Condo Purchase Negotiating and Who Does the Broker Work For

[KenM]

I am seriously considering the purchase of a new condo that has been listed for over a year now. Communicating with a broker who had advertised it on their website. The unit is a bit overpriced. It's a three bedroom with only one parking spot. I told the broker I wanted a second spot and the best price possible. His response, "Penthouse comes with 1 FREE parking space and if you want a 2nd parking unit, then, it's for sale. that 1 FREE parking is good enough." So I asked if by law he represents me or the developer. No response yet. Does anyone have experience or advice on these matters? Thanks!

Edited October 4, 2022 by KenM

[Old55]

Ken, I wouldn't advise long distance dealing with an unknown broker for an overpriced condo who doesn't communicate well.

 

[Joey G]

What Old55 said... plus a couple red flags.... one year listing means somethings wrong... OR... they won't budge... AND you have to wonder if was listed prior to year ago as well.  Those are things you won't be able to determine from afar.  Red flag #2.... besides being slow on response... whenever a broker tells you what you need... you need to run away... whomever they are working for... it isn't you.

[Jollygoodfellow]

8 hours ago, KenM said:

I wanted a second spot and the best price possible. His response, "Penthouse comes with 1 FREE parking space and if you want a 2nd parking unit, then, it's for sale

Here in the condo building I live spaces are for sale through the admin office. I have seen notices on the notice board from time to time. I suspect to talk to who ever is the building owner. I guess you might be buying off the plan? 

I have a couple of real estate agent friends I could probably get more info on the procedure. 

[Mike J]

I am going to start off by saying that I love the Philippine people.  That being said, the broker most likely represents himself first, the developer second, the buyer third.  As @Old55 said, buying remotely could end up being a very bad idea.  The pictures of property, houses, and condos displayed on the internet almost never represent the actual property and the surronding environment.  There is probably a good reason why a nice condo has been on the market for over a year.  

You might be thinking - How bad can it really be?  Bad enough that title insurance is not available in the Philippines (to the best of my knowledge and research).  

Many forum members here, including myself, have bought condos, houses, or property (if married to PH citizen).  So it can certainly be done, but it is not without risk and the risk is multiplied greatly if you are not "boots on the ground". 

 

 

[fototek1]

As everyone has said on many occasions, Boots on the ground! I was looking at a 3bedroom Penthouse condo in Cebu many years ago (2010) and even with boots on the ground it took lots of questions to know what I was actually getting. They showed me a fully furnished unit with a 180 degree view. The actual unit I was supposed to get was near Club Ultima and not yet built but had a 270 degree view and was not only unfurnished but it was unfinished. That is right, just windows, and concrete. No bathroom, no kitchen, no fixtures, no paint, no bedrooms.....I wish I bought it anyway because prices skyrocketed after that. 

[BrettGC]

49 minutes ago, fototek1 said:

As everyone has said on many occasions, Boots on the ground! I was looking at a 3bedroom Penthouse condo in Cebu many years ago (2010) and even with boots on the ground it took lots of questions to know what I was actually getting. They showed me a fully furnished unit with a 180 degree view. The actual unit I was supposed to get was near Club Ultima and not yet built but had a 270 degree view and was not only unfurnished but it was unfinished. That is right, just windows, and concrete. No bathroom, no kitchen, no fixtures, no paint, no bedrooms.....I wish I bought it anyway because prices skyrocketed after that. 

Artists' impressions are a real estate favourite. Quite often selling a dream that turns out to be mediocrity if you're lucky.

Edited October 5, 2022 by BrettGC

[Freebie]

The challenge is not to listen to what they tell you, but what they dont tell you. Second challenge is try to believe ALL that they tell you. Ive bought a few condos here in Makati and BGC in past.

They will tell you their standard fee is 5% at which point you tell the to Foxtrot Alpha unless they reduce significantly.

They are usually working in hand with other brokers. They will tell you certain charges are yours.. when they arent etc. They will try every game so check every word they say online. There are some good honest brokers and some that are poor. Check how many units they sell on a regular basis and that will tell you how professional and connected they are or whether they are just chancers in hope of a good one time score.

[KenM]

I found a different realtor who seems to be working in my interest. The seller broker kept lying on the tour about storm damage from the last typhoon and we caught her several times on this. There’s even a notice in the elevator for residents to report damage claims with photos. 

Now my realtor is telling me condo loans for foreigners are only 5 years. I asked for documentation of this. Can anyone address this claim? I have the permanent visa. 

I see no mention of anything like that on the BDO websites https://www.bdo.com.ph/mobile/personal/loans/home-loan

 

Edited October 5, 2022 by KenM

[Freebie]

15 minutes ago, KenM said:

Now my realtor is telling me condo loans for foreigners are only 5 years.

Loan terms are whatever you get to agree with the relevant bank. And obviously well worth shopping shopping shopping around. And you would need to provides lots documentation concerning your asset, income etc.

But when you take a bank loan, then the paperwork increases exponentially.. they cut down trees just to handle bank loans in terms of paperwork.