Engaging Agent In Sale Of Flat

[nyssa 0]

Hi, would like to know what is included when we engage agent to deal in the selling of flat. I had heard that the agent will pay for the valuation cost. Also heard of cases where the agent will engage cleaners to clean up the flat before putting it on sale.

Is there a clause that I must sell the house within a certain period even if the price that I want is not met?

[therat 18]

First,

Valuation report is PAID by buyer not Agent.

If agent want to paid.. that is his service. There are no rule or requirement say.. agent MUST paid valuation report.

However In HDB rule, it stated Buyer has to pay the valuation report

As for the clearing part, that is up to the agent. If the agent want to provide a 8 star hotel service. That is his service.

DON'T expect all agent MUST or DIE DIE or HAVE to provide such service.

Is there a clause that I must sell the house within a certain period even if the price that I want is not met?

No. You are the owner, If you feel the price is not right. U had the right not to take up the offer.

But note, valuation report only last 3 mth, when 3 mth up, you need to do the valuation report again if you want to sell.

[nyssa 0]

Hi, I did not expect anything I am only checking what is the norm.

[therat 18]

norm is

engage seller agent

apply valuation report to be done. get appointment for the visit.

seller agent do marketing

arrange for viewing.

buyer offer

seller like the price, take it. Don't like the price, reject it. Ask buyer to up their offer to match your wish price

when both price meet.

buyer give $5k (max) for OTP.

Seller has 7 days cooling period.

After 7 days cooling period, seller decide to take up the offer. Take the CHQ, sign OTP, pass to buyer

Buyer got 2 weeks to exercise the OTP.

Once OTP exercise

Agent submit for first appointment.

I think there is a checklist for buyer and seller before seller issue OTP to buyer...

I think sth like this..

base on my memory

[benauhc 3]

Hi, would like to know what is included when we engage agent to deal in the selling of flat. I had heard that the agent will pay for the valuation cost. Also heard of cases where the agent will engage cleaners to clean up the flat before putting it on sale.

Is there a clause that I must sell the house within a certain period even if the price that I want is not met?

Hi nyssa,

If you wish to engage an agent, please go with someone you fully trust and who is honest. During our house hunting and selling process, we met many agents who will wheel and deal to earn a commision from walk-ins (those without agents) , at the expense of their own seller or buyers.

Usually a seller agent will try to get you to sign an exclusive contract, meaning he/she will be the sole agent for your unit for a specified time. In that contract, they will commit to advertise your unit using different mediums. You will also need to put in a sell price in that contract, which you will commit to sell if the agent gets a matching offer. You can choose not to sign as exclusive, and get more agents to market your unit, but that means those agents can stop marketting your unit anytime too.

You can also choose to do the sale on your own like us. That will mean more work in reading up HDB policies and advertising on your own, but at least you are not at the mercy of any one agent.

Like therat said, agents will help you pass the valuation cost to the buyer. Get it done so you can set your expectation before you talk to an agent.

All the best in your sale!

[therat 18]

Like therat said, agents will help you pass the valuation cost to the buyer. Get it done so you can set your expectation before you talk to an agent.

Not pass the valuation cost to the buyer.

Seller need the valuation report to get an idea how much the flat worth. So that seller know how much COE to ask.

Buyer need the valuation report to apply their loan.

Buyer paid the report b'coz they need the report to apply their loan.

Unless the buyer paid in CASH. Didn't use CPF, didn't take loan. Then buyer no need to buy/paid that valuation report. B'coz it is useless to them.

OR

The buyer want to do another new valuation report, hope the 2nd valuation report price will be higher so that they had get more loan, less COE.

When it happen, buyer only paid 1 valuation report price. NOT 2.

[Roflmaoxz 0]

I thought now new rule agent cannot represent both seller and buyer for the same transaction?

[therat 18]

I thought now new rule agent cannot represent both seller and buyer for the same transaction?

correct.

If you refer to benauhc post mention

During our house hunting and selling process, we met many agents who will wheel and deal to earn a commision from walk-ins (those without agents) , at the expense of their own seller or buyers.

I believe his purchase was done before the new rule kick in.

It happen to me when I hunt for a resale flat.

The seller agent even told us that he block all buyer who has agent represent.

He prefer us b'coz we are walk in customer.

