Is the residential market in the doldrums? Not so, says HomeBid
Is declining real estate activity reported by the traditional estate agents in the recent FNB Estate Agent Survey a function of a slowing economy and political pessimism, or a function of high commissions charged by traditional estate agents?
HomeBid, SA's largest low-commission estate agency, which charges just 1.95% commission, announced a record-breaking October 2018 while traditional high-commission agencies are experiencing the toughest market in a decade.
"In October we more than doubled the number of sellers contacting us to sell their homes compared with August," said Cavan Sheahan, CEO of HomeBid. "September was up 57% on the previous month. We received 122 exclusive mandates in October 2018 with Casey and Claudia receiving 41 mandates a piece, and Nichole 40 mandates.
"Buyers see the savings too as correctly valued homes with lower sales commission are usually easier on which to get bond approvals. The buyers are saving each month too as they are not paying the extra agent's commission in their bond repayments each month for 20 years!
"Our lead generator, Vaughan, has worked for a number of well-known agencies in Johannesburg and he said that if those agencies got 122 exclusive mandates a year they would be happy; we get them in a month.
"We are really pleased to see selected institutions referring their clients to us to sell their homes. For example, a non-profit institution asked us to offer our services to its members and we recently sold six of its members' homes at 1.95% commission. We are hopeful that other institutions will see the added value of their customers, clients, staff and members saving up to R65,000 in commissions for every R1m value of their home. In these tough economic times every cent saved counts."
"After pounding the drum about low commission since we started in mid-2015 the marketplace is beginning to realise that you really can sell your home at 1.95% commission and get amazing service as evidenced by the testimonials on our website," said HomeBid founder, Neville Berkowitz.
Author: Neville Berkowitz