Is there really a win – win situation or reciprocity between the developers and their real estate agents here in the Philippines
The best meaning of reciprocity I found is this – Do a good deed for another and a favor will be returned.
This just simply means a win – win situation between two parties or individuals or in the case of real estate agents and the developers here in the Philippines – creating a policy of a win – win situation and mutual understanding between two parties.
I'm not against developers I started my selling career with a real estate developer. I even give them credit for giving employment to many. But what I'm against is policies of some (not all developers) on how they treat their sales people.
Most of the time, I realized that some local developers often forget that the real estate agents are the ones putting money in their pockets. The sales people are the lifeblood of the company. We the real estate agents here in the Philippines are the ones putting money in their pockets so that their regular employees will get their salaries every 15th and 30th of the month.
We the real estate agents here in the Philippines are putting money in their pockets so that the developers / owners and investors of these companies will have profit and live the lifestyle they want. But sad to say most often we the real estate agents are left out in the cold when it comes to having a win-win situation with these developers.
I’m nothing against developers and I’m not complaining either. What I’m trying to point out here the reality that many of us real estate agents have bad experienced with some developers and how to avoid these problems.
Now you will ask me, “What is this one problem we often encounter with developers?”
"Getting our commissions"
Yeah, that’s right – I’m sure some of you reading this article will not agree with me. And probably you will say to me now; “what’s the problem with commission?” “I always get my commission”.
Getting the commission is not the point, BUT the process and these non – sense policies before you get what is due for you, is my point. Do you agree?
And I will break down some of these non – sense policies we often encounter as real estate agents here in the Philippines base on my experienced.
EXPERIENCED # 1
This happened just recently and as of the time writing this article, I already got my long overdue commission, Thank Goodness.
As much as possible I don’t like to sell properties under big developers for the main reason because of some non-sense policies when it comes to releasing commissions of real estate agents. This client bought a condominium from me through a developer whose property is located along Taft Avenue. Most of my listings with this condominium are for rent but fortunately this client called me up and told me she likes to buy a property in that condominium.
My first strategy is to offer her a re-sale but since re-sale properties have less payment flexibility I have no choice but to offer her units still under the developer. Promo is 10% “move-in” right away and the next 10% payable in 1 year. As far as the developer is concerned this is good marketing strategy but on the part of the real estate agent it’s not.
Here are my reasons:
- This developer don’t give any incentives upon reservation
- This developer don’t give monthly commissions
- I need to wait for 1 year before I get my commissions – This is understandable because the 20% down payment was not paid in full.
To cut the story short – after 1 year I’m expecting the full commission to be release a month after the last equity payment of the client. But you know what it took me 3 more months painstakingly following up my commission and every time I follow up the commission the check releasing department will tell me that there is still no advice from management when commission will be release.
Do you think I will be happy with this developer? Do you think I will sell again their properties? Hell no!
Do you think there is reciprocity here that after putting money in their pockets I still have to beg what is due for me?
Do you think they have a damn policy? Yes I do…
I even talked with this agent who is also following up his commission. What pissed him off is the client paid the 20% outright and yet he still waited for 3 more months for him to finally get his commissions.
One in - house agent told me that even though the client paid the 20% commission outright the client must complete all the documents needed and the developer must process the documents first before they release the commission.
This is one none – sense policy again. Why not give the agent his due? Anyway the money (20% down payment is already theirs (developer).
Will there be a life changing effect on their business if they give the real estate agent’s commission while documents are still on process?
Again, no reciprocity and no win – win situation.
EXPERIENCED # 2
This is again more recently; a Filipina from abroad emailed me when she saw my website and want to buy an RFO condominium unit. But eventually changed her mind and decided to buy a pre-selling unit preferably within Quezon City.
Since this is pre – selling (a product which is non – existent yet)
I don’t care if the developer has so many previous projects to boast of but I still call a pre – selling project a non- existent product yet because it’s plain and simple – there’s nothing to show yet.
Again after several emails, the client decided to buy and send her reservation of P25,000.00 through a bank remittance. This developer told me that ones a real estate agent get his/her client/s to reserve a unit the real estate agent has an incentive of P3,000.00
I don’t know if it was my mistake but the problem is the coordinator did not told me that beforehand I will get this measly P3,000.00 the client has to submit at least 6 post dated checks as part of her equity payments.
