Forum: Don’t scrutinise only roles of housing agents and lawyers in property deals
Sign up now: Get ST's newsletters delivered to your inbox
Follow topic:
Recently, there have been commentary pieces regarding the $2 million HDB flat prices ( The three-level problem with fake $2 million HDB flat listings, Property buyers face high price for being misled into deals to avoid ABSD
Today, buyers can easily find out about recent transactions on the HDB website. This creates a transparent market where the information is known not just by professionals but also consumers.
To blame the unrealistic listing price of $2 million solely on property agents can be unfair. Often, agents would advise clients on an optimal price to sell the property at.
It is also not in their interest to advertise a price that does not move the property as this incurs advertising costs.
With so many agents in the market, consumers tend to interview agents before appointing one aligned with their interests.
Agents who try to give a realistic view might be seen as trying to bring the price down just to make a quick sale. Invariably, there will be an agent who will take up the challenge of setting a high price.
The 99-to-1 scheme gained traction in recent times due to the rise in property prices and cooling measures such as the additional buyer’s stamp duty (ABSD). In the past, this loophole was known to only a few, giving them an initial edge in closing deals.
Soon, it looked like agents who knew about these schemes were deemed more competent and knowledgeable.
If a consumer were to ask an agent if they knew about this, it would be disadvantageous to say they didn’t. This then led to more such cases as information was slowly put out in the market.
While the news articles focus on agents and conveyancing lawyers, it should be highlighted that consumers also seek to avoid paying the ABSD by looking for agents and lawyers who can advise them on how to do so.
Agents as licensed professionals have a duty of care towards consumers and should walk away from the deal if it is not in line with regulations.
Consumers should also see beyond an agent’s transaction numbers and look for qualities such as integrity and honesty, which are more important.
Brandon Zheng
