HOMELEGAL FAQ

Frequently asked questions

HOMELEGAL FAQ

Frequently asked questions

ALL ABOUT HOMELEGAL

A Customer Orientated
Approach

FAQ

HomeLegal Realty is a low commission estate agency where all the required services aimed at selling or buying property are simplified and rendered cost effectively to both sellers and buyers.

Operating exclusively in the Greater Overberg and Garden Route regions, what sets HomeLegal Realty apart is that we are a team of real estate professionals ideally positioned to sell your home at the low commission of 1.95%/2.95% (subject to a minimum of R22,500) plus VAT. In addition to saving a substantial amount of money, both sellers and buyers enjoy the added benefit of property professionals guiding you through every step of the process.

Buying or selling a home is a major step and at times rather stressful. Trust our real estate experts to streamline and effectively handle the sale/purchase of your property from start to finish.

HomeLegal Realty will take care of everything including value assessment, photography, marketing & advertising, buyer verifications, negotiations, closing the deal and transfer of the property. All buyers are first verified and pre-approved by us prior to scheduling viewings.

Find some frequently asked questions about our excellent commission structure, process and much more.

How can HomeLegal Realty afford to offer such low commission as opposed to other traditional estate agencies?

HomeLegal Realty employ salaried agents and our employees do not earn high commissions on each sale. Traditional estate agencies incur substantial costs in traditional marketing and they have to pay royalties and shared commissions to the franchisor and principal (franchisee) of the firm all of which the seller pays for. These are expenses we have eradicated in our business model. We pass all these savings on to our clients.

Is HomeLegal an estate agency and will estate agents sell my property?

HomeLegal Realty is an estate agency duly registered with the Estate Agents Affairs Board (EAAB) and we comply with all the legalities and protocols required by law. Our firm and employees possess valid Fidelity Fund Certificates (FFC’s). However, we are not a traditional estate agency. Our agents do not compete with each other for their commissions and we all work together as a team with the goal of saving both buyers and sellers money coupled with professional service.

Will HomeLegal Realty be able to provide an accurate value assessment of my property?

Yes, and it will always be free of charge. The old way of undertaking a value assessment is to rely on an estate agent who will come to your home to view the property and essentially sell you on the idea of granting him/her exclusive rights to market your home for sale (sole/exclusive mandates). Agents do not work for a salary, but for commission. It is in their interest to see you face to face and offering “valuations” is the perfect opportunity for this sales process. The real value assessment process starts online at the office where the area and similar properties are examined to generate an accurate sales price for your home.

Why does HomeLegal not require any exclusive mandates?

An exclusive mandate puts you as the client in a most unfavourable position and we are therefore not in favour of such a mandate. HomeLegal Realty will never expect of you to pay them any commission if you are solely the effective cause of the successful sale of your property.

What are the different mandates and what do they mean?

• Open mandate – you and more than one agency can list and market your property.
• Sole mandate – you and a single agency can market and sell your property.
• Exclusive mandate – only the mandated agency is allowed to sell your property. Even if you sell your property yourself, the agency is still entitled to collect commission from you.

Why are there two commission options and what are they?

You show your own property to buyers as this has proven to be the most effective. An agent will never know your home as well as you do. This option will entail 1.95% commission plus VAT payable upon transfer. In the event that an agent of HomeLegal is to show potential buyers around the property, a still very low 2.95% commission plus VAT, payable upon transfer, will apply.

How will my property be visible to buyers and how will it be marketed?

Your home will be displayed on all the major property portals, as well as on the website of HomeLegal Realty, which will result in your property being viewed by most potential buyers – over 95% of buyers viewed their properties online first and our network exposes your home to millions of buyers in the market. We also have more than 16 000 followers on Facebook where we post our listings.

What are all the services that HomeLegal offer?

With an office comprising real estate professionals with different departments, we offer the following services: value assessment of a property, professional photography, marketing & advertising, buyer verification, negotiations, closing the deal and facilitating the transfer of the property into the buyers name. We also provide free will and testaments for both buyers and sellers as well as assisting buyers to qualify for a bond. It makes sense to have a team taking care of you and not one individual agent with a high commission structure.

Why is it an advantage to me as the client to have HomeLegal Realty and not a traditional estate agent selling my house?

We quote Meyer De Waal at Attorney Realtor Hub:

“The current estate agent model is still operating in “the Stone Age”.

Estate agents are showing a property to 20 or 30 buyers before they get an interested and committed buyer, and this is why they have to charge 5% to 7% commission to compensate for all their time spent – and then on top of this, face the risk of 50% of home loans being declined,” says de Waal, noting that the misconception exists that the seller pays the commission, but that it is actually the buyer as the seller adds the commission to what he wants in his pocket at the end. “Included in the purchase price is usually a commission paid to a sales agent and, on a R2m property deal, the commission added to a purchase price can increase the price by R140,000 if a 7% commission is paid; a 5% commission will raise the price by R100,000 (plus VAT).

“Imagine if the commission was just 1.95%? The savings for the buyer would be substantial and enable the purchaser to more easily qualify for a home loan, and render the seller more likely to sell the property much faster – a win-win for everybody!”
Property selling agents warrant the high commissions charged, based on the premise that they have huge overheads, spend many hours soliciting property mandates for sale, incur expensive advertising costs, show a home to some 20 to 30 prospective buyers before a suitable buyer is found, and then complete the dreaded paperwork”
“This includes the legal contracts and FICA documents: tasks many despise!” noting that after all this hard work, almost 50% of home loans submitted are declined and the agent has to start all over again. “We analysed and broke down, step by step, the process a property sales agent goes through to sell a property.
We realised that by introducing and combining the latest available technology – correctly aligned and applied – thousands of fruitless administrative hours are saved in the property sale cycle improving and proficiency and keeping costs down.
“These savings can be passed on to the consumer and as such also speed up the property sales process with the added bonus that property sellers and buyers will also enjoy a much more enjoyable and efficient property sale and purchase transaction, and as an added bonus, less expensive.”