Philippine Real Estate Choices

SELLING YOUR PROPERTY?

 HOW TO HANDLE MULTIPLE REAL ESTATE BROKERS

By: Chona Esguerra

Most Filipinos still prefer availing the services of multiple real estate brokers rather than giving it exclusively to one. Talking to many brokers can be chaotic at times as there are no clear guidelines available for owners or buyers on handling multiple brokers. Because of this, I thought it best that we put these things into writing so we have a guide to refer to whenever a situation arises. I will divide this into 2 parts. One for the Seller and the next part for the Buyer/Renter. Please note that this was done in collaboration with some veteran brokers who are reputable for being fair and just.

QUALIFY BROKERS – Ask for their PRC ID or check them at the PRC website (www.prc.gov.ph). Remember only licensed real estate broker are entitled to receive full professional fees. Not PRC registered? No right to demand full professional fees even if there is an authority to sell as that alone is proof that they are practicing without a license. Allowing them makes you an accessory to an unlawful practice of the colorum practitioner. Do you know that unlicensed offender can be penalized up to P200,000 and/or 2 to 4 years imprisonment as stated in the RESA Law or RA9646? Please check the old AAVA issue or internet about RESA Law.

HOUSE VIEWING: Some buyers schedule with multiple brokers and most of the time they are just showing the same properties. Have a client registration done to determine which broker brought the client first to the property. Just remember “No client recognition for registration without actual tripping”. Sad to say, there are unethical brokers who register client thru text or email without tripping. This is unfair to the real broker who brought the client in the first place. This is why we encourage owners to have a logbook at the property being offered for sale and with a helper to monitor it.

LOTS VIEWING: Broker must first register their buyer to the owner before tripping. Should there be a conflict among brokers, follow the rule “Only the broker recognized by the buyer is the real broker who actually showed the property” as there is no way to prove who really showed the lot.

CONDO VIEWING: The first broker who schedules with the buyer, gets to show the property first.

  UNIFORM PRICE QUOTATION– Always have a uniform property price with a price expiration date so brokers can update their price. Better yet, put it in writing. Email all brokers the price update and follow it. Quoting a different price each time a broker asks or make an offer creates a negative effect that questions the professionalism of the broker. It is Broker’s standard practice to always quote the agreed listed Gross Price and NOT the NET Price. Quoting a NET PRICE adds confusion to the buyer. They need to know the total amount they need to spend in buying the property.

EXCLUSIVITY- Giving an exclusive authority to a broker means all transactions shall be coursed thru one broker only for a specific period of time. This includes direct buyers of the sellers. If you are entertaining more than one broker, there is not called exclusive anymore.

SIGNAGE – If your home is open to all brokers to market, never allow any broker to put a sign on the property. Allowing one broker is unfair to the other brokers who are also spending time and money in marketing your property. There should be fairness in selling your property. For exclusive broker, they are the only ones allowed to put a sign on the property for an agreed period of time. But should owner decides to put up his own sign and have it open to all brokers, please don’t allow any broker to put up their own sign too on the property.

BROKER NETWORKING – Owners should respect the co-brokering relationship among brokers with regards to sharing of property listing and professional fees. Brokers have code of ethics which they signed and are bound to follow.

Should owner avail the services of a second broker only to find out that the first broker has shared the same property listing to the second broker, the owner must respect this. The Broker, on the other hand, must give courtesy to the first broker and state the situation. Broker must still go thru the first broker as stated in their code of ethics.  

OFFERS ON THE PROPERTY. Always insists that offers be in writing and signed by the buyer.  Never accept offers signed by a broker as it doesn’t have any value and doesn’t bind the buyer.  Accepted Signed Offers must come with money of consideration.

You may want to check my next article:  For Buyers: How to Handle Multiple Real Estate Brokers