Client's Interest or Own Interest?
There are times when a property agent has to choose between protecting a client’s interest or serving his/her own interest.
I faced this dilemma recently.
I brought a buyer to view a condo unit with an asking price of $1.29m. It was the lowest priced unit in the project.
My buyer liked it and made an offer for $1.24m, which the seller rejected.
I asked the seller’s agent what the closing price was. She said the owner was looking at $1.26m. And if we were to close at that price or higher, my share of the commission would be 1%. If anything less, I would get only 0.75%.
After a few rounds of negotiations starting from $1.24m, my buyer eventually offered $1.255m, which was $5k short of $1.26m. But I know if rejected, my buyer would be willing to pay $1.26m because it would still a good buy even at that price.
Just like most typical Singaporeans, my client loves to bargain!
The seller’s agent told me there is a good chance the seller would accept $1.255m if she were to present the offer with a cheque. But she reiterated my share of the commission would be 0.75% if it is below $1.26m.
So, should I push the buyer for $1.26m and get 1% or try to close at $1.255m and make 0.75%?
Should I tell my buyer that the owner had rejected $1.255m even without presenting the offer to the owner?
Should I help my client to save $5k but I get $3.15k less?
Client’s interest or self-interest comes first?
My final decision
Possibly for many agents, this is a no-brainer.
Eventually, I told the seller’s agent to present the $1.255m offer to the owner, and we did close the deal at that price.
To me, it was a moral decision because my client’s interest MUST come first.
I know, I know, I may sound stupid. Please don’t laugh at me.
But I rather live with a clear conscience than let it haunt me. I can live with $3.15k less.
Associate Deputy Group Director
OrangeTee & Tie Pte Ltd
Danny has been a licensed real estate agent since 2005 and has helped many in Property Wealth Planning.
Do drop him a Whatsapp message or send him an email for a discussion if you are planning to grow your property wealth.