LOW-COM­MIS­SION ONLINE ES­TATE AGENCY

Finweek English Edition - - MONEY - Av­er­age com­mis­sion: Cost of com­mis­sion: Net profit af­ter com­mis­sion: Per­cent­age of com­mis­sion on cap­i­tal profit:

Costs count and this is some­thing the online es­tate agency aims to ad­dress. Neville Berkowitz, a pi­o­neer of prop­erty eco­nom­ics in South Africa and founder of re­cently launched online es­tate agency Home­Bid, be­lieves the low-com­mis­sion agency has cre­ated a cost­ef­fec­tive so­lu­tion for many home­own­ers, es­pe­cially pri­vate sellers. Un­like a tra­di­tional es­tate agent, an online es­tate agency only pro­vides its ser­vices online. But, says Berkowitz, it comes with the pro­fes­sional ser­vices that a seller re­quires. This in­cludes a reg­is­tered val­uer, in­ter­net mar­ket­ing spe­cial­ists, pri­vate bankers and prop­erty at­tor­neys. “By the end of 2016 we want to be do­ing 1 000 homes a month and in five years, be the mar­ket leader,” says Berkowitz. WHAT YOU CAN EX­PECT TO PAY (BASED ON SALE PRICE OF R1 194 200 AND CAP­I­TAL PROFIT OF R556 900)

1.95% (cur­rently in­cludes VAT but ex­pect this fig­ure to ex­clude VAT in the not-too-dis­tant fu­ture) R23 287

R533 613

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.