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Property tips, observations, and actual experiences


Icedbs
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(edited)

In this post, I am going to demystify the art of getting a great residential tenancy experience in Singapore.  The below will apply to landlords, tenants and even agents. 

 

When I first started my RE career, the number of sad stories in the rental scene is almost enough to get me running  back to a corporate job. Landlords often complain about tenants and tenants will often complain about the landlord agent or the landlord. It seems that tenancy simply equals to disharmony among human beings and every party seems to have an axe to grind with somebody else. 

 

After  going through hundreds of tenancy cases, I believe the 5 tips below will greatly help you in ensuring a great tenancy experience.

 

The 5 important tips to a Great Residential Tenancy

 

1) Start with the right mindset 

 

Over the years, I realised that many sad tenancy cases started off with the wrong mindset about the other party.  Because the landlord owned the house, some feel that they are the "boss" and the tenant is the "subordinate". On the other  hand, tenants think that they are the "paying customer" and the landlord is the "vendor". 

 

The right mindset to think about the entire tenancy is that of a "business partner" where they both actually have a common stake in the property. The tenant wants a comfortable living and hassle free property. The landlord needs to have decent return on his investment and a well maintained property.  To achieve their goals, they should look at each other as a business partner where each has a role to contribute to achieve each other's goals.  If they can start with the right mindset, then a great tenancy is already halfway in the making.

 

2) Always strive to be fair to the other party

 

This point seems to be common sense and everyone likes to think that they are the fairest and nicest person around.  But in fact, this point is the hardest to execute. Ask any agents and they will tell you that it is hard to be fair. 

 

The issue is that humans are inherently greedy and like to have the best bargain. There is nothing wrong about this as long it is done upfront and ethically with a consideration for the other party.  Striving to be fair would sometimes mean compromising on certain issues but trust me on this, you will gain back much more in return through a great tenancy.

 

The point about being fair to the request of the other party serves two important function:

 

1) Both parties felt that they have entered into a tenancy on a similar level playing field and as such, gain trust and respect for each other

2) Whenever there are issues, both parties are more willing to listen and work together to resolve an issue because they know that the other party has proven to be righteous and fair right from the start.

 

A good agent will  advise their clients if their request and decisions are out of line and does not appear fair to the other party. Striving to be fair is the best way to act for the interest of the client.  Helping the client to fight for unfair advantage is actually doing more harm to the client in the long run.  

 

3) Try to keep the tenancy terms to market practices and norms.

 

Most tenancy agreements have a standard template that contains the market standard clauses.  However, the clauses can be changed depending on what is given in the LOI and the other wishes of the landlord.

 

It is  always better to follow the standard market practice as much as possible.  The reason being that when standard market terms are used, everyone knows that they are dealing with widely accepted practices and there is no ground to doubt that they are being taken advantage. If special terms are needed, make sure a good reason is given and the reason remains fair to the other party (goes back to point 2). 

 

4) Respect the Initial Tenancy process

 

This point is so obvious, but again some people doesn't  take it seriously. The initial process starts with an offer and requirements from the tenant. Often it is a verbal offer for the landlord agent to bring back to the landlord for discussion.  If the landlord accepts it, the tenant should quickly proceed with the LOI and the first month booking deposit for the landlord to sign.

 

It is a simple process, but some tenants exploit it. They would make 3 offers at the same time and 2 of the landlord will get rejected even if they had accepted the offer. The rejected landlords will then feel so frustrated that it is their turn to treat the next offer less seriously when the next one arrives. 

 

And then sometimes it is the other way round. The tenant followed the process,  got the LOI to the landlord promptly, but the landlord now sit on the LOI and refuse to sign  even though he has verbally accepted the offer. Reason being that he is waiting for other better offer. The poor tenant is now being delayed, not sure whether  to wait or simply cancel the deal. 

 

All the above creates sour feeling right from the start and is the beginning of doubts and skepticism that will slowly ruin a possible good tenancy. The only time the above situation is minimise is when both sides have their agents and  the agents have the obligation to respect the process as part of their code of conduct. 

 

5) Stop any deals that have hint of non standard payment request during the initial stages.

