"We deserve every cent" - estate agent

Agents deserve their commissions more than ever, says Linda Erasmus, CEO of Fine & Country SA.

The question currently being bandied about by property industry observers is whether or not estate agents should lower their commission fees in line with the general depreciation of the property market.

My response to this premise is firmly in the negative for a number of reasons, chief amongst which is that agents now have to work harder than ever, under strict new working legislation, for less.

In recent times, the South African propertyscape has changed. The number of successful real estate sales has diminished significantly since the heydays of 2005 and 2006 and the underachievement of asking prices has, to a large extent, become the norm.

It comes as no surprise then that agent fees which commonly run at 6% and 7% (before VAT) have come under the spotlight. It is important therefore, to highlight just how difficult it is for agents to successfully conclude sales in the current climate. Likewise it is necessary to explain how new property industry protocols are further impacting agents.  

Up until 2007, most willing buyers were also able buyers. Willing buyers are still in evidence. However, able buyers are few and far between thanks largely to the strict lending protocols imposed by the banks. The recession has also decimated spending power to a large extent. Consequently, agents have to work that much harder to qualify buyers.

Further compounding this already difficult situation says Erasmus, is the new legislation imposed by the Estate Agents Affairs Board (EAAB) of South Africa last year.

The introduction of this legislation, coupled with a weak property market, saw estate agents leaving the industry in their droves. As it stands, the real estate agent complement has dwindled from 80 000 at the beginning of 1996 to a mere 30 000 in 2009.

The fact that a large proportion of independent agents have gravitated to, and merged with, the big corporate property entities is also indicative of the trading conditions currently prevailing in the market.

Up until July 2008, anyone who could afford the registration fee to enter the property industry could do so without any qualification and could operate under minimum supervision as a ‘candidate estate agent'.

After a year, candidates were deemed to be ‘qualified' without any assessment to verify this. Furthermore, agents were under no obligation to maintain their professional skills or keep their knowledge up to date.

As per the new legislation, existing agents may qualify through the Recognition of Prior Learning (RPL) process while new entrants must do so by means of a 12 month long internship.

After obtaining the relevant certificate, aspirant agents will have to pass a Professional Designation Examination set by the EAAB. Full status agents who have been registered as such for a minimum of five years prior to July 2008 will be exempt from the exam.

Draft regulations are also in place which will allow the EAAB to introduce a Continuing Professional Development Programme which will require estate agents to meet specific requirements within a three year rolling period in order to remain in the industry.

The new legislation and less than desirable trading conditions have effectively acted as a form of attrition within the property industry which, although immediately restrictive, will ultimately improve property industry service levels as a whole in the long run and produce better agents.

What does it take?

South African real estate agents and the services they perform are often taken for granted.

Real estate agents work entirely from a commission base and have to carry their expenses themselves. They are also closely involved with every aspect of a deal which takes time and effort. Likewise they need to be au fait with all the legalities related to property sales.

Agents also cover all the costly off and on-line marketing and networking expenses pertaining to sales; weekends are often sacrificed and long hours are also the norm.

Add to this scenario the fact that it has become that much harder to qualify buyers and it quickly becomes apparent that estate agents have to work hard to earn their income. Even so, agents are generally still open to negotiating their commission fee within reason.

In a nutshell, South African agents are working harder for less yet are providing a professional service amidst tough trading conditions. Pay them what they deserve.

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Comments

 

responses to this article

Oh Pull LEEEEEEEEEZ If you bottom feeders added any value, why are so many of your kind going bust? Yours is a bull$hit industry, which adds absolutely no value. If it did, you would charge a fee for service, like any other real business. Linking your fee to the value of . .more the property is nonsense, and fortunately something that is coming under more and more pressure. Estate agents are over agrressive losers that just have less dignity than most people. They don't have an ounce of integrity, and will lie their way into any deal . .less by 1 on September 22 2009, 08:33 Find this comment inappropriate? Report it

Oi Vey I could not agree more. Have you any idea how much it costs to maintain my nails and hair? Beemers are costing a fortune these days and I was horrified to see that full colour business cards with pictures have gone up three fold. On top of this you expect . .more me to sit around in your 6 million Rand lounge from 12-6 on a Sunday for less than a 7% cut? I have lines around my mouth from closing deals and I cant even pay for Botox! Oi Vey this is the final straw, you schnorah's are killing me slowly - Im telling Abe its time to schlep to Seapoint. . .less by Bev Sukalotawitz on September 22 2009, 08:58 Find this comment inappropriate? Report it

