"I know there is no chance as Mr H has had viewed my highly recommended unit with another agent yesterday" said Ms M, a mid-30s lady agent that left a steady job to become a realtor for the past few months. Mr H had seen a well renovated HDB 2-bedroom in Holland Road and was impressed. The rental asked was $1,900 and the Landlord would wait for his reply till lunch-time as it was the very first unit he had seen. The rental asked was above market rate but then, some expats do have the budget.

Since Ms M had no business for over 4 weeks, I had asked her to take my client, an Australian Caucasian male and Asian fiancee both <30 years old, to view apartments as I was suddenly overwhelmed by 3 new clients within 2 days. The rental budget was $1,500 - $2,000. I told Ms M that the lowest possible rental would close but she would not believe me.

Ms M, like most new agents, assumed that $2,000 would be best for the prospect as she wanted to maximise her income. New Agents: You may end up with zero income if you adopt this direction of getting the higher range because the expatriate customer usually wants the lower range.

She was thoroughly demoralised as she had missed the "top of her list" by few hours to another agent. From my experience, she would likely close at the lower range because that is what the customer wanted – affordable cheap rental as first priority.

To help her, I had to be present to introduce her to my clients at the Apollo Hotel at 9 a.m. I told Mr H that we could view other apartments on Sunday if none was to his satisfaction. He had his fiancee with him (likely to close if couple view together). I had postponed house-hunting for Mr H until his fiancee arrived but he did view the "choice" unit with another realtor through my referral as I did not expect her to have this listing. In any case, nothing is guaranteed and she might be further demoralised. She had advertised listings in the Straits Times without success or response (a common situation for all realtors in 1997 and 1998) and had spent a lot of money. This spiralled to a NMA (negative mental attitude) and inertia as no revenue led to no money for further newspaper advertisements.

In such situations, the following may be advised:

1. Become an employee.
2. Change to a realty that does not charge you 50% of your agency commission. Many charge 10%.
3. Learn new skills such as typing and using computers. Ms M said that her manager at the agency did not teach her how to use the computerised listing system but then she should not rely on the manager who was successful despite no knowledge of computers.
4. Ask family for financial help as you still need to continue your newspaper advertisements to source for clients.
5. Learn how to use the Internet because you do get clients. Mr H contacted me through the Internet. Contact webmaster@asiahomes.com if you want an affordable Internet presence without too much expenses.
6. Get a computer, printer and fax machine installed at home since you will be independent. Ms M did not have the facilities to type a Letter of Intent immediately when Mr H confirmed one unit he liked after half a day’s viewing. It is important to issue a Letter of Intent promptly. Get the cheque and move fast as there are other hardworking realtors who are more responsive than you.

Conclusion.

Many expats usually have a rental budget of <$2,000. Couples prefer their own unit, near public transport or subway and around $1,500 rental. In above case, Mr H did not take the "choice" apartment and Ms M closed by co-broking.

This case emphasizes to new Housing Agents the importance of qualifying Tenants and getting the lowest rental. This equates to lower commission but there will be some crumbs on the table, rather than drought.

February 8, 1998
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