Don't skimp on the agent when dealing with debt

20 March 2007

Debt is a very serious issue in South Africa at the moment and many people
feel trapped in a situation where they have very few choices, such as
sequestrating themselves or using all the additional equity in their home
to
"consolidate" their debt.

In some cases, homeowners with large bonds may even feel that their only
option is to sell their home to liquidate the debt in its entirety and
hopefully have some money left over to use as a deposit on a smaller home.

However, says Dr Piet Botha, chairman of the Nationlink estate agency
group,
those who do make the decision to sell their homes to cover debt should
also
plan carefully to get the best possible price in the shortest possible
time.

"The necessity of a swift, uncomplicated transaction really comes to the
fore when a seller has large debts to pay that are increasing every month
as
the interest on overdue amounts gets added. With this in mind, it is
essential to enlist the help of a professional, experienced estate agent
in
order to sell the property."

And as tempting as it may be when one is in this situation to opt for the
agent who is prepared to sell the home for the smallest commission, owners
should bear in mind that "you get what you pay for", he says.

"Agents who are prepared to work for just 2 or 3 percent commission will
inevitably rate your transaction as secondary to others where they stand
to
earn more, and put less time and money into marketing your home and
exposing
it to potential buyers - which is the exact opposite of what you want if
you
need to sell your home quickly and efficiently."

Botha says urgent sellers should also guard against agents with
insufficient
knowledge of local market conditions and those who encourage them to bump
up
their asking price higher than the going rate for the area, as either of
these failings is likely to result in delays in getting the property sold.

"On the other hand, a good agent with excellent market knowledge, a level
head when it comes to setting an asking price and access to a range of
marketing methods as well as a large network of potential buyers will
relieve you of a lot of the anxiety about your situation.

"Consequently, it is well worth seeking out such an agent before you put
your home on the market and risk 'throwing it away' in your desperation to
be rid of your debt burden."

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