Tuesday, August 19, 2008

Estate agents still need commission guidelines

Source: Straits Times - 14 Aug 2008

I REFER to Madam Tan Swee Hong’s letter on Monday, “Property fee guidelines: Praise for Competition Commission”.

It is true that, with the removal of the guidelines of the Institute of Estate Agents (IEA), the onus will be on property agents to justify their commission.

While some may lower their commission to get more clients and transactions, such action is not economically viable in the long term. To survive in the light of the guideline removal, estate companies and property agents must offer a higher level of professionalism and enhanced services.

PropNex has instituted higher self-regulatory measures, such as a revamped consumer-oriented website, its own set of certifications and its own commission guidelines.

Some form of guidelines is still necessary, for the non-existence of commission guidelines means an agent could easily sell your property for far more than you expected, and then pocket the difference as “commission” . This is just one instance of rogue agent behaviour consumers will have to watch out for.

In the light of this further deregulation in an already unregulated industry, consumers are well advised to be prudent and exercise caution when conducting any property transaction. Ask yourself these questions: Is your agent knowledgeable about the latest market and pricing trends? Does he share with you any tips that add value to your transaction? Does he take you through your transaction in detail and is he able to answer all your questions? Do you feel you can trust your agent?

Yes, pay property agents their due, but ensure you get professional, friendly service. After all, your property will probably be the biggest transaction you’ll ever make.

Adam Tan
Corporate Communications & Marketing Manager
PropNex Realty


No comments: