Technology has made it possible for estate agents and even sellers to showcase their homes on various online platforms, so buyers only need to visit the houses they are serious about purchasing. This has enabled several estate agencies to change their approach and charge a fixed professional fee, said Dean Hewitt, co-founder, director and principal of Nu Generation Homes.

Estate agencies that charge commission typically negotiate a fee of between 5.0% and 7.5% plus VAT of the selling price of a home. At the upper end of the commission scale, you would pay R129 375 of the proceeds of your house sale to an estate agent if your home sells for R1,5 million, while just over R1 370 000 ends up in your pocket.

By paying a fixed professional fee to an estate agency, you should have more in your pocket after your home is sold. If you know the agency’s fee, and are assured there are no hidden costs, you can easily calculate the amount you will save by opting for fixed-fee selling.

Beware of trade offs

Opting for cheaper fees sometimes results in a trade off, as many fixed fee agencies do not offer all the services that commission based agencies provide,” said Hewitt. They might not arrange show houses, have the expertise to explain the process to the seller or give sound and professional advice. They might not even arrange viewings for potential buyers, a step that remains integral when negotiating a good price for your home, or know how to address the potential concerns of prospective buyers.

Nu Generation’s fee covers the marketing activities that estate agencies would generally engage in to sell a home in a reasonable amount of time. With our business model, we meet the need of home sellers who are looking for affordable alternatives to the traditional commission-based agency and achieve the same outcome without comprising on our level of service.  

Nu Generation Homes also offers free home valuations in Kuilsriver and the broader Northern Suburbs of Cape Town.  In addition to aspects such as property size, features and location, valuations take into account factors such as development plans and the historical selling prices of other homes in the neighbourhood. At the end of the day the market determines the price, however, our expertise and knowledge provide professional guidance on a market related valuation.

As we have no reason to inflate figures when we earn a fixed professional fee for selling their property, home sellers can be assured of receiving an accurate and realistic valuation.  This helps to ensure a quicker sales turnaround time and a more pleasant sales experience.

Dean, his business partner and brother, Terence, and their fellow sales agents have sold over 45 properties in the past 14 months, saving their clients over R3,6 million in estate agent commission.

If you’re looking to sell your property in Kuilsriver or the broader Northern Suburbs of Cape Town, please give us a call for a free valuation and professional advice.