client's interest

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.

Danny Han
Danny Han
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.

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