Case studies: Estate agents and the commission they earn
Category Newsletter
It’s not uncommon for people who are embarking on the business of buying or selling property for the first time to wonder exactly what estate agents do to earn their commission, with many assuming that it’s simply a matter of popping a sale board on the lawn and hosting a show house or two to conclude the deal.
This couldn’t be further from the truth. Not only does the simplest sale entail months of work from start to finish, it’s a complex process that requires more than a passing knowledge of diverse fields such as marketing, legal processes and finance, as well as fluency in legalese.
Add to this a thorough knowledge of the real estate market in the seller’s area in order to accurately evaluate a property to achieve a realistic sale price in as short a time frame as possible, and you begin to get the picture.
Because these transactions involve many steps, multiple people and organisations and, very often, a strong emotional quotient, simple sales are rarer than one might think.
This is why when you’re making one of the biggest purchases of your life, going cheap with virtual agencies and skimping on commission could cost you the sale, or see you lose that dream house.
Personal service is what makes dedicated agents worth their weight in gold, and each one has their fair share of tales to tell.
Residential property transactions are so much more than simply sales - there is a strong human element as the commodity being traded is people’s homes which have great sentimental value, and the decision to sell is sometimes made under difficult circumstances.
Good agents earn their money, often putting in months of work after normal business hours, being friend, mentor, assistant, and often even house cleaner, for clients with no guarantee at the end of it that there will be a pay day.
And legally too, they offer invaluable advice, such as knowing how valuable a ‘meet or beat’ clause could be for a seller when it came down to the wire - especially since the property had technically been sold at the time and the agent potentially had nothing to gain, but through sheer tenacity continued to market the property to her best ability.
At the end of the day, a good agent will guide you through the entire process and will be your go-to person when any issues arise, whether they are a legal bind, a financial stumbling block or even personal issues relating to the move.
As the very expressive Afrikaans adage so succinctly puts it, ‘goedkoop is duurkoop’ when you're buying or selling one of the most expensive purchases of your life.”
Author: Property 24
