Is this estate agent comm hectic? Your experiences please.

[Ockie]

I just have to say. My friend went from being a corporate lawyer to being a esate agent. Makes one wonder

 

[ShaunSA]

Bite me you Tjop

On condition I get to choose the spot

 

[Ockie]

On condition I get to choose the spot

ask ant_man to take you to one of his open houses and get a room!

 

[Other Pineapple Smurf]

The Estate Agency Affairs Board has started sorting this mess out. There's been a serious cull in the market already.
But it will take time. You now need your certification to be a agent. Without it you cant do transfers etc.
My wife works real hard on her sales, I've seen her in action, she tries to get the best for all parties. She's currently doing her National Diploma in Real Estate - spends late nights working on her projects and case studies.

The agent we are using for our new home is also studying and is currently working with another agent till she qualifies. She was telling me how much time she devotes to her studies as well.

 

[Compton_effect]

Nice save. thanks F1.

By some fluke they have a large number of gay and lesbian clients.
My wife loves her gay clients - guys rent-to-buy and improve the property.
But the ladies... Worst rental clients ever - one lot once moved out middle of the night and took the kitchen with them...
As in the cupboards, fittings, plumbing, stove,etc

Yes I do, argubly better than you do, which is why I can comment on this. If they are required to do some serious legwork to get the house sold, then I am completely willing to pay them for it.

But from experience, most of them just want to make a quick buck. Compton_effect SO is a perfect example of someone that I would be willing to pay more to.

 

[Fulcrum29]

Yes I do, argubly better than you do, which is why I can comment on this. If they are required to do some serious legwork to get the house sold, then I am completely willing to pay them for it.

But from experience, most of them just want to make a quick buck. Compton_effect SO is a perfect example of someone that I would be willing to pay more to.

Today SA currently has around 36,000 registered estate agents (back in 2009 it was circulated to 42,000 registered estate agents as surveyed by IEASA) with an average commission around 7.5%.

There is agent commission and gross agent commission, take note.

Marketing and other expenses, this includes internet marketing, open house (viewings), travelling, direct mail campaign, brochures etc.

Take all the above in calculation and you get the net agent commission. Put this in comparison with time spent and will see what is really involved with this big transaction versus possible agent income, not to mention the competition.

How many estate agents do actually succeed?

Btw, I have a degree and experience in marketing (and not only in marketing) so arguably I understand the communication process.

Those exceeding to make a quick buck within regulations, congratulation smooth operator.

 

[Hosehead]

The EAAB is just as useless as when it was founded. Then it disbanded and someone put the pieces back together. It's like the Law Society. Old Boys club. Sure your complaint will be addressed but only in a few years time and you'll be found wrong most of the time .Agents are a different breed but belong to the same species of Scum. Ask to see their fidelity fund certificate before you even open your mouth. Now remember the EAAB is not responsible for the cull. The economy is. When the economy was booming everyone and their mother was an estate agent. Then the bottom fell out and everybody scattered like cockroaches to find other methods to survive. The long time agents are still around due to their polished selling skills and in the big agencies like Seeff, Golding, Jawitz, etc the standard comm is betwen 7-7.5% But everything is negotiable. They will fight tooth and nail to get the 7% but beat the rats down to 5% on a big sale and 4% on a small sell.
I mentioned once that our commission structure is seriously flawed and well out of date and due for review.
It was brought in at a time when the average home was R100,000K and at that price a 7% comm was fair considering the work the agents do (If anything) But now with the average home over a million rand that 7% commission is obscene considering what the agents actually do. No where else in the world is quite like us. As mentioned earlier the UK is 1% The US might be 2%.
But our commission structure will only change when the sellers start putting their foot down and insisting on 4% maximum comms.
when the majority speaks when awarding mandates. The Estate agents will soon get the message.

 

[ant_man]

On condition I get to choose the spot

My "spots are all yours"

ask ant_man to take you to one of his open houses and get a room!

I have heard of some stories where couples would visit show houses and then get it off in one of the rooms.

 

[Nerfherder]

Fair enough, but again I don't think it is justified. Even IF they spend months, what do they really do? An open house for two hours every second week or once a month? I'm not saying they shouldnt get anything. But if I were selling a million rand property, I would give them 30k max. If it took months to sell, I would be willing to pay more

Its not what they do, its that your house gets sold for the right price.

That is what sales are all about. Its easy to find a buyer, what you are paying for is someone who will convince a buyer that this is the house for them and that the highest price is the best price.

