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ILS
Mandate
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How
it works
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Disadvantages
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page on ILS Mandates deals with the simple
benefits and disadvantages from the sellers
perspective and is mearly to give you an
undesrstanding of the process. ILS (Institute
Listing Services) is operated via the local
Institute of Estate Agents. The institute works
in favour of agents as this is the nationally
recognised formal body for Real Estate Agents.
Not all agents who are members of the institute
are subcribers to the Listing Service. There is
absolutely no difference between an agent who is
a member and one who is not a member. What is
more important in choosing an agent is the
adhearance to the easte agents code of etchics
and the integrity and honesty of the agent. Yes
we would all like to get more for our
investments the day we decide to cash in or move
on...as much as this means great commission to
me...I have turned many as I call them,
unrealistic sellers or not seriuos sellers down.
Selling Real Estate is about people, families
and 99% of the time their most valuable
investment, their home!! |
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| Nine
out of ten properties that go the route of an
ILS Mandate is due to over pricing. The
compettion is so fierce for mandates that Real
Estate Agents will say what they wish clients to
hear and this is "I will give you the
highest price for your property" Scenario,
Agent #1 offers a seller R500K, #2 offers R550K
& #3 Offers R600K. It is only natural that
sellers will opt for the highest offer on the
table. A mandate is the result. Then comes the
snag, the property does not sell, and the Agent
takes it to ILS where all agents who are ILS
members participate. An open hour is held for
all members to attend and give their valuation
on the property. An average is calculated based
on input from all the agents. The average,
generally lower, is presented to the seller. The
theory is how can so many agents be wrong, maybe
we should drop the price to the average. Also
every agent knows that that they now immediately
have 50% of the commission should they introduce
a purchaser...My question has always been..To
whose benefit is an ILS mandate? |
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Property
long on the market Property
becomes stale Buyers
are aware of price situation Sellers
become desperate and any offer now seems a good
offer Holding
costs have mounted |
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Mandates
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The
Do's before listing
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| A
Comparative Market Analysis
Ask neighbours
friends and family to honestly inform you about
their sale and the bottom line price they
got.
Visit other
properties for sale and see if your property
fits the price group.
Follow up with
the show house agent to see if offers have come
in on the asking price.
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Fact
File
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South
African are the only people who build a bit of fat into
the price, and believe me everybody you know is doing
it. You ask your friend or neighbour what they got for
their home or property and they will answer, "I got
what I want" and we immediately assume they got the
price they advertised, we check the papers, or the
brochure we got from the show house, cos as all
neighbours do, we visit the house for sale next door, we
say to ourselves, if they get what they want we should
get more, after all, our house is better than
theirs..meanwhile little do we know our seller droped
his price on average by 10%.
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