Property24 Average House Price

Dolby

Dolby

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Are these prices generally before agents commission has been paid?

I see the average asking price is R1.872.000 and average selling price is R1.771.000?
And when they talk registered price at deeds - is the pre-agents commission?

So on that first property, a situation liked asked R1.800.000, received offer of R1.700.000 but the seller still paid R68,000 fees is not unreasonable?

Average House.jpg

Average House 2.jpg
 
They're always before but as a buyer you shouldn't be paying commission to the agent, that's on the seller. The agent takes their commission as a percentage of the selling price, so that's before all the fees and bank repayments hit.
 
I am the seller and they're saying 'what do you want and we'll work backwards?'
 
Dolby said:
I am the seller and they're saying 'what do you want and we'll work backwards?'
Click to expand...

If you want R1m and they want 5% commission then they'll sell for R1,052,631 (R1m / 0.95).
 
biometrics said:
If you want R1m and they want 5% commission then they'll sell for R1,052,631 (R1m / 0.95).
Click to expand...

Yup.

So I want R1.600m and they'll sell at R1.680m or so ... but wasn't sure when they say average selling price is R1.771m if they meant before or after. If before, they all net R1.680.00 then
 
Dolby said:
Yup.

So I want R1.600m and they'll sell at R1.680m or so ... but wasn't sure when they say average selling price is R1.771m if they meant before or after. If before, they all net R1.680.00 then
Click to expand...

The selling price includes commission. That's the value registered at the deeds office.
 
Honestly what does the real estate agent do for their 80k commission?
I am asking as I was going to sell my place last year but with their commission I was going to come out worse. Also most of them are 6 to 8% now
 
Lupus said:
Honestly what does the real estate agent do for their 80k commission?
I am asking as I was going to sell my place last year but with their commission I was going to come out worse. Also most of them are 6 to 8% now
Click to expand...

You can negotiate, don't take no for an answer. If they won't budge go to another agency.

Three years ago I sold my house. I offered two agencies a commission of R50k on a R1.5m selling price (3.3%). I gave two a sole mandate with the winner takes all. Both Rawson and Leapfrog accepted.

That said, my current house I've had trouble selling. The Seeff agent must have been here 12 times in six months. I eventually took it off the market and will be renting it out. So sometimes they get an easy sale and it looks expensive and sometimes they have to put a lot of effort in and it looks cheap (or they never get a sale).
 
Seeff are useless.

Rawson are the agents that are assisting me. I called them both to get a price and Seeff don't do anything.


What if I price too low?
Does the market 'bid' and offer till we get a figure?

My house average price is the R1.9m in average condition. Mine, sadly, isn't average condition and will probably need R150,000 work to get it up to that figure. In current state Rawson reckon R1.6m take home.

But if that is still too low could I get multiple driving the price to something higher?

Agents don't have the best name as a worry is them pricing low for a quick sale and easy commission rather than working at it.
 
Dolby said:
Seeff are useless.

Rawson are the agents that are assisting me. I called them both to get a price and Seeff don't do anything.


What if I price too low?
Does the market 'bid' and offer till we get a figure?

My house average price is the R1.9m in average condition. Mine, sadly, isn't average condition and will probably need R150,000 work to get it up to that figure. In current state Rawson reckon R1.6m take home.

But if that is still too low could I get multiple driving the price to something higher?

Agents don't have the best name as a worry is them pricing low for a quick sale and easy commission rather than working at it.
Click to expand...

If you under price, you could get a bit of a bidding war, but at the end of the day... YOU are the arbiter since you will sign an OTP that is presented to you or not.
 
Dolby said:
Seeff are useless.

Rawson are the agents that are assisting me. I called them both to get a price and Seeff don't do anything.


What if I price too low?
Does the market 'bid' and offer till we get a figure?

My house average price is the R1.9m in average condition. Mine, sadly, isn't average condition and will probably need R150,000 work to get it up to that figure. In current state Rawson reckon R1.6m take home.

But if that is still too low could I get multiple driving the price to something higher?

Agents don't have the best name as a worry is them pricing low for a quick sale and easy commission rather than working at it.
Click to expand...

Almost every buyer will offer you less than asking, typically 5-10%. So don't under price, price it just above a fair price and expect to get a slightly lower offer, matching your expectation.
 
biometrics said:
Almost every buyer will offer you less than asking, typically 5-10%. So don't under price, price it just above a fair price and expect to get a slightly lower offer, matching your expectation.
Click to expand...
But then surely as Toxic says, it'll start a bidding war?

I'd imagine that it would sell similar to no reserve auction and going higher until reaches market or near to
 
On property 24 you can actually see the average house prices for the area you are buying into. That way you will know if they are overpricing it. Usually when it is highly overpriced it is because of the seller and not the agent. The agent just wants a quick sell where the seller is too greedy. Most agents price it just above market price so that there is room for negotiations but these days they seem to get the advertising price too in good neighborhoods. Whomever said its a buyers market must be buying in cheap areas.
 
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