Agent Willing to Negotiate?

[CaliMom]

Just spoke to a few realtors (who were recommended).  Asked outright it any of them would be open to negotiating listed rental prices that were asked.  All said no.  When I mentioned that I would be looking to negotiate based on the URA numbers, I was "informed" that those numbers were inaccurate and old and couldn't be used as a basis to negotiate.  I was also told that because sales prices had been going up that rental prices would automatically go up b/c the two were tied (not my understanding at all).

Are there realtors who will negotiate on a tenants behalf or submit offers lower than asking price?  Should I / can I do this myself without an agent?  

[Usual agent BS]

I was also told that because sales prices had been going up that rental prices would automatically go up b/c the two were tied (not my understanding at all).

Are there realtors who will negotiate on a tenants behalf or submit offers lower than asking price?  Should I / can I do this myself without an agent?  

Usual agent bullsh!t. As a matter of fact, prices kept rising from March 2009 onwards while rents continued to decline before stabilizing on the last part of the year.

And it's the exact other way around: the fact that prices are so disconnected from retal yield indicate that property is over-valued.

Funny how they find the URA data perfectly valid when it goes to show the ridiculous prices achieved for sales, yet discard them when it does not go their way (rents, in this case). I have found the URA data quite accurate as far as the rentals in my condo are concerned.

Stay away from any agent serving you this type of garbage.

[offer what you like]

In theory agent is legally obliged to submit to the LL.  Practice may vary.....

[Suprised]

I am suprised that none of the agents said up front they were repared to negotiate. That's what we get paid for surely? I always tell clients I'm happy to put in their offers as long as they are happy to have them knocked back. If its a really low offer it often doesn't get much further than a verbal offer anyway so its not a lot of work. However I'm not prepared to show people places that are outside of their budget on the off chance we can talk them down. I have a friend looking at the moment who is only able to pay 3K and she's going to see places asking 5K. At the moment that's just wasting everyones time.

[Novice!]

"Asked outright it any of them would be open to negotiating listed rental prices that were asked."

Huh?  What kind of ham fisted, slow witted negotiating position is that?  

As pp's say, make an offer and make it clear that a-) you are a serious offeror and not a time waster b-) that you will walk away if they don't budge.

In practice be prepared to listen to counter offers.

In all cases be polite and friendly.

[CaliMom]

Therein lies the questions.  What is a Serious and Reasonable offer?  Would benchmarking it on the most recent published URA data be considered serious and reasonable?  Is there some percentage below asking price that can be considered serious and reasonable?

Thanks all for your help.  Talking to those realtors who were unwilling to convey any offer under asking price was pretty discouraging.

[Factoid]

The URA data is interesting, but not really that helpful. Half the time landlords have their minds fixed on X amount and will not budge. They mostly don't give a flying you-know-what how much Mr Tan down the road rented his place out for! Welcome to Singapore!

[URA]

Yes, certainly offer the average price that you see on URA but don't mention URA.  Say this is what it is worth to you.  That is certainly a reasonable offer.

More importantly, I suggest you target 2-3 areas and see quite a lot of properties in those areas.  After a couple of weeks, you will get a feel for the going rate and what is worth what.
It is better to stay an extra fortnight in serviced apartments than end up somewhere overpriced or unsuitable for the next 2 years.

When you see a property you like, use the internet there are several good property web sites here and see what others are offering.  When I was looking, I saw similar apartments in the same block being offered from $4,500 to $6,500!

Finally, don't be too wound up by some of the folk here who are a bit too gung ho about the possible discounts.  Use internet (URA + property sites)and use some personal visits and some chutzpah to get a deal.

[Kane]

URA statistics can indeed be used as a rough gauge but do also note that these statistics are for the past quarter. Thus, while they are good for reference, they should not be the sole parameter used for making an offer.

Go for more viewing in the district to better understand the current market rate will also be beneficial to you.

