Unethical Housing Agents Resort to Undercutting

Case 1: Agent WannabeSmartButStupid

Ever since news HEADLINES broke on the rise of transaction from 6,000 units in the 1st  quarter of 2009 to 10,000 in the 2nd quarter period for the public housing, “hell” break loose !

Demand so high that cannot match the short supply of HDB houses for sale makes many errant rogue agents work undercover. More often than not they came to existence to undercut our fellow agents who has the exclusive listings with the sellers.

Recently 2 of my units became the target with these 2 rogues agent. I would like to dub them as “half-past-six” agents coz they cannot work the hard way to close a deal from getting their own listing to securing a buyer by themselves.

First scenario: a few month back the seller which I like to dub him as Mr KnowNuts from Bukit Merah called me with S.O.S. panic button said that his bank is about to repossess his 3room flat. I asked him to calm down and see what I can do.

As a professional agent, I analysed his statements and financial standings.  Upon computation, if I can sell about $280,000  which became the valuation price, he would have a profit of about $20,000. With This of course can cover the cost of bank legal action, cost of his Town Council arrears, agency fees and some monies for moving to a small rental flat to tie him down for a while. So I liaised with the banker’s lawyer to give Mr KnowNuts time to sell and to defer the repossession by the bank.

Since there is an ethnic quota restriction, only Chinese are not allowed to buy his property. Bukit Merah is certainly favorite amongst the Chinese but hey, HDB ethnic quota everyone has to abide by. No matter what, die-die it can’t be changed. Even if you cry blood or ask your MPs help, national policy cannot be changed as the ethnic integration is very sensitive matter.

Many viewers came and go. Many offer below valuation which I cannot agree as the seller surely cannot settle many of his financial woes.

So one fine day when I managed to secure a buyer through a co-broke deal, $1,000 cheque was given to Mr KnowNuts in exchange of the Option to Purchase (OTP). Luckily the cheque was post dated. Only then Mr KnowNuts revealed that he may have signed another OTP earlier with a different agent !

Mr KnowNuts is uneducated man with 5 small children in tow. Living quarter rather sympathetic as the house was unfurnished and living like the Spartans.

After many probing like CID officer interrogating their suspects, only then Mr KnowNuts confessed that he was selling somewhat at $260,000 ! My jaw dropped. My mood swings. At the point of rigorous questioning, he found difficulty remembering the agent. After calming him down again, he finally sees light at his rather blocked tunnel mind.

Binggo ! I know that agent. A husband and wife team, let’s call them Agent  WannabeSmartButStupid, who ever closed deal with me before! I tried calling him but he disregarded my calls.

Mr KnowNuts did not get a copy of the OTP until I finally pester him to secure one. To my surprised, the OTP was signed during the validity of my exclusive period.  Agent  WannabeSmartButStupid hijacked my valid valuation report and submit the case through resalenet 2 days after my exclusive expired.

Agent  WannabeSmartButStupid afterall didn’t realize that by selling at that price, the seller who has to discharge bank mortgage will not have profit to pay all necessary fees and legal fees,etc.

Agent  WannabeSmartButStupid failed to take care of the sellers’ welfare.Mr KnowNuts was duped to take the low price which he suspected something fishy after I drummed in some sense into his rather rusty brain.

Agent  WannabeSmartButStupid also failed to be an ethical agent coz they have breached a code of conduct as a professional agent.

I don’t understand the Agent  WannabeSmartButStupid stoop so low to cut a deal which is very questionable. How can he sells below value when he can sell at value and owner would have enough money to pay him the commission right? Like what Mr KnowNuts suspects as much as I do, there are likely to be undertable arrangement !

I am sure the deal will burst eventually. So good luck to them.

What goes around comes around. I have sms a few of my co broke agent to spread the news of Agent  WannabeSmartButStupid to be wary of them and may also blacklist them from co-broking with ethical agents.

Where is the moral and social responsibility of this Agent  WannabeSmartButStupid ?