ES­TATE AGENT

Finweek English Edition - - MONEY - Av­er­age es­tate agent’s com­mis­sion: Cost of com­mis­sion: Net profit af­ter com­mis­sion: Per­cent­age of com­mis­sion on cap­i­tal profit: Net profit af­ter buyer split: Cost on cap­i­tal profit af­ter split:

The es­tate agent plat­form has a long and proven record and is the method of choice in the coun­try. Bound by the rules and reg­u­la­tions of the Es­tate Agency Af­fairs Board, es­tate agents have the ex­per­tise and knowl­edge to man­age the selling and pur­chas­ing re­quire­ments on be­half of a home­owner. The plat­form re­quires lit­tle ef­fort from the seller. Es­tate agents man­age the en­tire process from mar­ket­ing, view­ings and show days to ne­go­ti­at­ing with both buyer and seller. WHAT YOU CAN EX­PECT TO PAY (BASED ON SALE PRICE OF R1 194 200 AND CAP­I­TAL PROFIT OF R556 900)

8.55% (7.5% plus VAT) R102 104

R454 796

18.3% REA­SONS FOR US­ING AN ES­TATE AGENT: No sale, no com­mis­sion. And com­mis­sions are not set in stone; lower rates can be ne­go­ti­ated.

R51 052 (50% of R102 104) R505 848

9.2% REA­SONS FOR DIY: Po­ten­tial sav­ings can be de­rived if the home­owner is con­tract savvy, is not averse to show­ing strangers around the prop­erty and has the time and ex­per­tise to mar­ket the prop­erty both on the ground and online. DIY could be a draw card when a neigh­bour, friend or fam­ily is in­ter­ested in pur­chas­ing the prop­erty.

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