It's excessive Sure agents are entitled to commission if they facilitate a sale. The percentage is excessive. In Australia they earn 3% going down to 0.5% on expensive properties! by Mark on September 22 2009, 09:25 Find this comment inappropriate? Report it

10 out of 10 For waffle. Such a subject is a hard sell. I agree with paying an agent what he/she is worth, only its not what is proposed in the article. Note to Bev: Botex is so yesterday. You need Injectable Fillers (Gel) so you can smile and have a . .more natural looking face rather than look like an Avatar. . .less by Tuscanite on September 22 2009, 09:32 Find this comment inappropriate? Report it

Exploitation All Round Admittedly, our agents commissions are way above what other agents charge in other jurisdictions. Their commissions have had an impact on over valuing a number of properties, so much so, that Local Authorities do not deduct agents commissions when . .more calculating property values. Most have no tertiary education. Nor do many have a pension. Their working terms and conditions are heavily stacked against them and much of their commissions go to their principals. This is a highly exploitative industry which may need to be carefully overhauled. But working hard to make a sale alone, cannot justify the exhorbitant commissions. . .less by Babs on September 22 2009, 09:47 Find this comment inappropriate? Report it

Crooks thieves and con artists. Name one Client wwho will agree they got the service for what they paid. These guys are overpaid car sales men and women who bully sellers to drop prices . There is no skill, no knowledge of economics or finance. They should really be getting a small . .more admin fee plus a few hours babysitters fees at show houses. For absolutely no risk and invetmentment thier fee is disproportionate and there service appalling. They should be ashamed to call themselves proffessionals. . .less by From personal experience on September 22 2009, 10:10 Find this comment inappropriate? Report it

WAAAAY OVERPRICED commissions Your commissions are becomming a major obstacle to concluding sales. Simple example. On a property that I paid 600K for two years ago, now trying to sell it at the same price.... the agent wants 10% can you believe it! I.E. put it in the . .more market of 660K, and as we all know the appropriate price at the moment would be close to what you paid for it around two years ago if you want to sell it quickly. So ofcourse now the agent tells me to keep lowering my price so that it becomes "saleable". Ok so now the price is dropped to 600K.... Now a full 60K has to dissappear straight out of my pocket.... does it really cost 60,000 rand to sell my property in time and effort? Can I not simply list my property on private property for 6 months for R 1000? In fact, that is exactly what my agent WAS doing... Now I'm listing it myself for R 585 privately... Great bargain for a buyer, and I still get out more than I would have if an agent was involved. Everyone wins when there is no agent... . .less by Capitalist on September 22 2009, 10:17 Find this comment inappropriate? Report it

Estate agents These okes belong in the fiery pit along with the defence lawyers. 99% of them give the rest a bad name. Speaking from experience as a buyer. Once you sign that dotted line, you're history, baby. Worth their comms? I think not. Let's see . .more some competition here, you want my business, compete for it on price. 6% my A**. . .less by donovan on September 22 2009, 10:20 Find this comment inappropriate? Report it

Overpaid There is no way an estate agent can justfy the commission they currently get. Their overheads are basicly confined to running cost of their car. They add no value to the economy. Their service is limited to bringing a buyer and seller together and the . .more lawyers do the rest. Half the current commission rate would still be on the high side. . .less by Charles on September 22 2009, 10:49 Find this comment inappropriate? Report it

So why do most people use them if they are so bad? There is nothing stopping all you naysayers from selling your property without an agent if it is so easy. Yet most people still use them. So if you don't like them don't use them and stop whining or admit they do add value in giving your home exposure. It . .more costs money to advertise, make calls, take people to showhouses, build up a buyers list, pay a sitter, prepare maketing material, pay office rent, pay for a car which is a tool of the trade, wait 4 months for commission, train agents etc. Consider over 60% of bond applications are currently declined. The bond application only happens after the home is sold. So the agent often ends up having to sell the home twice! The average agent grosses R20k on the average property assuming a 50/50 split with the agency. There are 30 000 agents in SA selling less than 15 000 homes a month at present. So your average agent sells a home every second month and earns R10k a month before expenses. Thats hardly a great living. So naysayers go pick on another easy target instead of wasting time writing drivel on this site. The reality is that a good agent will get more for your home than you would get privately or you would not use them, so the comm. is well worth it. PS. No I do not sell houses (need to earn more than that!). . .less by Observer on September 22 2009, 10:59 Find this comment inappropriate? Report it