And he also told us, there are 2 walk in customer.. - us and another family but he don't like the other family b'coz the husband very proud. Give statement like, money is not an issue. I had money.

The seller agent don't like his tone and feel like he will be a difficult customer.

However the main reason he prefer us is..

We has a place to stay and we don't urgent to move in.

His seller is doing contrac - sell first then look for a house. This will result more time is needed b'coz they still need to reno their new house.

The other family - sold their private house and need a place to stay ASAP.

Imagine..

I exercise my OTP on Sept, give seller 30 days to submit for 1st appoint.

1st appoint at Jan

2nd appoint at end Feb

Their intital request for extend from 1mth to 3 mth

May then I can start reno my house.

Then my reno contractor take his own sweet time to do.

By end July, 1 week before hungry ghost , then I can move in.

From Sept to next July - nearly 10 mths.

We has the time for the seller.

[benauhc 3]

therat, you are right about instances when the buyer may not pay for the seller's valuation.

on the rule regarding agent not being able to represent both seller and buyer, they get around it now by asking their sidekicks/colleagues to represent the other party. They then get a cut of the commission. There was a recent case in the papers where an agent was fined and suspended for doing such a thing and was reported by the seller.

[nyssa 0]

Thanks all for your advice. I am going to meet an agent soon. But am wary of hard sell methods or trick into signing anything that I should not have signed.

Can I check for the exclusive terms, is there a period of time limited to the contact? What if after 3 mths and the house is not sold. Can I terminate the agent? Or is it a must to give it to the same agent?

[therat 18]

Thanks all for your advice. I am going to meet an agent soon. But am wary of hard sell methods or trick into signing anything that I should not have signed.

Can I check for the exclusive terms, is there a period of time limited to the contact? What if after 3 mths and the house is not sold. Can I terminate the agent? Or is it a must to give it to the same agent?

base on my understanding,

exclusive is 3 mth.

May be 1-2 wk before 3 mth end, you can decide whether you want to continue give exclusive to the same agent or change agent,

If you want to continue the same agent, u need to sign another exclusive .

However, IF eg

a buyer was bring in during the 1st exclusive agent time and only make decision to buy during the 2nd exclusive agent. U need to paid the 1st exclusive agent commission.

I don't know whether you still need to pay the 2nd exclusive agent. This area, I don't know.

[sxiixs 0]

exclusive is not binding, if you feel that the agent is not doing his job,

e.g. no action, no viewing, no communication with you

you can always terminate his exclusive by writing.

Do your homework and decide on your own what is an achievable selling price,

check HDB website, check newspaper to see what is the surrounding asking.

Remember, you are the owner, the agent work for you.

Good Luck!

Edited March 28, 2013 by sxiixs

[melony 0]

to be frank i am abit piss off with some property agent.

Sometime u willing to lower the price yet they still advertise the house at a higher price so that they can have a higher agent commission. which in the end to owner not able to sell the house first. And there are some agent just ask u to go submit valulation request yourself etc. Just help u submit checklist nia alreay asked u if i m going to pay them 2% as agent commission.

Dunno what kind of agent is this. I decided to find my own buyer then settle the price then hand over to a agent to just settle the paper docs.

[benauhc 3]

to be frank i am abit piss off with some property agent.

Sometime u willing to lower the price yet they still advertise the house at a higher price so that they can have a higher agent commission. which in the end to owner not able to sell the house first. And there are some agent just ask u to go submit valulation request yourself etc. Just help u submit checklist nia alreay asked u if i m going to pay them 2% as agent commission.

Dunno what kind of agent is this. I decided to find my own buyer then settle the price then hand over to a agent to just settle the paper docs.

Hi melony, if you have an agent who is not serving you right, get him/her replaced immediately. Not worth paying 2% for one if you have to find your own buyer.

If you decide to save on the 2% and serve yourself, your best chance of finding a buyer is thru' the newspaper or property guru (only agts can advertise). I chosed this route when selling my own unit.

[Nipponho 0]

Hi benauhc,

If I want to follow like u, diy without engaging an agent, do u think the HDB monthly seminar will be helpful? Worth attending? I am thinking of selling.

I called HDB hotline and was told that everything I need to know about diy is already on website. If anything not sure, can call them and ask.

I roughly glanced through the procedure. Doesn’t look difficult at all. But everyone is using agents.