Tan Kin Lian's Blog: Experience with Property Agent

Wednesday, April 28, 2010

Experience with Property Agent

Dear Mr Tan,
The property market here is so sh.... lately. I relate to you of my latest experience with one of the agents from a well known real estate company.

I called one of their agents to ask for a particular new condo in a hot area which my son is interested in.This agent called me and lied to me that he has a unit and quoted me a unit price which I feel was quite attractive. We then arrange for an appointment to meet at the site, but this is all bxxxx, as he does not have the unit but want to test the demand for this place. They want to escalate the market.

Very nicely, he fixed an appointment with me, but when the day comes he called me to say that the demand is overwhelming, the price he quoted earlier is no longer valid and he cannot deliver, his colleagues have sold the units in this locality at a much higher price. Please help everybody not to fall into this kind of trap by the housing estate agents.

ET

16 comments:

Anonymous said...: Don't believe these advertisements. The agent I called up said the unit is actually owned by another agent and it is difficult to arrange a viewing. However he asked for my particulars and said he would look for a suitable place for me.

On another occasion, the agent told me the unit I was asking about had been sold but I saw the same unit advertised a few days later. These are all on-line advertisements. I am not sure what her motive was though.; April 28, 2010 12:41 PM
C H Yak said...: I think this bad "ethics" and practice amongst agents both for private and HDB re-sale properties is something the Govt must step in to see controls implemented.

Same with valuarion by banks to offer higher loan quantum.

It inflates the property market. Actually the valuers and agents are the ones manipulating the market pricing for personal / commercial gains.

It was reported that the MND Minister visited HK recently, after his recent "face-off" with REDAS, to look at how HK set rules to regulate housing agents.

I wonder if he is able to "cut-and-paste" some control policies here in SGP.; April 28, 2010 12:52 PM
Salesman said...: Be patient, stay with in-laws, parents or worse, rent.

These tricks or strategies as the professionals would like describe it, have been around for the past 30 years. They know, but you dont because you go to market once in 15-20 years.

Ilegal? no. Unethical? no. No one cheated you of money and you are upset because you "felt" you lost an opportunity.

Lets not try to regulate what a sales person needs to do, which is to close a sale.There is already the consumer's protection act and there is also a specific section that deals with wrongful representation.

How would you price to sell your property? To the lowest price or to the highest possible?
Somewhere along this line, a consensus will be reached.. willing seller to willing buyer.

Voila!..this is called the "market"

Some people are merely shopping around, not serious in buying at all.( or selling ) In a booming market, sales people will need to weed these people out. They need to concentrate on the genuine buyers.

Will you also do the same? or will you spend time on "enquiries" genuine buyers/sellers would have done lots of homework already, visiting websites and talking to their banks first. Not the other way around!

Be genuine.; April 28, 2010 2:30 PM
Anonymous said...: Boht insurance and property agents need to be controlled. Both are unethical.; April 28, 2010 2:39 PM
Anonymous said...: CAPITALSIM at work,now we cry 'foul'but are we honestly at times not participants?depending which side of the coin we are tossing so,be 'fair'if u really care & are frustrated with the ongoing scheme and things to come, let it cool down,do not rush and join the race, in this way,don't u think your life will be much happier and healthier...life is more than just bricks & car, if u care enuf to enjoy the sea,sunshine and sand,breathe in good air and listen to the birds, then the humble bee will sing songs to serene your spirit...; April 28, 2010 3:20 PM
Anonymous said...: In a rising market, GREED rears its ugly head with players.
In reverse, FEAR will exacerbate in a falling market.
If you want to be a player in these scenarios, then know the rules of the game.
Regulation will only come after the bloodbath provided the regulators have the will and persuasive skill to succeed.
Human beings have lived through these ups and downs since the beginning.
The only fairnest is that is will END for everyone.; April 28, 2010 6:23 PM
Anonymous said...: The first rule of property investing:

Never buy in a hot market. lol; April 28, 2010 7:10 PM
Anonymous said...: I know of people 'upgrade' from a 1700 sq ft hudc to 1100 sq ft condo.
I wonder what is the attraction.
Worse a family of 8 from hudc to condo.
Rationality?; April 28, 2010 8:44 PM
Anonymous said...: some of us have no choice. My son wants to get married but had failed to get a BTO flat in at least three attempts. Even if he succeeds (don't know when) it will take at least another few years for it to be completed. No choice but to buy a resale for him while he waits for BTO.; April 28, 2010 10:21 PM
Anonymous said...: It's much better to sacrifice a few years than to risk a lifetime of agony. You just need to be patient and be sanguine about things.