If we cry in bad times, will you reduce your fees in good times????? So, according to your argument, we should only pay 1%-2% commissions when times are good???? And if the banks start lending again, you'll drop your fees? by Crier on September 22 2009, 11:07 Find this comment inappropriate? Report it

@Bev Sukalotawitz tres amusing, cheers! :-) by Skattie on September 22 2009, 11:11 Find this comment inappropriate? Report it

Estate Agents I believe that there is a place under the sun for everybody, including estate agents. The last year or so has been a very, very tough year for everybody in the property industry and from my experience, only the best and most professional agents have . .more survived. I agree that there are some fly by nighters and unprofessional agents, just as I guess there are in any industry. However, there are geniunly good agents that do an excellent job in valuing your property correctly, advising the seller on strategies to make his/her property easier to sell and then to find a suitable buyer. These agents are well known in their area and have earned their reputation by doing a good job, year in and year out. Private sales are always an option, however, in tough times I believe that a private seller that needs to sell urgently, simply lacks the time and networks to conclude a sale as quickly as an agent. . .less by Conveyancer on September 22 2009, 11:18 Find this comment inappropriate? Report it

Good point observer And I think you will find more people are avoiding using these leeches. I sure as hell won't, once bitten twice shyster. Sorry, shy. by donovan on September 22 2009, 11:41 Find this comment inappropriate? Report it

Another thing The fact that these things place such a high premium on looks to sell houses is telling. by donovan on September 22 2009, 11:49 Find this comment inappropriate? Report it

freakonomics Information advantage is being eroded and estate agents wont be able to pull the wool so much anymore http://freakonomics.blogs.nytimes.com/2006/03/22/the-bbc-goes-after-real-estate-agents/ by graeme on September 22 2009, 12:13 Find this comment inappropriate? Report it

When all else fails ... and you can't get a real job there are always 2 options left ... join the police or beome an estate agent. The only area of efficiency in dealing with estate agents is them calculating their commission! by Real education on September 22 2009, 12:18 Find this comment inappropriate? Report it

@ Charles and the other complainers Charles with your comments you don't have any idea on what is involved with running an estate agency. "Their overheads are basicly confined to running cost of their car". You suggest they sit in their car and wait for your call. I own a Estate . .more agency and my annual advertising costs is running at R1,8mil for a couple of adds in local newspapers. That's before they have a desk (R9500 pm per agent), phone, e-mail or any marketing tools. "Their service is limited to bringing a buyer and seller together and the lawyers do the rest". Do you know the time and cost involved to make that happen? Do think before you lash out at something you know nothing of!! . .less by Boscher on September 22 2009, 12:50 Find this comment inappropriate? Report it

To all the positive comments above...... Sell or buy your properties your self, nothing stops you.... by ea on September 22 2009, 12:53 Find this comment inappropriate? Report it

@Boscher "I own a Estate agency and my annual advertising costs is running at R1,8mil for a couple of adds in local newspapers." This statement alone sums up your mentality and the rest of your fraternity by Truth on September 22 2009, 13:18 Find this comment inappropriate? Report it

Boscher Advertise on the web. It is much cheaper and more effective! The real sin is that the estate agency gets half the comm deserved by the person who does all the work, ie estate agent. No wonder Mr Golding, Mr Seeff, Mr Geffen are driving around in . .more vehicles like Porsches and 4x4 . .less by ANo on September 22 2009, 14:19 Find this comment inappropriate? Report it

my experience pretty average people, unfortunately the industry attrcats "has-beens-who-never-were" - sure, there are exceptions but generaly, when I hear 'estate agent' my expectations are very low & hence I am usually not disappointed ... by pamplona on September 22 2009, 14:31 Find this comment inappropriate? Report it

Utter Trash iI've never had a good experience with an estate agent and I have sold many properties. I don't question that they have a place in the value chain, but not at these outrageous commssions. Even at the top end when you expect them to be more professional, . .more you frequently see a total lack of even the most basic administrativee and legal knowledge. My hair stand on end when I have to engage with an estate agent. They have all created a stereotype for themselves. . .less by Colin on September 22 2009, 14:41 Find this comment inappropriate? Report it

