How do you analyze a realtor's being a "(wo)man of qual

Shanghai Expat Forum Index » City Living Forums » Relocation and Moving

Author

Message

Wasabichez

PopStar

Joined: Dec 05, 2002
Posts: 1291
Location: Shanghai, China
Status: Offline

Posted: Oct 24, 2008 - 04:14 PM
Post subject: How do you analyze a realtor's being a "(wo)man of qual

How do you analyze a realtor's being a "(wo)man of quality"
(heh, I like that "man of quality" quoth Samwise Gamgee from Two Towers)

Any ideas as to how you analyze a realtor's sincerity in serving you wholeheartedly and not in a greedy predatory no-follow up afterservice way?

Here's a story, (bout a man named Brady....dah da dah da dadidadaDah)
I am going to be very vague here and not go into detail as to why I'm saying this cuz it will be a super long story. I've come to the conclusion that realtors who ask the landlords for 100% commission aren't sincere in their after service. Pretend to be a landlord and find out how much the realtor is asking the landlord for. You will realize that they are more interested in making a quick buck on the commission.

TENANT POV Yes you might be able to get away with a cheaper rent but that is because the landlord is footing that 100%, which is 70% market standard plus the supposed 30% that comes from the tenant/company. In short, the realtor just has to influence one party, not two, for the commission which is less work for a big hit if they succeed. So if a realtor who targets expats has a 20K rental apt, gets 20K from landlord, even haggling it dow a few thousand is still a lot at 100%, but if it is 20K haggle down a few thousand and only get 70% it already feels "less" and is a difficult struggle. Keep that in mind for negotiations.

LANDLORD POV. They think they are paying a super premium for good after service. They aren't getting that. And if the realtor tries to lower the price even though it is reasonable (I really mean reasonable so please don't argue with me what is or isn't) the realtor is just looking to make their job easier cuz they don't have the target tenants the landlord is looking for.

I have decided to stereotype 100% commission taking agents as lazy, greedy, insincere, predatory agents. And that affects the way they decide to work on their cases. If you are going to get victimized by an agent, make sure you are paying market price.

I'm sure many agent types who see my posting will go on defensive LOL well screw you. I'm trying to be give everyone something to think about. Hopefully get less screwed.

Havard

Reacher

Joined: June 21, 2005
Posts: 313

Status: Offline

Posted: Oct 27, 2008 - 10:15 PM

Why no defensive arguments? OP gets toooo lonely...

Just to reveal a fact to the OP. Brokers working for expats most of the time get a commission up to 70-100% of one-month rent. It is a fact.

LoveBoxStorage

Reacher

Joined: Sep 25, 2008
Posts: 364
Location: Shanghai
Status: Offline

Posted: Oct 28, 2008 - 11:08 AM

Expect most agents to be short-term focused. In Shanghai, the norm is no exclusivity between landlords and agents / tenants and agents. Rental realty is a highly commoditized business where for most firms, success is based on how many stores / agents one has, rather than reputation and service. You'll even find independent agents fraudulently trading under names of established firms.

There are some agencies that are higher-end and focus on expats. They generally provide service commensurate with their higher-end specialty. One of the frequent posters (Adrienne) on this board appears to be one such agent. Another in my experience is Joanna Real Estate (www.joannarealestate.com.cn).

_________________
Get Self Storage Without BS - Guaranteed! www.loveboxstorage.com

Wasabichez

PopStar

Joined: Dec 05, 2002
Posts: 1291
Location: Shanghai, China
Status: Offline

Posted: Oct 28, 2008 - 04:11 PM

Havard wrote:

Why no defensive arguments? OP gets toooo lonely...

Just to reveal a fact to the OP. Brokers working for expats most of the time get a commission up to 70-100% of one-month rent. It is a fact.

Yes I totally understand that kinda strategy. However the practice that I am aware of is the more local priced situations are 35%tenant 35% landlord. The realtor says that because a landlord is targeting expat market that is why they have to foot a premium, understandable. It is the realtors that focus on expats only that con people out of 100%. THOSE are the ones I recommend potential tenants to back off from unless they already have an existing happy longterm relationship with one. The 70% is sensible as that is a legal standard, these kinda agents are also able to offer the same kinda professionalism(its hilarious how the so called expat targeting agents with 100% commission who "speak english" have very low english comprehension). The extra 30% is actually a con. They don't live up to it. Plus the ones I've talked to who ask for 100% aren't very attentive when you talk to them. They continue asking the same question just reworded.

After that explanation. What I am getting at is that the higher the commission footed by the landlord, the greater possiblity of a somewhat disgruntled landlord because an agent's underperforming afterservice attitude, so wouldn't that kinda agent be considered of lesser quality. After all a disgruntled landlord can also affect the tenant. So it is a circular situation triggered by predatory-make a buck and run-low integrity agent.

Wasabichez

PopStar

Joined: Dec 05, 2002
Posts: 1291
Location: Shanghai, China
Status: Offline

Posted: Oct 28, 2008 - 04:16 PM

Yeah realtors are short term focused. Especially the expat targeting agents. If you think on it: If a contract is renewed the commission is halved. So they actually don't mind if the tenant becomes disgruntled and want to move on. That way when they help find a new place they start off at the max commission.

Realtors that start at 70%....renewal 35% for every year after.
Expat Realtors start at 100%, drop to 70%, then supposedly should also go down to 35% and every year after.

If you are looking into after service....confirm with your network of friends, and I mean personal friends, not BBSes because everyone has different standards. Discuss with your friends personally so you can cover all potential aspects thoroughly. Heh...and BBSes could have people spreading propaganda.