Removal of property fee guidelines unlikely to have deep impact
I really did not see the point for setting a mandatory commission amount. But I believe the attempt had the best intentions. The IEA represents about 7% of the agent population here in Singapore. In an attempt to organize and standardize the training that agents receive and to put in place for the public to voice complaints, the IEA came onto the scene. They have not been very successful because the major brokers like Propnex and DTZ decided not to join after they saw the IEA going in a direction that they did not desire.
This recent strike down of the Fee Guidelines is just another nail in the coffin of ineffectiveness of the IEA. As I stated above, their intentions are in the right place but I think they lack the backing of the agency that could set things right. This is completely my opinion. The opinion being expressed is that of the blogger and does not reflect on his family, friends or future business partners.
The only way the agents here in Singapore and the public can hope to see change is if the Singapore Government steps in to set the standards. Right now most agents are know as "Cowboys". If I decided to rope cattle then it would be appropriate but I definitely don't want a " Cowboy" to help me purchase a $800,000 SDG condo!! Why "Cowboys" , it is easy, Any Auntie and Uncle can be an agent. Just do down to your nearest broker and tell them you have some deals to do and "poof" your an agent. Now most agencies have their own training but from my limited contact with agents here, they lack something very important: ACCOUNTABILITY. It really doesn't matter how much or how little training the agents have because if they do something wrong there is little a person can do short of going to court. And even if the agent is a bad apple, they can just go to a new company and work there without any reprecussions.
My sister in law recently received a license to be a tour guide. She had to take over 100 plus hours of education and then take an exam that is not the easiest to pass. What I think is bizarre is that the a Tour Guide needs a license but an agent does not? I guess dealing with the biggest purchase in most people's lives is really not as important as taking some tourists on a guided tour of Clark Quay or the Merlion. Again this is only my opinion.
Another point that I thought was funny came from Chris Koh, director of Dennis Wee Group. He described a possible scenario that would see an agent pocketing a huge commission on a very unscrupulous business tactic. Here the phrase "Buyer Beware" is often quoted. Add in the Seller and fellow agents as well because there are no rules for "Cowboys".
Singapore is usually on the cutting edge of everything but this part of their model is sadly lacking. Regulation done in a proper way to promote higher ethics and standardization of the process is where I see their direction heading.
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