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Rogue agents beware: Regulators move to make industry more professional and transparent

SINGAPORE — Efforts by regulators to increase transparency in the real estate industry have drawn mixed reactions from property agents, some of whom were concerned about the impact of unfair ratings by customers on their livelihoods.

TODAY file photo of flyers left by property agents outside flats at Ghim Moh Link. Efforts by regulators to increase transparency in the real estate industry have drawn mixed reactions from property agents, some of whom were concerned about the impact of unfair ratings by customers on their livelihoods.

TODAY file photo of flyers left by property agents outside flats at Ghim Moh Link. Efforts by regulators to increase transparency in the real estate industry have drawn mixed reactions from property agents, some of whom were concerned about the impact of unfair ratings by customers on their livelihoods.

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SINGAPORE — Efforts by regulators to increase transparency in the real estate industry have drawn mixed reactions from property agents, some of whom were concerned about the impact of unfair ratings by customers on their livelihoods.

But overall, industry players felt the moves would raise the standards of professionalism in an industry that is seen by some as a fallback career option when times are bad, only for them to leave for greener pastures when the economy improves.

Starting from the end of this year, home hunters can view the transaction records of property agents before engaging their services, and a framework to collect and publish consumers’ ratings of the agents is also on the cards. The publication of property agents’ transaction records will be carried out in phases, starting with Housing Development Board (HDB) deals from the end of this year, and private residential sales and rentals from the end of 2019. The concept, which aims to improve the professionalism of property agents for the property transaction services sector, was revealed at the real estate Industry Transformation Map on Thursday (Feb 8).

Responding to TODAY’s queries, a Council for Estate Agencies spokesperson said: “The aim of the property agents’ track record framework, together with the publishing of consumer ratings of agents in the longer term, is to strengthen the professionalism of the industry and increase transparency to consumers. Such a framework encourages agents to give their best when providing their services to consumers.

“With greater transparency, consumers can also be more confident of their decision to engage agents, and be able to select the agents who best meet their requirements.”

Property agents TODAY spoke to were divided on the move, as some said that it would add marketing and branding to their resume and allow them to secure more customers, while others were concerned that they would not be protected if they encountered “unreasonable customers”.

“The idea of a ratings platform helps us evaluate our services,” said Mr Norman Tan, 45, senior associate district director at OrangeTee & Tie. “These are real customers and you can’t bluff about this.”

He added that this will add a layer of professionalism to what they do, as customers can check out reviews and verify the credibility of the agents.
 Newcomer Max Goh, 32, who joined the industry 16 months ago, said the move would help him build his marketing and branding. “It becomes a growing resume to secure more customers,” said Mr Goh, who is associate marketing director at Huttons Asia.

Mr Ken Taguchi, an associate district director at Huttons Asia, said the concept would help “clean up our market a bit more”.

He added: “Some agents tend to oversell themselves, but with a record, it is harder to do that. With the ratings, it makes it more professional and we are kept on our toes.”

While Mr Taguchi, who has worked in the industry for 11 years, does not believe the reviews would affect his performance, he questioned if agents would be adequately protected from errant customers.

He said: “It feels like a one-sided protection. We can’t review them. There must be some form of fact finding to verify the reviews. As the reviews will be out in public, nothing can be done if they are publicised. This is our bread and butter.”

Mr Goh Weng, 61, who has worked as a property agent for five years, said the new concept would not add value to the “already transparent enough” environment. He said: “You can do a (Internet) search of us, and you can find all the transactions for sale. I don’t see how this will transform the industry.”

Mr Goh added that customers are still going to rely on personal referrals, as they are more reliable.

Industry experts agreed that the concept would protect customers, but cautioned that it could change current dynamics for the agents in terms of competition for sales.

Mr Desmond Sim, who heads CBRE Research (Singapore and South East Asia), said: “It bodes well for consumers because you choose to deal with someone who historically gives good service. This is almost like a guarantee.”

However, Mr Sim warned that the system could create “barriers” to new agents, as they do not have track records.

He added: “I won’t be surprised if more agents open (up) to co-broking to get more transactions and reviews in the process.”

PropNex Realty chief executive Ismail Gafoor said the agents would have to be more “on the ball”, and he also added that the system could level the playing field between newcomers and veterans.

Consumers were happy to hear about the initiatives which would offer them better protection from rogue agents.

Madam Ng, 39, a homeowner for 12 years, said the concept appeals to her, although she prefers to go to agents she is familiar with, such as friends or family members. “Instead of calling agents from their pamphlets and hope that they sell the house at a good price, with the records and rating, it allows more choices when selecting agents for transactions,” she said.

IT professional Sim Han Xiang, 33, a homeowner for almost two years, also welcomed the move. “I will be able to filter out and use the responsible agents,” he said.

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