Newbie
I have put up my unit for sales at view2offer some time ago.... quite a numbers of request to sign exclusive w them, however ignore their pro.
Just 14 days ago.
Changed my mind and would like to try "Exclusive" to a agt for the very first time...........
Eager to wait for him to call me for "OFFER".....
Newbie
Downside of signing exclusive: If your exclusive agent sits on it and never market your unit, then for the next 2to 3 mths, your unit will be stucked. Other agents who bring in potential buyers will walk away cos they hv to co-broke with the exclusive agent.Originally Posted by Ronan Loh
I have put up my unit for sales at view2offer some time ago.... quite a numbers of request to sign exclusive w them, however ignore their pro.
Just 14 days ago.
Changed my mind and would like to try "Exclusive" to a agt for the very first time...........
Eager to wait for him to call me for "OFFER".....
Without doing anything, your exclusive agent gets half the commission.
Newbie
What are the rates for seller's agents now? for exclusive or otherwise?
Newbie
Rent at 2007 on my own . Sold once at 2009 on my own as well.
Hope "exclusive " works.
Junior
Guess depends on your price also, if you are those Sail owners that keep dreaming of 4k, even 10 exclusive agents also can't do much
Junior
Btw guess your property is in D9 instead of D15......
Newbie
NEVER give an exclusive ! Agent will not sell !!!!!!!
Newbie
You guessed wrongly, his property is in D15.
Newbie
Right, if you price it lower than market, no need agent oso can sell by itself. If you price it higher than market, exclusive or non-exclusive agents oso hard to sell. Doesn't matter which District, it's all the same.
The only good thing abt using agent in selling is the ability to tap into their client database. They do all sorts of marketing like email / sms blasts to all those potential buyers who went to view showflats.
Other than that, the rest of the marketing: Internet / newspapers advertising, you can do it yourself.
Another bad point about using agent (especially the exclusive ones), they will side the buyer more than you, and will try to close the deal fast by driving down your asking price with lower offers. They will tell you not many buyers, bank valuation cannot match and all sorts of excuses. To the agent, their commission is only 2%. So close the deal at $2M or close the deal $1.8M => the difference in their commission is merely $4K but your sales proceeds is lesser by $200K!
Senior
It is also about Location and the potential of it. D15? Just too many. Agent prefers to chase for hot and new development in super prime district.Right, if you price it lower than market, no need agent oso can sell by itself. If you price it higher than market, exclusive or non-exclusive agents oso hard to sell. Doesn't matter which District, it's all the same.
The only good thing abt using agent in selling is the ability to tap into their client database. They do all sorts of marketing like email / sms blasts to all those potential buyers who went to view showflats.
Other than that, the rest of the marketing: Internet / newspapers advertising, you can do it yourself.
Another bad point about using agent (especially the exclusive ones), they will side the buyer more than you, and will try to close the deal fast by driving down your asking prices with lower offers. They will tell you not many buyers, bank valuation cannot match and all sorts of excuses. To the agent, their commission is only 2%. So close the deal at $2M or close the deal $1.8M => the difference in their commission is merely $4K but your sales proceeds is lesser by $200K!
Newbie
Really? Nah...recent One Amber (D15) fire sale 21 units clearing at $1100 psf wor, 17 units gone within a day. You tell me is price more important or location when it comes to selling?
If location is most impt, then u try selling Orchard Rd condos at $5K psf, see how long it takes?
And there are 2300 units in D15 in the pipeline vs 2045 units in D9 in the pipeline. Is D15 "just too many"?
Last edited by Blue; 09-04-10 at 11:59.
Newbie
Giving exclusive or not has it own pros and cons.I have put up my unit for sales at view2offer some time ago.... quite a numbers of request to sign exclusive w them, however ignore their pro.
Just 14 days ago.
Changed my mind and would like to try "Exclusive" to a agt for the very first time...........
Eager to wait for him to call me for "OFFER".....
a simple example
I am your exclusive agent marketing your property below
and your asking price is 1M and the comm you offer me is 2%
of selling price.
Offer A from direct buyer : 950k (my comm is 2%, = 19k)
Offer B from Co agent : 1M ( my comm is 2%, =20k divide by 2 = 10k)
Do you think i'll table offer A to you or offer B?
so do you really think an exclusive agent will get you the highest offer
or the offer that yield him the highest comm?
Junior
Where is the 21 units updates now? Already know it's fake. Since you love D15, why dun buy up the last 4 units.Really? Nah...recent One Amber (D15) fire sale 21 units clearing at $1100 psf wor, 17 units gone within a day. You tell me is price more important or location when it comes to selling?
If location is most impt, then u try selling Orchard Rd condos at $5K psf, see how long it takes?
And there are 2300 units in D15 in the pipeline vs 2045 units in D9 in the pipeline. Is D15 "just too many"?
