In the bustling real estate market of Singapore, the stakes are always high. With the Council for Estate Agencies (CEA) guidelines advocating for transparent and fair commission practices, most agents strive to maintain integrity. However, not all play by the rules.
I was representing a seller, Mr. Tan (not his real name), who was eager to sell his charming three-bedroom condo in the city. After weeks of marketing and numerous viewings, I finally received an offer from a buyer, represented by an agent named Mark (not his real name).
Mark reached out with an intriguing proposition. “Eunice, I have a serious buyer. They love the place and are ready to make an offer. But I need you to request a higher commission from your client. In return, I’ll get my buyer to agree to a higher purchase price to cover the extra commission. This way, we both benefit.”
I was taken aback. “Mark, I don’t think this is right. Asking for a higher commission without a justifiable reason could harm the trust between me and my client.”
Mark did not give up and tried to persuade me. “Look, Eunice, this is common and it’s a win-win. Your client gets the price they want, and we secure our commissions. It’s just a small adjustment in the numbers.”
“I understand your point, Mark, but I can’t do that. My responsibility is to act in the best interest of my client, and this is not right,”
Mark sighed, “Alright, Eunice. I respect your decision.
Eventually, the buyer did not offer and I did not broker the deal with Mark.
The unit took a few months to sell but my decision to uphold integrity finally paid off. Mr. Tan was pleased with my professionalism and transparency, leading to a successful sale and a glowing recommendation.
The Lesson
This story highlights a critical issue in the real estate industry: the temptation to manipulate commission structures for personal gain. While it might seem like a harmless adjustment, such practices can undermine trust and tarnish reputations.
This experience serves as a reminder that maintaining ethical standards is paramount. Agents must prioritize transparency and fairness, ensuring that all parties involved in a transaction feel respected and valued. In the end, integrity is the cornerstone of a successful and sustainable real estate career.