Linda Erasmus I think Linda you will find that there are not many who have any symapthy for your industry. by OBS on September 22 2009, 16:45 Find this comment inappropriate? Report it

Absolute k what agents earn for doing very little. Of course they will protest loudly, but they really are bottom feeders like 2nd hand car salesman and investment brokers. Add absolutely no value in correlation to what they think they are entitled to earn; plus . .more then the additional comm they get for filling in a form to apply for a bank loan - most of which is incorrect info and has increased bank bad debts. What scum! . .less by Ben on September 22 2009, 16:50 Find this comment inappropriate? Report it

Agents Fees Well aint there a bunch of winers! Common sense will tell you unless the 100's of thousands of people who have bought and sold through an agent are complete banana's there is a valuable service rendered by "bottomfeeders/suckers/retired housewives" (funny . .more how jealousy makes you nasty neh?). This is a free market and I trust under the great SA flag willing buyer willing seller stands. If it were so easy Private Property /Help You Sell or whoever would have cleaned up and listed on the Stock Exchange by now! But its up to the moms and pops who grind it out to keep us all going in the property game. Go agents! . .less by Common sense, man!! on September 22 2009, 17:27 Find this comment inappropriate? Report it

Ratios out of whack 30 000 agents selling 15 000 properties a year (an average of half a property per year) and getting an average of R10 000 a month each, based on average coms of 6%!!! How about 3 000 agents selling 15 000 properties a year (an average of 5 . .more properties a year - that sounds like a reasonable workload) and getting an average of R25 000 a month each, based on an average com of 3%? Seems to me there are too many agents sharing the com pie - reduce the no of agents and reduce the com pie as well. Based on my long experience of buying and selling property there's probably not more than 3 000 really great agents out there. A great agent is someone who can skillfully keep the buyer and seller apart (there would be bloodshed without a go between - it's a highly emotive event), and bring the buyer's and seller's prices to a meeting point whilst keeping the worst aspects of human nature (iro both the buyer & seller) in check - greed, ego, warring couples, stupidity, unrealistic positions - a multitude of human failings that would normally derail a deal. A great agent needs huge interpersonal skills, grit and closure abilities to coax a buyer & seller into a deal - I've only met one in 25 years. . .less by Andy on September 22 2009, 18:00 Find this comment inappropriate? Report it

let's see a comparison lots of arguments (most against; a few for) and emotion, but surely the fairest way to judge is a comparison of the fee scales against other comparable countries e.g. U.K. Australia, New Zealand, Canada). I'm sure one of the big agencies keep a track of . .more these and lets'see if they're brave enough to publish them. The fact that we haven''t seen them already tells a story. . .less by paddy on September 22 2009, 18:40 Find this comment inappropriate? Report it

Tuscan Zen with Bushveld Feel This market was too easy and needed a good cull. Don't blame the agent if some idiot gives them a mandate with a 10% comm. Trying to push comm up is not going to work. Its pure greed trying to maintain fat margins without changing any of your business . .more practices. Estate agents have every right to try and make an honest living but judging by most people's attitude's after dealing with them, they are in a market which could well see them getting a lot poorer or even obselete. What the hell is Pam Golding for example sending out advertising brochures of houses for R20mio to people living in an area where houses are valued at R3mio??? Insanity - doing the same thing in the same way and expecting different results (or something like that) . .less by Fox on September 22 2009, 19:02 Find this comment inappropriate? Report it

Agents are for lazy people I am always amazed that people pay these massive commissions demanded by basically people who have failed at everything else they have done. I simple calculate the value of a property and then deduct the agents commission - after all why must I pay for . .more the sellers laziness. Generally offers are out by the estate agent's commission. I have conducted a number of basic private purchases with absolutely no problems . .less by ANDREW on September 22 2009, 21:14 Find this comment inappropriate? Report it

The solution Less agents - premises that are not in prime positions - stop wasting money on newspaper ads that no one reads - less gloss and more hard work - act like workers and not movie stars - sell homes and not "investments" - base your commission on how many . .more hours you will spend exclusively on selling the clients house - 10% on a million rand house is 80 days exclusive work just for that one client based on R150 an hour ... let's face it, you are not doing a fraction of that - so final point ... less greed. . .less by CJ Says on September 22 2009, 23:54 Find this comment inappropriate? Report it