A sales person can make a years salary in a day... and take a year to make a days salary. The work is about finding the buyers, matching them will the sellers and making a margin for themselves while everyone is still happy.
They have admin staff to do all the "work"

 

[SoulTax]

I am a firm believer in a system where the buyer states what they want to get out, the agent keeps anything above that. It promotes better sales work on their side and makes sure that you don't get short changed as the seller.

If you want 1.5 bar out and they can sell it for 1.55 then they get 50k, but if they sell well they may be able to squeeze an extra 50k out of the buyer. Which doubles their take home.

In the high commission market, like the one that we have in SA at the moment. Agents only care about the sale. They work on volume not quality. If they sell your place for less than you really wanted, partly because they worked you down, partly because you need to sell and partly because they didn't do the work on the buyer's expectations that they do on the seller's. Then they only get shortchanged by a few thousand according to commission percentages.

Currently it is not in their interest to sell the place for a reasonable amount, to ensure that you get your money out as the seller. They only care about selling the place, full stop. I know how hard the work can be sometimes, but it is not fair to take overinflated commissions from 1 house, simply because you couldn't sell the other 10 houses and so worked for free essentially.

 

[Jabberwocky]

Really shows something is wrong when an estate agent charges the same percentage on a house as an architect.

 

[MagicDude4Eva]

I am not sure if people still wade through newspapers for properties. I would personally rather search online and I would sell privately (Private Property / Property24). Unless you are selling high-end properties with something unique, your property price will be prescribed by the houses in your neighbourhood and no agent will be able to push this up. It's still a buyer's market. An agent will not sell for fix price and I would never sign an exclusive agreement.

Sell privately, don't have open house and be picky about your buyers (they should be pre-approved).

 

[F1 Fan]

I am not sure if people still wade through newspapers for properties. I would personally rather search online and I would sell privately (Private Property / Property24). Unless you are selling high-end properties with something unique, your property price will be prescribed by the houses in your neighbourhood and no agent will be able to push this up. It's still a buyer's market. An agent will not sell for fix price and I would never sign an exclusive agreement.

Sell privately, don't have open house and be picky about your buyers (they should be pre-approved).

As far as I know, banks do not pre approve anymore. Has anyone here managed to get a pre approval in the last 6 months?

Online is the way to go. Private Property, iol etc however, is it a security risk if people come to view? Could be right?

 

[Compton_effect]

As far as I know - you do still get pre-approval. But getting a bond is more difficult than ever before.
One of the reasons why so many sales fall though.

As far as I know, banks do not pre approve anymore. Has anyone here managed to get a pre approval in the last 6 months?

Online is the way to go. Private Property, iol etc however, is it a security risk if people come to view? Could be right?

 

[Ockie]

As far as I know - you do still get pre-approval. But getting a bond is more difficult than ever before.
One of the reasons why so many sales fall though.

I think the big issue with the banks and bonds is they dont give 100% bonds anymore.

 

[Humberto]

And...

That 7.5 % commission excludes VAT...

 

[Ockie]

Well...the latest is. I contacted another client of mine that works for another well known agency. He said their comm ranges from 5 tp 7.5% and it is negotiable within that range. I gave him what my friend told me and his reply was basically .... if you want 4% then you must be happy with 4% service! I was like WTF!!!?? Phoned my friend up and told him. He told me that this guy does not even have a mandate yet and already he is bullying you. My friend wipped sy mo$r and told me that he will be happy to take on the propery with a sole mandate @ 4% comm. Him being in CT will mean that we will have to be a little bit more involved than normal. He will then share the 4% comm with the JHB office of the agency.

If I am gonna get fcked by a estate agent..I would rather be it my ex fck buddy friend long ago turned best friend now also turned estate agent.

 

[StrontiumDog]

TMI Ockie, TMI... Anyways, Rawsons Blauwberg/Parklands told me 7.5% excl VAT. I was just asking out of interest. Not intending to sell yet. Glad I stumbled upon this thread

 

[Ockie]

TMI Ockie, TMI... Anyways, Rawsons Blauwberg/Parklands told me 7.5% excl VAT. I was just asking out of interest. Not intending to sell yet. Glad I stumbled upon this thread

Oh I dont know....was it? I think we must ask ant_man if it was TMI

Seems to me most agents now start at the highest price point and want you to go on your knees and show them how much you really want your house to be sold for them to bring their comm down.

 

[czc]

When I bought the Estate Agent said he is going for 7% if he gets the seller their highest asking price. If someone makes a lower offer he drops his percentage accordingly to make the deal happen. To a certain point I guess.