Newbie
Fake as in the selling price is $1100psf + facilitation fee (cash) =>$1200+psf similar to resale market prices. Why would I rush to buy when there's no real discount and so many other choices in D15?
Senior
Right price for right location and this subjective. Some can see potential and some cannot. How to compare D15 and D9? Different class.Really? Nah...recent One Amber (D15) fire sale 21 units clearing at $1100 psf wor, 17 units gone within a day. You tell me is price more important or location when it comes to selling?
If location is most impt, then u try selling Orchard Rd condos at $5K psf, see how long it takes?
And there are 2300 units in D15 in the pipeline vs 2045 units in D9 in the pipeline. Is D15 "just too many"?
Newbie
From a new agent's view, co-broke get 1% comm for prime district is a bonus already. Of course if have direct buyer lagi bettter, but most high profile buyers hv their own agents to serve them. Ever come across owner selling with tenancy (not really high floor with unblocked view, cannot view unit n somemore no pictures to show), won't pay above 1%, high challenge (coz unit no. firstly a concern for pandan buyers) n even open listings also hard or takes very long to close lor
Newbie
It depends on you. If you want to take care of agent or you want agents to work harder for you, give them the exclusive, they will work harder knowing that they will earn more. But if they can earn more elsewhere, your interest may be sacrified. Money talks, highest payer gets the best service.I have put up my unit for sales at view2offer some time ago.... quite a numbers of request to sign exclusive w them, however ignore their pro.
Just 14 days ago.
Changed my mind and would like to try "Exclusive" to a agt for the very first time...........
Eager to wait for him to call me for "OFFER".....
If your property will sell on its own even without agents, such as by giving attractive below market prices or having special qualities. Do a open listing instead. Do your own marketing and do your own sales. It is actually better to have it at open listing. Agents will not like what I said.
A usual practice is that people start with exclusive... then after 3 months when there's no deals, they switch to open listing. If no offers, may take it off the shelf and put it up again at a different time or at a different price.
So easy to do it on your own... except the option papers which you could get from lawyers or "steal from agencies". Just take out their name on their options and you are an instant lawyer. The buyers will sort out the deal with their own lawyers and you have to make sure that the option covers your ass... sell only things you can sell with features that is provided by developer. If you cannot do this, just stop short at open listing and the agents will prepare the option for you to grant. Remember to pay them their well deserved commission then. Good Luck!
Newbie
i have one question: if you are the seller and not represented by any agent, you still have to pay the buyer agent commission right? So the market rate in such instance is still 1% to the buyer's agent?
Newbie
Yes, if you are the seller.. you pay to yourself, your wife, your mother, father or kids, just choose who to pay to. Just Kidding. Actually no need to pay to anyone since it is you who did all the work. No one can claim from you.
However, if there's an agent coming to you based on your open listing. You have to pay him a rate which can be negotiated. Usually it is 1% to them. Which is what you have stated. Some may even accept 0.5%. Most of the time they will ask for 2%. This is what they term co-broking fees. You are representing your ownself so you take 1% and they take 1% out of the usual exclusive 2%. Do note that co-broking can be further co-broked to 0.5% or 0.25%... it can be negotiated.
Finally open listing could also mean the usual 2%. 1% to your agent, if you have one and 1% to the other agent if they are involved. Agents work are not easy and they need to make a living. Factor in the cost in selling price and when everyone is happy, you have a deal. Simple isn't it? That why buyers are suckers until another sucker comes along... heh heh
Last edited by Condorich; 10-04-10 at 10:06.
Newbie
Gave exclusive before. Agent did not take care of our interest. Too obvious. Double headed snake.
Duno what is the market price, duno what is the marketing plan, duno alot of things. One thing will not duno is to charge full 2% + GST without any discount. One that cost her the "below market price deal". Painted a story to us and wanted us to sell it cheap to serious buyers... of course they would be serious when it is at a discount.
Regretted the decision to award the exclusive to that agent. Had decided to give that agent a chance at making more money but kind thoughts leading to ??? Would rather make it a open listing in future. Let them fight each other out. Could even expect better service and better pricing since the control element is significantly reduced.
Let the house sell on its own, the agents are merely facilitators... they are not GOD. Selling at bank's valuation is minimum to ask for. Better if they can sell above bank's valuation. Option shall be granted if it is above valuation unless there are other factors at play.
Newbie
Yes, right on... double headed snake, get your 2% plus GST and who knows how many percent or how many $k from the other side (sometimes agent buy it up themselves through their related parties).. No wonder property agents can drive MPV's. Best of everything! If they can get more commissions from elsewhere, they will cold storage your unit.Right, if you price it lower than market, no need agent oso can sell by itself. If you price it higher than market, exclusive or non-exclusive agents oso hard to sell. Doesn't matter which District, it's all the same.
