{"id":12369,"date":"2017-11-09T03:46:34","date_gmt":"2017-11-08T19:46:34","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=12369"},"modified":"2022-07-01T04:10:06","modified_gmt":"2022-06-30T20:10:06","slug":"property-agents-pitfalls","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/property-agents-pitfalls\/","title":{"rendered":"4 common pitfalls for new property agents in Singapore"},"content":{"rendered":"
<\/div>

\"property<\/p>\n

(Credits<\/a>)<\/p>\n

Here at 99.co, we see a lot of property change hands. And while the rest of the market may not recognise it, we know a lot of these transactions come down to the work of a property agent. To prevent new property agents from getting caught off guard (and then swearing off the property market forever), we want to prepare the newbie agent for some pitfalls you\u2019ll face. Be prepared for\u2026<\/span><\/p>\n

    \n
  1. \n

    Clients who drag commission payments, or just don\u2019t pay them<\/b><\/h3>\n<\/li>\n<\/ol>\n

    Sometimes, clients just don\u2019t pay your commission. Once the deal is done, they stop answering your calls, they don\u2019t answer your emails, and they\u2019ve never heard of you before.<\/span><\/p>\n

    If you think no one is thick-skinned enough to behave this way, then welcome to the one industry that will correct that perception. Because this <\/span>really does <\/span><\/i>happen, to the point where most real estate agencies have debt collection services on call.<\/span><\/p>\n

    We don\u2019t know how those debt collection services work, but sadly for you, they\u2019re about as vicious as a fluffy chihuahua. We think their main tactic is like, a strongly worded email or something (there are rules about how far they can go).<\/span><\/p>\n

    The point is, it can take a <\/span>long <\/span><\/i>time to chase down that one or two per cent commission. It\u2019s unfair, but it does happen \u2013 and that\u2019s why you don\u2019t want to be too optimistic with your financial planning. Always plan for the off chance that a commission doesn\u2019t get paid, or gets paid late; even if you close the deal. That means <\/span>don\u2019t <\/span><\/i>splurge on a big dinner, or start charging things to your credit card, until the money is in the bank.<\/span><\/p>\n

    You also want to make it a point to save more than the usual person (a good idea for self-employed people of all stripes anyway). At the very least, try to maintain six months\u2019 worth of expenses in the bank.<\/span><\/p>\n

      \n
    1. \n

      Last minute home fixes, and having to become a handyman<\/b><\/h3>\n<\/li>\n<\/ol>\n

      Question: you are about to conduct a viewing of a house tomorrow, in 12 hours\u2019 time. If a tap is about burst, or the air-conditioner is about to fail, when will it occur during this 12-hour period?<\/span><\/p>\n

      If your answer was anything besides \u201cfive minutes before the viewing\u201d, you must be new to this.<\/span><\/p>\n

      In all seriousness, one of the pitfalls you face as a property agent is that houses \u2013 especially old houses \u2013 have a lot of maintenance issues. Often, those issues will show themselves just before an important viewing. There will be situations when you need to quickly rectify the issue; either with your own handyman skills, or by having someone on speed dial. Be ready to take off your coat, and unclog a toilet. This is the not-so-glamorous part of job they don\u2019t tell you about.<\/span><\/p>\n

      The worst part is, not all clients will appreciate it. Some of the lousier ones will notice you swept the whole house, cleaned the air-conditioner, straightened a crooked window pane, and they won\u2019t even ask if you had to call a handyman in.<\/span><\/p>\n

      If you want compensation from them, ask for it. Be sure the produce the necessary receipts and invoices. Some homeowners operate on a \u201cdon\u2019t ask, don\u2019t get\u201d policy.<\/span><\/p>\n

        \n
      1. \n

        There are clients who will cut you off, after you\u2019ve done most of the work<\/b><\/h3>\n<\/li>\n<\/ol>\n

