Is It Necessary To Engage A Property Agent?

There is no easy answer to the question of whether it is necessary to engage the services of a property agent. On the one hand, such agents have extensive knowledge and experience in all aspects of the real estate market, and can therefore help buyers or sellers to navigate their purchase or sale with greater ease and success.

They are also constantly connected with various networks within the industry, giving them access to important information and opportunities that others may not be aware of.

On the other hand, engaging an agent often comes with significant costs — in terms of real estate commissions (usually 2% market rate) — which many people may find it too expensive or unnecessary.?

After being in the industry for the last 18 years, I've had the opportunity to work closely with a variety of clients, both home buyers and sellers, even though it can be difficult and challenging at times. Working closely with my clients is extremely important to ensuring that we achieve the best possible results in any transaction. Whether we are negotiating on behalf of a buyer or a seller, I always strive to put myself in my client's shoes, considering their goals and concerns as if they were my own.

In this article, I explore some of my experiences with my clients, other property agents and all sides of having an agent to transact your property matters.

Are Property Agents Being "Exploited"?

When it comes to buying or selling a property, many customers will speak to multiple agents and get all the information and pricing options from them, then they will collate and get the best "deal" for their property purchase or sale.

Their aim is not to engage any agent, cut out the middleman and and get "straight to the source" to make a direct purchase themselves, expecting "discounts" or negotiating cheaper prices themselves.

What most people don't know is that - property agents spend countless hours researching different projects and keeping up with industry trends, but they also must take the time and effort to consult their clients and explain the pros and cons of their research.

This can sometimes be an extremely challenging task for many agents, especially when dealing with difficult or demanding customers who feel that they are entitled to this information simply because they are spending their hard-earned money on these properties.

The truth is that many people want to buy or sell their properties, but most do not know that there are many other areas to consider, like life priorities, job security, income potential, and many more - they can all have a major impact on whether or not it is the right time to buy or sell.

It is important to remember that what may seem like an obvious choice from one perspective (e.g saving money on the agent commission) can fail to take other important areas of consideration (e.g future planning, property upgrading, personal finances, market trends, etc) into account. This is something that I feel that many customers do not know and are not able to see the true value of what a trusted property agent and consultant can bring to the table.

Nevertheless, I believe that the role as a property agent is not only to provide information, but also to educate our clients so that they can make the most informed decisions possible, with the priority being the needs and goals of our clients.

So, Why Do We Need An Agent?

For adventurous people, the idea of engaging an agent for their property related transactions may seem unnecessary or even undesirable. After all, with so much information readily available online, it may seem as though property buyers and sellers can easily make their own decisions without relying on outside help.

Additionally, many ambitious individuals not only enjoy doing things "DIY" but they also pride themselves on being able to take care of everything themselves – from buying their own insurance plans, to fixing their own cars, building their own swimming pools, or even purchasing, selling, or renting property themselves.

This may work for some people, but it may turn out worse for others - as the process of transacting a property is not their core job scope, so most people will still have to spend a lot of time and effort to do their own research and understanding before they will have sufficient information to feel like they are making the correct decision for their property.

Another scenario with property buyers is that they think they can get a "cheaper price" without an agent, as they do not need to pay the 2% commission, but never consider the possibility that they are actually getting pitched a higher price by the seller's agent, who's main role is to ensure the seller benefits the most.

I have seen many cases like this and most of the times, it leads to more unanswered questions, potential headaches and unnecessary stresses for the individual. Because people are dealing with potentially one of the biggest transactions in their life, they should be confident of the transaction and be able to do things with a peace of mind - and that will be best handled if they look for a property agent who is trained, experienced and trustable to do it for them.

In my experience, engaging the services of a trusted agent can in fact be a real asset for buyers and sellers. On top of the information that we can get freely from the internet, we will be able to get additional value and opinions from agents, like up-to-date information about Singapore and overseas property market, local and global market trends, valuable connections that can come in handy when negotiating, and doing all the complex paperwork that comes with sales transactions.

Furthermore, agents can not only offer sound advice based on their years of experience working with various types of properties and clients, but they can also alleviate stress by managing complicated processes on behalf of the buyer or seller while they focus on other things.

In #BSA, our system trains all seller agents to share with their sellers the "Right Way". Because I've seen many agents in the industry are just purely delivering basic information that can be found easily online, doing as little as they can, and getting that 2% commission. We have our way of adding value to our clients beyond just doing the paperwork.

Real Life Case Study

I met up with a client who is not local, and she was sharing with me that she feels its very expensive buying a property in Singapore, due to property tax.

I clarified with her on what she meant, because in Singapore, property transactions are very transparent and the property tax are not considered that expensive because there's no capital gain tax in Singapore.

She told me that she calculated the property tax herself with some information she saw online. In fact, the only way to do tax computation for property will be from IRAS website. So I opened the IRAS website property tax calculator for her to verify her info.

After she entered her property purchase price figures into IRAS calculator, she then realized that the property tax was not as much as what she initially researched.

I'm grateful that she met with me to clarify, or else if she hadn't, she would've had a lifelong misunderstanding that Singapore property is "too expensive" and "not worth it".?

This is largely because she researched herself online from an unofficial source and listened to her friend's recommendation, so she took the information at face value and did not have a second professional opinion to explain to her on her findings and misconceptions.

This is a common scenario I notice from some clients as property investment is not very direct at face value. Sometimes when you just read the information, you may not understand it fully.

Just like my client who almost missed out on one great deal because of her lack of understanding in the property transaction policies, this may happen to you too.

Finding A Trusted Agent

Buyers and sellers know that they need to choose the right agent in order to have the best possible experience. This means not just considering who approaches them and seems interested, but rather doing careful research into each potential agent and examining their track record and reputation in the industry.

This allows buyers and sellers to find an agent whom they can trust, someone who has their best interests at heart and will work tirelessly to fulfil their needs.?

Furthermore, choosing a trustworthy agent saves both buyers and sellers precious time, as this allows them to completely rely on their agent's expertise and advice when it comes to making decisions about the market and how best to move forward with their property.

Whether this means choosing effective marketing strategies or negotiating skillfully on their behalf, a good agent is well worth the commission that is typically paid for such quality service.?

Ultimately, then, it's clear that when buyers and sellers trust the right person, everyone wins in the end: From customers enjoying increased confidence and convenience to agents receiving higher satisfaction ratings from their clients.

And while some people may worry that relying and fully trusting property agents, it could turn out negatively for them one way or another, this simply isn't true! Rather, I will recommend you take the time to find and partner with a competent professional, and it will always be worth it – trustable agents comes with reputation built upon years of hard work and success in the field – and buyers and sellers know that they are putting themselves in good hands.

As long as they choose carefully enough, they will always be able to gain peace of mind knowing that they've chosen someone they can truly rely on – after all, no customer wants to have any regrets when it comes time for real estate transactions!

Ultimately, it is up to each individual to decide whether it is necessary to engage a property agent, but for most people this is the best option available. With so much at stake in real estate transactions, choosing a property agent is often the wisest choice.