|| Estate agents
| Buyer pays commission
|| Seller pays commission
| Standard commission: 10% plus VAT
|| Standard commission: 5.0-7.0% plus VAT
| Sales deadline. It is common knowledge that the
best deals take place within the first 30 days. Unsold auction
properties are killed in the market, creating a problem for the seller
|| All agents target a quick sale period but take
into account the possibility of a longer selling period based on a
marketing strategy which carefully considers the current market, area
and so on.
| Seller dictates sales conditions – but there is no
room for negotiation so often sales are lost
|| Seller determines initial conditions and there is
room for negotiation to make sure the sale happens
| Cash buyers; qualified buyers
|| In days gone by, sellers had to wait for bond
approval but in these times, agents have their buyers pre-qualified
which in effect is the same as a cash buyer
| Prices are negotiated up from a ridiculously low
|| Prices are negotiated around market value
| More desperate sellers – attracts bargain hunters
|| Fewer desperate sellers – attracts serious buyers
| Price isn't advertised – this in effect means a
hoard of useless bidders “just looking”
|| Price is advertised – serious buyers in the price
range can begin serious offers
| Auctioneers argue they spend more money
|| Advertising is only one form of marketing. It is
the combination of advertising, research time, working within networks
and one on one time with buyers that gets a property sold effectively.
| Auctions can allow for “unique value” on
properties that are extremely rare
|| Professional agents work through established
networks and are often already in touch with the type of buyer that is
looking for a particular type of property. This is confirmed if one
looks at highest sales values of residential properties achieved in SA.
They are through agents not auctions.
| Auctions can draw large crowds.
|| So do accidents. Most however can offer no
assistance to the injured. Similarly, auction crowds consist so many
times just of spectators. Professional agents will not waste a sellers
time with pointless inquiries or even brag about how many useless
inquiries they had.
only allow for "cash" buyers and therefore disqualify many
buyers who would easily have got a bond
|| All buyers can
participate in putting in offers on your home, as they have
time to apply for a bond.
| Use of ghost bidders on the increase. This
unethical practice of using accomplice bidders that are not real
buyers, in order to push the price up is used far too often. Many times
backfiring, as they create a false excitement beyond the pace of normal
buyers therefore cutting out many bidders who would remain in the
|| Buyers brought by agents are mostly pre-qualified
financially and are genuinely in the market.
|You MUST accept the best
offer if your reserve price is reached. There is no room for
seller does not have to accept any offers - even of they are at
marketed price. Seller has the choice of opting out or
| Price determined largely by circumstance. Auction
properties are by and large distress sales – financial difficulty,
divorce, death etc
|| Pricing is determined by conducting a professional
Comparative Market Analysis, drawing upon peer knowledge and expertise
and an area and situational review.
|You pay FULL costs even if
the property is not sold.
||You pay only if the agent
concludes a successful sale that you accept