Old-school commissions: What you get
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.