Can a low commission estate agent sell your home just as fast?
South Africa - Steeple
Most buyers start their property search on one of the major portals such as Property24 or Private Property. Since both traditional estate agents and low commission estate agents list properties on these portals, it stands to reason that they are equally likely to be seen by potential buyers.
Therefore, apart from 2 caveats, a low commission agent should sell a home as quickly as a traditional agent.
What are the caveats?
Homeowner Sentiment Index
South Africa - Absa
Perceptions about the property market improved in the third quarter
The overall HSI score, which reflects the percentage of survey respondents with positive sentiment regarding property market conditions, improved to 81% in the third quarter of 2017 from 74% in the preceding quarter. The third-quarter index reading increased to a level that was much in line with the corresponding quarter last year, and was mainly driven by improved economic growth and consumer financial conditions in the second quarter of the year, after the country credit downgrades earlier this year that negatively affected confidence levels over a wide front. The main reasons mentioned by survey respondents which impacted their perceptions regarding the property market in the third quarter were the following:
• Property is a secured asset (33%)
• Property still increases in value (28%)
• A home is essential (11%)
Airbnb oversupply causes return to traditional letting
South Africa - Fine and Country
Traditionally a property could be rented out for any period, but most landlords would opt for a six months lease agreement or longer with a potential tenant, also referred to as long term rentals.
"Short-stay rentals on the other hand are seen as a different kettle of fish as they relate more to the tourist industry and holiday makers,” says Linda Erasmus, CEO of Fine & County, Sub-Saharan Africa.
Erasmus says that one of the great ways of maximising rental returns on a residential property of late is the Airbnb option. "Many landlords who traditionally would have opted for a long term rental have done the maths and realised that in a good month with an Airbnb type option, they could actually make more money."
Caryn Gilman, rental specialist in the Constantia area in the Cape, points out that the sheer number of traditional homes and cottages being offered as an Airbnb option have had some really interesting consequences in the market place.
Fine and Country