WHAT IS THE DIFFERENCE BETWEEN BUYING FROM F1, F2 OR DEVELOPERS' SALES DEPARTMENT ?

Today I am going to touch on a very sensitive topic and one that real estate buyers are very concerned with. What are the differences in buying from a F1 agency, F2 agency or developer sales department?

Every time we hear the same old question buyers always ask real estate agents; I truly wonder why these buyers are so particular on this issue. Sure, I understand that buyers need the security knowing that they can get priority over choice units. But. Are they truly getting real value on their property investments?

Let me give you an insight into the world of real estate sales that you will not hear from other salespersons, agencies and developers. Why? Because there is simply a conflict of interest. It is all a marketing gimmick to win you over.

1. What is F1 & F2 agency?

F1 are main agencies that sign an agency agreement directly with developers and commission will be paid to such agencies. In a nutshell, what you need to know is that developers will officially hold F1 agencies responsible for sales results, assigned product stock, breach of contract and other issues related to sale policies. In accordance to the sale policy of respective developers, these F1 agencies may or may not be assigned their own private stocklist. Nowadays, more developers understand the benefit of adopting a centrally managed product inventory (common stock).

Even if private stock is assigned to F1s and depending on their respective business strategy, chances are that most F1s are in the business of building a network of F2 agencies and work hard in gaining their support. Why is this the case you may ask. It is because due to the competitive nature of agencies competing with each other to be F1, developers are always evaluating the performance of F1s, and the F1s sales team alone will not be able to outperform the combined sales from all F2 agencies in the market. Therefore, F1s compete with each other to get F2s to work with them. It is now easy for you to guess…Those F1s that play fair with F2s in terms of allocating priority over products and share the highest commission to F2s will have better sales results that the F1s need to prove to developers. So, if you ask me, I do not see much competitive edge between the salespeople of a F1 and that of a F2.

Additionally, if developers allocate private product stocklist to the various F1s, chances are that developers will provide a commission scale that increases in accordance to sale targets, the objective of each F1 and their salespeople will then be to prioritize and push their own product stock. F2s on the other hand have the added luxury of prioritizing the property buyer’s interest and benefit by accessing the various stocklist of all of the F1s. There is nothing to legally bind a F2 to work exclusively with a F1. Don’t you think that as real estate consumers, this position has more value and benefit to us?

So, why than do real estate agencies compete with each other to be a F1 agency for real estate projects? This is simply about money and growing the company’s business, it has nothing to do with the interest of you the real estate buyer. Now do you see the funny thing about buyers having this mentality that they must buy from a F1, yet they expect the F1 salesperson to put the buyer’s benefit first. Real estate agencies traditionally provide a salary or allowance to their own salespeople, and this being the case, wouldn’t it be logical to expect such salespeople to listen to their bosses.

2. What about developer sales department?

Moving on to developer sales department, I must admit that certain developers do set aside priority stock for their internal sales team to sell to VIP customers, or at least allow their own customers to choose first. However, buyers should be cautious here. As the real estate industry in Vietnam is still considered to be developing, it has definitely not reached a level of maturity near that of the more developed real estate markets such as Singapore, Malaysia, Thailand, South Korea and Hong Kong, developers reserve the right to prioritize their VIP customers. As we have experienced a hot market for some years now, developers have remained been bullish. But there will come a time where they will definitely be more careful in how real estate agencies are treated and rely more on such agencies as primary property prices start to peak and transactions start to slow. At this time, developers will increasingly provide equal opportunities to real estate agencies and their customers.
That said, my company PropNex Vietnam has also been appointed as F1 for certain real estate projects in HCMC, and for all other projects we market them as a F2. But whichever the case, our PropNex salespersons are aligned with our Company’s value in continuously providing value to real estate buyers and a service that you as our privileged customer can definitely trust. So, contact any of our PropNex Vietnam property salespersons today if you want impartial advice about your property purchase and if you need a real estate consultant that you can place your trust in.

If you found my views informative, to remember to subscribe and share this video clip. Until next time, keep your real estate investments safe and secure.

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