Traditional estate agents achieve far higher sales figures

Traditional estate agents achieve far higher sales figures than those offering alternative sales methods.

Although there are signs that those propagating the use of low-fee Internet agencies which operate without agents and reduce the agency’s commission are not making much headway and that the reputable, experienced agencies are now stronger than ever before (at the Cape many are now reporting record turnovers for 2017), estate agents like himself still find themselves having to explain why they believe it is in the seller’s interest to use a traditional agency, says Rowan Alexander, Director of Alexander Swart Property.

“I am regularly confronted with such statements as, ‘UK agents charge well under 4%.  How do you justify your 7,5% charge’  What is sometimes not realized by those making these statements is that UK agencies almost invariably make the seller pay for his advertisements in full.  All they do is to handle, compile and place the advertisement for him in their property portals.”

However, says Alexander, by far the most important reason for using a traditional agency, one that is often overlooked by those debating this issue, is that the low key agencies relying only on Internet publicity and operating without agents have been shown again and again to be incapable of getting the best possible sales price, whereas traditional agencies, especially those operating on a sole mandate basis which gives them complete control of the sale process, will set a genuine, high market-related price and will often achieve it or a price or close to it.  In his agency, he says, in the last two months 90% of the sales took place within 3% of the asking price.

“By way of contrast, many  reports we get from those who have gone the online route, often having to handle the buyers themselves, indicate that the number of enquiries is limited and discounts of 10% to 15% are in the end regularly being accepted.”

There is, says Alexander, no point on, say,  a typical R2 million home sale of achieving a R40,000 cut on commission if the final sales price is anything from R100,000 to R200,000 lower than what a motivated, reputable traditional agency, advertising widely in a variety of media, bringing a succession of buyers to the home and holding show days in it would achieve.

“It is this ability to achieve satisfactory, true market prices that is the strongest weapon in the traditional agency’s armoury-- and we must do everything we can to ensure that the public understands this,” says Alexander.

For further information contact Rowan Alexander on cell phone number 082 581 3116 or by email rowan@asproperty.co.za.