Selling Property Advise - Auction / Estate Agent / Private Property

[surface]

Leadhome used to be good, I think that back in the day they took like 1%. These days they are actually quite expensive, and considering that I had to do all the legwork, I declined their offer to market my place.

Thanks, I am sure some of them do something to earn that kind of money but in my opinion, people use them out of reluctance that arises out of laziness & fear of confronting people directly.

I don't understand why it % based. Do they have to dress up in designer clothes & drive designer cars to sell 10 million house as against wearing rags while selling a 800K property ?

 

[RonSwanson]

Thanks, I am sure some of them do something to earn that kind of money but in my opinion, people use them out of reluctance that arises out of laziness & fear of confronting people directly.

I don't understand why it % based. Do they have to dress up in designer clothes & drive designer cars to sell 10 million house as against wearing rags while selling a 800K property ?

Never had a problem with that, or hard work for that matter, but my hourly rate exceeds theirs and they are specialists at attracting buyers, so it made sense for me to use them.
Many agents believe in dressing for success and fake it till you make it. Many buyers buy into it too, they get all impressed when they see a 7 series Beemer in the driveway (until they find out that it belongs to the agent, and that they are paying for it )
People are fickle.

 

[maumau]

Privateproperty.co.za can assist with all of that.

I sold one of my properties 2 weeks ago. I just told all of the agents that I am not interested in any exclusivity agreements: If they want to market my place, then they all agree to 5% commission (VAT incl.) and to all market it for the same price, and I also have the right to market it, and that I can withdraw the mandate at any stage. The place was priced correctly to sell (I lopped 70-80K off their "suggested" prices).
I had about 6-7 agents around taking photos, only three of them actually gave me a mandate to sign, the others did not bother. Because the place was priced correctly, it sold within a week. I received 4 offers on the same day and chose the one from my favourite agent who always puts a lot of work in, so good for her.

Congrats on the sale.

Good advice indeed, especially about refusing sole mandate, that was my main worry - that and the right asking price.

It's also possible that the agent I spoke to overvalued the house to tempt me to sign. Once she has the mandate price corrections might come into play.

 

[RonSwanson]

Congrats on the sale.

Good advice indeed, especially about refusing sole mandate, that was my main worry - that and the right asking price.

It's also possible that the agent I spoke to overvalued the house to tempt me to sign. Once she has the mandate price corrections might come into play.

Thank you.

Yep, it's a common tactic used by agents. And then 3 months down the line when you have had multiple "show days" and hundreds of feet trampling your floors dirty, she will suggest to extend the mandate, but reprice.

For a buyer, the most important thing is location, location and location.
For a seller, the most important thing is don't be greedy, don't be greedy, price it right.

A Lightstone report is fairly cheap if you prefer not to do your own research.

 

[surface]

Is it just my experience or estate agents don't seem much enthusiasm in selling properties these days? Or is the lukewarm reception because we are buy-to-let prospect so they expect we will negotiate harder than people that want to stay at the said property ?

 

[surface]

Congrats on the sale.

Good advice indeed, especially about refusing sole mandate, that was my main worry - that and the right asking price.

It's also possible that the agent I spoke to overvalued the house to tempt me to sign. Once she has the mandate price corrections might come into play.

This is very very common. I get cold calls from agents that say 'your property could easily go for X' when I have access to reports what properties sold for in our complex.

p.s. Of course each house is different so price would vary even if standard parameters (buit-up area/total land etc) are same.

 

[maumau]

This is very very common. I get cold calls from agents that say 'your property could easily go for X' when I have access to reports what properties sold for in our complex.

p.s. Of course each house is different so price would vary even if standard parameters (buit-up area/total land etc) are same.

Amazing that they have such a cheek and sure every house will differ but within reason. If you see on PP a property similar to yours down the road sold for R2.6M why would your's go for R2.8M?

That's probably also why it's a good reason to approach several agents and not to go with sold mandate.

Some gorgeous houses for sale have been staged too, so that's an extra cost if you choose to go that route.

 

[surface]

From a Buy to let perspective. Had a look at some properties around Midrand and bought related reports. 7 properties - 2 beds, 2 bath bracket. Most flats/apartments bought between 2006-2008 for 630K-650K and now selling for no more than 870K. That looks to be between 2-2.5% YoY growth (of course there is rental income to be considered as well) I am suspecting sellers paid too much at the time and the market is not good this side because of abundance of construction.

@zerocool2009 - for expert opinion.

 

[zerocool2009]

From a Buy to let perspective. Had a look at some properties around Midrand and bought related reports. 7 properties - 2 beds, 2 bath bracket. Most flats/apartments bought between 2006-2008 for 630K-650K and now selling for no more than 870K. That looks to be between 2-2.5% YoY growth (of course there is rental income to be considered as well) I am suspecting sellers paid too much at the time and the market is not good this side because of abundance of construction.

@zerocool2009 - for expert opinion.

Taking the amount of years into consideration (its bad "growth" or rather selling for less than expected).

A big factor to consider when buying in sectional title estates (ask for levy / rates and taxes statements). Maybe special levies as asked or its badly managed. That's my 2c on bad growth

 

[surface]

Taking the amount of years into consideration (its bad "growth" or rather selling for less than expected).

A big factor to consider when buying in sectional title estates (ask for levy / rates and taxes statements). Maybe special levies as asked or its badly managed. That's my 2c on bad growth

Yeah, even with rental income, Buy2Let doesn't seem a good idea, at least in this price bracket & area. We decided not to buy anything that is more than 5km away from where we stay. Difficult to manage on your own if tenant reports issues and never going to give to estate agents.

 

[RonSwanson]

Taking the amount of years into consideration (its bad "growth" or rather selling for less than expected).

A big factor to consider when buying in sectional title estates (ask for levy / rates and taxes statements). Maybe special levies as asked or its badly managed. That's my 2c on bad growth

True. That, coupled with the general (global) property bubble which burst in 2008/2009. The key is to buy low. I had a property in Midrand, bought in 2009 for R745,000. The owner had paid R850,000 one year year prior to that. I sold it in this year for R1,250,000. Badly run estate, poor maintenance, useless trustees.