 

The above is one big warning sign of impending tenancy issues down the road. Never ever give in to the above point.

 

What do I mean by point 5 above?  It is when tenant or landlord make non standard payment request that doesn't quite follow the standard processes . For example, the tenant is expected to pay the security deposit at the point of signing the TA.  But he asked if he can pay that only during handover that is probably 2 weeks or 1 month down the road. Some landlords are kind enough to defer the security deposit until handover. But this is actually a big warning sign that he could have issue paying his rent promptly in future.

 

Never take risk on the above situation. Any signs of non standard request of payment during the initial paperwork stages often means some financial difficulty at the start and it is better to just cancel the deal than to take the risk.  Evicting tenant due to rental arrears is a very painful process.  Don't go through it.

 

Conclusion

 

If you have read till here, you probably realize that the 5 points above is really about managing expectations and creating trust right at the initial tenancy stages. It doesn't look too difficult, but why is there so many tenancy runs into dispute and issues?

 

The initial stages is a process that is often overlooked because it is a stage where negotiation takes place. At this stage, landlord/tenants often think about the requirements. prices, commencement date, etc and how it affects them immediately and less about following process, or be fair to the other party demands or putting themselves into the other party shoes which will affect them in the long run.  I will often manage the bigger picture at this stage so that everyone enters the tenancy with a good feeling towards the other party.

 

Still, every tenancy has its risk, but  from experience, if the front is done correctly, often the tenancy will be a pleasant one down the road.

 

 

 

 

 

 

 

Edited by Icedbs
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While it is true you have a higher chance of selling by impressing prospect buyers with well done interior. 1st impression counts. 

 

For buyer like me, the interior finishing is the least concern because I have my other ideas after purchase. Therefore the least the better as I don't want to pay for things I need to tear down later.

 

It is always about location and the development, not the interior. So keep it simple and don't try to oversell. The prospect comes broadly for 2 reasons. Just to see and compare and those really interested with this development. Most have already done their homework, would you if you are investing more than a million? 

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Turbocharged

 

4) Respect the Initial Tenancy process

 

This point is so obvious, but again some people doesn't  take it seriously. The initial process starts with an offer and requirements from the tenant. Often it is a verbal offer for the landlord agent to bring back to the landlord for discussion.  If the landlord accepts it, the tenant should quickly proceed with the LOI and the first month booking deposit for the landlord to sign.

 

It is a simple process, but some tenants exploit it. They would make 3 offers at the same time and 2 of the landlord will get rejected even if they had accepted the offer. The rejected landlords will then feel so frustrated that it is their turn to treat the next offer less seriously when the next one arrives. 

 

And then sometimes it is the other way round. The tenant followed the process,  got the LOI to the landlord promptly, but the landlord now sit on the LOI and refuse to sign  even though he has verbally accepted the offer. Reason being that he is waiting for other better offer. The poor tenant is now being delayed, not sure whether  to wait or simply cancel the deal. 

 

All the above creates sour feeling right from the start and is the beginning of doubts and skepticism that will slowly ruin a possible good tenancy. The only time the above situation is minimise is when both sides have their agents and  the agents have the obligation to respect the process as part of their code of conduct. 

 

 

 

The above very true...... good post. 

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wah ... real experience no fake news

your only home also can flip flip and continue to flip

keep buying selling and huat ah [thumbsup]

post-7984-0-48156200-1550968334_thumb.jpeg

post-7984-0-87645900-1550968343_thumb.jpeg

Edited by Wt_know
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wah ... real experience no fake news

your only home also can flip flip and continue to flip

keep buying selling and huat ah [thumbsup]

 

actually quite common.

 

A lot of owners flip very often before the ABSD and SSD measures. 

 

Thesedays, if they can make some $$$ after the SSD period, they will sell and buy again too.

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actually quite common.

 

A lot of owners flip very often before the ABSD and SSD measures.

