An interesting episode happened yesterday.
While applying the "free" membership for a customer (the rewards point "hook" to seduce customers to come back), I was surprised another person is using the same HDB address.
It could be the previous owner.
So I asked the customer whether she recognise the name.
Nope. But wait. That's her property agent!
I can see my customer not happy. Of course anyone can see she got "conned" by her property agent.
No wonder the property agent insisted cannot get a lower price... My customer fumed...
It reminded of a similar case quite a few decades back.
Although this time, the property agent is the actual buyer..
The property agent probably realised his client is a bei kambing. The owner of the condo along the Singapore river had no clue how much his condo was worth???
Everything trust the agent!? Agent says what, believed hook, line, and sinker.
Let's just say the condo was probably worth $1.8 or $2 million, but the property agent told his client that the market price is around $1 to $1.2 million (its just an example I came up but you get the picture).
Remember, this was a time where property listings on the internet was not common.
And it worked!
His client sold the property to the wife (of course pretend to be just another buyer) of the property agent without knowledge of the conflict of interest.
And the property agent made a handsome profit by flipping the property to the next genuine buyer.
Stealing candy from children. Easy!
Thankfully there's justice.
The bei kambing condo owner found out he was conned months later and took his property agent to court.
The condo owner is a bei kambing when it came to property matters... But he is no bei kambing when it came to his securing his rights and knowing how to seek damages and redress!!!
This condo owner is probably someone who not interested in financial matters as he was preoccupied with his career or business... (Shocker! Not every so money minded like us)
And the funny thing, the property agent turned out to be the CEO of his own property agency!?
Talk about leading from the top!
Make a guess.
When you attend property classes, workshops, seminars that "shrill" certain properties, are there conflicts of interests?
And if it can happen to properties... Can it not happen to forex, options, equities, insurance, and what not?
How to gain street smarts fast?
If you are between jobs, waiting for exam results, or having school holidays, just join any insurance or property agencies for "fun" and you'll get the insider view.
Who knows? You may enjoy being a snake-oil!
You may also want to join those adult education "academies" as "volunteers" or minimum wage "helpers".
This one you may need to join a few.
Then you'll realise there's a set pattern or modus operandi which they all practice to channel bei kambings into their sales funnels.
It all starts from the "free" seminar or viewing. Wink.
Of course anyone in sales, purchasing or have your own businesses already got "crash got sound" experiences with "conflicts of interest".
Some give; some take.
Like they say in the Army,
"Can do anything you want, just don't get caught!"
Big daddy made it clear some years back to their civil servants, and shepherds of big daddy linked companies, even if no money is involved, getting "free" sexual services is also a conflict of interest!
And you thought that sort of thing only happened in the entertainment industry...
Smol,
ReplyDeleteLol, I'm sure she'll be submitting a case with CEA soon.
(Past cases dealt by CEA ... most resulted in fines of a few K & suspension of a handful of months, pretty much a slap on the wrist.)
Good (& bad) of having more everyday processes under law ... clear-cut outline of what can or cannot ... but harder for under-table or backlane negotiations!
Also these type of laws only hantam the perpetrator .. doesn't compensate the victim. That one need ownself civil litigation.
But unless she ended up paying a huge amount above the going rate of similar units on the same street, don't think can get much ... certainly the legal costs won't justify it.
If govt agency really finds fault, maybe can get the property agency to refund commission. :P
Spur,
DeleteI doubt she would. I suspect she has no idea what is CEA... Plus HDB resale prices are hitting new highs; it helps to mitigate the anger ;)
Most people are aware of leveraging on Other People's Money, but few have actual practice when it comes to leveraging on Other People's Talent.
When we hire an agent or broker, we should be the "landowner"; they our "shepherd".
But if we behave like "bei kambings", then of course these "shepherds" will treat us like "sheep"...
Rich property agents will look for really good deals to make themselves richer. Read? You Love Your Job But Your Company Doesn't!!! (3)
ReplyDeleteCW,
DeleteI would do the same too!
Its human nature.
That's why landowners have to come up with "creative" ways to use the carrot and stick on their shepherds so their interests align ;)
When people in our community focus on low cost, low price...
Would their agents or brokers look out for their interests?
Or would these agents/brokers spend more time on those landowners who know how to reward their efforts ;)
Tip: To Insure Performance
Like your say, trust but verify.
ReplyDeleteBut the other extreme is squeezing blood from.stones.
U keep using the outlyer and ask your agent when my flat cannot fetch the same price
Sillyinvestor,
DeleteIts easier to Trust but Verify nowadays:
1) Just goggle online for the recent transaction prices around your area. There are so many property websites showing current listings too ;)
2) Respect our 5000 years of Chinese wisdom - compare 3 shops before buying.
In this case, just contact or use 3 property agents. Use "competition" to our advantage!
Exclusive to one agent only when we have Trust but Verified this shepherd is good, better, best!!!
Again, not rocket science; just common sense.
I only used 1 agent so far... Happy can already. Of course, is because he provide value add service, after the rental, she follow up with Tenant, and pay in advance the repair work and quote me the price.
ReplyDeleteI verify already. Defintely is not a price I can get easily from retail shops, maybe as a agent, her "network" charge her even cheaper, but I believed in win - win, I get to take my worries off it, I believe is cheap price,and if you are so good at getting a low price and earn a bit more, so be it. Otherwise, 干嘛为你卖力，因为你帅啊？ siao
Sillyinvestor,
DeleteYup, luck triumphs skill!
If we know we got a good "shepherd", then let's not sweat the small stuffs.
Knowing when and how to REWARD our "shepherds" can save us a lot of grief ;)
In our day job, we yearn for more recognition, more bonus, more pay raise... But when it comes to our "shepherds", we become exactly like our miserly bosses???
LOL!
I'm lucky I've worked with companies that know how to treat hired-guns right. Good riddance to those miserly and penny pinching companies!
That's how I learnt the Art of Tipping ;)
Agent also human, when profit other than say thank you maybe can treat kopi or small lunch la, the agent will appreciate you in long run and share share.
ReplyDeleteMost lose money and blame agent, why market drop never inform me? Hello dear customer, we have not establish any relation yet.
Small Time Investor,
DeleteWe are on the same page. Networking is relationship building ;)
I get angry when I hear of agents (both property and insurance) giving "cashback discounts" from their commissions to their clients.
If we give in to cheapo customers' demands, we are enabling them to belittle the work we do. We maybe snake oils, but we are still professionals!
Just walk away man! If we can't say no, we are no different from prostitutes...
Treat shepherds right, the law of increasing returns will benefit landowners ;)
Yes, Smol
DeleteRelationship is built on mutual respect. I have one occasion where I met an ultimate prospect which let me wait for more than 2 hours. After the demanding pitch, he still dare to say coffees on me. Really ultimate cheapo.
After a certain period, he texted me to enquire information, I told him it's fine if the sales is not done, and I understand your time is important, however my time is equally or not even more precious and important. You might wish to find another agent who better deserve to serve you.
When you gave in to cheapo clients, it's either you don't believe in your products or your service (includes knowledge ) or both.
What landowners and shepherds want is quality scalability and sustainability!