Does having more agents increase the probability of a sale
Client Profile
The Tan family bought an Executive Condominium (EC) directly from the developer. The family astutely took a deferred payment plan so that they could still pay for and live in their current HDB flat until the temporary occupation permit (TOP) for the EC is issued. They also applied for a bridging loan for the EC as new purchasers with an existing property can only borrow up 45% of the purchase price.
They are racing against time to sell their HDB so that they can
- return and release their CPF monies for the next purchase,
- qualify for a bridging loan, and
- qualify for a 75% loan-to-value ratio as a single property owner.
Description of case study
In December 2018, the Tan family engaged three different agents to sell their HDB in hopes that having more agents will help them to get a better price for the unit and to sell faster. There were several viewings but no concrete offer. As months passed, they started to feel anxious and worried. If they were unable to sell their HDB flat, beside not being able to fulfil their original financing plans, they are also liable to pay an interest rate of 6-7% from Developer for the delay.
In May 2019, I met the family and it took close to a month for the signing of an exclusive agency agreement to conclude. The delayed was also because he wanted to give the other agent some kind of closure and they were afraid of the need to pay commission twice if the previously engaged agent were to return with an offer. However, this is something that real estate agents can work out amongst ourselves by ensuring that each potential buyer is served exclusively by one or the other agent.
As the Tan family’s exclusive agent, I was able to work committedly on selling their HDB flat and listen and resolve any of their real estate problems We had four viewings, and I followed up on each buyer directly or through the co-broke agent. I was able to obtain a cheque from one of the potential buyers as an intention to purchase and used this as the starting point for negotiations. The Tan family was able sell their unit and meet their financing timelines without incurring any financial penalties in late key collection from the EC.
Mission accomplished and The Tan Family is able to move into their new home with a peace of mind.
Learning points
- Having three agents may not give you the advantages in selling your unit. For this case, the three agents had advertised the flat at different prices which will give the buyer the impression that there is no control of price, unit looks desperate or this may not be a good unit to live in. Never let the buyer have reason to lower their offer price.
- With three agents, the marketing agents will not be 100% committed and will not put in extra investment in the marketing of the unit.
- For the seller, it is difficult to control your marketing agents and there is no one to be responsible for the sales price and to meet to your need and wants.
To engage an Exclusive Agent to be responsible, to control price, and to work together towards your needs and wants.
