ADVERTORIAL
HomeBid
Save on Commision
Traditional Estate Agencies
take 18.3% of your capital profit
H
ome ownership in South Africa averages
eight years and sellers cashing out after this
time often feel flushed with cash as their
capital profit, after settling their bond, leaves them
with a sizeable deposit for their new home. However,
there is a sleeping partner waiting to take nearly 20%
of that capital profit and that is the traditional estate
agent.
Using home price research figures from ABSA,
the capital profit of an average medium sized home
purchased in 2006 for R637 300 and sold in late
2014 for R1 194 200 would have seen capital profit
of R556 900 for the average eight years of home
ownership.
The traditional estate agency charges commission
of 7.5% plus Vat, or 8.55%, and on the sale price
of R1 194 200 this amounts to R102 104 paid out
in commission. Out of the owner’s capital profit of
R556 900 the estate agency receives R102 104, or
18.3% of the capital profit for merely selling the
home.
Until recently the man in the street simply had to
cough up and pay a good slice of his capital profit to
the estate agency because the sale by owner model
has not proven viable in South Africa. With over 40
years of experience in the property industry, Neville
Berkowitz (62), a pioneer of property economics in
South Africa, institutional adviser and residential
property developer, believes that HomeBid has
created the solution for home owners.
22
Residential Handbook 2015
Recently launched HomeBid, a low commission
estate agency, only charges 1.95% commission
to home owners wanting to sell their home.
The HomeBid process involves the professional
services of an unbiased and independent, registered
professional valuer, Internet marketing specialists,
facilitators /agents assisting buyers and sellers,
private bankers handling the mortgage process and
property attorneys to conclude the sale agreement
between successful buyers and sellers.
“Using the ABSA research example, the HomeBid
process at 1.95% commission will only claim 4.2% of
the home owners capital profit compared to 18.3%
claimed by traditional estate agents. This enables
homeowners to bank an additional 14% of their
capital profit,” says Berkowitz.
Gary Sacks (40) a 12 year veteran with RMB and
Investec is the General Manager of HomeBid. He is
well versed in the investor market place and knows
how sensitive investment returns are to interest
rate increases, the limited ability to raise rentals in
a slowing economy and ballooning electricity and
rates increases as the Public Sector proves incapable
of reigning in costs.
“The saving on commission via HomeBid when
selling an investment property will boost the return
on equity instead of paying all that additional
commission to a traditional estate agency”, says
Sacks.
www.reimag.co.za