After a week after the client made the reservation I called up this developer if I can already get the P3,000.00 and that’s the only time I got to know of this policy of at least 6 post dated checks before they will give the P3,000.00
So I told the coordinator keep the P3,000.00 I don’t need it. Another down side with this developer is they don’t give monthly commissions too. I need t wait for 1 year before I get my first 10% of the 3% commission.
Then after 2 equity payments of P30,000.00 / monthly the client decided not to continue buying the unit because of some financial problem.
So now here is the big picture.
This developer whose owner is a billionaire here in the Philippines got total amount of P85,000.00 in cold cash from a client who bought a non existent product yet (pre-selling) and me as the real estate agent who put this P85,000.00 cash in their pocket did not even get the P3,000.00 incentive because the client did not submit post dated checks.
I would bet that I don’t even get a “thank you” from this developer by putting P85,000.00 in their bank account.
What really a damn situation; do you think so? Again is there reciprocity here or a win – win situation? And many real estate agents here in the Philippines have experienced this kind of situation too.
EXPERIENCED # 3
This situation happened a few years ago. Most projects of this developer is located in Cavite. This is the first developer I joined when I started my real estate selling career January of 2008.
It was December 0f 2009 and I’m expecting my commission by the 2nd week of December. Since this is Christmas time I’m eagerly waiting for my commission so I can add to my existing budget for the month of December for my family.
A month before (November 2009) I already worked out all the details so I’m sure I can get the commission by 2nd week of December. I already forecast the release. If there is one thing good with this developer is they have an organized system of releasing commission for real estate agents. In short we don’t have to beg for our own commissions.
But like some developers; they do not have also a win-win situation policies with their real estate agents. I have several bad experiences with this developer when it comes to releasing of commissions but the one I will relate is the worst I have experienced.
It was now 2nd week of December and I followed up my commission. To my surprise there was no release for me. And the releasing department does not know the reason. So I checked with other departments to know the reason and hopefully I can still get my commission.
I was able to find out that there is a P20.00 balance from the 20% down payment of the client. And what made me disappointed is the marketing department knows as early as November that there is a P20.00 balance and yet they did not called me up and they know also that they will not release a commission until payment of 20% down payment is paid in full.
The balance of P20.00 only came out when they re-compute the payment of the client. I hurriedly went to the office and paid the P20.00 but this developer did not release my commission. They told me it was already cut-off and next release will be 1st week of January 2010.
Just imagine what I felt that moment, I was really so angry and I told myself I will never again concentrate with this developer. This was the last straw among so many bad straws I experienced with this developer.
Although I did get my commission January 2010, the money is not the point. The point here is there is no win – win situation when it comes to a not normal situation.
If there is any reciprocity with these people, they could have called me up as early as last week of November 2009 and told me the client has a balance of ONLY P20.00 and just paid it so I can get my commission but no one called me up.
Or it’s supposed to be a management decision - "only P20.00 let’s just give the real estate agent his due".
I put money in their bank account and this is what I get.
Here are some of the experiences I got from developers. But through these experiences I learned a lot and it made me a better real estate agent here in the Philippines. There is a better way and now I seldom or even no longer experience this kind of problems. Commission comes faster and sometimes I get my commissions just waiting for one day!
Yes you read it right – Just one day! after closing a deal.
In my coming articles I will show you how you can get faster commissions without waiting too long and will also show you what selling situations will give you fast cash compared to the traditional selling technique.
There are good developers out there who takes care of its people (sales agents) although I don't need to mention them here. Best thing to do is look for developers who gives "monthly commissions"
If you have the same experience as mine, I would love to hear from you. Just post your comments and I will reply as soon as I can.
To my co – real estate agents here in the Philippines, selling is worthwhile just keep on going, be honest and do your marketing.
Do some people wasting your time?
If you like this article please leave a COMMENT below
I had a similar sad experience in Cebu for a Cebu based developer. I was able to close a sale of Php3.6 mio and got an incentive of Php10k out of a reservation fee of Php20K. The client has paid an additional sum of Php300K for 5 monthly payments. Due to personal reasons, the client has to cancel. In as much as the policy of the company is to released 50% of the commission due upon payment of 10% of the total contract price,NO COMMISSION was paid to us. Despite request to management such was denied as they have to stick to their policy/rules.
ReplyDeleteTrue companies have policies that agents/brokers/realty firms have to observed but there seemed to be injustice and unfair compensation of efforts. In the end,we really are getting almost nothing of our efforts. For paid workers, DOLE intervenes and for commissioned based agents - where do we go?