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1) Is it normal for agents to exaggerate on the conditions, locations of the units for sale?
2) Do agents advise their sellers on the price of their unit based on the bank's current valuation or the seller's expectation?

We have been looking out for a HOME with a good size, location that we like and within our budget (not for investment).
Hence, we have shortlisted a few units to go for viewing. We have had some bad experiences. and we are thinking of staying put at our current place because of these.

However, after the viewing, we realised that the information for the listed unit do not match totally. (e.g. renovated does not mean "move in" condition, you may need major renovation.)

The photos of the unit may be selectively posted and do not reflect the current condition of the house. That is why buyers go for viewing. But the asking price is way above valuation and the condition is pretty bad... And the price do not match the age of the property.
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2 Answers

Dear sir/madam,

I believe there is an apparent mismatch in terms of what is available and what are your expectations.

Most if not all salespersons involved in resale projects are 100% commission based in terms of their income, therefore any assignments they take on if grossly overpriced in comparison to market expectations or bank valuation will only mean a waste of their time and costs (just in case you are unaware, each advertisement you see on PropertyGuru is being paid for).

Where conditions of the apartment is concern, there is no absolute way to determine if it is well renovated because everyone's taste and definition differs. Just like how some consumers feel that high floor unit should be more valuable, but this does not make sense for buyers who are afraid of heights.

Last but not least, a salesperson is ultimately a marketer, and we will still need to package the entire marketing efforts in order to attract prospective buyers or tenants. That said, perhaps the packaging effort is not thorough enough to ensure that the apartment is ready to welcome prospective purchasers or tenants for viewing, in terms of cleanliness or tidiness.

If you indeed find it a chore matching units to your liking, you can perhaps consider appointing a salesperson to keep a look out for you on what you actually look for to minimise the potential of a mismatch unit being arranged for viewing?

Hope the above sounds logical to you and wishing you all the best in your homehunting.

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  • HT
    Thank you for your reply. I understand that agents involved in resale are commission based. Hence, I don't understand why we have had some unpleasant experiences.
    Let me quote a few examples.
    1. The laminates are peeling off from the flooring. (Using duct tapes to secure.)
    The supports of trellis are rusty and signs of corrosion. (There are more e.g.)
    2. Basically, major renovation works will be needed and easily a 5 figure sum given the amt of work needed.

    3. After much discussion, we decided to make an offer. Yet the process was draggy and somewhat insincere.

    4. Then the ultimatum, agent said seller had bank valuation of e.g. $1.1mil
    When we checked with bank, it was $1.05mil.
    So after checking, we decided to increased offer slightly but below bank's valuation (due to condition). Agent came back to say that seller is looking at $1.2mil to sell.
    (Past transactions close to Bank Val)

    *FYI - Actual figures are not mentioned.
    Age of property is almost 20yr
Robbie Chen Chee Howe
Hi,

I'm sorry that you have such bad experiences in your home search. I do understand that a home purchase is a big ticket item, and it's not easy for you to find the perfect house. In fact, there is really no perfect house, isn't it?

In my opinion, a property must be correctly priced for it to move. Any property that is priced way above the current valuation, is just wasting everybody's time. The Seller's time, the Buyer's time and the Agent's time.

Having said that, it is however the Agent's job to bring out the best of the property, to attract the Buyers in to view. Taking great photos of the property at its best possible condition is part and parcel of the job as well. A responsible agent have the duty to bring out the best of the house, to attract potential buyers to view.

Now compare 2 agents marketing the same house. One Agent took a photo of the renovated TV console and its living area as the unit's main profile picture, while the other Agent took a photo of the toilet bowl and use it to represent the house. Which advertisement attracts you more? Which agent will you call to arrange for a viewing?

As a Buyer, it is important for you to know roughly the market price for that area you are looking at. By doing such homework, you will know if a unit is grossly overrpriced.

If you are uncertain of the prices, or does not have the time to do the research, I would advise you engage a professional real estate agent to assist you in your search. Afterall, you do not have to pay commission if you're purchasing a private property. Why not engage one agent that can act in your interest and give you some advice?

Should you need any further assistance in matters relating to property, please contact me at my mobile 9748 6305  . I will be happy to assess and share with you the possibilities for you and your partner in the current market.

Thank you.

Best regards,
Robbie Chen
 9748 6305 
PropNex Realty Read More
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  • HT
    Thank you for your reply.

    We just found out that it seems that this particular property has been listed for a long time...

    Hence, we've concluded that seller wasn't sincere in the negotiation process unless price met his expectation (& not bank's valuation).

    If the bank were to come down to evaluate, the amt would definitely be much lower just looking at the condition of the house.

    Just our luck to meet such people who are unrealistic.

    What a waste of everybody's time.

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