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Selling a property can be exciting, however, it can also be a stressful and expensive process if something goes wrong along the way. To help you through this process we’ve put together a guide explaining the most important things to check with your prospective estate agent to avoid challenges from start to end.
First of all you need to check the registration status of the prospective estate agent with the respective regulator, Estate Agents Council of Zimbabwe (EACZ). All practising estate agents in Zimbabwe have to be registered with EACZ and must have a valid Compensation Fund Certificate for them to operate.
Next you have to understand all costs that have to be met by your side during, before and after the transaction. Estate agents will often charge you a commission/fee (normally 5% of the selling price) as a percentage of the sale price of the property. Note that commission fees quoted must include VAT (14.5%).
You should also find out what other costs that may not be included in the commission and any statutory obligations you are expected to meet so that you plan accordingly.
It’s important to find out when all the payments are expected to be paid, to avoid any costs coming at unexpected times. Commission is normally paid once the property has been sold while Capital Gains Tax & Outstanding rates have to be paid before the transfer of the property.
It’s also very important to understand what type of contract you are getting into with the estate agent and the obligations of both parties. There are several types of mandates to sell you can enter into with an estate agent when selling your property. The most typical ones here in Zimbabwe are:
- Exclusive Sole Mandate – This type of contract means the estate agent is the only one allowed to sell your property during the period stipulated.
- General/Open Mandate – This type of contract means you can use as many agents as you like and pay commission to the one who sells your property.
Before choosing an estate agent, you’ll want to make sure they know the local market well and are active in the neighbourhood. It could be an advantage to use an agent who has recently sold similar properties in your neighbourhood, because they may already have a list of potential buyers who would be interested in yours.
Also check the prospective agent, if they have a broad approach to marketing platforms. Visibility of your property across multiple channels will mean a buyer, whichever route they have taken for their search, will see your property.
The most important thing is market price positioning, It’s wise to ensure your estate agent is using comparable data to give you a guide on the price you should market your property for. There are several factors that will influence the price of your home, such as its size, condition and location, as well as the current market conditions.
Buyers will compare your property with what else is available to decide if it is the best they can get. The price you market for is ultimately your decision and you should decide the figure based on how quickly you need to move and also how quickly you need to secure a buyer.
On www.property.co.zw, you can get statistics for average prices for what properties in your neighbourhood are selling for.
Get your estate agent’s opinion on the condition of your property and how to get it ready for sale. It is very important, as it is likely to have an impact on the number and value of offers you receive.
Lastly, agree with the estate agent when you are able to allow viewings at your property and the estate agent will ideally look to book their appointments as such for your convenience.
Taking care of all these key issues will put you in the absolute best position to ensure you’re choosing the right estate agent to sell your home with less stress and in record time.
