What Will Motivate A Real Estate Agent To Maximise The Buyer’s Interest?
Monday, July 12th, 2010 at
6:31 pm
Current commission structure in Singapore (based on sale/rental value) provides no motivation for a real estate agent to maximise the interest of the buyer. This is because higher the sales/rental value higher will be his/her commission. What can we do to change this?
Tagged with: Agent • Buyers • Estate • Interest • Maximise • Motivate • Real • What • Will
Filed under: Q & A
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Actually most Real Estate Agents are not even Competent to represent the interest of the buyer or the seller.
No amount of motivation will do any good, because the average Real Estate Agent is not competent in the first place.
We had a similar system in the U.S. Agents were representatives of the sellers and were required by law to support their interests. Now we have a system whereby agents can be trained and qualified to work as buyer’s agents.
The new system allows agents to represent the buyer on all listings other than his own. The agent only earns a commission when he sells, but is no longer motivated to sell only his own listings. At the same time, the buyer signs an agreement stating that he will work solely with that agent to find a dwelling unit for the term of the agreement.
Buyers can motivate the relator by asking the right questions.In my area a buyer should request a market evaluation of any property (based on similar properties in the area the past 90 days) they are thinking of purchasing. This evaluation sets the stage for the offer. Both realtor and buyer are on the same page. The realtor could risk loosing his buyer if he deviates to far of the market evaluation.
One thing that use to motivate me was getting a commitment from the buyer they would buy form me. I had a 90 day agreement. If I did’nt find a home in 90 days they were free to move on to another relator
Lastly we have a code of coduct from the realestate board. If we violate the code (fiduciary duties to our client) we can loose our licience or be fined or both. Big Motivator to do the right thing!
Why couldn’t you just post in front of the house the salesperson who sells my house gets a free cruise trip or something to that extent. Or even make an incentive for the buyer to buy the house such as a brand new living room set or new flat screen TV. Or offer to pay the salesperson something on the side.