It's a great pity That South Africans don't deal directly with one another in property transactions and cut out this exhorbitant agent cost which comes with very little value add. But we seem to feel better having a broker in the chain, why I don't know. by Buba on September 23 2009, 08:31 Find this comment inappropriate? Report it

One Big Rip-off In the UK you pay between 1.5% and 3.5%.. Here it ia a rip-off. Collusion. Andy's got it right - There are far too many agents and there has to be collusion. Just like the bread and so much else. The Government must do something. SOON. by mike on September 23 2009, 09:00 Find this comment inappropriate? Report it

We deserve every cent" - estate agent It is your own fault that the industry is what it is. When given the choice, the majority of you would rather opt for a premium national agency @ 7% than support the local independant agency who provides the same service for 3-5% com. Market share proves . .more this. A small minority of you attempt to sell your properties through private channels. And you complain about getting shafted! Let me explain: you want the agent with the image, the cool car and the glossy agency with the prime position on the main road he works for because you think image equals success. So stop whining about gratuitous expenses on grooming, wardrobe, cars, glossy brochures etc. because you, the commission paying property seller subconciously expect glamour when concluding a property transaction. It is a form of "Stockholm Syndrome" where you end up identifying with your tormentor. And those of you having been "bitten once", wake up because not all agents, especially those remaining in the industry and committing to their own growth within it, are lazy, never been - never will be's. The industry is changing for the better. So I challenge you to support your local agent, working for 3-5% comm - operating from his home, using a black and white business card and arriving at your door in his 90's VW Golf. You might be in for apleasant surprise. . .less by Indi Agent on September 23 2009, 09:17 Find this comment inappropriate? Report it

The system Real Estate agents are entrenched by the system, just like the medical, legal systems, etc. Control under the quise that you need a qualified membership and then you regulate the fees and rip off the man in the street. Where is fair competition? How can . .more the fees be related to the price of the property? Easy so you can rip off rhe richer man in the street even more . .less by Neville on September 23 2009, 09:41 Find this comment inappropriate? Report it

Ignorance is bliss It is apparent not many out there are aware as to what goes into the sale of property. 1. An agent is running a business with normal opperating and business expenses. Its ignorant to look at it from the perspetive of the sale of a single property. . .more It 's like teeling your broker or investor they only spent an hour with you and are only entitled to a fee of R 220. 2. Sellers always feel the home is worth more than a market relate price. Of course an agent would like to get you the highest price. We work on commission so the more you get the more we make, but we not into wasting our time trying to sell somrthing which is overpriced. 3. The buying of a property is often the single biggest investment someone will make in their lifetime. If you happy to go out there and get screwed by an unethical buyer or seller... go for it. There is nothing stopping you. But I know very few who would ever do it a second time. 4. Remember an agent only gets paid 3-6mths AFTER concluding a successfull deal. Not for the time they may spend driving a client around or what may be spent on advertising. And A word to Indi Agent..... don't undersell yourself..... or in 10 years time you will still be driving your 90's VW Golf. Are you not worth more? . .less by John on September 23 2009, 10:02 Find this comment inappropriate? Report it

Days are numbered Realtors are some of the most useless people on earth. My wife and I had been looking for a home for six months, visting showdays every single weekend, with virtually no help from any of the agents we left our details with. In the end, the home we found . .more and made an offer on was simply by chance and NOT through a realtor reference or by way of "match-making" buyers and sellers, which is what I'd assumed realtors actually did for a living. In the future, all property will be sold privately, between individuals. That's how we sold our home and how we will do so again in the future. The days of realtors are truly numbered. . .less by Graeme on September 23 2009, 10:43 Find this comment inappropriate? Report it

re Moaners and groaners All this moaning about Estate Agents getting too much money...Who must pay for their vehicle running costs when buyers don't pitch for an appointment and don't even bother to phone and cancel??? Who must pay for the unnecessary "Please call me" from . .more buyers / sellers who are too stingy to make a call.....Who must pay for the expensive ads when Sellers insist on their selling price after an agent has given a Realistic Market Price? Their property must be advertised in every possible printed medium and still on a web-site....Moaners and Groaners come work in this industry for a month and see where it will get you....Don't forget we also have out private expenses, eg. Rent, school fees, 10% to charity, food on the table for your family,....and all the other expenses you have working for a boss. Then the Agent still has to pay a share of the Commission to the Agency for expenses....So don't complain if you don't know what's going on.... . .less by Carol on September 23 2009, 11:52 Find this comment inappropriate? Report it

