Trouble
In South Africa, employees of real estate agencies generally work on a commission only basis and are responsible for a very small area, e.g. within a town district. It is therefore almost impossible to view other properties outside the respective area with the same person. The agent will only receive full commission if he/she sells a property within this particular area.
Due to this area focus in the real estate industry is it very difficult for you as a prospective buyer to search for a home matching your investment criteria and requirement profile on the best suitable location with only one contact person.
Furthermore is it pretty complicated to get an independent evaluation with all positive and negative aspects of the relevant property from someone financially depending on the sale of that very home, where a sales mandate has been given.
Eventually each of these market participants has the interest to sell you exactly the product which they can offer you because of an existing mandate at a given time where they personally earn money - and perhaps not the property most suited to your needs. |
