Results 1 to 10 of 10

Thread: Buying or selling a property? Beware of these dirty tactics from some agents

  1. #1
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default Buying or selling a property? Beware of these dirty tactics from some agents

    In today’s competitive services market, real estate agents are not only caught in the strife of industry competition, they also have to grapple with being made redundant by technology. To say that there are many real estate agents in Singapore is an understatement — there are more than 28,000 licensed agents or about 1 agent serving every 140 residents; and this is probably the principal cause of the stiff competition in the industry. The competition is exacerbated by the growing number of buyers, sellers, landlords and tenants who opt for self-service through web applications. We are concerned that some agents have compromised their integrity and their “duty of care” for their clients in order to trump the competition.

    So, buyers, sellers, landlords and tenants: beware! We want to highlight to you that many of the listings on property portals and websites are not real. Those seemingly attractive and enticing deals may just be potholes for you to step into. We have encountered several of these unfortunate events ourselves, and in this article, we highlight some red flags that you should keep a lookout for. It is vital that you take precaution to ensure that you do not fall into the traps created by a few crafty agents.

    Scenario A — Fake news and listings are increasingly common: The agent you call does not have

    an actual listing of the property you saw online.

    A property listing is an advertisement of a property that is put up for sale or for lease. Listings may appear on property portals or in traditional print media, such as the classified ads in the newspapers. Sellers and landlords may appoint one or more licensed real estate agents to list the properties to attract buyers and tenants. Conversely, buyers and tenants may also engage real estate agents to source for suitable properties that meet their budgets and needs.

    To think that all listings of properties are genuine and available at any point in time is to picture a world of sunshine and rainbows. The sad truth is: there are many cases of fake listings put up to bait direct buyers and tenants.

    We term these fake listings “imitations”. Why so? They look almost identical to other real listings, but upon careful inspection, something may be amiss. These imitations sometimes use photos or descriptive information copied from listed properties posted by other property agents. Sometimes, even after a property has been sold, unscrupulous agents might copy the property’s photos for use in their fake listings. We have experienced several of such cases and we have highlighted these imitations to the owners of the apartments. These agents would quickly remove the imitations after the owners have called to inquire if the agents were given the permission to represent them for sale or for rent.

    Usually, imitations use very attractively low prices to entice buyers and tenants because they look like “good deals that should not be missed”. Then when direct clients call these agents to enquire, the usual responses are that the property is “sold” or “taken” or “no longer available”, and the agents will immediately ask, “May I show you another apartment in the same block?” If the agent received calls from other property agents who are representing buyers, they either do not pick up the calls or they do not return calls. This is commonly seen in districts 9, 10 and 11 where transaction values are higher and the probability of attracting unsuspecting foreign buyers and tenants is likewise higher. Higher value properties also translate to a higher quantum of the 1% agent fees, which is sufficiently rewarding for the agents to put in efforts to pull such tricks.

    We estimate that up to 20% of the listings posted online are not genuine. The percentage could be higher for luxury developments. Buyers who receive such replies from agents should immediately congratulate the agent that the property is already sold or leased out, and then hang up the phone. To avoid being further prospected by that agent, buyers would do well to appoint a trustworthy agent to do their home search. Let your agent represent you and let him sieve out and deal with the numerous imitations in the property portals.

    Scenario B — The agent has actual properties to list, but the information is misleading

    Fake-lister agents deliberately post listings of properties with incredibly low prices to attract direct buyers and tenants. Unsuspecting buyers and tenants will then ring the agents up because they may reflect the lowest dollar per square foot price ($psf) or rental for that condominium unit. The $psf may give a different impression in different contexts. For example, if a buyer wishes to compare prices in the same district or perhaps properties with similar attributes but in different condominium blocks, $psf will be a key metric in measuring the relative value of the properties.

    Merely showing the buyers how cheap a property is based on $psf comparisons without describing much about the size and layout of the property does not reveal much about whether the property is really well-priced.

