No more high property commissions
Start-ups such as Leadhome will force old-world estate agents to embrace the power of technology if they want to survive
For Deon Nobrega, the creation of property start-up Leadhome couldn’t have come at a better time. The Johannesburg resident wanted to sell his house and relocate to the Cape. But he dreaded having to deal with estate agencies. In the end, he didn’t have to. Nobrega discovered Leadhome, which he describes as a "disruptor waiting to happen". For far too long, agencies have made outrageous commission on the sale of homes, he says. And the service they provide does not warrant the size of their fees. Leadhome is a new estate agency that operates primarily online, and with a different structure. It charges customers a flat fee of R30,000 to find a buyer for their home, which is generally substantially lower than the 6.5% or 7% average commission charged by traditional estate agents. Technology has already affected allied industries such as hotel bookings and home rentals. One of the key disruptors in the accommodation market is Airbnb, which makes it easy for homeowners to rent to touris...
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