 

Thesedays, if they can make some $$$ after the SSD period, they will sell and buy again too.

agreed.

good times bad times

up times down times

previous, now and future

there is always opportunity to make money

in uniquely spore property market

i repeat .. it’s unqiue to spore with “magic hand”

because even city like tokyo, shanghai, melbourne, sdyney cannot sustain like sinkieland ... [sly]

Edited by Wt_know
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agreed.

good times bad times

up times down times

previous, now and future

there is always opportunity to make money

in uniquely spore property market

i repeat .. itâs unqiue to spore with âmagic handâ

because even city like tokyo, shanghai, melbourne, sdyney cannot sustain like sinkieland ... [sly]

Other cities can not prevent uprising in prices as well from 2013 to 2017. Only 1 country that is doing well economically succeeded in doing so during that period.
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wah ... real experience no fake news

your only home also can flip flip and continue to flip

keep buying selling and huat ah [thumbsup]

Gotta give it to him for putting money where the mouth is.

 

Nowadays, hard to flip properties for quick bucks liao.

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Gotta give it to him for putting money where the mouth is.

 

Nowadays, hard to flip properties for quick bucks liao.

 

yeah. Long time back, when I was doing my regular reservist, there was this hokkien peng in my group that always have a need to change address.

 

Being typical me, I ask, whao.. u runaway from Ah long is it. I see u keep changing address.

 

To my amazement, he say, he being flipping HDB and resale as well as selling condo queue and apparently doing quite well .

 

So while I was cautious on such good lobang, I also went doing what he shared.

 

But soon enough, MBT curbed it and I only manage to do perhaps 3 throws.

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Thank you

I am starting this thread as a complement to the main thread on property news and prices. I hope some of these tips/suggestions gained from actual dealing on the ground would be helpful to homeowners/buyers.  I will start off with the below burning question that  I get all the time....why some units break record prices but some could not be sold for months and months.

 

Selling your property for top dollar

 

Firstly, let's define what is top dollar? In my terms, top dollar would means selling above market valuation. Often, it also means breaking the record price of similar units in the same estate/condo. Over time, I observed that these price record transactions had a similar trend. To get top dollar, contrary to most beliefs,  it definitely has much more science to it than art.  Top dollar deals seldom come from just listing and pray; it has a method to it. Unfortunately most sellers/agents never really took the method seriously and in most cases, never get top dollar for their units.

 

As this is a post and not a blog, I will keep it short and concise. To sell for top dollar, you need to understand the below on the psychology of a buyer when they come for viewing:

 

1) Buyers use very little logic when viewing, they tend to follow their emotions more

2) Emotions arise not just from what they see, but also from the other senses such as smell, feel,  touch and hear

3) Sellers always make mistake by assuming that the buyer can imagine an empty house. The buyers don't and they won't

4) The key then is to be able to reach down to the sub-conscious of a buyer by invoking their positive emotions during viewing.  Houses that gets top dollar often make the buyer feel 'right" and they then use their emotion to justify their logic.

 

Failure to consider the above is the key difference between getting no offers (or market valuation at best) and one with a top dollar offer.

 

Understanding the above,here are my 10 tips for sellers based on my experience:

 

1) A cluttered house kills good emotions. Always un-clutter the house before viewing. Throw away junks and keep the house tidy. The owner is selling the house and will need to move soon...use that opportunity to start clearing the house. This issue is so prevalent in many units that the seller  think that the buyer will imagine an empty house. Again they won't!

 

2) Fix all minor defects. Again, too many sellers thinking that the house gonna be sold, what is the point of fixing it up. You don't have to renovate the house, but you should fix up all visible defects. Even a new coat of paint on any old house does miracles in getting good offers

 

3) Clean the kitchen top and uncluttered it. A clean good looking kitchen makes a lot of difference in getting top dollar. If there is one place that make the difference in offers, it is the kitchen. The buyer's wife/gf/mother has a lot of emotions attached to the kitchen and in most cases, they are also the CFO to the purchase.  Unclutter the kitchen top  and make sure the stove and built-in oven looks clean. I even had a seller once storing his microwave away just to clear up space for his very limited kitchen top space. 

 

4) Dining table. Another culprit which is always full of everything except dining stuff. Clear it, and put an attractive piece, a vase with flowers, etc at the center. Pull the buyer eyes to the center of the dining table and let him feel that they can eat comfortably at that table. 