Re: Carol Carol my love. No one is saying that you must do things for free. Every job has its pros and cons. Your cons are your examples such a clients not pitching up, etc. Your career was your choice doll, live with it. Some of us are aware that from the . .more commission that you charge, 50% goes to the agency and 50% goes to you. We know that. What we are saying is that, considering the volumes (even the present volumes - DONT compare to the boom), your commission % is wayyyyy too much!!! We saying charge us, but dont rob us!!! Every job is tough love, we know what, but daily robbery is a choice!!! :wink: . .less by Saks on September 23 2009, 13:27 Find this comment inappropriate? Report it

Agent commission Hear, hear Indi Agent! Sellers give mandates to the "big" guys and then squeal when they have to pay between 7% and 10% commission, because they think these bif corporates can do better, all they do better is charge you better commission, better for the . .more agents obviously. Sellers need to contact the small privately owned agencies,and yes, get the same service if not better at 3 - 5% commission. Those of us who are worth our weight in gold will have ample references, I know I do. I am not going to even try and justify agent commissions, all I will say it is hard, stressful work , often unpaid for services are rendered, where people expect you to be available 24/7. Any of you complainers are challenged to try and make a living out of estate agency, see how long you will last! . .less by Agent on September 23 2009, 13:29 Find this comment inappropriate? Report it

Re: John... down with the ego!!! John, seems like all the commission over the past couple of years has blinded you about the realities of life. I'd rather have an old car and a big D*** than a fancy flashy car like yours and be sh!t in bed! Good luck chum. Better get a regular 9-5 job! . .more This market aint getting any better for sometime :) . .less by Saks on September 23 2009, 13:32 Find this comment inappropriate? Report it

What a bunch of WHINERS!!!!!!! ESTATE AGENTS SHOULD GET PAID MUCH MUCH MORE!! any of you people should go try sell houses for 1 month a see what really happens behind the scenes. Clients not arriving for appointments, running with a buyer for a month then he decides NOT to buy, sellers . .more wanting to cut your commission down to the bone, working 7 DAYS a week, saturdays, Sundays & holidays. Hardly seeing your family. Other agents trying to do you in on a sale. NOT GETTING PAID A BASIC WHILE YOU HAVE TO WAIT 3 MONTHS FOR YOUR MONEY, THEN THE DEAL CRASHES... i can go on & on... Please people, estate agents deserve every cent they get. . .less by Jacques on September 23 2009, 13:37 Find this comment inappropriate? Report it

Whats really funny.... All you guys commenting..... never been an estate agent have you. From what i pick up here, not one of you would last a month in the business. Bottom feeders.... the ones who dcont want to pay for a service... thats a bottom feeder??? by Ganx on September 23 2009, 13:42 Find this comment inappropriate? Report it

Oh Jacques! Poof! by Fred on September 23 2009, 14:20 Find this comment inappropriate? Report it

Just pay up The dogs bark but the caravans will continue to pass by Agent on September 23 2009, 16:01 Find this comment inappropriate? Report it

Property farce During the last 12 months I've sold one dump in Bertrams - this is all I've sold in all that time. Ah - I drive a really flashy 1.2M Benz, and my wife now needs a new BM because last year's model is ' out ' colourwise. My kids are now getting a bit . .more aggro because they might not get their usual skiing holiday in Switzerland this year thanks to poor sales and low comm. Top class Estate agents like me really cant survive on a miserable 10% - you watch this space. I spoke to my big mate Eskel the other day and he says we must all go out on strike if we dont get at least 75% minimum [ Coz we're worth it ]. After all how are we going to survive otherwise ? My R 12M mansion in Hyde Park is soon to go under the hammer, so if we dont come rite I'll be out on my ear. But thats OK because Raymond will fix me up at PnP as a shelf packer - at least i wont get laughed at.... . .less by Aziko Mali on September 23 2009, 16:15 Find this comment inappropriate? Report it

