Wednesday, June 16, 2010

Overly Aggressive or Just Plain Idiots?

I have an issue with some Property Agents. They are behaving rather thuggish. Recently I came across one particular agent who is trying to peddle an apartment in Sunway. No doubt it is a very good location and can command good rental. But in my opinion, the asking price is a bit high. On top of that, the agent demands a RM50k booking fee plus his commission of RM10k paid upfront (Yes... he wants the buyer to pay his commission...).
Anyway, it warrants further checking so I just exchanged some emails with him to find out more. Then he wrote rather sarcastically, " m impressed by ur way of Qs in email the speed i think u need to intro urself, wat u seek,budgetby the time the email is done, maybe ppl took alrdy".
To be honest, I don't care if someone else wants to take it. After I replied that I am not in a hurry to buy, he said I don't have to "move... cuz many people want". In my opinion, if anyone got money, they can do whatever they want. As an investor, I am not going to be pressured into buying something just because others are also rushing in to buy it. That's how one would end up paying too much.
In Lowyat forum, there is another agent trying to peddle a "Very good investment, at least 10% returns". Then someone replied in the forum that the price should be between RM200k to RM300k. She responded "You must be joking, developer price is already RM 290k that's 4-5 years ago, I don't think you know what you are talking about... ".
Again, one wouldn't care how much the developer price was. At the end of the day, the investment is based on returns. When I pointed out that her 10% yield is quite misleading since she did not cost in maintenance charges etc., she started to attack me and at one point she stated that "Different people calculate ROI differently, maybe urs is nett yield, that does not give u the right to disturb my post if you do not have interest in the property".
Frankly, I did have interest in that property. But with that kind of attitude, I will buy it from someone else. There are so many Property Agents out there. Exclusive or not, if the owner still can't sell it after a few months, whoever the agent can bring the right offer to the table I am sure the owner will forget about exclusivity.
She posted the ad in March and this is June.
Property trading should always be on a willing seller, willing buyer basis. Of course when I'm selling or renting my properties, I want to do some marketing to try and convince buyers or potential tenants - at the end of the day, the buyers or tenants make their decision after comparing the various options. Here we are talking about properties, we are not dealing with biscuits, so it is only fair that whoever is parting with their sum of money should have the right to their own decision.
People have accused me of being aggressive too. Some parents came to view my student rooms. They like it and said they wanted to book it. So, I adviced them to leave a deposit so I can hold it for them. But at the same time, they want to go view other rooms before putting down the deposit. I told them it is going to be 1st come 1st served - this, they felt is me trying to pressure them. Then someone else came along, viewed the room and paid on the spot. When these parents came back to me with the deposit and I told them the room is gone, they scolded me for not holding the room for them. WTF....


Anonymous said...

this tell us that there are so many different "kinds" of people out there. i agreed with u, dun buy frm shitty agent! they dun deserve the commission!

KVINLIM said...

Totally agreed. Bad agents are everywhere and I will never part my money with them, no matter how attractive the unit is.

The purpose of my interest in property investment because I think I can provide a good home to other that needed it, so doesnt matter who got the place, as long as it's benefiting someone with my works, while we are earning some profits doing the work. It feels good.

Anonymous said...

u know that's a property agent told me that i've to paid more than 10% down-payment (20%) coz the bank valuer estimate the price lower.

I really wanted to told the property agent, since that property price is above what bank valuer estimated does he think that's still a good investment if i paid(20%) down-payment? That means i bought an over price property man!!!

sinleong said...

i think that is quite normal lo.. banks these days are very cautious. while their valuation may be the "actual value" of the property, it does not necessarily reflect the market value or the yield of the investment. valuers dont take into account other facts like ease of tenancy, furnishings, fittings etc. so you may think it is over-priced but in my opinion, if you bought a property which is valued accordingly but end up being vacant for months or you need to spend extra 10% to 30% for renovations and fittings.

Anonymous said...

Yup, there are many weirdo agents up there. One sent sms advertising as agent. When called up talk with sarcasm as if whole world own him a living. It is a weir weir world out there.

Teng Fei said...

agree with sin leong.

all new properties with good yield nowadays tend to trend upwards with valuation that banks couldn't / would't match.

below bank valuer's valuation does not means that its a bad buy.
most important is the yield that we are comfortable with.