Tan Kin Lian's Blog: Never buy on the spot

Tuesday, September 22, 2009

Never buy on the spot

Comment posted in my blog

Creative property consultants work hand in hand with developers to create false impressions. You can see them under different creative names in different forums generating waves to enrich themselves.

Some years back when I was looking for a property this agent with a big Mercedes Benz brought me to see a condo in the east. The way he conducted the sale he has a 95% chance of closing the deal at a high price. He was able to use tactics like high pressure sales to lure the potential buyer capitalising on the average human greed and fear.

Later when I was sitting in his Mercedes, he asked me what I do for a living. I told him I teach advance negotiation techniques to fortune 500 companies executives and he then muttered: "No wonder".

The simple advice to follow is simply this. Do not buy anything on the spot, there is no such thing as no more supply, only no more money. Determine your own price based on value, which you can determine after some basic research.

Do not go beyond your calculated price as agents will use your emotions to jack up the price. Always use the technique of having to consult your spouse to buy time.

Some agents know this and insist that both you and your spouse be present, ever wonder why time shares promotions always want you and your spouse to be present so you have to make a decision on the spot?

Just do not make a decision on the spot. Say you need to consult your father, mother or God, if necessary. Make it a philosophy never to make a spot decision.

Whenever I buy something, the sales agent will always ask for a deposit. I will tell them my philosophy is no deposit. They will then say what if someone comes along and buy the last piece. My answer is always: "Congratulations, I will look for another piece"

Remember, there will never be no supply, this impression is created by agents so they can pressurise you. There is only no money!

8 comments:

Anonymous said...: Thank you for a valuable fact, "Remember, there will never be no supply, just no money"! :); September 22, 2009 9:04 AM
Anonymous said...: Mr. Tan

I have been looking for a place private unit for months, 1 million SING dollars is like monoploy money nowadays. And i am not even talking about district 9, 10 or 11.

Have already given up.....; September 22, 2009 9:42 AM
dsowerg said...: I absolutely love this post! Thank you!; September 22, 2009 11:16 AM
Anonymous said...: This is a golden rule, not only applicable to property, but all high value purchase, including financial products.

I have a painful experience in the purchase of a structured product. All along, I never purchased any financial product which I have no knowledge. However, I still got hooked because I purchased the product "on the spot" based on false statement given by the financial adviser.

The financial adviser presented to me that the product was made up of 100% bonds and bond is the product which I was familiar with. So I did the purchase on the spot. A few months later, when I discovered that the product was in fact a structured product and hence made a complaint for the refund. However, my complaint was finally rejected, even though with documentary proof that the product recommended ought to be 100% bonds

With so clear that it is a case of mis-selling, MAS advised me to refer the complaint to FIDReD. Fortunately, the product I bought is not a defaulted product so I did not pursue further, unless it is defaulted.

The lesson I leaned is that "Never buy on the spot"; September 22, 2009 11:25 AM
Vincent Sear said...: "Never buy on the spot" is certainly good advice and adage. However, most customers are layfolks in the field dealing with sales professionals trained to find and hit "hot buttons" and "soft spots" to close deals as soon as possible. That's why insurance policies come with a 14-day "free-look" or "cool-down" period. If somehow you're persuaded in buying a policy, make good use of this 14-day period to look it over and think it over. If you still see it being worth your while and money, good, keep the policy. If not, return it for a full refund.; September 22, 2009 5:29 PM
Anonymous said...: Many consumers are unaware of the 14 day free look for insurance.Most insurance agents don't disclose the freelook. It should be written in the fact find form and verbally told by agents.
Never buy any insurance at roadshow. These agents are trained conmen and women. Be careful of them; September 22, 2009 10:16 PM
Anonymous said...: Dear Mr Tan

Thanks for enlightening us with your words of wisdom "Do not buy anything on the spot, there is no such thing as no more supply, only no more money. Determine your own price based on value, which you can determine after some basic research". Thanks...; October 19, 2009 10:52 PM
Sureesh said...: The problem is that the socalled free look period is not really a free look at all. This itself is misleading. If you have an investment linked policy and if you exercise your free look they will sell the policy on the latest selling price of the invested fund, if the price is lower than the purchase price, then you will make a loss. They will even minus all sales charges in the proceeds.; April 08, 2011 9:44 AM