OUR SELLING APPROACH
With the pressure of the global economic impact, legislation and agent compliancy requirements, the stage was set for further metamorphoses in order to improve service levels, innovation of products to add value and subscribe to the principle of making home ownership the most exciting and affordable experience (keeping the cost of ownership down) for the buyer and increasing net equity value/profit for the seller.
With this win-win positioning in mind from 2010 onwards, hopefully a partnership of trust between sellers, buyers, agents and other intermediaries will take on a new dimension.
We at Realty Lifestyle believe, that the time has come where all parties should benefit through accountability and a “joint venture” in the buying and selling process. In order to achieve this, an innovative, highly skilled and professional alternative approach to the conventional is imperative. Through a different consultation process, trust and partnership, we believe that the following areas need to be reviewed through education:
It would not be farfetched to say that 70% of these profile of sellers come back into the mainstream of selling through an agent for various reasons, be it for pricing, financing, disillusionment, exposure/advertising or legal, technical and administrative incapability to conclude a successful sale/transfer.
Most people in this category use this vehicle at a loss of time and cost, mostly missing the ideal buyer. Their fears are founded on high commissions, inflated cost of ownership, agents’ ethical code and the belief that it is “easy” to handle all the processes when cutting out an agent for the wrong reasons. Buyers compare stock on the market, whether through an agent or private sellers anyway. They want value for money, service, security and someone to act in their interest. Buyers will in any event deduct at least 6% plus VAT from the listing price, because private sellers look at what “inflated” prices properties are advertised in papers or on websites and take that as a measure for what properties might fetch. WRONG!
Let us give you an honest market valuation and work with you in partnership to sell your property at the highest net price as soon as possible. We will not force you into a sole mandate, but we will also not avoid working on your property like the conventional agent. We will enter into an open mandate and expose/market your property to potential buyers at 4% (including VAT) – or via our innovative consultative selling methodology – offering you the opportunity to sell privately anyway. It is your choice and on equitable terms which you will get nowhere else.
Should you wish to make use of our consultative services, the costs are:
- Consultation/valuation/marketing route map: R250 upfront
- Screening of buyer/financing: R500
- Taking offer to purchase and fulfilling suspensive conditions: R1 500
- FICA and appointment of attorney: R1 500 on conclusion of a successful deal
- Petrol, calls, posts and petties: R250
You have absolutely nothing to lose and all to gain during your window of selling opportunity. The difference is, we will support you every step of the way!
BUYERS, SELLERS and AGENTS:
We understand that we will be unpopular and unduly criticised for the radical approaches and stances that we take, but we are comfortable to risk our reputation and business case. These parties all move in the same pool! They all have freedom of choice and should not be penalised with multi listing systems or by market dominating forces. It is all about correct pricing, service and affordability. We are tired of being blamed for price fixing, high commissions, inflating property prices, controlling the market forces and even forcing a sale due to sole mandates.
What we will do is to operate transparently in the interest of the buyer and seller as well as the EAAB regulations. We are happy to accept a fee for our effort to promote a property’s affordability over the comparative stock on the market. Affordability and cost of ownership is what sells a property if marketed properly, not a mandate, commission or an agent/brand.
Astute and informed buyers, sellers and agents know the market forces and where a property will be sold at equitable prices and fees – especially where financing is involved. So, why enter into a sole mandate when the conditions will be negotiated anyway? And, add high commissions of 6% plus VAT on top of the selling price – this effectively increases the total cost of ownership, which in some cases lead to a deal falling through or rejected by the bank for financing! The unfortunate or unreasonable blame is then placed squarely on non-negotiability of the agent/agency on commission, VAT and the proportionate increase in transfer costs. The seller and buyer can and should dictate commission levels not higher than 5% inclusive of VAT through choice. The rest is paid towards effort index, marketing an overpriced property, agency overhead or commission split between agents. A correctly priced property at reasonable commission levels will sell first compared to the value of property stock on the market due to affordability. Affordability, value (correct pricing) and total cost of ownership sells a property if exposed/marketed properly, not an agent/brand, mandate or commission. Remember, overpricing sells other properties in the area that is for sale on the market!
Realty Lifestyle subscribes to the principle of free market forces. We believe that any agent should have the opportunity to sell a property. Sole mandates bind sellers at pre-determined prices, commissions and time frames where the property is taken out the market in favour of the particular agent or agency. A buyer is also forced to work with someone that they might not “click” with. We believe that an open mandate should receive as much priority and marketing attention as a sole mandate! At the end of the day, it is about effective cause and the best deal for all parties without constraints.
Certainly there must be an enforceable agreement to prevent double commission, unscrupulous ethics, introduction of buyers and sellers by the agent(s) and the like. But, opportunistic valuations and high commissions to secure a sole mandate and then force a sale based on market forces and the best agencies is in our minds not ethical.
Fact is that serious and ethical buyers and sellers are welcome to talk with us. We have our market segment that we want to service with pride and do business with where all parties enjoy the experience and rewards of our service approach. Other agents who want to work together in the interest of a buyer or seller on a joint mandate is welcome to do so. We do not disqualify anyone!
What we find amazing is the fact that the marketing plans of sole mandates are not all met! Not all sole mandates are fully exposed and worked on by all agents in an agency (because of commission splits and rivalry etc) or advertised weekly in the papers – hence our approach to consultative selling as the innovative alternative.
To our minds, an open but protected mandate, offer all agents the opportunity to bring serious, willing sellers and able buyers, together at arm’s length for an acceptable remuneration for services rendered/commission. This is a natural free market force to drive down costs and promote affectivity. The time has come through the power of choice to apply reasonable pressure to the real estate industry to decisively reduce the cost of ownership and promote affordability.
We support objection/rejection to price-fixing, especially at commission rates higher than 5% inclusive of VAT on top of the seller’s net proceeds. This negatively influences affordability, marketing cost and time, net price and total cost of ownership.
We are happy to work on 4% (including VAT) or a fee in terms of our innovative consultative selling proposal as an alternative to the conventional marketing and sales processes.
Commission, together with sole mandate time window terms and a correct pricing methodology, are vital aspects to make property sellable at affordable option levels. The parties have something special to bring to the table if they want to share in the rewards.