“Don’t be tempted – you’ll end up paying more!”
So says Charles de Kock, Principal of Chas Everitt – Southern Cape. “Discount agencies make many claims and promises to homeowners. However, many of these agencies belong to people with little experience in the real estate industry. Some of them are not even qualified agents. Sellers who give mandates to such agencies expose themselves to different types of financial and legal risks. It is not just the sales transactions which can go horribly wrong – things can go wrong even before the sales stage. When agents are not properly trained or capable of reading the market, they will struggle to determine the optimal price for the property. These agents usually do not have access to the marketing resources of a large group such as Chas Everitt International, which means they are struggling to bring the property to the attention of enough potential buyers.
Either because the price is too high, or because the right target audience is not being reached, the property then sits on the market and in the meantime the seller continues to pay the mortgage, municipal taxes, water and electricity, insurance premiums, and security and maintenance costs. Ownership costs can rise rapidly and easily exceed the potential savings of the low-cost agency within a few months.
Discount agencies have less money to spend on marketing and advertising than groups such as Chas Everitt International who have the ability to market their clients’ properties to hundreds of thousands of potential buyers across the country, through all the major print media and online portals in the real estate market for this. Access to millions of international buyers, recognisable branding and a reputation for being trustworthy means that a sale is virtually guaranteed – the commission an owner pays becomes money well spent.”