The Johannesburg real estate industry characteristics : how buyers and sellers are given less than optimal outcomes

The impact of the: mandate type used, real estate agents‘ ideological outlook and compromising of principals‘ on the ultimate outcomes to buyers and sellers have largely been ignored in the South African real estate industry. This study attempted to bridge that gap by investigating the influence of the dual mandate system, the ideology of real estate agents and the compromising of the interests of one or all the principals on the outcomes of any real estate transaction. Stratified random sampling was used for information gathering. Data were collected using face-to-face filling in of the survey instrument and 150 participants agreed to take part in the study. Confirmatory factor analysis (CFA) was employed to assess the reliability and validity of the results. The results reveal that Dual mandate system and Ideological persuasion of actors in the real estate industry does positively impact on the suboptimal outcomes to consumers. Furthermore, the results also conclusively showed that the principal whose interests are compromised usually gets less than optimal results.