        You service a client for many weeks, getting the paperwork in order and ferrying them around. Suddenly, at the last minute, you\u2019re told they don\u2019t like what you\u2019re doing \u2013 they\u2019ll make up some rubbish excuse to dismiss you. The colour of your shoelaces is unacceptable, or something equally stupid.<\/span><\/p>\n

        Then the carry on the deal without you the property agent, and conveniently not have to pay your commission.<\/span><\/p>\n

        Again, if you think no one is brazen enough to do this, you\u2019re very wrong. This really is a problem that rears its ugly head from time to time; and you may want to take a stand and turn it into a legal issue.<\/span><\/p>\n

        We can\u2019t advise you on that (we\u2019re not lawyers), but we can tell you to prepare to set aside time for it. There are going to be frequent visits to a magistrate, which takes away time for prospecting, and conducting viewings. Some agents even shrug and let it go, because it requires too much effort to chase down the client\u2019s commission.<\/span><\/p>\n

        (And if the commission is small, the client may bet on you deciding it\u2019s not worth the effort to take them to court).<\/span><\/p>\n

          \n
        1. \n

          The customer acquisition costs are skyhigh<\/b><\/h3>\n<\/li>\n<\/ol>\n

          The main cost to new property agents lie in customer acquisition. You need to pay for listings (which we<\/span> can totally help you with by the way<\/span><\/a>, at a better rate), you need to pay for advertising materials, you may need to pay for roadshows and transport \u2013 the list goes on.<\/span><\/p>\n

          It would be a <\/span>very <\/span><\/i>good idea, if you\u2019re a new property agent, to track the costs of your various prospecting methods. Some of them are just inefficient \u2013 you might find that using Facebook ads for example, gets you a new lead at half the cost of printing and distributing flyers. Take our word for it: if you don\u2019t do this early, you\u2019re going to end up wasting a <\/span>lot <\/span><\/i>of money.<\/span><\/p>\n

          You\u2019re also going to find that advertising is a weird thing, and what works for someone else just may not work for you. The bad news is, it could be a couple of thousand dollars before you learn that (unless, of course you, track the costs of your prospecting methods).<\/span><\/p>\n

          The biggest pitfall to watch for, however, are the \u201cfree\u201d advertising tools. Writing content, pushing it out on Facebook, launching your own Twitter campaigns, etc. These are effective, don\u2019t get us wrong \u2013 but you\u2019re going to be stunned at how expensive these \u201cfree\u201d tools are.<\/span><\/p>\n

          The free methods make you trade <\/span>time for money<\/span><\/i>. You don\u2019t see it, but you really end up becoming a free content producer for Instagram, Facebook, Pinterest, etc. And believe us, the time taken to market content this way will swallow most of your week.<\/span><\/p>\n

          We\u2019re not saying don\u2019t use them (you probably have no choice), we\u2019re just alerting you to the fact that free advertising is anything but.<\/span><\/p>\n

          Don\u2019t be discouraged though \u2013 there are plenty of ways for new property agents agents to get ahead<\/b><\/h3>\n

          The two keys are persistence, and preparation. Always have an eye on the worst problems that can happen \u2013 if they don\u2019t, that\u2019s great. If they do, being prepared means you won\u2019t be startled and can stay calm. Notice how veteran agents behave as if everything is always under control? This is how they do it.<\/span><\/p>\n

          Interested to learn more about how you can up your game in the property market? Check out our articles on <\/span>5 easy hacks for property agents<\/span><\/a> and the <\/span>benefits of engaging a property agent<\/span><\/a> (great stuff to forward to your clients!). <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

          (Credits) Here at 99.co, we see a lot of property change hands. And while the rest of the market may not recognise it, we know a lot of these transactions come down to the work of a property agent. To prevent new property agents from getting caught off guard (and then swearing off the property…<\/p>\n","protected":false},"author":36,"featured_media":54928,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"","_lmt_disable":"","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[57131,53613],"tags":[54406,53596,54498,54263,54499,54500,53709],"persona":[],"class_list":{"2":"type-post","16":"entry","17":"has-post-thumbnail"},"acf":[],"yoast_head":"\n4 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