Market Research – Buying: For a fixed sales fee of R25 000.00?

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February 12, 2019
10 tips to save thousands of Rands when buying a property
April 2, 2019

Buyers – 7 or 5 % commission vs R25 000 fixed

Technology disrupted almost every sector in the property industry.

Technology now enables a property buyer to first find out the home loan he can qualify for. Click here to watch the video.

Alternative finance solutions are available for home buyers in the form of Rent2buy Finance – click her to watch the video.

Subsidies are available for first time home buyers – click her to watch the Flisp video.

Buying a property – your own home, or an investment property is most likely the largest investment one will ever make.

Does the estate agent that list the property act in your best interest of just keen to make commission to sell the property?

The “soft touch” combined with the “tough” personal negotiation skill of an experienced property sales person can never be underestimated or eliminated.

A full legal team can add extra value to stand behind a home buyer and support him or her in the buying process.

Before Property 24, Private Property, AOL, Gumtree and many other online property listing platforms, the usual way to find a property for sale was to visit an estate agent or find a property in the printed media.

Online property listings changed the property sales industry and made property listings much more affordable.

Why are estate agents still asking 5 or 7% [plus VAT] to list and market a property for a home owner?

The seller pays the commission – why do I bother about the commission:

Fact – The property buyer absorbs the commission.

Example:  

Property sold for R1 mil with 7 % commission.

R1 mil in the pocket of the seller.

R70 000 in the pocket of the agent.

Buyer pays R1 070 000

Property sold for R1 mil with R25 000 fixed commission.

R1 mil in the pocket of the seller.

R25 000 in the pocket of the agent.

Buyer pays R1 025 000

Result

R50 000 saving for the buyer.

Fixed Cost Sales

Many fixed cost property sale companies “popped” up over the past few years, an interesting enough, their fee/commission all are between R35 000 – R39 999.00 or 1,5 % .

These commission/fee structures actually mostly eliminate the “affordable” market – starting at R400 000- R1 million rand.

Benefits

A fixed fee of R25 000 plus VAT will:

  • open up the industry for property buyers to save thousands of Rands,
  • speed up property sales [ the average listing period to achieve a sale increased
  • make it more affordable for home buyers
  • and many more benefits

If you are keen to learn more how it can work for a property buyer – send me an email – meyer@mdwinc.co.za

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