Too many agents Jaques. 13:27. These other idiots. Get real. There just too many of you. That's the problem. Sellors haev to cut you sharkes out of the equatoion and let the fere ,market arrange a price. You are all freeloaders! by mike on September 23 2009, 18:06 Find this comment inappropriate? Report it

Property Industry So many negative comments on Estate Agents - each one more scathing than the last ! Ever tried to buy or sell a property in Europe - Italy in particular ?? The paperwork involved in every transaction is truly monumental and the whole process takes months . .more - I mean six to eight months in many cases. Here, the paperwork by comparison is a real breeze, so the agents here really have it very cushy and asking a full 10% to drive someone around and show properties is a bit over the top. This whole industry here needs to be shaken up and reinvented - the public are totally distrustful of all agents, which is a shame, but its the system itself which puts them in that light. I want to downsize soon, but to pay a licensed driver R 300,000 to sell my place, I'd rather stay put. . .less by Shakes Masimba on September 24 2009, 18:21 Find this comment inappropriate? Report it

You've missed the point.. As an agent myself I will not sit here and defend the 'ugly ducklings' of the real estate industry. Everyone, including agents themselves have had deals gone bad due to someone's inefficiency. The point I would like to highlight in the article is . .more that the industry is currently flushing out the 'bad eggs' through a series of assessments which will proffessionally qualify agents to sell property. This is through a Recognition of Prior Learning process. The new qualification is called the Further Education and Training Certificate (NQF4) qualification. If you are thinking of buying or selling then make sure you ask the agent if they have this FETC qualification, before using them. Jon Acutt jonactt@acutts.co.za . .less by Jon on September 25 2009, 14:10 Find this comment inappropriate? Report it

@commonsense Private Property is 'cleaning up' and well on its way to listing in an astonishingly short period of time. It has come to dominate FSBO business in this country, not a feat any estate agency can claim to have achieved over a similar period. . .more Social on-line media and cheap broadband is a real threat to bloated Estate Agencies. In the past it was virtually impossible for an individual to network widely with the public, now it is no longer so. PS. I am a journalist and have no vested interest in any of the parties mentioned. . .less by Reality Check on September 28 2009, 12:21 Find this comment inappropriate? Report it

Why you don't deserve every cent I firmly believe that there is a place for estate agents in this industry and that they render a valuable service. I've bought quite a few properties through private deals and it's always a nightmare to try and convince the seller that his property is not . .more worth the asking price. Every single one takes this as a personal insult and suddenly makes the deal very diffcult. The new regulations governing estate agents is long overdue and will make considerable headway in rooting out the "bad apples", but I feel that commissions are still way too high. When you compare their comms to what conveyancers are allowed to charge for a professional service, you will realise how much they overcharge. On a R1 mil deal the agents take about R80 000 and I can "only" charge about R12 000.00! This after studying (now) for 4 years, doing 2 years of articles, passing the Admission exams AND then still writing another exam to become a conveyancer. Now if they took 2% plus VAT they would still take more than R20 000 on the deal. What's wrong with that? And don't tell me your costs are higher than mine, as I also have offices, proffessional staff etc. to pay in order to make my R12 000.00. If I can make money on this, why can't you? . .less by Another Conveyancer on September 28 2009, 15:10 Find this comment inappropriate? Report it

Scalable Income Estate agents work on scalable income like traders but is this really fair and "professional". It would be the same for a medical doctor saying that because your condition is more complex that a percentage of what you negotiate for your condition to be . .more fixed would be needed. Willing doctor willing patient like willing buyer willing seller coming to an agreed price. Is that really fair? . .less by GaryK on October 01 2009, 14:36 Find this comment inappropriate? Report it

Agents deserve their fee Nobody would work for free. The real reason why there is a discussion is that the fee is not paid up front. When people are not paying for a service, the think it is inferior. Everybody who ever bought or sold a home, uses the free service directly or . .more indirectly of an agent. Nobody really sells privately. The seller will determine his price by looking at advertisements of other properties by agencies or they will call an agent for a free valuation. Some of them will phone agents and drive around with them for free in order to make comparisons to determine the value of their home. Buyers do the same. They drive around looking for agent's board, look in the papers for photo's of homes in specific suburbs etc. The buyers and sellers that are really informed knows that they would get the best houses and prices through agents. These buyers and sellers will spend their valuable time searching for the right agent. They know that they will waste a lot of time, money, paid leave etc if they go around on their own to find the right home. They will tell the agent exactly what they want and then the agent would do the run-around for them and only show them the houses they can afford and that would really suit their requirements . .less by Susan on October 02 2009, 08:52 Find this comment inappropriate? Report it

