Hide-and-sneak Sales Tactic

[neubie 2]

 ST Forum | Updated today at 06:00 AM

I AM writing in to highlight a sales tactic that property agents might be resorting to after changes in regulations restricting them from representing both the buyer and the seller in a property deal.

I realised this was happening after house-hunting for a while and dealing with a few of them.

The tactic goes like this. When a seller appoints an agent (Agent S) to help sell his HDB flat, the agent will sign an exclusive contract with the seller and then partner with a fellow agent (Agent B) to sell the flat. However, Agent B does not represent the seller. Instead, he is considered to be a co-broker of the unit and represents the potential buyers and eventual buyer of the flat.

Thereafter, Agent S does not advertise the unit for sale. Instead, Agent B will do so. This results in Agent B receiving all the contact information of those who are keen on buying the unit while Agent S does not reveal his contact information or status as the seller agent.

When buyers contact Agent B for details on the unit with the impression that Agent B is the seller's agent, Agent B will inform the potential buyers that he will be representing them for the sale, and take the buyer's commission of the sale price from them. If they have their own agents or are unwilling to take Agent B on as the representative buyer agent, Agent B will not entertain their queries or interest in the unit. Effectively, Agent B will block off all potential buyers who will not use him as their agent.

While this is going on, Agent S still remains anonymous but he will liaise with Agent B for viewings of the unit and does his selling during the viewings. Agent S and Agent B will then work together as a team to sell the flat for the highest price possible and pocket the highest commission. Both agents will then share the total commission from the sale equally as no other agents will be involved.

The seller of the unit may or may not be aware of this strategy, but he will not receive bids from independent buyers or from other agents, even if these could be higher than the eventual selling price, as they had all been boycotted by Agent S and Agent B during their unique screening process.

I urge the relevant authorities to look into this sales tactic as it undermines the rules and regulations that were put in place to prohibit unfair practices and protect all parties in a property deal.

Kelvin Seet

[marshmallow 0]

this kind of thing was already happening before the "new" rule kicks in....

[bepgof 20]

Under the sun, there are nothings new. Those happaned will happen again. The authorities can only "look" into, cannot "do" anything to such.

As individual without agent - just take agent B as agent or just walk away.

As individual buyer with own agent - always in an "disadvantage" position for HDB resale in all cases. Seller's agent will "block".

So, as buyer you know what to do lah...

Edited January 12, 2011 by bepgof

[mel77 1]

Must say that it is a common practice even before the new rule was implemented.

Sellers just need to do a "surprise" check by pretending to be an interested "Buyer"....viola, the truth will be unveil if your agent is acting in your interest.

Personal experience....even when my agent tried to call to arrange for viewing it was said the Unit was Sold. Next when i called and identified as Buyer, the unit b'comes available. (In a space of mins with my agent next to me)

When up to the unit with my agent and F@#$ the seller agent in front of the owner, then tell seller agent that this is my agent deal with her. Seller's husband then pulled me aside to check why i F@#$ their agent, when i explain they were shocked.

Bumped into the couple again recently when i've shifted in to my new place, surprise...they have not sold their place and have decided to stay put as their agent drop the case due to "No offer" or "Offer didn't match asking" and advice them that their unit can fetch a higher price. Kkekekekeek....

[Rosicky 4]

Just to share my experience in house hunting for the last few months. My problem is I have a problem getting even to view units as an independent buyer. When I called up the agents, they will say they will arrange viewing, then most of the time, they will not get back to me, or say the seller is busy, not at home.

I was wondering, is business really so good? we must "Kao Tow" to agents? and still pay them $$$?

Now I am beggining to suspect that seller agents are not keen to do biz with direct buyers, they will just service buyers that is brought in by their fellow agents. I am beginning to lose heart in buying direct, and thinking of engaging an agent instead. Think difficult to save the 1% with such un-ethical behavior.

[mel77 1]

Just to share my experience in house hunting for the last few months. My problem is I have a problem getting even to view units as an independent buyer. When I called up the agents, they will say they will arrange viewing, then most of the time, they will not get back to me, or say the seller is busy, not at home.

I was wondering, is business really so good? we must "Kao Tow" to agents? and still pay them $$$?

Now I am beggining to suspect that seller agents are not keen to do biz with direct buyers, they will just service buyers that is brought in by their fellow agents. I am beginning to lose heart in buying direct, and thinking of engaging an agent instead. Think difficult to save the 1% with such un-ethical behavior.

Don't be surprised that those that you called don't have a unit for sale. What they are doing is "Fishing" for potential buyers and scoping out the details for them to search within their database.

My househunting started in early 2010, i've agents who recently text me on the available units for viewing. Kekekekeek!!!!

Try running an advert on your requirements and you'll be surprised that how many calls you receive. For me, if i were to sell my HDB again i'll do all the work myself. Not worth the hassle and fuzz to deal with a bad agent and then still have to pay commission.