Kelvin Fong
Group District Director (PropNex), CEO & Chief Trainer of Zest Academy Pte Ltd
1) What differentiates the top producers in real estate from the mediocre ones, who struggle with sales?
A successful and reliable top producer looks after the interests of his client. He will always put himself in the seller’s or buyer’s position before giving them the right advice. When in their position, he plans carefully before making any decisions. A normal agent’s first thought when meeting up with the client is that of closing the deal while the top producers will want to win the trust of their client first rather than closing the deal immediately.
Firstly, the agent should determine what type of client he is serving - investing or buying for own stay? If he is serving clients requiring properties for own stay, the agent should understand the needs of the buyer and work towards meeting the client’s request and make sure he gets something at a good price, i.e give them your own opinion as if you are the buyer yourself. If the agent is dealing with investors, he should understand what they are looking for, whether the property is meant for capital gain or purely yield. For example, for first time investors, the agent should help them maximize their cash flow by turning over their portfolio rather than just holding on to one unit without realizing any profit. If investors do not sell when the property appreciates, they will be stuck with just one property and will not be able to increase their capital. This will prevent them from buying a better asset and multiplying their asset base.
Property is a cyclical asset and there will always be ups and downs. Thus it is important to sell at the right time and re-enter the market when the price comes down. We saw this during the peak in 2007, which was followed by the downturn in January 2009. And currently prices have gone back to reach the 2007 peak levels again. In general, most agents will be asking their clients to sell because the market situation may not be that rosy and we may have reached another peak, so it makes sense to lock in their capital gains. As for top producers, they will advise them to switch their portfolio to increase their capital to look for better deals that will appreciate more when the market improves further.
Investors are looking for agents with good product knowledge and who are able to do a comparative price analysis of the project and understand the price history too. A top producer will look at the surrounding projects to determine the right one for you, advise on risks you may face should the market go against you, and help you to do a financial calculation to ensure you have holding power in such a scenario.
No agent should tell an investor that the project or unit is sure to make money as anything can happen and nothing is guaranteed. Top producers tell their clients not to speculate but to invest and be prepared to hold if the market drops. To find the right agent, look at the classified ads or surf property websites. A top producer will be able to discuss the investment merits of the project and not just be an information provider. He will also share information about the surrounding projects and should be familiar with any units that were recently sold even before the caveat is lodged with the URA.
2) Your team is called the Powerful Negotiators. What goes through your mind when a client says “no” (perhaps more than once) during your negotiation?
My team name Powerful Negotiators does not imply that in every deal, we are able to close the deal. There are times that we could not close it, due to pricing or the time given for the owner to move in/ out of the place. What is most important is to have patience with them and understand their reasons for saying “no” to us.
If it is due to price, we should try our best to work with the buyer/ seller to get the price that they want, if the price for them is good after we have analyzed the recent transacted prices and the last peak price through our graphical chart, we should use it to share with them why they must sell/ buy the property.
All sellers want to sell at the highest price but no one knows when exactly it’s highest, therefore we need to use graphical charts that show the pricing to convince the sellers. All buyers want the cheapest price too but we can never determine when is the right time, therefore we need to advise them to take the long term view and not to speculate. In Singapore, as long as we can hold for the long term, all properties will appreciate due to inflation and being a small country, our land is scarce which gives us the greatest advantage of investing here. As a good agent, we should not advise our clients to buy or sell if it does not benefit them. We must always have their interests at heart. When you have gained your client’s trust, they will always be with you, but when trust is gone, there will not be any more deals forever.
3) Some buyers believe in sourcing for their own property without the help of agents, perhaps due to prior bad experiences. How would you convince them to do business with you?
Most of the time, all the bad experiences are due to mis-communication and meeting those agents who are very pushy without giving their client some time to think before committing. If I meet such clients, I would like to find out the reasons for not working with agents, so that I can share with them my personal opinions on those issues, and most importantly, to listen and understand the reasons for their unhappiness.
Subsequently, I will ask them to give us a chance to serve them, ultimately they do not pay us anything if there is no deal at all, but to give us a chance to work with them. Using our sincerity, time will tell and I will continue to follow up with them and keep them updated about those properties that they are keen to buy. If the buyers can feel the sincerity, they will continue to work with the agent.
4) Who/What would you credit for your success?
My achievements today, the credit should go to my wife, Janet Lim, as without her support in managing the sales for me, I might not be able to concentrate fully on building my team wholeheartedly. With the same goal in mind, we have managed to be the No. 1 TOP Producer and Team Leader for the year 2009 & 2010 in PropNex. I have a group of dedicated team leaders that have helped me to build the team together too. Our achievement today is also due to the group culture of willingness to share and team work.
I believe everyone needs to work hard to achieve our goals, but most importantly, one needs to have the right techniques and systems to achieve success. Being focused and staying positive has helped me achieve my current results.
5) What is a typical day like in the life of Kelvin Fong?
A typical day in my life starts as early as 8am. My day will be spent either conducting training or meeting up with agents and helping them to achieve their goals. In the day, I can easily meet up with three to four agents and help them with their queries. When I am not meeting anyone, I will be doing some planning for new strategies to bring the team’s sales to the next level. At night, most of the time I will be doing my work that has yet to be completed.
Now, my life has just seen the beginning of a new chapter in my career as I have started Zest Academy Group with my team leaders, Dominic Lee, Bobby Sng and Cijay Tew. One of our core courses “Millionaires Realtor System (MRS)”, has as its aim to share the techniques and systems that we have acquired in the private property market that have helped us achieve our million dollar sales to all real estate salespersons from different agencies. The other objective for me is to help many of our counterparts to convert themselves from being a normal salesperson to having an Investor Salesperson mindset. Once they have such a mindset, their sales will definitely increase and they will also know how to become an investor too in future.
We have also created a new course “Millionaires Property System (MPS)” for the investors too. This course is to help investors identify the right property, and to invest correctly based on graphical charts to determine the potential upside and the risk involved.
As for me, the reason why I am setting up this academy is because I want to acquire new skills and get to know more people and learn the whole process of running a business and to share my knowledge with all salespersons and investors.
Grace says: I think Kelvin is someone who has achieved a lot and who remains humble. I think that’s what I respect most about him and my other interviewees who have been so keen in sharing their knowledge, their secrets and their philosophies.
I have been in the real estate line before (something you didn’t know about me, right? Now you do! Haha!) and have come across many rogue agents. For this blog, I’ll be doing my best to find the best people in the industry and feature them here. You can be sure I’ve either met them personally or have consulted friends who know these agents.
I think Kelvin works very hard. And that inspires me to work even harder and find more awesome interviewees. So stay tuned! I have an exciting line-up of interviewees for you. :D
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