Work With A Property Agent To Avoid Pitfalls And Expensive Mistakes

Pro Tip: Work with a property agent to avoid pitfalls and expensive mistakes

By Natasha Gafoor and Wong Siew Ying

There is a saying that if you want something done right, do it yourself. Well, that may be true in some cases, but it is clearly not for everything in life. Don’t get us wrong, D-I-Y can be empowering – building a cabinet from scratch, creating a wall mural, putting together a super computer – but you could be better off working with subject matter experts on some other undertakings (such as the buying and selling of a property). Why? The short answer is: peace of mind.

In today’s world, the field of real estate has witnessed many changes, and still is undergoing transformation, driven by the rise of the digital age. Online portals have enabled both buyers and sellers to review property listings, and gather information about properties on the go. The use of online portals for property transactions could be seen as providing greater convenience to parties involved, and some platforms purportedly offer other savings. However, just because you can DIY, does not mean you should – at least not before considering the downsides of going it alone.

Here, PropNex Picks delves into the pivotal role of real estate salespersons and how their expertise can add value to property buyers and sellers, and more importantly help them to avoid potential pitfalls and expensive mistakes.

1. Market intelligence

Typically, most licenced salespersons are equipped with timely market data, as well as the latest tech tools to analyse and interpret transaction and price trends. In addition, seasoned real estate professionals are a treasure trove of insights – having been through the cyclical ups and downs in the property market.

While it is possible to read up on the property market in the news or other online resources, a DIY buyer or seller will find it cumbersome to extract specific data or information about their own property in the public domain. For example, what are the price trend and average gains for units sold in a certain stack in their condo development over a period of time. Such information may be more forthcoming for new launches which tend to enjoy more media coverage, but what of resale properties?

Working with an agent will enable buyers and sellers to ask specific questions about their properties and clear any doubts – assuming the appointed agent has not already got most angles covered. In this case, an agent is a valuable resource from whom to tap in-depth analysis about short-listed properties and prevailing market conditions. It would be difficult to get access to such customised information, and in a timely manner, if one goes the DIY way.

2. Navigating an ever-evolving property market

The property market is highly dynamic, often influenced by a myriad of factors – mostly beyond the control of buyers and sellers – such as cooling measures, economic uncertainties, and geopolitical tensions. Navigating these complexities requires expert guidance, and this is precisely where a skilled salesperson comes into play in your property journey.

Many real estate salespersons – either by way of their experience in the industry or advance PropTech tools - are able to track and analyse the impact of economic downturns and prior rounds of cooling measures on sales volume and price movements over decades. This will come in handy in helping their clients make an informed property-related decision. For instance, based on their experience, they could recommend certain areas that may possibly stand a better chance of rebounding more quickly after a market slowdown owing to their attributes, demand catchment, or buyers’ profile. They would also, in the course of their work, evaluate unit layouts, assess pros and cons of condo projects in great detail, and recommend other more appealing options that a DIY consumer could have missed.

Furthermore, an agent will also be able to provide advice on potential exit strategies by studying the master plan, as well as the upcoming supply of new HDB flats in the area – which could translate into HDB upgrader demand in the future.

The thing is, we don’t know what we don’t know, and may not even think to ask. Therefore, it is helpful to have an experienced agent point out the good, the bad, and the ugly – so that we can make sound decisions. After all, a property is usually the biggest ever investment for most people and it should not be taken lightly.

3. Extensive network and proven workflows

For most folks, they would probably buy and sell properties once, twice, maybe three times in their lifetime, generally speaking. On the other hand, a real estate agent could handle way more cases in a month, then multiply that over years. If repetition is the key to mastery, then property agents are among the best in the business, having done countless deals across various housing segments.

Perhaps it is useful to note that the role of property agents has evolved alongside market changes and consumer needs. Today, they act almost like consultants, serving not just as a conduit between buyers and sellers, but also provide an analysis on wide-ranging topics, from the overall real estate market to the micro-market around certain projects, from housing policies to buyers’ affordability threshold.

Agents also deploy their confidence and well-honed negotiation skills on their client’s behalf to get deals across the line or to arrive at an optimal sales or purchase outcome. Another benefit of appointing an agent is the ability to tap on his or her network for potential “lobang” – a local expression which can mean anything from discounted properties to good investment opportunities, and access to genuine buyers or sellers who are ready to commit. For most real estate salespersons, transacting properties is a full-time job and they devote a lot of time and resources to be good at what they do. Today, many agents go above and beyond the basics. They furnish clients with in-depth research reports, timely market updates, financial planning tips, as well as offer marketing and social media outreach to promote their listings.

 4. Sidestepping potential pitfalls (legal or otherwise)

DIY consumers, particularly sellers may find it challenging to list their property on major listings portals, as these sites are mostly accessible to licensed agents only. These sellers may instead seek to put a word out on social media platforms. However, with the rise of online scams, the public is wary of random listings, making it difficult to secure qualified leads. This could drag out the sale process unnecessarily at best, or at worst, may even result in financial loss. For example, a DIY seller will not be able to qualify for additional buyer’s stamp duty remission if their HDB flat is not sold after 6 months from getting keys to their new home.

The online space, while brimming with possibilities, is not without threats. For instance, DIY buyers and renters, may unwittingly fall victim to scammers who impersonate real estate salespersons to collect deposit and even rental for the fake listings the scammers created, only to disappear after they have been paid. Consumers can protect themselves by working with a licensed property agent who knows and is able to conduct some background checks on the property and also checks on the advertising real estate salesperson.

It is also about seeing a property through the lens of an expert. An astute agent may be able to spot say, signs of water damage, serious cracks, or poor plumbing in a resale home, that could be costly to fix. When it comes to home leasing, the agent could point out certain clauses in the tenancy agreement which could be a potential dispute later on – for example, the landlord may require the tenant to pay for selected maintenance cost if it is below a certain dollar value (the DIY tenant could have missed the clause and had assumed all such costs are borne by the landlord).

 From 1 February 2024, the Code of Conduct for Leasing of Retail Premises will also be compulsory, and it is important for landlords and tenants to have guidance from a real estate salesperson who knows and understands the code, as any misstep could have legal implications.

 5. Customised service you can trust

Delegating the complex task of market analysis and property shortlisting to a trusted salesperson will not only provide you with peace of mind; it will also offer the assurance that his or her services are customised to your specific needs. The agent will make a thorough search for properties on the market based on the client’s needs and preferences that would also fit their housing budget. At the end of the day, it is also the comfort of knowing that a qualified real estate professional has your back and focuses on protecting your interests throughout the sales and purchase journey.

All things considered, tasks such as preparing and filling up paperwork, understanding and complying with sales procedures, following and keeping up with processes and timelines, marketing the property effectively, understanding pricing dynamics, and navigating potential financial and legal pitfalls, can prove to be far from easy tasks for the average consumer.

So, while technology has revolutionised the real estate world and enabled some DIY processes, the partnership with a professional salesperson remains invaluable for a successful property transaction journey. Even with technological advancements, human touch remains essential in business interactions. After all, can one imagine two AIs negotiating on the price of a property?

One huge perk of engaging consultation services of any PropNex associates is having their proprietary financial tools that can assist you in planning well. The tools help you map out your finances easily and provide a vote of confidence to any first-timers, upgraders, or investors looking to take their next step.

Speak to any of our PropNex associates today to see what’s achievable for your situation as it differs from client to client.