Sunday, May 31, 2009

Excuse Me, Are You a Property Agent? (4)

Someone had responded to my advertisement for a freehold, 2056 sq. ft., Cairnhill Mansion with an attempted enbloc of almost S$6 million dollars in the previous attempt. When I mentioned that the owner's asking price was $2.75 million, the buyer said that it was too expensive. Hence I asked him what he would like to offer, and his answer of $1.3M certainly revealed his ignorance. That would translate into $632 per square feet! If indeed there was a unit going for $1.3M, it would not even be advertised in the papers. People in the know would just grab the property, even without viewing!

An agent from another company phoned me, and in her sweetest of voice asked if I would cobroke with her on my client's penthouse unit at Tierra Vue on St Patrick's Road in the East. I was impressed when she told me she had three clients. Her sweet voice made me think she must be a very young agent....and she seems to be doing well. She asked if my price of $1.68M was negotiable and I asked how much her clients would offer. She said, "$1.3M!" This would translate to $632 per sq. ft. for this 2056 sq. ft. penthouse which would be ready for occupation in a month's time! Morever, the location is extrememly popular because of the number of excellent schools in the vicinity.

I guess it would be quite understandable for some clients to be ignorant, but it is almost incredible for any agent to be lacking in market information, etc. If she tries to help any client, it would be like "the blind leading the blind" and both will end up nowhere in their pursuit of a good property, for no owner would ever want to sell his property way below the market price, unless he were on the verge of suicide!

Hence, it is crucial for everyone, both agents and buyers to be aware of the prevailing market, otherwise it is a sheer waste of everyone's time.

Gan Chau

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