    The buyer may see an advertisement for a 750 sqft apartment for sale at $980psf (i.e. $735,000) in a condominium where the average transacted prices in the last year were around $1,200 psf. It gives the impression of a $220 psf discount from the recent transacted average. However, only when the buyer views the apartment will he realize that the very “cheap” 750 sqft apartment is a shoebox unit with 450 sqft of built-in area, a 260 sqft patio and another 40 sqft air-conditioner ledge. Or it could be a “penthouse” unit with 400 sqft of built-in area, a 300 sqft roof terrace and a 50 sqft stairwell. The low $psf price is deliberately highlighted to create the impression that the property is a great buy. Buyers and tenants, do take note! Many other variations of the same pattern exist. Most times, information that is not revealed is more important than information that is highlighted.

    While some agents withhold information, other agents offer a lot of information about the properties to show how knowledgeable they are about a particular condominium or district. They would purposely post many listings in a particular district they claim to be active in, to impress upon prospective buyers and tenants that they “specialize” in that neighborhood. Unsuspecting clients may be dazzled by these agents, but tell-tale signs could be seen from their overenthusiasm. For example, in a listing for a condominium in Sentosa Cove, the agent included a description “near HarbourFront MRT Station”. An agent who understands the needs of the residents in Sentosa Cove will not highlight the MRT station, and will certainly not say that HarbourFront Station is near.

    While we would love to believe that some agents are really familiar with certain districts or market segments, we need to be mindful that many of them just want to create that impression so that they have a higher chance of being contacted by prospective clients.

    We have merely touched on a handful of examples of the many patterns we have encountered. To discuss all the cases we regularly see will require too many pages. The ultimate aim of these agents is simple: to cut out other agents in order to get direct clients to call them, to swing these clients to their own actual listings or to get the clients to appoint them as a buyer’s representative.

    Unfortunately, in trying to outwit the competition, they create misinformation in the market. In the speech on Budget 2017, the Minister of State for National Development Dr Koh Poh Koon spoke about how “it may be more important for property agents now to hone their skills in servicing clients and building up their credentials rather than just competing on marketing and closing transactions.” We wish that more agents will adopt this attitude and compete on service, rather than conjuring smoke and mirrors.

    We at HugProperty are deeply concerned about the clients’ interest and we wrote this piece to raise awareness about the patterns displayed by dodgy agents to fend off competition. We recommend clients to carefully select an agent that they feel comfortable with and to appoint the agent exclusively to represent them, whether it is for a property search (for purchase or rent), or to list a property (for sale or let). The appointed agent will be fully motivated to represent the clients’ best interests and diligently assist clients in marketing or searching for properties.

    More importantly, your exclusive agent will be able to ward off the dodgy agents with colorful patterns.

    Postscript: While we were researching and preparing this article, the Council for Estate Agencies published a disciplinary case in their 02/2017 newsletter titled “Cost of misleading and false ads – $17,500”. The CEA highlighted several cautionary points arising from the errant property agent’s actions: placing fake or dummy advertisements, placing advertisements without property owners’ consent and omitting mandatory details in advertisements. Readers who are keen to know more about the case may refer to the online newsletter here.

    Co-authored by Mr. Ku Swee Yong, Co-founder of HugProperty with Janice Chin Li Ping, undergraduate from the Department of Real Estate, National University of Singapore.

    https://www.propwise.sg/2-deceitful-...operty-agents/

    Last edited by Arcachon; 15-08-17 at 05:27.

  2. #2
    Join Date
    Jun 2009
    Location
    Southbank
    Posts
    9,531

    Default

    https://www.cea.gov.sg/docs/default-...false-ads.html

    Cost of misleading and false ads - $17,500


    All online ads should be posted only with the property owners' consent and should not feature false or misleading information.
    Placing fake advertisements. Placing advertisements without property owners’ consent. Omitting mandatory details in advertisements.

    These offences cost Javiera Tan Xian Ming a hefty $17,500 in financial penalties. CEA’s Disciplinary Committee had found her guilty of several breaches to the Code of Ethics and Professional Client Care (CEPCC) and Practice Guidelines on Ethical Advertising.

    We take a closer look at Tan’s case and highlight what you should do when placing advertisements for your clients.

    Advertising without consent

    Tan posted numerous property listings online, advertising specific properties available for rent in various areas.

    Investigations revealed, however, that the property owners did not engage Tan as their property agent nor give her their consent to advertise their property for rental.

    Tan was sentenced to a financial penalty of $9,000 for three charges of breaching the CEPCC and Practice Guidelines on Ethical Advertising by advertising that properties were available for rent without the owners’ consent. The Disciplinary Committee took into consideration 12 other similar charges when sentencing Tan.

    Learning points

    You must obtain written consent from property owner(s) before advertising any property for rental or sale.

    For the consent to be valid, you must inform the owner in writing of your name and registration number prior to the property owners giving their written consent.

    If a property agency appoints a group of property agents to market a property, the agency must present the names and registration numbers of all the agents to the property owner for written consent.

    To determine the owners of a property, conduct a title search via the Integrated Land Information Service.

    Placing dummy ads

    Tan also advertised online that she had various properties available for rent near various MRT stations, when there were in fact no such properties available.

    Tan claimed that she wanted to publicise the areas she specialised in and had no intention of misleading the public.

    Tan was sentenced to a financial penalty of $4,500 for three charges of breaching the CEPCC and Practice Guidelines on Ethical Advertising by advertising that there were properties available for rent when she did not have any. The Disciplinary Committee took into consideration 12 other similar charges when sentencing Tan.

    Learning points

    You must ensure that advertisements do not contain any offer, proposal, statement, representation, claim, or information that is inaccurate, false, or misleading.

    Property agents who falsely advertise properties through dummy advertisements are misleading the public for their own benefit, be it to fish for potential clients or increase publicity for the areas or services that they specialise in.

    Advertising without correct and clear identification

    In her advertisements, Tan did not state her CEA registration number nor the licence number of her property agency. She also did not identify herself by the name "Tan Xian Ming" that she had registered with the CEA in the advertisements.

    Tan was sentenced to a financial penalty of $4,000 for breaching the CEPCC by failing to ensure that she was correctly and clearly identified in the advertisements by omitting her CEA registration number and her agency's licence number. The Disciplinary Committee also took into consideration a charge against Tan for not using her registered name with the CEA in her advertisements.

    Learning points

    When placing advertisements online, you must state the following information:

    Your registered name with CEA
    Your CEA registration number
    Your contact number as registered with CEA
    Your property agency
    Your property agency’s licence number
    Find out more about the dos and don’ts of advertising:

    Code of Ethics and Professional Client Care (CEPCC)
    Practice Guidelines on Ethical Advertising
    Frequently-asked questions
    Selected graphics created by Freepik

    https://www.cea.gov.sg/docs/default-...ommission.html

    https://www.cea.gov.sg/docs/default-.../read-win.html

    https://www.cea.gov.sg/docs/default-...or-agents.html
    Last edited by Arcachon; 15-08-17 at 05:36.

  3. #3
    Join Date
    Jul 2015
    Posts
    484

    Default

    please lor. Those are perennial tactics by agents to get people to call in. It's not so bad here. Wait till you meet true cowboy agents from elsewhere in this region.
    From my observation, srx listings are quite kosher, while propertyguru has lots of fake listings.

  4. #4
    Join Date
    Jul 2016
    Posts
    145

    Default

    Yup I do not trust property agents anymore. Used to call them and they gave the very kuai lan attitude and first reply was are you an agent. When they realized you are buyer or seller, they immediately switched tone and became your best buddy. WTF?!!!!

  5. #5
    Join Date
    Dec 2008
    Posts
    3,721

    Default

    Tech disruption should make agents redundant. Hopefully sooner rather than later.

