How would you handle this agent?

[Leeds]

Agent claimed that bank valued this FH apartment at $1.2m. Owner only asking $1.1m. Two offers rejected at $1.05m and $1.07m. Agent said that owner would let go at $1.07m if buyer pays the agent commission at 2%. Are all these numbers all real in the first place? How would you negotiate under such conditions?

[Poloclub]

Agent claimed that bank valued this FH apartment at $1.2m. Owner only asking $1.1m. Two offers rejected at $1.05m and $1.07m. Agent said that owner would let go at $1.07m if buyer pays the agent commission at 2%. Are all these numbers all real in the first place? How would you negotiate under such conditions?

If he is not the exclusive agent then you can try with other agent. Or perhaps even use an agent to find out more information about the rock bottom price.

[TheOnlyGayInTheVillage]

First you cant verify what the agent say about other offers. Unless you get a friend to pretend offer 1.08 and see if he tells the same to you. Even so theres no guarantee the other offers made before were genuine. Second, buyer not obliged to pay any agent comm, by right.

[Regulators]

If the property owner occupied, write a letter to the owner and tell him what happened, if the owner is prepared to sack the agent, give owner the option of dealing directly with you. Leave him your number or email.

[buttercarp]

Agent claimed that bank valued this FH apartment at $1.2m. Owner only asking $1.1m. Two offers rejected at $1.05m and $1.07m. Agent said that owner would let go at $1.07m if buyer pays the agent commission at 2%. Are all these numbers all real in the first place? How would you negotiate under such conditions?

Sounds fishy.
Buyer not obliged to pay agent commission.
I think the seller and agent in cathoots?
If you are really interested, why not offer the buyer $1.07m + 2% = $1.0914 m and see what is the outcome.

[TheOnlyGayInTheVillage]

If the property owner occupied, write a letter to the owner and tell him what happened, if the owner is prepared to sack the agent, give owner the option of dealing directly with you. Leave him your number or email.

Actually hor, I wonder anything to stop buyer from direct dealing with owner after one viewing of the place... For non exclusive case la. Hmmm.

[Regulators]

No restriction, just let the exclusive agreement between agent and owner expire, but many a time, the owner would still go with the agent to let him handle all the paper work. If you can convince owner in the letter that it is simply letter the lawyers handle the paperwork, then he might consider.

[silver023]

I think it's quite unlikely the owner will pay 2% comm if selling under bank valuation. Tell the agt to take it or leave it, or find another agt who's marketing it

[roly8]

at the at of the day, the agent is want to make more commission out of it.
2% of 1.2million is definitely more juicy than 2% of 1million

[minority]

Agent claimed that bank valued this FH apartment at $1.2m. Owner only asking $1.1m. Two offers rejected at $1.05m and $1.07m. Agent said that owner would let go at $1.07m if buyer pays the agent commission at 2%. Are all these numbers all real in the first place? How would you negotiate under such conditions?

This is greed. Unless owner is hard up to sell. If not in the end agent make from the buyers and seller. 2%+2%. That is very good.

if u count the 2% is how much of seller profit.. can be as high as 10% of sellers profit.!

[howgozit]

offer $1M .... seller showing signs of desperation.

[Laguna]

I always get a separate valuation and offer lower

[lifeline]

no comments on the scenario, except to share that the commissions for all the transactions by friends and myself have always been 1% and not 2%.

[House]

1) call up your banker and ask for valuation

2) give CEA a call, most likely they will send a "buyer" to give agent a offer.
Under CEA law, agent is obliged to let seller know all kinds of offer, high or low or even ridiculous offers.

* never never believe in such crap as "seller already rejected X dollars offers"

[blackjack21trader]

I already told u all- many inexperienced first time landed property owners in the market now. I met like 3 newbie since last year who bought landed to rebuild but they had no prior experience or idea. 2 of them told me they overshot their construction budget. I tell you guys, be patient if you are looking for landed, I think the first weak holders who cannot tahan will make the first fart end of this year.

WOAHAHAHAHAHHA

[yowetan]

I already told u all- many inexperienced first time landed property owners in the market now. I met like 3 newbie since last year who bought landed to rebuild but they had no prior experience or idea. 2 of them told me they overshot their construction budget. I tell you guys, be patient if you are looking for landed, I think the first weak holders who cannot tahan will make the first fart end of this year.

