Sell your home at a fixed professional fee and save thousands
Selling your home? Improved technology and a growing demand among consumers for value are transforming the way in which estate agents operate, resulting in innovative business models that will benefit the pockets of the various stakeholders in a property transaction.
Technology has made it possible for estate agents and even sellers to showcase 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.
The shift away from the traditional commission-based fee model can save sellers thousands of rands. This is an attractive option, especially in a tight economy where costs are spiralling beyond consumers’ earning potential and they are counting every cent.
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 going this route.
Another factor to consider is price sensitivity in this market, which currently favours buyers. Buyers can access all the information online to make an informed decision nowadays. So if another agency lists the same property at R1,45 million but charges less, they are very likely to sell it at a higher price relevant to the asking price in a shorter space of time. This scenario is less stressful for sellers, and the property is unlikely to remain on the market for months as it does not outprice other available stock.
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 do the viewings of your home 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.
As many home sellers still want this service, Nu Generation Homes has combined the best of both worlds. We charge a competitive fixed professional fee and deliver the professional service, advice and personal contact one would expect of a commission-based estate agency.
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 cheaper alternatives to the traditional commission agency and achieve the same outcome without comprising on our level of service.
To be transparent, we quote a fixed professional fee upfront to home sellers and there are no extra cost surprises from us along the way. This is also stipulated in our contracts and disclosed to buyers and sellers in the documentation the relevant parties sign when a property is sold. People like to know what they are paying for and that there are no hidden agendas. This fosters a great level of trust among all the parties, and the nett result benefits all the stakeholders in the transaction.
Extending this thinking to its other services, Nu Generation Homes offer free home valuations. 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.
Home sellers can be assured of receiving an accurate and realistic valuation, as we have no reason to inflate figures when we earn a fixed professional fee for selling their property. 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 have a property related enquiry, please contact us. We invite you to follow us on the social media to keep abreast of the exciting times ahead in the current Cape Town property market.
We’re taking real estate marketing to a completely new level with an amazing showcasing of your property.