Private Property Dear Reality Check, Private property changed their business strategy. They are no longer listing just from private sellers. If you go to their website, you will find that most of the listings are by agents who pay a lot of money to advertise there. . .more Estate Agencies are advertising on the website just as on any other website. Private property is now where they are because of agents and not because of private sellers. . .less by Susan on October 02 2009, 09:19 Find this comment inappropriate? Report it

Scalable income GaryK, Drs and Specialists do ask different rates and you get charged differently depending on what treatment you need. To me it is the same, because the effort , work, risks, knowledge, level of expertise etc needs to be more when the price of the . .more property goes up . .less by Susan on October 02 2009, 09:40 Find this comment inappropriate? Report it

@Susan Susan, you are of course correct in pointing out what it is that an agent adds to the buying and selling experience. I also agree, as I have above, that agents are definitely needed and I for one normally make use of an agents services when I buy property . .more and always when I sell. BUT, it still does not justify the HUGE fees that are charged. Let compare apples with apples: You cannot justify a R80 000 comm on a R 1 mil property or a R150 000 com on a R2 mil property, when a qualified conveyancer only charges maybe 1.2% in total on the selling price. And that, in essence, is what the ordinary citizens of this country are complaining about. And rememeber, we also only get paid once the matter registers in the Deeds Office... And to add oil to the fire a lot of agents still demand a "kickback" from the conveyancers for work referred. And that on top of the commission they receive from bond originators. Now that is PURE greed! Luckily it seems that in the recent bad times these "bad" agents were the first to leave the market and the new regulations governing estate agents will help that process along, but commissions will have to be looked at, as currently is is not fair compensation for work done when compared to other professional services. . .less by Another conveyancer on October 02 2009, 13:15 Find this comment inappropriate? Report it

@Another conveyancer The average time for a house on the market before it sells is 100 days and then it takes 6 weeks to registration before the agent is paid. That means for the commission of R80 000 - VAT, he worked for around R12 000 per month while he was paying his own . .more expenses like telephone, petrol, car, adverts, boards, office space etc. that works out to around R5 000 per month. Salary earned is then about R7000 per month if there is, after all this time, a successful sale. I think the average agent would rather be paid for everything that he does. A fee for the listing, photo, website, board, advertising. bringing clients for viewing, getting overtime for showdays etc. That would mean a better and regular income. Through Private Property clients have a choice to do just that, but the risk is that they can have all the expenses and then the property is not sold or sold through an agent. Or, what happens regurlarly, the seller decide to take the property out of the market. That in short is still the biggest reason why sellers prefer to use agents - there is no cost, but you have to pay your agent when there is a successful sale. . .less by Susan on October 02 2009, 17:12 Find this comment inappropriate? Report it

Private Seller Sell your property privately. Get unqualified buyers of the street and invite them into your home. (If your house doesn't get emptied the 2nd time around). Spend a few thousand Rand on advertising per month on your overpriced property. Setup 'on show' . .more boards on a friday and walk around your neighboorhood dropping pamphlets. Spend a few more Rand on advertising on the internet. Find other properties for sale/sold in you neighbourhood that buyers can compare your property too, tell them why they should pay more for you property if there are similiar properties for sale for far less. Arrange a bond for your buyer if you finally find one. Do this about 3 times until you find someone who finally gets approved. Borrow him some money to pay his transfer/bond costs that neither of you took into account. Eish...come to think of it...I'd rather leave it to an overpaid Estate Agent. . .less by Private Seller on October 13 2009, 08:36 Find this comment inappropriate? Report it

Qualification of Buyers I would like to see an article from Janine on how they qualify buyers. Every agency I have every dealt with states that they will do this in their marketing literature. However, they bring prospective buyers, are unable to provide any basic information . .more about them and then feed back that the property is too expensive, wrong area, too few bedrooms/bathrooms etc never mind the fact that after the agreement of sale it becomes apparent that the buyer will never get a bond . .less by Roger Cook on November 08 2009, 15:45 Find this comment inappropriate? Report it

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