Widespread distrust is a barrier to best-price home marketing
Category Blog
There is a growing mindset of public distrust right now across South Africa’s political, economic and social landscape. So much so that it has made the process of buying and selling a home an even more mentally and physically challenging process than normal.
The depth of existing civic cynicism is reflected in the latest (2017) Worldwide Edelman Barometer which shows that, out of 28 countries surveyed, South Africa’s Government is the least trusted by its citizens. So much so that only 15 per cent of the sample delivered a positive response.
Furthermore, on the business leadership front, the Barometer shows that trust in South Africa’s CEOs has dropped from 68 per cent to 52 per cent.
This phenomenon of rising national untrustworthiness is seemingly gaining momentum as the so-called State capture issue and rampant corruption continues to unfold; as the question mark over the country’s future leadership looms ever larger; and as the threat of ratings agency downgrades remains ever present on the national economic radar screen.
On the broader global landscape of distrust, think Donald Trump; Brexit; globalisation; uncertainty on the future of the European Union; weak leadership; xenophobic hostility; shoddy governance; rising economic inequality; and hostility towards mainstream business.
Homeowner reluctance on sole mandates
In South Africa, it all comes together to reflect a high level of homeowner reluctance (outside of growth-trending Cape Town) to go the sole mandate – or rifle shot – route to selling their properties in the current socio-political and economic climate.
Given that we are raised from childhood not to trust anyone outside of the family circle, the general instinct of sellers (now more distrustful than ever) in times like this is to spread their risk across a number of agents rather than put all their eggs in one estate agent’s basket.
It is a shotgun approach that seemingly worked well in the boom times before the 2008 economic crisis. Now the subliminal message to agents is: “I don’t trust you as individuals. I need a safety net. I must broaden my risk.”
It is an approach that is not ideal in the current flat-lining homes market in South Africa, in which trusting your estate agent is the key issue.
Lingering doubt removed
Unlike the agent whose attention span is inevitably diluted by the sheer number of open mandate homes on his or her marketing schedule, the sole mandate agent has the leeway to build a direct, one-on-one, bond of good faith and trust with the seller – as well as the buyer.
The bottom line is that trust is based on integrity. It is the foundation on which truly seasoned, successful real estate agents have invariably built their reputations – deal by deal.
Unless the circumstances are truly exceptional, the best estate agent will not be inclined to put his or her reputation at risk by providing a diluted (shotgun) service but will rather focus on their sole mandate properties, where the success rate is much higher.
In today’s world of distrust, try trusting your estate agent. You will more than likely be pleasantly surprised by the outcome.
Author: Ronald Ennik
