Consumer responses in South Africa to the recent launch of Help-U-Sell Real Estate ® echo the sentiments expressed by potential home sellers and buyers in the US regarding residential real estate services.
The Independent Inman study recently conducted in the
“These same property investors see a large portion of their equity poured down the drain when selling their property holdings as a result of the exorbitant commission structure due to real estate agents. However, Help-U-Sell’s pricing structure is based on charging a fair price for services rendered rather than a commission based on the value of the property,” Stevens explains.
“The South African property market has seen record growth over the past five years, achieving the highest return on investment worldwide based on a three year historical average. In 2006 alone, South African property growth was second only to
Despite the softening in the South African property market however, Help-U-Sell believes that its timing in launching in
Help-U-Sell levies a fixed fee in the region of R20 000 as opposed to the traditional 6% commission commonly charged by real estate agents. This means that on a R1 million property, homeowners can expect to save in the region of R40 000 in agents’ commissions, preserving a large portion of their equity that normally would have been lost in commissions.
In addition, homeowners are able to regain a sense of control over the process through the ability to customise the service, based on the varying degrees of skills, knowledge and experience in the purchasing and sale of property. As such, the seller may elect to host their own show days to reduce the fees paid to the agent while the agent still handles the negotiation of terms of sale as well as the associated paperwork. Busy executives may however elect to have all aspects of the sale handled by the agent at an additional cost, while still achieving a cost reduction when compared to the traditional transaction.
“Interest rate hikes and record high fuel prices in 2006, combined with a consumer debt to income ratio exceeding 64% means that cash-strapped home-owners face hard times in the short term,” says Bernard Fourie, of Bezuidenhout Van Zyl and Associates.
The real estate market of the future however, looks very positive, with promising capital growth of approximately 10% for 2007 and between 12% to 16% capital growth for 2008 and 2009, while landlords can expect even better returns as rental income increases towards the end of 2007. GDP growth is expected to increase from 5% upwards and combined with 5% to 6% inflation, owners can expect nominal growth of 11% per annum.
Johnnie Louw, Conveyancer and owner for six Help-U-Sell operations in
Uncontested by other players in the market, the launch of Help-U-Sell in