I got married right in the midst of Singapore's last big property boom in early 1996. My wife and I agreed that the prices of HDB flats were too crazy, and we decided to stay with our parents. There were 5 working adults in a 4-rm flat, but we managed. Even when our son was born 1.5 years later still OK. Just a matter of mindset & attitude.

Then came the great Asian Financial Crisis. By end-1998 we felt prices were low enough and that's when we got a nearby resale 3-rm flat. At that time, 3-rm flats were not really in demand --- my wife & I bought really below our earning power -- and we paid up the mortgage in less than 3 yrs just with CPF-OA.

Then came the next long-drawn recession and we bided our time. By mid-2003, we were back in the market, this time we wanted a slightly bigger place and should be central and convenient. We struck pay dirt, and managed to get a 4-rm flat in Toa Payoh central just 3min walk to the MRT. The cost? $280K which I felt at that time to be "quite expensive leh!". We also paid this off in less than 4 years, and now happily building up our CPF accounts.

I can still remember 4-rm flats in Marine Parade going for $250K in Mar/Apr 2003.

Luck? Timing? Well, I believe when it comes to buying stuff we are mostly in control of our destiny. It's a matter of whether you can control your desires and emotions. I've never regretted having to live with parents for the first 3.2 yrs of marriage.; April 29, 2010 1:02 AM
Anonymous said...: To Anonymous of 29 Apr 1.02am, I am glad that there are level-headed young people like yourselves who are not emotionally moved by greed and fear. Keep it up and you will have a better chance of living a happy life.
From a 60+yrs retiree.; April 29, 2010 7:40 AM
Anonymous said...: Dear ET,

please tell us the name of the agent and his company. you are helping the public and also his company by telling us.

if this gets into the papers, it might also stop other agents from doing this. basically it is a common practice but not everyone knows it.; April 29, 2010 8:54 AM
Anonymous said...: Anon April 28, 2010 8:44 PM

I upgraded from a 1700 sq ft HUDC to a 1500 sq ft Condo.......... because I could forsee the stairs of the maisonette would be a problem as I grow older. That was in 1995.

No loss, as the condo service charge is in fact lower than what I would pay for the HUDC, plus all the amenities, swimming pool, basement carparks for 2 cars, free parking for my visitors, tennis courts, badminton courts, gym, squash courts, sauna.....shall I go on?

Do you also notice the built quality of HUDC? try removing your bathtub and see what is underneath.

Price wise...... same amount of price increase in today's market. Rent potential? Definitely better as its near the MRT station.; April 29, 2010 9:08 AM
Anonymous said...: Remember if you are leaving in leasehold flats or Condo you are basically renting the apartment. At the end of the lease your flat(if HDB) will be returned to the government.. whether it cost 100k or 750k. If some suckers were to paid 650k or more for a 60-70 yrs flat in Bras Pasar area then good luck to them. As for me and my house we have paid mortgage fully bought at a low price and enjoying golden years.; April 29, 2010 11:06 AM
Anonymous said...: Anon 11:06 AM

Totally wrong on leasehold Condo.
Private Leasehold Condo commands better enbloc prices. Far better than freehold landed in some cases.; April 29, 2010 6:29 PM
DL said...: An acquaintance of mine who is an insurance agent, asked me out to introduce me to a policy. A few days after the meeting, she called me to say that she can get me a a 'higher' coverage with the same amount of premium (as discussed on that meeting) and that this 'offer' will expire on xxx date. Is this even legal? If so, to think about it, it is unethical behaviour. You can rationalize that the motive behind the 'offer' is to make you confused and caused an impulse to buy the insurance policy which may not suit you or do not provide relatively better value for money than other policies. I am glad that I did not fall for this trap. Some agents are just so into hitting targets and forgotten about meeting the needs of the customers.; May 01, 2010 12:19 PM