Really folks, fixed fees really must fall.  Fixed fees when you sell a property, have never presented you with more risk than before.  Too many hidden costs.  To slim a track record and too much evidence that the model is not working.

You get what you pay for with the R24,995

You see when you choose commission over fixed fee the one thing you can bank on with KW Select is accountability.  No smoke, no mirrors.  Just old-fashioned good service coupled with good old-fashioned sales and industry knowledge.  Same as with a fixed fee model.  Please folks when you sell your home, please consider very carefully the fine print if you are agreeing to.  Currently, it’s not clear what you pay.  Is it R24,995 or is it more, it depends.  On what exactly?  Did you know that all you are paying for is an inflated marketing cost?  How bizarre

Oh, and Kaching, another R15,000 for assisted viewings

In fact, it’s a little like cross-sell in the bank.  The agents earn little to nothing on the sale, around R15,000, so they beef up their earnings with assisted viewings.  It’s totally misleading.

Breeding fear so don’t go the FSBO route

Why is that?  Because when you list your property with a fixed fee provider you are essentially selling your property on your own.  You are doing a For Sale By Owner!  Why not call it as it is?

Commission of 5%

All things in life are negotiable.  Everything has its price.  If you consider a sale of R1,000,000 at 5% commission, this relates to R50,000.  But for that R50,000 you get One KW Select estate agent.  Fully accredited.  Fully Accountable, and that 100% accountability.   One KW Select estate agent will handle your property sale from start to finish.  Nothing short of all-around, superb service.  Top-notch and groomed sales skills.  Experience in managing the property sales process from start to finish.  On the practical side, you get great photos that showcase your property for sale.  Without asking or paying more (R15,000) your KW Select agent will be at your property for every single viewing and even the odd show day if that’s what you want.  No extra costs to consider on this front, just an upfront honest offering with no hidden costs.

Did you know that a fixed fee works out to 4%?

If you still consider the example of a sale at R1,000,000.  Consider 4% commission.  That amounts to a total price when you sell with a fixed fee estate agent of, R39,995.  That’s 4% right there folks.  You see how a fixed fee is presented is novel at best.  Clever actually.  But, never before have you been more misled.  Never before have you been more at risk.  Never before has there been a better con. 

But and here comes the BUT

The big difference here is that with a Fixed Fee operator you are more of a number than a name or a real person.  Zero relational value. In reality, nobody goes out of their way to really make sure you are good.  Nobody really making sure your risk (and trust me you are selling your biggest asset) so this really is a risk is being mitigated in some way.  You see your transaction is neatly divided into convenient little processes that are all outsourced and individually priced.  The process has been blown apart then put together for profit.  And the reason it is so risky when you sell a property is “who exactly do you call when there is a problem”?  Not the guy that worked with when you signed your mandate, they are working their cross-sell with new customers. It’s called working the numbers to your disadvantage to beef up their income.  And, the fixed fee model has changed in terms of the values more often than our weather can change in a day.  It’s just misleading, to say the least.  And it’s wrong.  Just too many Kachings that really mitigate your risk. 

Sadly, you don’t know what you don’t know

When you sell a property, you rely on an expert to help you navigate the ins and outs of selling a property and most certainly the property transfer process.  Many folks are blessed enough in one lifetime to buy or sell up to eight times in their life.  It’s rare that as a seller you have done this on your own more than once or twice.  I wonder what the repeat seller ratio is for a fixed fee estate agency?  I bet low to almost never.  Sellers burn their fingers and it’s enough now!  You are on your own more than you know with a fixed fee model.

Fixed fee estate agents do vanish

Folks, the fixed fee guy or gal you shake hands with or that sign your mandate with a fixed fee provider will hardly ever show their face again.  Unless you are paying for the bell called Assisted Viewings.  Kaching.  Why?  Because fixed fee agents earn around R14,000 per month or thereabouts.  But the real twist comes in right here.  It’s called cross-sell.  You see if you want to make ends meet you need to hustle, and I mean hustle for cross-selling.  You see without all the Kachings, you are at risk.  Without the real Kachings, you have no support.  And without support, you have a dangerous value proposition.

What does R24,995 cover?

Well, frankly you are paying an inflated marketing cost.  There are noteworthy property portals in SA.  Property24 and Private Property.  Inflated marketing costs folks! Nothing more and nothing less.

Kaching – Then add the assisted viewing fee of R15,000?

Really.  So, if you choose not to opt for the assisted viewing fee you could save a further R15,000.  But then again, you do not do up to 5 or 10 viewings a day.  You don’t learn to read buyer signals.  You are already paying a premium to market your home online so if you lose a buyer because you did not have the experience, no worries.  Really.

So, then the fixed fee actually relates to 4%

So, you choose to opt for assisted viewings.  You pay an additional R15,000 for this assistance.  All in all, you save R10,005 for a fixed fee model based on the R1m sales example.  You save a whopping R10,005.  Folks you just paid 4% and you are going to sell your property on your own with little to no support unless you go the Kaching route.

What is novel is that you don’t get the skills and the expertise you need. You get an inflated marketing cost.  That’s it.  Your property sale has neatly been carved up and outsourced.  Novel.  In fact, it’s clever.  But it’s misleading.

You see the process to sell a home has been blown apart or deconstructed like a salad and then put together for profit.  You are a number.  You are a ratio. 

But I do have a dashboard to track the progress of my transaction?

Yes, the fixed fee provider will put you in the driver’s seat to track your transaction.  The reason it’s so important is to make you feel like you are in control. It’s now your responsibility. If you don’t perform it’s your fault.  Not the fixed fee provider’s fault.  Who needs a sales track record anyway, not a fixed fee estate agent.  Folks, the 1% you have just saved has left you far more exposed than ever.

Do you want to team up with the best?

KW Select does not charge for bells.  KW Select does not charge for whistles.  KW Select takes on 100% of the accountability when you sell, why because we know what can go wrong.  We speak to unhappy clients who have ended up in court when they try and get out of a mandate with a fixed fee provider.  Folks it’s about the ratios and my job today is to make sure you understand what you are signing for when you agree to a fixed fee model without assisted viewings or other Kachings.

Fixed Fee Estate Agents – want to know more about KW?

Keller Williams (USA) is a top real estate brand to work for.  If you are a fixed fee estate agent, I feel your pain. Do you want to know a little more drop me an e-mail?   If you would like to leverage world-class technology to the benefit of all our stakeholders across the value chain and end up with a win-win every time, then let’s touch base.  Also, read what makes Keller Williams the best!

Get in touch

So, if you need a valuation done on a property anywhere in Randburg or elsewhere in Jhb, we can help.  Give us a call on telephone number (064) 549-3123.  Alternatively, drop us an e-mail at [email protected].  We have a vast network of almost 1,500 top Keller Williams agents at our fingertips who are all just dying for the opportunity to partner with you to sell and conclude your property transaction in record time.

If you want to view all the Keller Williams properties across the country, click on our website to start the search for your dream home.  Need help getting a pre-approved homeloan, it’s free and our strategic partners will find you the best rate over 20 years!  And finally, if you are thinking of putting your property on the market and need a free property valuation, click here!

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