UNLOCKING THE VALUE OF ESTATE AGENTS
Category Advice
Selling your home is a significant decision, and understanding the role and value of property practitioners can help you navigate this process smoothly. When you sell your home through a real estate agency, you agree to pay them a commission, which is a percentage of the sale price.
In South Africa, the standard commission rate ranges from 5% to 7.5%, but this rate is not fixed and can be negotiated. This commission is the main source of income for estate agencies, who take on a considerable amount of risk as they invest heavily in marketing your property but only get paid if the home is sold.
Paying the property practitioner's commission is the responsibility of the seller, not the buyer. The commission is paid once you have agreed to a contract with a buyer, and all the conditions of that contract have been met. Typically, this payment is made once the property is registered, which usually takes around six weeks after the sale.
It's important to note that if a prospective buyer initially decides not to purchase your home but changes their mind later and buys the property, the property practitioner who attracted that buyer is still entitled to a commission, even if they were not directly involved in finalizing the agreement.
While fees are negotiable, it's generally not advisable to try to save costs by reducing the commission. A lower commission may result in less marketing budget for your property and could also motivate the property practitioner to sell your home quickly, potentially affecting the sale price.
Property practitioners provide valuable services that can help you sell your home efficiently and at a good price. They handle the marketing campaign, showcase your property, provide valuable advice, and have access to a wide network of potential buyers. So, when selling your most valuable asset, it's wise to entrust it to professionals.
Once your home is sold, if you're looking to invest the proceeds in another property, consider using ooba home loans, South Africa's largest home loan comparison service. They can submit your application to multiple banks, giving you the opportunity to compare deals and interest rates.
Remember, selling your home is a complex process, and having an experienced property practitioner by your side can make all the difference.
Author: Anne Schauffer
