Hello, Thank you for your query, in all the questions that have ever been posted onto this question forum, I believe yours is the first in a very long time that asks about servicing buyers/tenants exclusively. With reference to your question, it boils down to 2 distinct factors: Firstly, the present conditions in the real estate market. Let us look at the PRIVATE RESALE MARKET. The current market is characterised by a drop off in resale transactions, meaning that the resale volumes have dropped drastically due to the ABSD and the MAS loan restrictions. Thus the simple fact here is that there has been a sharp drop in buyers seeking Private Residences. As such, serving sellers and securing exclusives at 2% commission are not exactly the best way to go. Let me explain, EXCLUSIVES work in an environment where you have 1 seller vs 10 buyers. That way, the exclusive agent can protect the seller's interest to get him/her the best price from the 10 buyers. Currently, the situation is reversed. Now, we are looking at 1 buyer vs 10 sellers. In this situation, having an exclusive agent severely damages the chances to sell the unit. Why? Simply because the buyer's broker can present all the open listings to the seller, and avoid the unit with the exclusive. The Second Factor - The Agent Not all agents are the same. Some agents just make viewing appointments for the buyers to see properties, and it ends there. ANYONE can do this job, even a PA hired fresh from school. There is much more an buyer agent can do to value add to a transaction, and in short, save the buyer a lot of time and money. For example, when you view a renovated unit, many a time you will hear the seller/seller agent proudly say, "My seller spent $100,000 on renovating this house". My thoughts, "Really?". A good broker agent is able to walk around the house and determine the value of the renovation works. Many a time, the $100,000 breaks down like this: Paid to Interior designer: $50,000 Paid to contractor: $30,000 Paid for fittings & fixtures: $20,000 GRAND TOTAL: $100,000 Hence, the buyer is far better off buying something comparable in original condition, at $100,000 below the renovated unit's cost, and do it up themselves. These are some of the valuable skills that a good buyer agent brings to the buying equation apart from organising the viewings. To quickly touch on, assessing air-conditioner trunking layout, condition of air conditioners, plumbing integrity, are many other essential skills that a buyer's agent brings. Why? Simply put, buying a house is not something that a buyer does very often. Hence, the enlightened buyers know that they simply have no idea what they are looking at. This is where a good buyer agent is indispensable to the buyer. These skill sets are not common place in the real estate industry, and they exist in my team mainly because we have a strong emphasis on cross industry training as part of our associate training program. Hope this sheds some light into your above query. Best Regards, Mervin Tang Group Director Division Lead Trainer, Project Sales CEA Reg No. : R030951Z Huttons Asia Pte Ltd Mobile:
(65) 9184 0208
Website: http://www.SGrealestate.sg Sales Enquiry: mervintang@SGrealestate.sg Career Discussions: http://sg-realestate-sg.blogspot.com/ http://www.thetembususg.com http://www.lafiesta-sengkang.sg/ http://www.qbay-residences.org/ http://www.sennett-residence.org. http://www.jewelbuangkokcondosg.com
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