  6. #6
    Join Date
    Jul 2016
    Posts
    145

    Default

    Quote Originally Posted by august View Post
    Tech disruption should make agents redundant. Hopefully sooner rather than later.
    Unfortunately for big ticket item like property, many people still prefer the human touch. Especially for the lazy and uninformed ones. But I do agree tech disruption would and should replace those agents in the long run.

  7. #7
    Join Date
    Feb 2009
    Posts
    5,837

    Default

    Quote Originally Posted by frumnat View Post
    Yup I do not trust property agents anymore. Used to call them and they gave the very kuai lan attitude and first reply was are you an agent. When they realized you are buyer or seller, they immediately switched tone and became your best buddy. WTF?!!!!
    Not so bad lah

    Agents ask if you are agent or client is becos , there are other unscrupulous agents who pretends to be client, fish out the listing agent's property detail and then approach the owner ..thats why to protect themselves from other agents, they always ask first..This i can understand and accept.

    the worse are those agents...you email and call ...they dont even reply ...

    there was this lady agent ..Sophia Yxxx from DWG ... this June i called (until cut off ) twice, emailed her twice ... NO REPLY AT ALL
    yet everyday she continues to advertise..

    then she disappeared.

    In Aug, appeared again ... this time she in Propnex ... same thing ... no reply ... i really dont understand why she bothers to advertise ..

  8. #8
    Join Date
    Feb 2009
    Posts
    5,837

    Default

    The article introduces HUGPROPERTY...

    claiming to be FREE, matching buyers with sellers ...

    How do they make money ?

    If i am not wrong, in order to use it, one has to pay a fee first.

    It may be a small amount, but no guarantee the match will result in a transaction.

    So they collect commission upfront, correct ?

    While going thru agent, you dont pay until a deal is done.

    I still prefer to do my own ground works, and let my agent does the negotiation and do the paper work.

  9. #9
    Join Date
    Aug 2017
    Posts
    15

    Default

    Quote Originally Posted by proud owner View Post
    Not so bad lah

    Agents ask if you are agent or client is becos , there are other unscrupulous agents who pretends to be client, fish out the listing agent's property detail and then approach the owner ..thats why to protect themselves from other agents, they always ask first..This i can understand and accept.

    the worse are those agents...you email and call ...they dont even reply ...

    there was this lady agent ..Sophia Yxxx from DWG ... this June i called (until cut off ) twice, emailed her twice ... NO REPLY AT ALL
    yet everyday she continues to advertise..

    then she disappeared.

    In Aug, appeared again ... this time she in Propnex ... same thing ... no reply ... i really dont understand why she bothers to advertise ..
    I can identify with frumnat and also with you. Most property agents are very guai lan initially until they know you are genuine customer. Also many fake listings just to fish for leads. I really bey tahan such 'crooks'.

  10. #10
    Join Date
    Aug 2017
    Location
    Marina One Residences
    Posts
    4

    Default

    While selling and buying your property you should keep in mind. You should not use mediator while selling or buying your property. You should keep away your self from mediator .

Similar Threads

  1. Fear of missing out? Beware agents' hype on new home sales and prices
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 25-06-20, 12:43
  2. Beware of Dishonest Property Agents!
    By Aquablade in forum Singapore Private Condominium Property Discussion and News
    Replies: 9
    -: 17-06-14, 02:37
  3. Role and responsibility of lawyers when buying/selling property
    By ccc in forum Singapore Private Condominium Property Discussion and News
    Replies: 8
    -: 05-07-11, 05:59
  4. Other dirty tricks some agents play
    By mr funny in forum HDB, EC, commercial and industrial property discussion
    Replies: 1
    -: 09-02-09, 01:15
  5. Dirty Property Agents marketing Belvedere
    By The Belvedere in forum District 15
    Replies: 39
    -: 21-09-08, 19:22

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •