Do U All Think I Need To Pay The Agt?

[Glamqueen 0]

I appointed Agt1 to sell my apartment 5 months ago. Though we never signed any agreement with him, I let him market my apartment without competition of another Agt.

Response was not very good and Agt1 kept telling me my apartment no good, hard to sell, blah blah blah. He keeps pushing me to rent out my apartment instead. But we really wanted to sell so we decided to press on, i.e. continue bleeding - service loan and got no rental income. No news from Agt1 for few weeks after that.

Later a friend recommended his contact to me and I contacted Agt2. Agt2 agreed to market my place but we did not talk about exclusivity. Agt1 soon found out that Agt2 was marketing my place and has renewed interest in my property. Both were marketing my property at the same time now.

With the competition, I can see Agt1 was more enthusiastic now. Finally, Agt1 came back with an offer which we were willing to consider. I called Agt2 and told him about the offer and he told me that he was working to get a higher price for me but if I cannot wait then its up to me to close the deal.

Anyway, we decided to go with Agt1 as there wasnt any other offers from Agt2. The cheque for 1% down was delivered to me last night at 9pm. This morning, Agt2 called me and asked me how and I told him that we were taking up the offer and he got angry.

He said he spend alot of time showing potential buyers my place and wanted me to compensate him for advertisementds, transport, time etc. No amount was mentioned when I asked him how much.

Now, the question is - Don't agents bear the cost of advertisments? Though I feel sorry for taking up his time, is it right of him to ask compensation from me?

U guys have any comments on this? I am quite torn now.

[raincole 0]

I believe that Agt2 should be pay as well since u did ask for his services. That's why I would choose 1 agent and stick with him throughout my "viewing session" then. I do not want to feel bad about wasting another agent time and $$. Maybe a token of appreciation instead of the usual commission based.

[zirhk3355 1]

Going by "black and white", the Agt2 totally has no case against you because he did not sign any exclusivity with you. This is his stupidity.

Going by business ethics, Agt2 also did not bring you any offers, PLUS you did prewarn him that you are going to close with Agt1, yet he had failed to persuade you to stay with him and even told you go ahead if you cannot wait. OMG, is that a threat?? Ok lor, so you now you really go for Agt1, what has he got to complain?

Thus, be it on black and white or ethics, you are in the right. He cannot tell you any amount is because there is no such legalities, regulations, policies or even market practice for an agent to demand such compensation from you.

I think the only reason why you should pay him anything at all is out of PITY, that you "kor-lian" him being so silly and inexperienced, so you give him some money as donation to his empty pockets.

[waileong 0]

Agents are paid commissions, not fees. So if there's no sale, they get nothing. Don't feel guilty, they are used to it.

[pebsb 0]

Agent 2 has no case against you.

Lesson learnt is that its better to appoint 1 agent as your exclusive (renewable/lapse after 3 mths). The agent will then serve in your interest (ensuring the best price). If its not exclusive, agents wont work as hard for you coz they know got other agents serving you, and they will focus on their own other exclusive clients.

[Glamqueen 0]

thanks guys for your feedback.

i had such a lousy day yesterday over this incident (heated argument with hubby) cos he was against me paying anything to agt2.

well, i have yet to hear from Agt2 and till then, i will play by ear.

[zirhk3355 1]

thanks guys for your feedback.

i had such a lousy day yesterday over this incident (heated argument with hubby) cos he was against me paying anything to agt2.

well, i have yet to hear from Agt2 and till then, i will play by ear.

Wow, I think you must have a soft heart.

Not that I am siding with your husband, but market practice is such lor. No transaction, no payment. There is no such thing as compensation one lor...

Is it because Agt2 comes from your friend then you feel guility? Just explain to your friend lor...

[HSH21 1]

Even if U signed the excutive with the agent... if he can't close the deal within the time (3 to 4 months)... U also won't pay him right ?? so don't feel bad... just that it is not his luck to close the deal...

[dizzy 1]

I also think you should not pay

[yoongf 11]

Any payment shd be based on contract. No black and white and no promises made, then no basis to pay.

[Glamqueen 0]

Wow, I think you must have a soft heart.

Not that I am siding with your husband, but market practice is such lor. No transaction, no payment. There is no such thing as compensation one lor...

Is it because Agt2 comes from your friend then you feel guility? Just explain to your friend lor...

yeah, actually this agt2 was recommended by a frd.

[lawry 3]

For buying house, you are free to engage any number of agents, whoever has the house you like at the right price gets the deal, there's no advertising cost involved, except asking you to view the houses.

But when it comes to selling, it's a different thing altogether.

The exclusivity practice is there for a good reason. Being the sole agent in charged of marketing your place during the contract period, he will have to pay to advertise, bring people down to view your house, transport, etc. He stands to gain 2% commission if he managed to sell your house within the contract period.

BUT ... if he didn't manage to sell after the contract expire, you have the right to either extend the contract if you still want to use him or terminate him if you think he's not good enough. NEXT, sign with someone more competent for the same process all over again.

Right now, for your case,

If you think agent 1 was incompetent, you should have signed the exclusivity with agent 2 and get him to handle instead, and you have to let agent 1 know about your decision. But instead, you got both agents to do the same thing, to be fair to them, only one of them will be able to close the deal, the other will lugi for nothing.

It's partially Agent 2's fault also, he should have asked if you signed exclusivity already or if you want to sign up with him first before commiting and doing all the leg work for you. Now that he done all the advertising, viewing and stuff, you tell him the deal is closed, but not with him .... of course he's not very pleased..

[zirhk3355 1]

yeah, actually this agt2 was recommended by a frd.

You must differentiate between friends and business lah. Somemore its not your friend, right? Just another agent intro by your friend...

Put it this way, if you had waited for the Agt2 to come back with better deal, it means you will lose the potential buyer that Agt1 is showing you.

Then if Agt2 didn't manage to come back with better deal after all, what will he do? Will he compensate you?? Or is he just going to tell you sorry? And will you then forgive him just because he is intro by your friend?

Same here; you are only protecting yourself going by first-come-first-serve basis. This is business - in every industry, people DO lose business just because they are slow and they have no one else to blame. Agt2 cannot expect you to compensate him for his own incompetence and slow work.

Edited April 20, 2007 by zirhk3355

[raincole 0]

yeah, actually this agt2 was recommended by a frd.

Do what you think is right. You should know the whole story.

[HSH21 1]

The exclusivity practice is there for a good reason. Being the sole agent in charged of marketing your place during the contract period, he will have to pay to advertise, bring people down to view your house, transport, etc. He stands to gain 2% commission if he managed to sell your house within the contract period.

If you think agent 1 was incompetent, you should have signed the exclusivity with agent 2 and get him to handle instead, and you have to let agent 1 know about your decision. But instead, you got both agents to do the same thing, to be fair to them, only one of them will be able to close the deal, the other will lugi for nothing.

One of the unit that I nearly close the deal... the seller didn't sign exclusive with any agent... he only told ALL agents that whoever sold his unit... he would pay them 0.5%... my agent still advertised for this unit... and brought many buyers to view the unit too...