Another bad point about using agent (especially the exclusive ones), they will side the buyer more than you, and will try to close the deal fast by driving down your asking price with lower offers. They will tell you not many buyers, bank valuation cannot match and all sorts of excuses. To the agent, their commission is only 2%. So close the deal at $2M or close the deal $1.8M => the difference in their commission is merely $4K but your sales proceeds is lesser by $200K!
Just to share some experience with Exclusive. Not sure if it sounds familiar to anyone here.
Exclusive granted - 3 months duration
1. Agents sit on it... tell you no calls, no response etc (Stage 1 - give you as bleak a picture as they can, usually no news for the first 2 to 4 weeks)
2. Agents automatically reduced the asking price for you, some tell you and some don't (Stage 2 - giving the impression that they had no choice but to cut asking price to get leads and do deals at that asking price)
3. Agent play actor (Stage 3 - call you out of the blue 1 day and sound all excited. Gives you a verbal picture of the potential buyers FOUND with the MOST REALISTIC offer in the world... most of the time say they are HDB dwellers, 30 plus, no kids, small car etc).
4. Agent negotiate and present you with cheque for you to grant option (Stage 4 - Psychology warfare... gives you all the impression of being a hard working agent and what not, long day at work, alot of effort made at marketing your unit etc etc, pay particular attention to "I SPENT ALOT OF EFFORT RAISING THE BUYERS OFFER PRICE"...) Constant update in the day and cheque presented in the same day or next.
5. Pressure you to sell as low as you can, counter offer ALMOST IMMEDIATELY when you refuse option, or tell you buyer will come back and all sorts of thing to HOLD you and keep you interested in dealing.
6. Finally the truth hurts, they have wasted all the time and effort when owner SEE THROUGH THEM, all their actions and all their intentions.
If this sound familiar to you, you are just another potential victim. Many had fallen prey before. Wise up is the only protection for you. The property game is not for everyone.
Newbie
Whatever the case , whether you are represented or not , you should only be paying 1% commission. If you managed to get a buyer by yourself without any agent representing you then you save on the 1% commission. However if an agent gets you the buyer then you pay only 1%. If you engage an exclusive agent make sure you agree on the 1% commission. How he/she gets the buyer is his own prerogative. He can cobroke or he can sell on his own but make sure there's a dateline given to him.
I have never paid more than 1% commission. Of course you can always set a very high target for your agent & negotiate to pay him more if he achieves it.Nowadays with property prices so high 1% is a lot of money to pay as commission already.
Senior
It seems possible with 1% as the base if agent is able to find your minimum asking price (e.g.valuation price) and additional 0.25% if can achieve plus x amount above your minimum price. This will give them incentive to perform to achieve your higher asking price. It has worked for me.
It has happened to my colleagues, an expatriate, who wants to sell his unit near holland area quickly as he needs to leave the country. He was given the impression by the agent that it was difficult to sell. He brought a few people to view his place and each of them said that it is too high. Hence, he has lowered the asking price and finally he sold it. He later realised that his unit was sold at a higher price one month later. The so called prospective buyers who was brought to his place for viewing could be his friends or agents. The person who finally bought it could be also an agent.
Seller has to be really be careful. Do not fall into the trap of some agents.
Newbie
pardon me for asking another rookie question: what is the process to get a valuation on your property on your own? Any cost involved?
Senior
Just call up any bank. They should be keen to give you a valuation FOC. I would always ask them to give me a conservative figure.
Newbie
you mean they can give an valuation simply over the phone?
Newbie
some boast free valuation. One that I know is www.propertyguru.com
Valuation is a guide, do NOT take it too seriously. As valuation changes over time or sometimes over a very short period of time. It is due to the actual transacted prices. When valuation goes up, it just means more similar properties transacted at higher value.. if it goes down.. it just mean more transacted at lower vaue.
You want a more accurate valuation, ask the bank or banks on the max that they can loan to A'grade customer, that's valuation for you.
Newbie
The commision rate can be negotiated.
For properties below $1 million or HDB,s the agents usually ask for 2%.
They will ask for 1% or below for properties above 1 million. Some owners give block commision for any deals, which mean a succesful deal is at $xxK commission irregardless of any transacted price.
Others use a hyrbid model, termed or known as commission table.. the commision rate goes up or down in accordance to the transacted value.
In boom times, commision is very low.
In heavy recession... above 2% to 5% also have..
The bottom line... the commission is factored into the target sale price and passed on to the buyer. It can be negotiated before entering into agent representation agreement. Once negotiated, it must be honored or risk being sue'd if the amount involved is large i.e more than $20K. Finally pay the agent their commision for closing the deal for you. Some buyers don't pay agents their commision. Bully them. Until justice is served.
Senior
I have been doing this and got valuation estimate within few hours from a few banks. I am not boasting as I am just stating the fact. Bank needs our money and should be keen to give us valuation.
Newbie
Yes, they are very willing. I get it within minutes but the valuation may not be accurate or high enough. For low valuation, no brainer, no need to ask for it. Perhaps they are trying very hard to give you the valuation that you want.
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