/style_emoticons/#EMO_DIR#/laugh.gif http://www.mycarforum.com/public/style_emoticons/#EMO_DIR#/laugh.gif No wonder our tiny island has over 30,000 agents!

But law firms can handle 100 conveyancing cases in a month but agents can't close 100 deals in a month

[Showster]

You can ask him Chinese garden 2kpsf how much will Orchard cost?

 

Somebody mentioned at max 2% gain a year. That is about 20 to 30 psf gain annually. Unlikely to be much higher and may even be flat or marginally negative if economy tanks.

 

Just saw an agent trying to sell a condo near Chinese garden.

 

Claimed that the market crash already over and this is as bad as it will get. I had better buy quick before the other people realise this and the price shoot up to $1600-1800psf by next yr and $2000 psf in the near future.

 

I just rolled my eyes and walked off

[LoverofCar]

To me is simple. If someone offer a service that make my life easier, get me a better deal and give me a channel to go to for after sales service What is the big deal to pay that little commission?  For property agents, if they put in an ad to sell my property, filter the low ballers, get me my targeted selling price and handle all the paper work for me.  I see no problem to pay them a commission.  Again, everything can be done without an agent.  Buy/sell your property or even import your own car but do one person want to go through the whole process?   Let people make a living lah.

Edited June 9, 2016 by LoverofCar

[Showster]

Strongly agree.

 

I feel my time is too precious and the risk to missing any step in the purchase is too risky to do all by myself.

 

Anything goes wrong, I can sue agent and agency. But I cannot sue myself.

 

To me is simple. If someone offer a service that make my life easier, get me a better deal and give me a channel to go to for after sales service What is the big deal to pay that little commission?  For property agents, if they put in an ad to sell my property, filter the low ballers, get me my targeted selling price and handle all the paper work for me.  I see no problem to pay them a commission.  Again, everything can be done without an agent.  Buy/sell your property or even import your own car but do one person want to go through the whole process?   Let people make a living lah.

 

[L23]

Just saw an agent trying to sell a condo near Chinese garden.

 

Claimed that the market crash already over and this is as bad as it will get. I had better buy quick before the other people realise this and the price shoot up to $1600-1800psf by next yr and $2000 psf in the near future.

 

I just rolled my eyes and walked off

You can always check with Mr Lim. 

He just bought a new condo instead of a car after all the research.. 

[LPPL]

To me is simple. If someone offer a service that make my life easier, get me a better deal and give me a channel to go to for after sales service What is the big deal to pay that little commission?  For property agents, if they put in an ad to sell my property, filter the low ballers, get me my targeted selling price and handle all the paper work for me.  I see no problem to pay them a commission.  Again, everything can be done without an agent.  Buy/sell your property or even import your own car but do one person want to go through the whole process?   Let people make a living lah.

 

Agents don't handle all the paperwork, they only handle the sales and purchase agreement, after that, they throw it to the lawyers and they don't need to see you again except to collect their commission. In fact I feel it is high time someone came up with a website to match buyer and seller together without the need for agents.

[Showster]

He will be back after his TDSR clears.

 

You can always check with Mr Lim.

He just bought a new condo instead of a car after all the research..

[BanCoe]

diffulty is agent wont wanna do work unless exclusive is given

Not really; they are all itching to sell or Rent out and increase their selling power be it selling or leasing or looking for buyers behalf; Some even resort to "tagging" to get a blast of your unit in the market; Market is real bad; They are also now down to earth.

 

In my case of rental unit; the Agent just to close the deal ; threw in a washing machine and dryer for the tenant because the Tenant really squeeze my bxxxs until like dunno what and with a move in condition like 2 months away some more

 

I always give sort of exclusivity (for only 1 month period) for the Agent that brought in a previous Tenant; I tell him that in very clear Terms; after that its open market if he/she cannot get anything done; Anyway even after 6 months the Unit was still vacant until last month finally got one Tenant and I also like on verge of giving up and just accept his lowball rent as per the Tenant request. BTW i had like 6 Agents in my hand and non will say No.

 

I guess its the same as selling too as I have done the same similarly. Friend friend one I give chance first after that .... its open market

 

Actually most property agents use Property Guru for both selling and rentals

Edited June 9, 2016 by BanCoe

[Showster]

Agents don't handle all the paperwork, they only handle the sales and purchase agreement, after that, they throw it to the lawyers and they don't need to see you again except to collect their commission. In fact I feel it is high time someone came up with a website to match buyer and seller together without the need for agents.

If rent halfway got issue emerge with your tenant, that will be the time they are needed again. Their action or inaction will inform whether you need to engage them again.

Not really; they are all itching to sell or Rent out and increase their selling power be it selling or leasing or looking for buyers behalf; Some even resort to "tagging" to get a blast of your unit in the market; Market is real bad; They are also now down to earth.

 

In my case of rental unit; the Agent just to close the deal ; threw in a washing machine and dryer for the tenant because the Tenant really squeeze my bxxxs until like dunno what and with a move in condition like 2 months away some more

 

I always give sort of exclusivity (for only 1 month period) for the Agent that brought in a previous Tenant; I tell him that in very clear Terms; after that its open market if he/she cannot get anything done; Anyway even after 6 months the Unit was still vacant until last month finally got one Tenant and I also like on verge of giving up and just accept his lowball rent as per the Tenant request. BTW i had like 6 Agents in my hand and non will say No.

 

I guess its the same as selling too as I have done the same similarly. Friend friend one I give chance first after that .... its open market

It's not market very bad.

 

It's a combination of too many agents to begin with and competition.

 

Long ago when market was heating up, I took 2-3 months to choose tenant. And also need to wait a couple of months then they come in. But prices were more favorable.

[LPPL]

If rent halfway got issue emerge with your tenant, that will be the time they are needed again. Their action or inaction will inform whether you need to engage them again.

It's not market very bad.

 

It's a combination of too many agents to begin with and competition.

 

Long ago when market was heating up, I took 2-3 months to choose tenant. And also need to wait a couple of months then they come in. But prices were more favorable.

For local tenant, I handle myself coz no need to talk through agent. If there are difficult tenants that landlords can't handle, agents will not be able to handle as well. The only time i really need an agent is for my overseas property, coz i really need someone to manage it in my absence.

[Showster]

For local tenant, I handle myself coz no need to talk through agent. If there are difficult tenants that landlords can't handle, agents will not be able to handle as well. The only time i really need an agent is for my overseas property, coz i really need someone to manage it in my absence.

It depends on whether one has time for it and the quality of tenant. Some tenants need more coordination and monitoring.

[LPPL]

It depends on whether one has time for it and the quality of tenant. Some tenants need more coordination and monitoring.

It depends how busy you are to manage the tenant, but seriously, there isn't much to manage for local tenants unless landlords have a problem unit that need maintenance all the time.