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CONSULTATIVE SELLING
This revolutionary and innovative approach to property sales or new business turn-over is volume driven and not commission based. This, in essence, reduces commission/VAT levels to effectively increase net equity/profit and effectively reduce total cost of ownership. The result is a happy seller, buyer, agent, conveyancer and SARS!
Instead of looking at an agreed % commission, a flat fee is allocated to a particular property price bracket. A commitment or “joint selling venture” is entered into between the seller and Realty Lifestyle – see comparison below and decide for yourself!
On a consultative selling basis, the serious seller pays for some spread costs upfront and celebrates the saving in commission at the time of a hand shake. Comparatively, the principle makes perfect sense for a serious seller to ensure that his property is marketed or exposed the best every week with the view to attract serious buyers who want to conclude a deal soonest. And, to enjoy the lowest total cost of ownership, comparative to the rest of the property stock on the market.
The fixed cost is the consultative selling fee which becomes payable upon a successful sale and transfer of the property. The variable costs are managed from the day of going to market and limited to the real costs associated with the consultation process/effort and are as follows (depending on the exposure agreed to):
- Consultation and agreement/mandate: R350 upfront
- Listing, photos and maintenance: R250
- Adverts: R500 per week – choice of every week, twice a month in papers
- Website listing/exposure: R50 per week
- Offer to purchase: R1 500 on signature of both parties and fulfilling of suspensive conditions to ensure validity and enforceability
- FICA and appointment of attorney: R1 500 on conclusion of successful deal
- Petrol, calls, post and petties: R500
COMPARISON OF COSTS (approximately and for illustration purposes only) |
Property price bracket |
Up to 6% commission |
Up to 4% commission |
Consultative selling fee + |
R500 000 – R750 000 |
R45 000 |
R30 000 |
R20 000 |
R750 000 – R1 000 000 |
R60 000 |
R40 000 |
R30 000 |
R1 000 000 – R1 250 000 |
R75 000 |
R50 000 |
R32 500 |
R1 250 000 – R1 500 000 |
R90 000 |
R60 000 |
R45 000 |
R1 500 000 – R1 750 000 |
R105 000 |
R70 000 |
R52 500 |
R1 750 000 – R2 000 000 |
R120 000 |
R80 000 |
R60 000 |
R2 000 000 – R3 000 000 |
R180 000 |
R120 000 |
R90 000 |
R3 000 000 – R4 000 000 |
R240 000 |
R160 000 |
R120 000 |
R4 000 000 – R5 000 000
(higher: fee on application) |
R300 000 |
R200 000 |
R150 000 |
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