Old-school com­mis­sions: What you get

Weekend Argus (Saturday Edition) - - PROPERTY -

AN ES­TATE agent’s commission av­er­ages be­tween 5% and 8% of the sales price, and many sell­ers ques­tion hav­ing to pay for a service they don’t quite un­der­stand.

“An es­tate agent is not just an area ex­pert in terms of the lo­cal property market. They’re au fait with all fi­nan­cial and le­gal trans­ac­tions in­her­ent in a property sale, are pro­fes­sional ne­go­tia­tors and, oc­ca­sion­ally, they are me­di­a­tors who guide both buyer and seller through one of the largest fi­nan­cial in­vest­ments they’ll make,” says Steven van Rooyen, prin- cipal of Leapfrog Property Group Sun­set Links.

Kevin Wear­ing, prin­ci­pal of Leapfrog Property Group Gor­dons Bay, ex­plains: “I work for 7.5%. For that, you’ll get the ben­e­fit of my knowl­edge, ex­pe­ri­ence, database and mar­ket­ing in­fra­struc­ture.

“I bear the cost and risk if the property doesn’t sell. If I don’t sell in the time frame stip­u­lated by my sole man­date, the owner can give the con­tract to some­one else, so the ex­pense and risk does lie with me, not the seller. If I sell the property, I’ve earned my commission.”

The agent is paid commission for ex­per­tise and tak­ing risk.

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