Why Must We Pay Commission At 1st Appointment?

[rawmeat 0]

I'm not going to list the agency but after a month of asking around people who've bought or sold flats through agents, I realise that several agencies have this in fine print.

"Commission due on 1st appointment"

well, mine happily ignored all my calls after 1st appointment ($ in the bag already, so why bother right?), so far only heard one nice story where the agent continue to serve after that, and another that allowed the seller to strike off that clause and to pay by 2nd appointment instead.

Why are we paying on 1st appointment when the approval only comes 1-2weeks later and the whole transaction only completes by 2nd appointment. What if anything happens and we need assistance. What if the deal didn't go through after that when either parties breaks the agreement and goes to court?

Are we paying 2% or 1% just for agents to list on straitstimes that cost $50 each, or online for free and submit paperwork that educated people like us can do easily? And also back to my earlier point on being forced to pay commission when seller's agent cheat the seller by not getting him a best offer but instead give it a buyer who's willing to pay him commission, and tell the seller that's the best offer he can get based on his experience?

Can someone shed some light on this?

[bepgof 20]

I'm not going to list the agency but after a month of asking around people who've bought or sold flats through agents, I realise that several agencies have this in fine print.

"Commission due on 1st appointment"

well, mine happily ignored all my calls after 1st appointment ($ in the bag already, so why bother right?), so far only heard one nice story where the agent continue to serve after that, and another that allowed the seller to strike off that clause and to pay by 2nd appointment instead.

Why are we paying on 1st appointment when the approval only comes 1-2weeks later and the whole transaction only completes by 2nd appointment. What if anything happens and we need assistance. What if the deal didn't go through after that when either parties breaks the agreement and goes to court?

Are we paying 2% or 1% just for agents to list on straitstimes that cost $50 each, or online for free and submit paperwork that educated people like us can do easily? And also back to my earlier point on being forced to pay commission when seller's agent cheat the seller by not getting him a best offer but instead give it a buyer who's willing to pay him commission, and tell the seller that's the best offer he can get based on his experience?

Can someone shed some light on this?

Last time (now still have)trading share only through brokers, therefore "higher charges" need to be paid. Tech advance, now trade share on line on your own need pay "lower charges". Same here, now real estate info made available in many channels and free (quick & fast), ST posting a bit out dated(too late)already (btw, i got mine via st).

Conclusion: comm % should be cut, cut, cut. Logical?

Edited March 30, 2010 by bepgof

[ywtlhc 0]

I'm not going to list the agency but after a month of asking around people who've bought or sold flats through agents, I realise that several agencies have this in fine print.

"Commission due on 1st appointment"

well, mine happily ignored all my calls after 1st appointment ($ in the bag already, so why bother right?), so far only heard one nice story where the agent continue to serve after that, and another that allowed the seller to strike off that clause and to pay by 2nd appointment instead.

Why are we paying on 1st appointment when the approval only comes 1-2weeks later and the whole transaction only completes by 2nd appointment. What if anything happens and we need assistance. What if the deal didn't go through after that when either parties breaks the agreement and goes to court?

Are we paying 2% or 1% just for agents to list on straitstimes that cost $50 each, or online for free and submit paperwork that educated people like us can do easily? And also back to my earlier point on being forced to pay commission when seller's agent cheat the seller by not getting him a best offer but instead give it a buyer who's willing to pay him commission, and tell the seller that's the best offer he can get based on his experience?

Can someone shed some light on this?

Hi,

You can insist/request to pay upon completion.

[Alvin78 0]

I find it weird too. Of course there are still good agents but they are probably like dinosaur these days.

There is no proper governance or regulation in Singapore real estate industry. The govt can say all they like but they have to come down to our level to understand us. Clearly, in my view, there is someone there not doing the job at all!

Practice that should be re-looked:

- Pay full commission on first appt: As a consumer, i don't feel good on this. Please, this is Singapore real estate!

- Pay 2% seller commission / 1 % buyer commission: Look at the absolute $$. Property price is no longer at those level 20 years ago. Are we still following on old ruling which works then but not now?

- Buyer (DIY) has to pay 1% commission: You can choose not to but you might not get the flat you want. And i don't understand why i need to pay for the commission if i go find the flat on my own.

[lofi 0]

I find it weird too. Of course there are still good agents but they are probably like dinosaur these days.

There is no proper governance or regulation in Singapore real estate industry. The govt can say all they like but they have to come down to our level to understand us. Clearly, in my view, there is someone there not doing the job at all!

Practice that should be re-looked:

- Pay full commission on first appt: As a consumer, i don't feel good on this. Please, this is Singapore real estate!