 

5) A well lit, unblock, entrance door. Clear away your shoes or anything untidy at the entrance. An unblock well lit entrance creates eagerness to explore more of your house. 

 

6) Masterbed room is important and it must look like it is ready for relaxation and sleep. I have seen many master bedrooms that has clothes hang in it, or the seller cramped a study table into the master. If you confuse the buyer over the purpose of that room, chances of getting a good offer is as good as nil.

 

7) Always give exclusive to your trusted agent. I seldom see record selling deals that are from open listing.  Open listing agents are prone to be "tested" by the buyer agent and their motivation to close will bring you a lower price. Furthermore exclusive agents are motivated to do every viewing for you hence has minimal viewing leakage.

 

8) Be flexible in your ability to open doors for viewing. Great offers can come from any viewing time and if you restrict your viewing time to evening or weekends only, you are restraining your ability to get good offers, Two of my record breaking sales came from afternoon weekday viewing. Hence, never, never have viewing leakage.

 

9) Check if your house has certain odors especially for those with pets. The houseowner is often immune to any smell, but the buyer will sense it at a distance. And if you have pets that could walk around the house, (or make noise, for.e.g barking) , please bring them out somewhere if you have viewings. Again, please don't assume that the buyer can imagine that your pet won't be there when they make the purchase. They won't. Remember, the sense of smell and hearing invoke powerful emotions so if you want to get top dollar, make sure those senses of the buyer are not affected.

 

10) I leave the last point to the advertising. Good advertising attracts viewers. Unfortunately I've seen many seller/agents use mediocre handphone photos to advertise. Some photos are so bad that a young Instagram-obsessed teen  would probably take better. If you already took the effort to do fix up, unclutter the house, etc, the last thing you want is to have photos that does not depict your house accurately. Wide angle photos, imo, is  the minimal requirement.  Videos and virtual tour are great, but only if your house is of a certain size.  Buyers will sub-consciously drawn to  sellers/agents who take pride in advertising their house and first impression does count in this business. Don't neglect this which I somewhat keep seeing all the time.

 

There are many  more concepts that I can keep going (the use of colours for e.g)  but the above is suffice for most sellers if they want their property to fetch good offers. Infact, I seldom see all 10 points click into place, but if they do, that property should get good offers.  It is very often for me to hear that some units could not be sold for months, but when another agent took over, it get sold within  one month at the same asking price. I don't believe it is all luck.  It has to do with the method right from advertising to preparing the house for sale.

 

I hope the above helps in giving some ideas in getting good offers for your property at your location. Your property is one of your biggest investment so it is worth the effort in putting the right "sciences" into it and get the top dollar offers.

 

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On 7/30/2019 at 10:08 AM, blueunicorn said:

Having their own property is an ultimate goal for many Singaporeans. When done properly, investing in real estate could offer many benefits for individuals. I came across this great article. I hope it helps. 

 

 https://www.edgeprop.sg/property-news/real-life-dos-and-donts-property-investing-2462166-0

❤️

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After dealing with several agents, I found a few looking after my interest.

Over the years had done well for me.

Instead of sending them hampers or lai see, I decided to by pass their agencies, that is, anything that is transacted is done by "me" but he or she "helps" me with paperwork only. So he or she gets the entire commission instead of having to loose a large portion of the commission to the agency.

 

It has worked well for me for many years now. The agents are very happy and so am I.

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i finally........ rented out my condo after about a month of viewing and rejections!

i changed my agent and got a younger (and hungrier) agent! The first thing he recommended me to do was to invest $1K to just repaint the entire home and it will make a big difference. 

He was damn right! within 2 days i finally got a tenant.. the painting trick works wonders!

I used homepainting.sg ,for their painting services .. paid $700++ for my 2 bedder condo unit and painted all white.

PS : White walls + warm lights really hit it!!

Another tip which i felt we all need to know - NEVER give exclusivity to agents.. they will take their time and not push for sales/rent. And of course, i always prepare ferroro rocher every time i meet him for some bromance action. 🙂

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Yes, exactly. Rents increasing, interest rates decreasing.

The tides are turning although everyone is just concerned about the virus statistics.

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