I have been trying to find a plot for myself and finding it really hard to reach out to an original seller. I have noticed that there are multiple people[agents] involved in the sale process and they do not let you meet the owner. I want to make token money(bayana) in the form of a bank draft directly to the owner and do all legal documentation with owner/seller directly in front of a legal advisor (i am ready to foot the cost). As soon as property agents hear about this plan , they back off or start quoting very high prices within a gap of 2 or 3 days. In my opinion 10% of the advertised price is considered as a top (slang) and distributed among all layers of the estate agents(1 down, 2 down , 3 down etc). Owner only gets paid whatever you get him the bank draft for. I have experienced this in bahria town phase 8, b-17, gulberg residencia, top city -1, cda i-14, i-16 etc. Is there any one who works on 1% commission only? I even offered 1.5% but nobody wants to do business professionally. People strive to invest the fortune and then find out that they have been dinged by at least 7 to 10 lac rupees on 5 to 6 million rupees purchase. I guess no one or at least i have not found a genuine person [seller/estate agent] in last 3 months. Any thoughts from senior and respectable members of the community here please. Also, i do not want to accuse anyone here. Just sharing my experience which should just be taken as a word of caution by genuine buyers/sellers.
There is no option exist in Pakistan for it. Unfortunately we just have to pay this amount and that’s how it works in our country. This is reality and after long time getting frustrated from all this, I have patiently accepted it.
Yes i totally agree with you most of the cases are like this but i know some people personally who do the deals and take fair amount of 1% if they are single or take 2% commission if the multiple agents are involve.
Dear Sir,
There are good as well as bad people in every field and every corner of the world.
One of the property dealer sold a 32 lac plot in 56 lac to one of the guy from our village.
The same guy visited me and I give very good consultation and was charging him 1 percent as per the property rule but in the end he went to someone and got probably what he deserve.
Best Regards:
Zahid
Only on Mars.!
This "top" business is something that Malik Riaz and taught to his gringos very well. Now they have perfected the art and no deal is without "top".
However, you should insist on buying from the original owner. Check allotment letter to confirm and then negotiate price yourself. Your insistence on this procedure will break this chain selling.
The other technique is to delay the deal. Usually these intermediates have short time to pay so delays will frustrate them and they'll negotiate a lower price.
Thank you Ali, AM Abbasi, Zahaid and Isloo for your kind responses and time.
I have been trying to delay the deal but then I am noticing an upward spiral in prices.
In my opinion; as soon as estate agents see a certain number of hits on their listed property on Zameen.com, they change the prices thinking that their property is in high demand. I still believe that there are only few genuine buyers in the market and there is a shortage of demand but ample supply. People still have many choices but this case of rising prices is beyond my understanding. It goes against the basic demand/supply rule of economics.
I have seen an increase of above 2.5 million on a 10 Marla plot in Top City between June and Oct 2020. This society was offering some incentives to build the house like discounts on possession charges, map charges and even free excavation for the foundation work up until 31 Aug 2020. Not sure if this offer is available anymore. People like me cannot afford to buy a 9 million 10 marla plot and then spend another fortune to build it. This is simply getting out of reach for commoners.
In my opinion, real estate business needs to be regulated. Like one plot must not be sold beyond 3 buyers. 4th buyer must construct the house or face heavy penalties.
Anyways, sorry to vent my frustration out on this forum but somebody must speak up. Still willing to do a business on fair terms and conditions.
Not sure why, but my previous response is still not showing up. May be going through a moderation for some reason.
Thanks Ali, AM Abbasi, Zahaid and Isloo1 for your valuable comments and feedback.
Still looking to do a business with genuine sellers if there are any....
Can someone please explain what is this “top”? How does it work?
AB Brother, very genuine, touching and concerning point shooted by you…we observed here that very few worthy members have replied to ur question…i m also going through the same situation and finding difficulty to find genuine agent / dealer who take comission and get me good deal…any ways, as said by one of the member, good dealers / agents do exist in our country…lets hope, we find one.
Waleed bro,
Definition from Dealer-dictionary:
"Top" (noun) or "Top Lagana" (verb) are the terms used in realty industry where a dealer mints extra money by selling your property through intermediaries with the view to jack up price and keep the difference.
Process:
Dealers make a chain of buyers and sellers. Suppose you are A, your dealer is B, dealer's buddy an investor is C and they both find a genuine buyer who is D. Then this single sales transaction makes a chain like this:
A -> B -> C -> D
Suppose you had bought a plot some 2 years ago for 8 lac. You put it up for sale through a dealer. He tells you that he has a buyer who pays 10 lac. He then tells the investor that I have a plot with 4 weeks payment time at price 12 lac. You agree and biyana is paid. Now B and C make effort and find a genuine buyer and sell him for 14 lac, C recovers his biyana money from D.
Now payment time comes, so B takes A, C and D to transfer office, A and D sign documents, D pays balance amount in draft and cash. C keeps his profit (cash), B keeps his profit (cash). Then B takes commission from A and D in cash. And everybody goes home happy.
You invested 8 lac, waited for 2 years and made 2 lac profit (minus taxes, commission and expenses). Your dealer invested Rs.0 and made 2 lac profit (plus 2-side commission). The investor invested 2-3 lac in biyana, waited for 2-3 weeks and made 2 lac profit.
اس کو کہتے ہیں، پراپرٹی ڈیلنگ کا نیا طریقہ۔ کہیے پسند آیا۔
When prices are increasing fast, this chain sometimes include 3, 4, or 5 investors. They all gather at transfer time and no-one knows who is who (except the dealer, of course).
Well said Isloo1 sb
Thanks Isloo1 and Abdul Qayyum sb. Appreciate your time and effort.
Any tips on avoiding all this top game besides insisting on finding the original seller/owner?
If it is the way Isloo has described it, then buyer and seller must always insist that they will pay/receive the amount in one Pay Order and also write a transfer deed which shows the amount paid/received.
This way seller and buyer will know the actual price.
Thanks EmJay
I have just started this thread to contribute to the community and help others.
This could just be a drop in pond but people must build awareness to avoid this game. At least one should follow or be aware of the buyer/seller rights.
In my opinion, a plot must not be transferred beyond 3 or 4 times and 4th buyer must build a home. This is the only way for a common man to avoid paying hefty amounts in the name of top and buy a land at affordable rates.
I still think that there is an ample supply of plots in the market but limited buyers. Demand/Supply rules of economics govern the market prices. Unfortunately, estate agents and property dealers keep on raising the prices on hourly basis after a certain number of hits on their listed property. Economics just gets defied here. There is no check and governance in this field.
I am trying to request a meeting with seller directly but so far I am out of luck.
Great reply and information. Thank you Isloo sb.
Its good suggestion to identify the seller by allotment documents but how to identify the genuine buyer, to avoid series of dealers in a single deal?
Dear AB, For Gulberg i can refer you one person name Irfan 03005566121 (Gulberg Associates). I have done 3-4 deals with him through direct owner. You can talk to him with my reference. Thanks
Dear Muhammad Tahir Shaukat,
Thanks very much brother. I will get in touch with him. Do you know if he maintains his own inventory of plots or is this once again through intermediate dealers like 1 down, 2 down etc
Thanks once again
Dear AB, Irfan has inventory for Gulberg as he is working for Gulberg only.
Thank you Tahir Sb.
Appreciate your response.