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?
1) a traditional agent who has worked in a sought-after area for many years may know of some buyers who are actively looking, and could contact them at an early stage and possibly agree a sale quickly. But realistically, if there is a potential buyer who is very interested in an area, he or she will be monitoring the property portals and will receive an alert immediately a new property is listed. And note that if the property is sold before it is even listed then that suggests that there is very high demand for it. Such a property should rather be listed on the portals so that many more interested buyers can bid the price up.
2) some traditional agents are known to overvalue a property in order to win a mandate from a seller. Then, after the property is listed, they will advise of “changed market conditions” and suggest that the owner reduce the price. In these situations the seller is severely disadvantaged because a newly-listed property garners the most interest from buyers, and if it is overpriced then that initial interest is wasted. Thus, a seller in this predicament is likely to take longer to sell with a traditional agent than with a low commission agent.
David de Waal (CA(SA))
CEO Steeple – The Low Commission Estate Agents
082 901 0730