[SA] Is This a Deal or Not?

Lthenextsaint on 08/04/2020 - 14:38
Last edited 08/04/2020 - 14:55 by 1 other user

Hi OzBargainer's,

First of all I want to start by saying I hope no one ever has to take up this offer. EVER. But working in real estate sales here in SA I am talking to a number of people who have lost their jobs and it's really hard to sit by and not be able to do anything to help except listen.

I was thinking about posting an offer in the deals tab but thought it might get down-voted because it isn't a deal or people would think it's typical real estate agent trying to capitalise on people's bad situations. I want to know if you think it's a deal that would help people or not. Honest feedback appreciated.

I work for a large real estate office in SA and would be happy to provide commission free house sales to anybody who find themselves in the terrible position over the next few months where they are unable to pay mortgages or make ends meet because of things like loss of employment, loss of hours or just general hardship because of what is going on. It would be for people who really think there is no other way except to downsize to something smaller or go and rent.

I have asked my company and they are OK with me donating my time for this cause but the seller would have to pay their own marketing (because this all comes from third party suppliers - not us) which is usually around $1,800 - 2,800 depending how much marketing that person wants to do. But on averages, the average house price in SA is about $480k. The average agent commission is 1.98% so it would still save someone about $9500.

Like I said, I really hope this is something nobody ever has to take up but thought it was a way I could personally make a small difference as I think there are going to be people out there over the next few months who find themselves in horrible positions and at no fault of their own.

Deal or not?

• 

  holdenmg on 08/04/2020 - 15:52

  Hi,

  I'm in the fortunate position of not having a Mortgage (or need to sell).

  Anyhow, suppose someone needed to sell according to your example.

  I'd assume your Seller would have to be looking at a For Sale as opposed
  to an Auction for the foreseeable future…

  The REISA indicates the usual expenses associated with selling as:
  Commission and marketing expenses payable to your agent*
  Search costs
  Discharge of mortgage (if applicable)
  Your proportion of rates and taxes as at the settlement date
  Conveyancer's fees
  Moving costs
  *Assuming use of an Agent.

  The question arises if someone is selling, and you offer them a deal are they also going to
  expect a deal if buying another (smaller/cheaper) property through downsizing?

  Also, what are the alternatives out there, such as Homestart Reverse Mortgage or refinancing or extending the existing
  Loan. Are there products that free-up Equity for Cash via a Shared Equity etc.

  What about Sell (and Rent Back).

  This could be a Solution that gets you good Tenants, removes their need to move and lowers the Cost overall.

  Does the REISA have any position on any of this?

  • 

    thenextsaint on 08/04/2020 - 16:41

    +1

    Good points. Auctions are still being ran, just online if people really wanted that option.

    As for the costs of selling, it would only be the commission because we can't control third party suppliers and conveyancers but this is something we would go through with anyone prior to listing the home anyway. They don't pay commission when buying so no they wouldn't get a deal for buying.

    We're helping people through the best we can with other options but ultimately people would have to do their own due diligence on whether they have to sell. Like I said, I'm not getting paid for this either so if there is another way to help people and they keep their home that's great for everyone involved. It's really a last resort but sadly one I think some people may be exploring in the next couple months. As long as it complies with all the laws, REISA don't care what agents charge commission wise so agents are free to charge 0% or 5% (that's a other debate as to whether fees should be regulated).