1. Saves you time finding a house.
No one has a better ability to find houses than a Buyer Agent. There are many ways to search for homes, for instance reading newspaper ads, reading real estate magazines and searching the Internet. All these pale in comparison to the depth of information available on the Multiple Listing System in the hands of a professional Buyer Agent.
You could trek around to Open Houses every week for quite a while - a Buyers Agent will quickly have you seeing exactly what it is you’re looking for.

2. Stops you from missing out on the very best houses.
Newspaper ads can have a lead in time of nearly a week and usually only advertise on the weekends. The very best houses can actually be on the market for ten or more days before the ad is run. By then the seller could already have accepted an offer. Even Internet sites can lag a few days behind the Multiple Listing System.

3. Can get the whole house hunting experience up to speed.
Let me guess… you need a bond, a lawyer (conveyancer), a moving company and maybe also an electrical inspector and a borer beetle inspector. We know who is worth dealing with and can get it all started.

4. Gets you into the houses you want to see.
The Buyer Agent will make all the calls to get you into the homes you’re interested in and set up tours to view 4-8 houses in a row. Without a Buyer Agent you’re on your own with getting the Listing Agents to let you into the houses. Plus once a Listing Agent has shown you the home, they usually become regarded as the “procuring cause” of any sale. We’ll cover the importance of “procuring cause” further on.

5. Helps you determine how much to offer.
When you find the home you want, your Buyer Agent will do a full market analysis of the property. That way you can be sure you do not overpay by hundred of thousands of Rands, or not pass on a great deal because you were not sure if it was. In the end though, you make the decision of how much to offer.

6. Writes the offer with you.
Your Buyer Agent will work with you to make the offer on the house you want. The contract forms used are standard and will cover all the conditions and protections you need in making an offer. Also a Buyer Agent will help clarify exactly what is being offered and what the seller is letting stay or not stay in the house.

7. Monitors the inspection process.
Once an offer is accepted, the fun really begins. Inspections in South Africa are not part of our property transaction culture and you as buyer may need a few of them. The general home inspection is very important if there are no home guarantees in place for e.g. the plumbing & electrical wiring – as the voetstoot clause can create a very costly experience.

8. Helps negotiate the results of the inspections.
When your home inspection finds something – and they usually will find something, no house is perfect – your Buyer Agent is there to help guide you through deciding what is worth fighting for and what is not. Also whether or not you should take the path of asking for it to be fixed, or credited at closing.

9. Makes sure everything is on track for the closing.
There are a couple of dozen little details to be tracked. The ironing out of the suspensive conditions on your offer such as the dates for an application for a bond, where the closing will be and what time, is everything signed and delivered in a timely manner, the inspections, the follow up to the inspections and everything. Will it all be straight for a smooth closing?

10. Is at the closing with you.
Actually truth be told, if the Buyers Agent has done their job properly, they have nothing to do at the closing. The closing is where the lawyers make it all legal. We are just there because it is wonderful being part of & watching people getting a key to their new house.

Sounds great – How much does it cost though?
Typically Buyer Agent commissions are 2.5% to 3,75% of the sale price of the home – i.e. half of the total commission the seller is paying the mandated agent to market his or her property. However, the money to pay for that commission usually comes from the seller, not the buyer.

When the seller pays the commission when the house is sold, it is paid to the selling or mandated agency. Usually the mandated agency offers a “commission split” to any other agency that acts as the “procuring cause” of the sale by bringing in a buyer.

The commission split is usually an even split of the commission between the two estate agencies and the Buyer Agent is paid through the commission split with the selling agent. If the mandated or selling agency has shown you the house and you did not have Buyer Representation in place at the time, the Selling Agency typically becomes procuring cause and there is no guarantee that a commission split would be agreed upon & paid. If that happens, then the Buyer Agents commission would be due from you. This makes getting buyer representation before you go seeing homes important.

If you’re ready to take the next step, or just want to discuss your options, please contact one of the CCH agents.