Property owners beware: DIY sales transactions not as simple as they seem

Although the Institute of Estate Agents of South Africa welcomes competition in the real estate market, it is with some concern that attention is drawn to a recent article in the press regarding the property portal, Call Owner, says Lanice Steward, president of IEASA.
There is currently through the Estate Agency Affairs Board an on-going drive to ensure that all agents have a Fidelity Fund Certificate (FFC) and complete their Continual Professional Development (CPD) training, as well as write qualifying examinations.
“There is a good reason for this. There could be a perception that buying or selling a property is as easy as buying or selling a bicycle. However, it is a lot more complex than that. Firstly, it is highly likely that the seller will be unable to determine the correct market price of his property and might not achieve as much as he would have had he been given sound advice and price counselling. Secondly, the seller is going to incur additional expenses in the marketing of the property on the well-known portals or newspapers as buyers are unlikely to search on an unknown portal,” said Steward.
In addition, there is a reason why there is ever increasing legislation in South Africa to protect consumers (electrical, gas, beetle, electric fences and water certificates) and to comply with international and local legal requirements (FICA and FAIS), to name only a few, said Steward. This is because in most instances it is a property owner’s biggest asset and the buyer is in all likelihood going to require a bond and would need bank approval. One of the roles of the estate agent is to ensure that the seller’s asset is protected until transfer and that the buyer is secure in the knowledge that the seller owns the property, their deposit is protected (deposited into a trust account and either held by the conveyancing attorney or the real estate company), and that they are aware of all the defects and faults in the house.
There have been many different companies started over the past number of years to assist the seller in cutting out the agent but none have been successful because of the above reasons.
The Institute of Estate Agents would like to urge both buyers and sellers to deal with qualified agents and to ask to see the agent’s FFC as well as their membership of IEASA or any other body representing the industry. Dealing with someone who is qualified to advise and assist goes a long way to ensuring peace of mind in what could be a very stressful time, she said.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 16 Feb 2018
      Whether you own a property in a sectional title complex or are looking to invest in one, the financial standing of the body corporate is the single most important thing that can affect your investment or your buying decision.
    • 15 Feb 2018
      One positive consequence of the financial crash in 2008 was the rise in consumerism, especially in the property market, where buyers have steadily become more knowledgeable and more value conscious.
    • 15 Feb 2018
      While most homeowners will take the agent’s commission into consideration when they are trying to determine what the will get out from the sale of their property, many often forget to factor in the other costs involved in a home sale, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      The forecast for the national rental market in 2018 remains a mixed bag of good news and bad news. Although rentals are expected to rise slowly as the challenges of home affordability and tighter lending criteria tighten their grip, it’s a double-edged sword as the market also will come under increasing pressure from factors like declining disposable income levels.
    • 14 Feb 2018
      While you may not have intended to place your home on the market, what do you do if you receive an unexpected offer on your home? In areas where demand outweighs the current supply of homes available to buyers, it is not unheard of to have buyers make offers on homes that aren’t on the market, says Adrian Goslett, Regional Director and CEO of RE/MAX of Southern Africa.
    • 14 Feb 2018
      If you are looking to sell your home this year, Debbie Justus-Ferns, divisional manager of Renprop Residential Sales, says that there are five crucial things to do before the ‘for sale’ sign goes up.
    • 01 Feb 2018
      February is the month of love and to celebrate we will be posting about all the things we love this month. Follow the #MyPropertyLoves hashtag to keep up with our favourite things.
    • 01 Feb 2018
      After saving up and months of searching for the right home, applying for a bond and patiently waiting for the keys to the front door, it is finally time to cross the threshold and move into your new home. Now what?
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us