WOAHAHAHAHAHHA

Hi.. Do you see Mt Sinai landed will have a margin call or correction?

I am currently exploring Mt Sinai area.

[danieltangtc]

Hi.. Do you see Mt Sinai landed will have a margin call or correction?

I am currently exploring Mt Sinai area.

My dear friend, for your info, the cheapest smallest mt sinai interterrace at 1700+ sqft was going near 2.5 m near end 2009 when i was looking at it. This same house would be around 3.5 to 4 m now. even if it corrects 50%, I feel its out of your budget for now.

[zzz1]

Agent claimed that bank valued this FH apartment at $1.2m. Owner only asking $1.1m. Two offers rejected at $1.05m and $1.07m. Agent said that owner would let go at $1.07m if buyer pays the agent commission at 2%. Are all these numbers all real in the first place? How would you negotiate under such conditions?

They tried to guide u to their expected price. Do u research on the area and make your offer, don be influenced by their numbers . They will response if they are hungry to let go...

As for the comm, don be borther . U don have a contract to the deal. Is between the seller and their agent.

[Sleepyhead]

Sounds like agent trying to earn both ways. Don't fall for it!!

Agree with another post here that commission should only be 1%.

[ZeeWee]

Under CEA ruling and based on scenario

The agent (since he marketing the unit so must be acting for seller right?) can only collect commission from the seller as this agent will be protecting the seller's interests.

Also there's no rule and regulation to state agent can/cant collect commission from buyer or even seller. As long as the job is done, especially if well done, and both parties come to an agreement, the commission part should be flexible

In the above scenario if I am the buyer and I have an agent, I would give my agent commission if he can negotiate a price of $1mil or $1.05mil for me. This will ensure the agent working in my best interests and haggling for the best price as well

My

[Komo]

double agent sure conflict of interest

[aowtab]

I came across something like this about 3 years ago...i would offer 1M on 3% commission and if it's doesnt get thru the deal, that will mean that the agent and the seller is the same person. No agent will refuse a higher commission on a lower offer price !!

[Leeds]

Thank you for all the sharing. Never knew there were so many ways to skin a cat.

The agent has been requesting me to make any offer for her to put up to the owner. Wonder why this change of tactic now? Never mention about the commission issue now.

[minority]

frankly resale is slow now. its buyers market. as long u are not hard up. refuse and stick to ur asking price that u think its worth.

[TheOnlyGayInTheVillage]

Thank you for all the sharing. Never knew there were so many ways to skin a cat.

The agent has been requesting me to make any offer for her to put up to the owner. Wonder why this change of tactic now? Never mention about the commission issue now.

Show her some color. Offer even lower than before. Said the delay resulted in you missing out other oppprtunities.

[howgozit]

To each his own, but this is spoiling the market lah.... no need to offer agent anything

I came across something like this about 3 years ago...i would offer 1M on 3% commission and if it's doesnt get thru the deal, that will mean that the agent and the seller is the same person. No agent will refuse a higher commission on a lower offer price !!

[aowtab]

To each his own, but this is spoiling the market lah.... no need to offer agent anything

my point is not pay any commission but to get a sense of where the true players are

[ysyap]

From what I perceive, its a very straight forward deal. Seller wants to sell at $1.1mil so he can pay his agent the comm (i.e. $1.1mil - 2% comm = $1.078mil for buyer). But lousy agent just don't know how to put it in words so end up implying buyer must pay comm. Agent just say $1.1mil can already lor...

If agent really want to earn from both sellers and buyers, then can report and her license can be revoked so I think she's not so naive or stupid to risk it, right???

[ysyap]

Oh yes... 2% comm is way out lah... last time 2% comm is decent for the work done coz housing prices were like $800k (4 yrs back) but today, similar units are going for $1.54mil and still 2% comm??? 1% should be sufficient...

[House]

If agent really want to earn from both sellers and buyers, then can report and her license can be revoked so I think she's not so naive or stupid to risk it, right???

you wont believe how GREED could turn a normal human being into a first class moron.

already got many agents kena napped for collecting commission from both sides