MAIN IMAGE: Berry Everitt – CEO of Chas Everitt International, Mercy Mpungose – eXp Realty South Africa, Gauteng / Pretoria, Denese Zaslansky – CEO of FIRZT Property Group, Ansie Jacobs – sales executive at RealNet’s RainMaker business platform
Kerry Dimmer
An ethical test for property practitioners is whether they are prepared to walk away from a potential mandate if it is clear the seller should consider other options.There is, after all, a conflict of interest: advising an owner to wait, renovate, rent out a property, or abandon the idea of selling altogether could mean losing out on the commission if the property sells.
Several leading property professionals argue that this is precisely where professional ethics are tested. As Berry Everitt, CEO of Chas Everitt International, puts it: “The mandate should never come before the client.”
The dilemma, however, is not as simple as an agent deciding whether to be ethical or serve their own interests. After all, property practitioners are, in effect, running their own businesses, even when operating under a corporate banner. Their responsibility has limits, but within their area of expertise, they are often among the first professionals sellers turn to for advice, and the questions they ask could fundamentally change a homeowner’s decision.
This is where the mandate becomes something more than a commercial agreement. It raises an uncomfortable question about the role of the property practitioner: is the agent there primarily to facilitate the transaction the client has requested or to challenge that decision when professional experience suggests it may not be the right one?
The real measure of ‘professionalism’, then, may not be how many mandates an agent can secure, but whether they are prepared to have the more difficult conversations when selling appears to serve the agent’s commercial interests more effectively than the client’s problem.
We asked four property professionals for their perspectives:
The client before the mandate
Berry Everitt, CEO, Chas Everitt International
Would you ever advise a homeowner not to sell, even if you knew you could secure the mandate?
Yes. If selling would leave the owner worse off, expose them to unnecessary risk, or fail to solve the problem behind the proposed sale, I would say so.
The professional advice may sometimes be “not now” or even “not at all”. A mandate represents a transaction, but trust creates a relationship. Our responsibility is to protect the client’s interests, explain the alternatives and respect their final informed decision.
Our role is not simply to guide a homeowner towards a transaction. It is to help that person reach the right decision for their circumstances. Market timing and market evidence are firmly within the role of a property professional.
We should explain current supply and demand, comparable sales, buyer activity, average time on the market, the cost of waiting and the possible consequences of selling now. We must never pretend that we can predict future market conditions with certainty.
Sometimes waiting is the wisest decision. In other circumstances, the owner’s financial position, personal urgency, or life plans may outweigh the market cycle. Our role is to present the evidence and possible scenarios honestly, then enable the owner to make an informed and confident decision.
Conflict of interest
Mercy Mpungose of eXp Realty South Africa, Gauteng / Pretoria
How do you ensure that your advice isn’t influenced, consciously or unconsciously, by your desire to secure the mandate?
I believe the starting point is to separate the client’s needs from my own commercial interests. I want to understand why they want to sell, what they hope to achieve, their financial circumstances, their timeframe, and whether selling actually solves the problem that has brought them to the market.
Most importantly, I ask myself: If I was not going to earn a commission from this transaction, would I still give the client the same advice? If the answer is yes, then I can be more confident that my advice is genuinely centred on the clients’ interests.
I think we need to move away from viewing the property practitioner purely as the person who gets a property onto the market and negotiates the sale. The real measure of our professionalism is, therefore, not how many mandates we secure, but whether our clients can confidently say that we acted in their best interests—even when doing so did not immediately benefit us financially.
For me, ethical property practice means being willing to have the difficult conversation, even when the easier conversation would result in a mandate.
Unrealistic expectations
Denese Zaslansky, CEO, FIRZT Property Group
If the seller is asking for a price that you believe is unrealistic and refuses to budge, and you know the house is way overpriced regardless of advice, will you still take the mandate if offered?
No. We would advise them to wait, as a property marketed for an extended period will usually attract negative comments. We would suggest they wait to see if the market improves, or in some instances, if the seller wants a high price but has the right reasons for selling, we would offer to market at the higher price for a short period and give them feedback in order for the seller to adjust the price to a market-related one.
If the outstanding home loan amount exceeds the property’s likely market value, we would advise the owner to contact their home loan provider to determine whether it would accept an acknowledgement of debt for the shortfall between the outstanding bond and the eventual selling price.
When selling isn’t the only solution
Ansie Jacobs, sales executive at RealNet’s RainMaker business platform, specialising in Woodhill Golf Estate, Pretoria East
At what point does suggesting an alternative to selling become helpful professional advice?
My goal is always to give professional advice based on my experience in property values, market timing, rental demand, the costs of renting versus selling and interest rates.
Sometimes people feel they have to sell rather than wanting to sell, for example, in the case of a divorce or death in the family. I would advise them to pause the sale until they feel the decision is driven by a clear plan.
Why? My reputation is my mandate pipeline. One piece of honest advice can build trust with my client. They will spread the word, refer me to other potential sellers and, most importantly, call me when they are ready to sell.
As a seasoned property practitioner, I have also built up a wealth of experience over the years assisting clients with legal or tax matters, divorce, or the death of a family member. I will always go the extra mile to share the knowledge and experience I have gained, help source relevant information and, where necessary, connect my clients with the right professionals to assist them.