Do also note that every single unit is different. Things such as views, interior condition of the unit, level of the unit all goes to affect the price. This can also help to explain the disparity in rents even within the same block and same time period.

There is no hard and fast rule how to determine what is serious and reasonable. Gut feeling is also very important in helping you to make an offer.

yep. just my 2 cents worth. hope it helped =)

[Cairnhill]

You will meet all sort of agents, some are good, some are rubbish, some are lazy, but at the end of the day, all are more interested in ensuring they get their commission, than what is the "right" price for that property. They can tell you a "cock & bull" story but simply take it with a pinch of salt.

You need to remember that their commission is based on your rent, hence, the higher your rent, the higher their commission. If your rent exceed $2.5K (this amount may varies from agent to agent), the landlord is the one paying for the commission. Obviously, the agent might feel obligated to get the best offer for their landlord.

Personally, I won't even ask the agent if the rent is negotiable. If I am really interested in an unit and I have a price that is below their asking, I will still make the offer. If they refused to put this offer to the landlord, just walk. There are tons of units out there, and I'm pretty sure your quality of life won't decrease substantially simply because you didn't get that particular unit.

Who knows! You might be able to find something better at a low price! And that's what happened to me!

[indeedie]

Personally, I won't even ask the agent if the rent is negotiable. If I am really interested in an unit and I have a price that is below their asking, I will still make the offer. If they refused to put this offer to the landlord, just walk. There are tons of units out there, and I'm pretty sure your quality of life won't decrease substantially simply because you didn't get that particular unit.

The above sums it up quite well.  Asking if it is negotiable is simply a weak opening and will alert them to an inexperienced negotiator.

Not being anti-American but beware that many other nationalities think Americans are rich, gullible and ripe for ripping off so the price for Americans tends to be a bit higher than for others.

[Buy this]

It's my experience that in a sellers' market, like it is now, it all gets a bit frienzied on the sellers' side. Sellers see how kiasu buyers are and set their asking-price to reach for the stars; who knows, someone may well be kiasu enough to go for it. Remember that Marine Parade HDB that went for a small fortune? Everybody wants to be that seller. Better yet, let's try to leap-frog him.

Add to that the countless of half-hearted sellers that are quite happy to stay where they are but are offering to sell in case some loaded company-package expat offers them the jackpot.

These 2 above types are not going to negotiate. They cause quite a bit of frustration however amongst both buyers and agents.

Meanwhile all those agents that were getting shot down relentlessly when they were cold-calling you and me during the lean times are now in pay back mode.

Right now, keeping a cool mind is where it's at.

[dumb mum]

Everything is negotiable, but remember that the agent gets paid a percentage of the rental agreed, so it's not in his/her interest to reduce the rent.  I know someone (expat) who works as a real estate agent.  He has just negotiated himself an apartment for $6K, which I would have expected to go for $7-8K, at current market rates.

The question I hate from agents is 'what is your budget?'.  I had the following SMS conversation with an agent after I saw a house I thought I might want to view advertised (with no price!) in ST Classifieds:
ME:  How much is asking price for house in XXX St?
AGENT: What is client profile?
ME: Very poor expat family
AGENT: Is this for yourself?
ME: Just tell me the @#$% asking price...

[pills]

agents should negotiate on the whole but there may be conflict of interest.

but if an agent is acting on your behalf and doing the searching for u. he'll definitely and should definitely help u to negotitate.

[other advice]

Rents for similar apt can be asvertised wildly different (yeah, reno, whatever).

Rough guide, off 20-30 below and expect 10-20.  If agent won't submit then threaten to report him. Its illegal.

Sometimes lls don't want to "lose face" by getting lower rental (though how anyone else would know god knows), in this case they may throw in extras so you pay difference, eg they pay utilities, put in a plasma tv, even rent a car for you (not common now but first couple still are).  Asking for a refurb kitchen and you throw a few hundred more in, easier as adds value, stuff like that.

Agent who says non-negotiable (though I agree dumb to even ask) is pond life spotting a sucker.