Selling Property Advise - Auction / Estate Agent / Private Property

roughiain

Senior Member
Joined
Mar 1, 2010
Messages
870
Hi,

I need to sell a property relatively quickly.

Anyone ever sold a property via Auction if so how was it who did you use?

Estate agents seem to be charging from 5.5% to 6% which seems a bit much.

Any advise welcome. House is in olivedale if anyone is interested :)
 

ToxicBunny

Oi! Leave me out of this...
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Apr 8, 2006
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99,729
Auctions in this country are usually for repo'd properties etc.. so you won't get a brilliant price for the property in auction probably.
 

AlmightyBender

Executive Member
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Aug 24, 2012
Messages
6,389
Those are fairly low commissions for estate agents. The normal rate here in my area is 7.5%. Auctions here charge around 10% I think (really not sure here but that is the number stuck in my head from the Personal Finance magazine)
 

ToxicBunny

Oi! Leave me out of this...
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99,729
Do a private sale, if you don't want to lose cash to someone else...
 

ice_cubes

Executive Member
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Mar 24, 2011
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5,137
Get an agent, they usually have a list of buyers who have already been pre-approved.
 

Hosehead

Executive Member
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Aug 15, 2008
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7,839
Agents commissions of up to 7% were fine when the average house was R100K but times in the last 20 years have long changed and with the average house sitting on a Million it's no longer fair comms considering the work they do which is not very much to justify their comm. Agents got very greedy and contributed in a large part to the carnage in the property market by artificially driving up prices. In the UK, USA and Australia you will see Agents getting comms of no more than 2% so why are we stuck with people who want between 4-7.5% for doing very little.
Just remember Everything is negotiable. You should be able to get 4% comm (remember the comm is Vatable) but ask exactly what they will do for you and never give a sole mandate for long. In this market don't give sole mandates.
Despite their image, Auctions are not necessarily fire sales for the desperate. Sure some firms have distressed sales divisions but in auctions, people just sometimes use these to test the market and they will set a high reserve price.
Auction Alliance was the very worst I ever had dealings with. They were crooks to the core and cost me 2 sales, where the buyers walked but another smaller auction house had a very good business plan in that they tied up with"reputable" local agents and split the comm on a sale. (frankly in my experience reputable and ethical are oxymorons in the property biz) Both teams doing the work. Result: house never went to auction and was sold quickly by a local agent in a franchise that was completely new to the Atlantic Seaboard. Well ok It wasn't the price we wanted but it could have been worse.
Nothing sells a house quicker than a correctly priced one.
You can try the Private Sale route but be prepared for a lot of time wasters.
 

MandM

Senior Member
Joined
Nov 28, 2006
Messages
852
Auctions in this country are usually for repo'd properties etc.. so you won't get a brilliant price for the property in auction probably.

Recently a house in our street went on auction. This was not a distressed or repo sale. The bidding stopped at R1.4 million, which the owners did not accept. With the help of an agent, the house was sold for R1.7 million about two weeks later. So, yes, rather try to sell privately or through an agent. Negotiate their commission beforehand.
 

Hemi300c

Honorary Master
Joined
Dec 15, 2009
Messages
23,763
If the house is correctly priced it will sell fairly quick, but it must be in acceptable condition. Agent comm compared to auction and the low prices is not an option, you will get ripped off in an auction.

Don't give sole mandate.
 

jezzad

Expert Member
Joined
Jan 2, 2013
Messages
1,040
Resurrection of note here

In laws are selling their place, no rush +- 6 months. Cape Town, Southern suburbs close to premier schools, 3 bedroom with granny flat and pool.

Values from estate agents are all pretty much the same. Commission ranges from 2% to 8%
Auction is another option we looked at, 10% for the purchaser to pay.

Then we looked at property24 / private property and think we might head this direction.

Looking at saving around 180k a minimum on P24
Buyers market at the moment so that should help it go quickly
Agents normally list on these channels as default so we should be exposed to similar market
Will block book two / three viewing dates and link to a Google form to capture peoples details (security)
Can use a attorney to review OTP with the savings we get from not using estate agent

Anything to be worried about? Am I missing something here? This seems to good / easy to be true.
 
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TofuMofu

Honorary Master
Joined
Aug 11, 2008
Messages
10,585
Resurrection of note here

In laws are selling their place, no rush +- 6 months. Cape Town, Southern suburbs close to premier schools, 3 bedroom with granny flat and pool.

Values from estate agents are all pretty much the same. Commission ranges from 2% to 8%
Auction is another option we looked at, 10% for the purchaser to pay.

Then we looked at property24 / private property and think we might head this direction.

Looking at saving around 180k a minimum on P24
Buyers market at the moment so that should help it go quickly
Agents normally list on these channels as default so we should be exposed to similar market
Will block book two / three viewing dates and link to a Google form to capture peoples details (security)
Can use a attorney to review OTP with the savings we get from not using estate agent

Anything to be worried about? Am I missing something here? This seems to good / easy to be true.
I sold my place within a month on Property24 (was also listed on Privateproperty, but the lead came from P24). Estate agents charge way too damn much.

Took my own photos. Just make sure the place is neat and lighting is excellent so that the photos come out clear. Be very descriptive about the property. More is more.
 
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