This is a very common mistake made by HDB flat owners. Some flat owners perceive that agents who quote the highest price will have the ability to sell the flat at the indicated price. However, this is not true in reality, as prices quoted by agents may not be what buyers are willing to pay.

Unscrupulous and dishonest agents usually quote the highest price for the sole purpose of securing exclusive listing from owners. After all, if the agents are unable to secure any potential buyers at the high price, the agents can always revert to owner with the excuse that market conditions have turned unfavourable and therefore lower selling price should be expected.

By then, many weeks have passed and precious time wasted. Genuine buyers who were once interested with the flat may have bought another unit at a more reasonable price. Meanwhile, damages may have done due to the negative publicity of an "unwanted" flat. Furthermore, lowering from initially selling price may be seen as "desperate" act and thus openly invites opportunistic buyers to quote even lower prices. Meanwhile, valuation report may be expiring soon, thus causing unnecessary anxiety for owners.

Scenario described above are often played many times over between sellers and agents. Sellers are therefore cautioned against such misconception and should carefully select agents who are honest, dedicated and one who places owners’ interest as priority over self-interest.

Pitfall 2: Open vs Exclusive Listing

This is another common mistake HDB owners often make. Some owners view that if more agents are allowed to market the same flat, one will have more buyers to choose from. Given more buyers, the flat will therefore be transacted by agent with buyer with the highest offer. This compared favourably to exclusive listing whereby owners rely on only one agent to bring in buyers. Listings become open when owners advertise on the newspaper classified or online classified.

However, the reverse is true in selling property estates. In the case of an open listing, Agent A will think Agent B will market, & Agent B will think Agent C will market and so on. At the end of the day, no one markets the property!. Agents with business sense will normally avoid spending resources on open listings when they run the risk of not reaping any rewards when someone else closes the sale. On the contrary, under an exclusive arrangement, the sole agent will be motivated to market the property, creating a sense of ownership for the sale of the property.

The reverse can also happen when all Agent A, Agent B and Agent C launch an avalanche of marketing efforts resulting in "duplication" of buyers. In this scenario, owners find themselves entertaining the same group of buyers brought by different agents, exhausting precious time and sacrificing personal convenience. Such onerous efforts can be avoided in an exclusive arrangement as the sole agent helps to screen potential buyers, inviting only genuine buyers for viewing and further discussion.

Another detrimental effect of open listing is that owners may eventually end up selling the property at lower price compared to exclusive listing. This happen when there is one identified Buyer who is keen on the property. As all agents are eager to close the sale, agents may attempt out bid one another to entice the same Buyer.

For example, if the flat was initially priced at $500,000, Agent A may quote $498,000 to Buyer. In order to secure Buyer, Agent B will quote lower $495,000 while Agent C will quote $490,000 for the same flat. Finding $490,000 attractive, Buyer approaches Agent C to buy the flat. In turn, Agent C tells seller that there is only one interest buyer who is will to offer $490,000. Thinking that $490,000 was the best offer from the only Buyer, owner sold the flat. To an agent, it is only about $200 difference in commission (2% of selling price) when the flat is sold at $490,000 compared to $500,000. However, to an owner, the difference amounts to $10,000!

In short, an exclusive listing work towards the advantage of owner.

[Homeowners should note that in an exclusive arrangement, only one agent is given the privilege to market the property for a limited period of time. Homeowners can only sign one exclusive sole agency listing for their property at any point of time. In the event that homeowners sign more than one exclusive, legal disputes will arise resulting in unnecessary legal costs and higher commission payable.]

Pitfall 3: Agents from a well-known Company is better

Some homeowners think that agents from a well-known Real Estate Agency are more capable and experienced. This may not be true at all times. This is because the service of an agent is often unique. This mean the service offered by one agent usually differs from another even when both are from the same Real Estate Agency.

Well-known Real Estate Agency creates awareness of their services and profile via aggressive advertisement. Nevertheless, such service and profile awareness does not equate to good service. As mentioned earlier, services rendered by each agent differs and homeowners should therefore select an agent on individual merits.

Some sellers assume that older agents are experienced agents. However, this may not be foolproof as many older agents are new retirees and are therefore new in the field of work. Others may have just joined the profession only recently after quitting from another.

Similarly, some homeowners view that agents who drive luxurious cars are more successful and therefore more experienced. Although this may be true at times, it may not be always true. The car may be borrowed or purchased using other source of income.

Next, agents who proclaim themselves at Top Agents with many awards may not always guarantee good service. Being Top Agents, they may be busy with many units simultaneously and therefore may not give enough attention to each property. Furthermore, the Top Agents may not handle the property personally but engage assistants to market these properties. Last but not least, these Top Agents may attempt to close a deal quickly without regards to achieving the best possible price in order to free himself for other properties at the expense of owners.

Sellers are cautioned against judging an agent by his outward appearance. Down to the bottom-line, it is honesty, integrity and services that matter most.