Stuart Manning, CEO of Seeff Properties, says the biggest concern at the moment is that borderline agents are manipulating prices to get the sale done, even when this is to the seller's disadvantage.
"More and more often we are hearing of agents encouraging buyers to 'try an offer of X amount,' – which has been disclosed to them, in confidence, as their clients' rock bottom price. This is an absolute betrayal of their clients' trust, not only that they would keep the information confidential but that they would negotiate hard for the best possible price."
Similarly, Manning says, agents should be circumspect in disclosing the reasons for the property being sold – even to the point of having to get their clients' permission to disclose. "The reason is that while it might not be detrimental to the seller's position to mention that a listing is due to a company transfer, disclosing that the seller's next purchase is subject to the sale of this property could elicit a lower offer from buyers who understand the pressure to finalise a deal – and would be unethical."
Agents coming in with slashed commission rates may be very tempting to sellers, he says, but they should bear in mind that such cuts are almost invariably accompanied by reduced marketing efforts, particularly advertising exposure.
Advertising costs were one of the industry's highest cost inputs and the first to be pared back in times of financial stress, which greatly slashed the property's market exposure to buyers. Other run-of-the-mill service reductions were showhouses and the willingness to share the property with other agencies as this watered down commission.
Indeed, Manning says, consumers are increasingly complaining that even well-presented and comprehensive marketing plans are not being adhered to. "Our answer is that sellers should insist on a clause in the plan providing that that any deviation or unfulfilled undertaking entitles them to immediate cancellation - and if they really want to give it teeth, a non-performance fee of, say, R5000."
