Why you should not use an agent?

While I am an agent, I gonna be frank on why sometimes it isn’t better to engage a property agent. I know this because prior to becoming an agent, I had bad experience and the DIY approach works better for me. After becoming an agent, I am even clearer what goes on when you engage an agent.

Results can be worse with an agent.

When should you not engage an agent

It is not every scenario that you should DIY. To be specific, you should NOT engage a property agent service for buying a resale (be it HDB or private).

I will list the reasons in later sections.

First of, to be clear, these are the scenarios where engaging a property agent has value:

• Buying new launch – Always find a neutral agent to explore all options. Do not walk-in to showflat and be served by random agent who is focus on only that project!
• Selling – It is harder to DIY for selling because only property agent can post on listing portals such as propertyguru and 99.co, so marketing reach is a big hurdle.

If you need my service, let me know.

Reason 1: Resale buyer agent is a chauffeur

I always joke that the main role of a buyer agent is to chauffeur the buyer around (if buyer doesn’t drive).

The secondary role is to contact sellers and arrange a time to view (read reason 3 why this is also bad).

That’s about all. Really.

Okay, you might also ask them for opinions and professional advises. But many agents are focused to closing you, and can be bias. If you ask a barber should I cut my hair, it will be yes every time!

Reason 2: Agent is a middle man

While an agent can help to answer some of the mundane questions and answers, he still has to pass messages between the 2 parties much of the times, especially when it comes to offering a price.

Unless you’re uncomfortable with such communication, then the agent could be of use.

But having a middle man means 2nd hand information, and possible lose of information. If you’re someone who loves to deal direct, then cutting out the middle man is an option to consider.

Reason 3: Harder to schedule viewing

An agent will help buyer arrange for viewings. Finding a suitable date is already a tough process, and with an agent, it now depends on the agent schedule too!

As an agent, I can tell you frankly this. If I am not free on a certain day, then even if both buyer and seller are available, no viewing will happen! An opportunity could be missed just because the agent can’t make it..

Actually it can be up to 4 parties: buyer + buyer agent + seller + seller agent

So you see, the more agents, the harder to arrange for viewing.

Reason 4: The commission

For HDB, the market is for buyer to pay the agent 1%.

For private, the buyer does not pay (good for buyer), but the agent will ask the seller agent to co-broke (share the commission). The next section will explain why that is bad for buyer too.

This commission is fair, but also not little. You could save it for the purchase or reno.

Reason 5: No one likes to co-broke

If possible, not a single agent will prefer to co-broke a sale. It is of course very logical, because co-broke is simply sharing half of the comms with another agent.

Without co-broke, I can earn 100%. Why would I prefer 50%?

Because of co-broke, generally agents are bias towards buyers who have no agent.

So your buyer agent might not tell you this, but there will be times when they contact a listing but the seller agent is ignoring him. Now you know why.

Final words

I hope I have shared insights on why going DIY can be better for you. But if having a middle man has value for you, then go ahead. The commission is actually fair given the time and effort needed. But you still need to find a good agent, one who will put in the effort.

Once again, if you’re buying a new launch, then you definitely should engage an agent.

And of course, a good agent should also value add by helping you plan for financing the mortgage, and wealth planning.