Property Editorial published in the September 2016 edition of The Billboard:
DIY Sales Transactions Not As Simple As They Seem – Institute Of Estate Agents
Although the Institute of Estate Agents of South Africa (IEASA) welcomes competition in the real estate market, from time to time DIY property sales services that recommend bypassing the use of estate agents are touted to the detriment of all, says Annette Evans, General Manager of IEASA Western Cape.
There is 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.
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. 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 needing bank approval.
The role of the estate agent is to ensure that the seller’s asset is protected until transfer and the buyer is secure in the knowledge that the seller owns the property, their deposit is protected and that they are aware of all the defects and faults in the house.
Many companies have started over the past years to assist the seller in cutting out the agent but none have been successful because of the above reasons.
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.
Therefore IEASA urges both buyers and sellers to deal with qualified agents, ask to see their FFC, 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. Anyone wanting to verify that an agent is registered with the EAAB can check on www.eaab.org.za and that they are a member of IEASA on www.ieasa.org.za.