Selling property is expensive. The traditional 7% estate agent’s commission could be well used on other expenses such as moving costs or DIY on your new property.
But what if I told you that the usual commission model was a thing of the past and that you only have to pay 1.5% commission to sell your house?
The market has been forever disrupted by newcomers Property Fox, founded by entrepreneurs Crispin Inglis and Ashley James.
Their concept? You CHOOSE to pay either a flat fee of R25,000 or 1.5% of the selling price. A quick assessment using the free tool on their website shows that I could save R82,500 if I sold my apartment for R1.5 million.
Goodbye sky high commissions.
By firmly undercutting traditional agent commissions, Property Fox has created a stir in the South African property market.
According to a Financial Mail interview with the founders, Property Fox has concluded at least 12 sales to date to the value of R28.4 million:
We estimate we saved the sellers about R1 million. We have 250 homes on our book and we are adding 35 a week
Property Fox hopes to have 5% of the property market in the next 4 years.
Going beyond commission savings, which are substantial, the platform also gives sellers additional benefits that include:
- Free trial
- Free property valuation
- Professional photography
- Marketing of your property
- For Sale board
- Buyer screening
- Property viewings
- Conclusion of offer to purchase and transfer to attorneys
Your property will be listed on a number of sites including the major property portals PrivateProperty.co.za and Property24.
As expected, Inglis and James have ruffled a few feathers. The traditional property sector would have claimed approximately R700 million in commissions from all the properties on their book.
Talk about putting a fox in the chicken coop.