- Pay 2% seller commission / 1 % buyer commission: Look at the absolute $$. Property price is no longer at those level 20 years ago. Are we still following on old ruling which works then but not now?

- Buyer (DIY) has to pay 1% commission: You can choose not to but you might not get the flat you want. And i don't understand why i need to pay for the commission if i go find the flat on my own.

Yes, I agree there are still good and ethical property agents around but for every one of such agent you name me, I can name you 8 unscrupulous agents. It is good to do some home work on your own so that you will not be taken for a ride if you come across any unscrupulous agent. And if you happen to meet an honest and ethical agent, do recommend him or her to your friends and relatives so that they can survive in their trade.

[bepgof 20]

Yes, I agree there are still good and ethical property agents around but for every one of such agent you name me, I can name you 8 unscrupulous agents. It is good to do some home work on your own so that you will not be taken for a ride if you come across any unscrupulous agent. And if you happen to meet an honest and ethical agent, do recommend him or her to your friends and relatives so that they can survive in their trade.

Last yr, the lady MP Lim HH already mentioned the gov (NDM, FM & IRAS) is "looking" into this and gov agreed that present one is not up to standard. Mah BT headed for HK to "steal" some "script" on this, is he back already?.

Just wait & see. Anyway, what can the gov do? Besisde liciensing individual agent with point system, exam entry test, refresher course & what else?

[therat 18]

should be still in HK

National Development Minister Mah Bow Tan will visit Hong Kong from Tuesday to Thursday.

[rawmeat 0]

most importantly, close down those 'shell' middleman agencies that made the real estate industry look as if there are some governance.... whereby, they're simply an avenue to protect agents against educated consumers...

on the point that i can insist...

well, it's a sad truth today.

if the seller's agent is unscrupulous, like me, he would make it very clear that you're not getting the house if you wish to have any neg other than the selling price.... especially for popular estates... just call any ads and ask what's the lowest price the seller is looking for, 90% of the time the agent you give you a ****ty reply asking you to look elsewhere.... if he's friendly, wait till you meet him and 90% of the time, this kind of agent will cheat the seller he represents by selling at low price if you agree to his commission.. end of the day the agent has everything to win... the selling price means few hundred to the agent only... as long as he sells, he's happy, who cares about the price.

just yesterday, i received several brochures... one from top agent in singapore (with an article from newspaper), another claims to be top agent (with pictures of the team receiving several prizes) of the estates.... both claimed to be able to sell the house at the best prices..

guess what, the prices that they listed to be the fetching price of my estate was lower than the valuations over the past 1 year... they simply copied from the net, and failed to notice that those units were all 1 to 5 floor and sold below COV.... gosh...

like what alvin mentioned, they are indeed true.. hdb used to sell for 60% of the current prices and in those days, 1 or 2% seems ok, and in those days... paperwork were more tedious and information weren't readily available online.

Since 5yrs ago, i could walk to HDB counter, get a copy of option to purchase, speak to the counterstaff forever and clarify all your doubts, all for free.

Do realise that we've MPs in real estate businesses, they know the tricks better than anyone else, so it's no longer ignorance on the government's part.

Agents should charge commission like fengshui masters.... put a price tag on yourself and see if people engage your services, if you're good, people will be willing to pay, if you're not, consumers are not force to pay. That's fair and square.

btw, those resources that someone was talking about only available to agents. Well, if it's only available to agents, it means it's not a good resource in today's context as it missed out the general public whom are the buyers. All resources should be available to all, that's called resources.

[seek_a_home 0]

I thought we pay commission after 2nd appointment?

Anyway i was lucky my personal friend was an agent and i got him to represent me for my recent sales and purchase of flat.

His story reconcile with most people's comments; some/most agent are crook, one way or another. He chose to be an ethical one, but he says

first 3 years, he really suck thumb for his sales cos good guys ended up last in this industry. But he is starting to reap rewards from 4th year on cos

his previous clients appreciate his works; they either recommend referral to him or go back to him again.

Actually one way of avoiding paying commission is to join an agency, learn the trade, and execute the transaction yourself. It's not difficult to pick

up, and can save quite a bit. I actually did that But did not follow thru the course

In the end still rely on my friend. Though got to pay the commission, i got a satisfactory return for my house.

[Plastic3 0]

He chose to be an ethical one, but he says first 3 years, he really suck thumb for his sales cos good guys ended up last in this industry. But he is starting to reap rewards from 4th year on cos his previous clients appreciate his works; they either recommend referral to him or go back to him again.

This is very true, people who enter this industry and choose to ethical need some kind of "backing" to survive the first few years...either have relative in the industry, have a good network of friends to work for or just plain lucky......most are unable to last.

Edited April 21, 2010 by Plastic3