The property industry in the country isn’t regulated. This leads to a lot of grey areas, such as what should be the commission fee. Estate Agents are divided on the issue, with others stating that the fee could go lower, and others stating that it is justified considering that there are advertising and fuel costs that must be taken into account.
By Ntokozo Nkambule
Estate Agents in the country normally charge between 5 to 7.5% in commission fees to clients, but there isn’t a regulation that stipulates that fee.
An investigation has unearthed that their 5 to 7.5% commission fee is imported from neigbhouring South Africa and other regions. The question, however, remains, is the commission fee fair and practical for Eswatini?
Well, there are a number of factors at play here, one of them being that Estate Agents are not regulated in the country. In essence, this means that anyone can register a business and start selling property in the country.
Seasoned real estate practitioner and founder of Mgilija Properties, Musa Nhleko says the lack of regulation causes a number of problems in the property sector. He asserts that commission fees come in two forms, rental commission and sales commission. “The problem is that we are benchmarking from South Africa, yet the question we should be asking ourselves is that, is this fee fair for the local market? Nhleko believes that the fee could go lower.
Seeff Eswatini, Licensee Anthony McGuire states that the commission fee being charged in the country is the same across the board, not just in South Africa, but in other neighbouring regions as well. He concurs with Nhleko that the lack of regulation is a problem, as there are instances when ‘briefcase agencies’ charge unscrupulous fees.
Ekhaya Properties states that the commission fee is fair considering the work undertaken by estate agents. “The price is fair considering what we have to do as estate agents to get properties sold. What the public must understand is that in the 5 to 7.5% fee we factor in a number of things, such as marketing, advertising, and driving interested buyers and sellers to the property, which is a cost”
*Please note that this article was first published in Eswatini Property Review, our sister publication.