Property

It’s about more than just selling houses …..

Leave a comment

As an agent, you want to be successful and earn loads of cash ……. right!!!?

You might not know this but not many agents (none that I know of) work at agencies where they are paid a set / basic monthly salary. In the sales industry, as in the wild, agents are the hunters / predators and they only eat when they kill. Agents work on a variety of different commission structures where they earn anything from 50% to 90% commission after VAT, PAYE and other monthly administration costs are deducted by the agency and this is how they get to earn all those cash ……. but it comes at a price. The price agents pay for the opportunity to earn a very good income is the fact that if you do not have any successful property registration, you won’t earn a cent. The economic phenomenon is called high risk = high reward, and its true!!

All successful agents I speak to have one thing in common ……. they have been in the industry for some time and they all agree, it’s not about selling houses. So what is it all about …….?

Here are some factors that play a HUGE role in the success of agents (apart from the normal salesman characteristics).

1. Industry Knowledge
Without this you are dead in the water. You need to know what is happening in the arena where you are playing / competing. There is a lot of competition out there and if they know more than you …… you are out!

2. Area Knowledge
What is selling, where is it selling, when did it sell, for how much did it sell, what is not selling and why, what developments are happing in the area, crime, schools, shopping centres, buss routes, taxis etc etc …… if you know more about the area than your competition …… you are in!

3. Database & Client networking
You need to keep track of your potential / past and present buyers and sellers and follow up regularly. Buyers need to be updated with new stock and industry changes that might affect them. Seller need to know about market changes that might affect the sale of there property.

4. Stock
You need to have stock. You need to have targeted marketing & farming campaigns in your specific area. These marketing and farming initiatives need to be aimed at specific buyers and sellers and need to be regular and continuous in order to have an affect. “He who has the most stock, controls the market ……”

5. Client relationships
The longer you stay in the industry, the more you will realise that past clients can be a major source of income further down the line. If you keep reminding homeowners that you are still actively working in their area, they are more likely to ask you to assist them next time they want to up or downgrade.

6. Integrity / Honesty and Business ethics
This is not a quick money making scheme. Agents approaching the industry with that mentality normally don’t last very long and when they leave, they have such a bad reputation that they won’t be able to return to the same area as agents. Keep your side clean, be honest with you buyers and sellers and they might even refer you to a friend or colleague ……. and that’s what you want, referrals!!

Each agent has his / her own way of doing busyness, own strong points and weaknesses and the areas where we work also differ a lot. Keeping the above in mind and incorporating some of this into your own busyness can hopefully assist in your success.

Have a good one
Marnus
Your Agent

Tips for getting your property from Listed to SOLD.

2 Comments

Tips for getting your property from Listed to SOLD!

Do some of your own research:

  • Have a look at some of the “Listing” and “Sold” prices in your area, street, neighbourhood, complex or estate where you stay. Any decent agent will be able to point this out to you but don’t just take his / her word for it. Many agents “buy” mandates by showing inflated valuations creating unrealistic expectations.
  • Pricing is the most important factor when selling. Although “location” is important, you can’t do anything about it unless you stay in a mobile home. A lot can be done to other factors such as condition, accessibility and pricing ….. get the price right, and you will sell quicker.

Become a buyer:

  • Look at your property through “Buying Eyes” and ask yourself the following questions ….
  • Would I buy it in the condition that it is?
  • What would I like to have “fixed up” before I buy?
  • What are the biggest negatives about my property and what can I do to make it better.

Appoint a reputable agent to market and sell your property:

  • We (agents) like to work on Mandates because that shows commitment from your side and I can then spend valuable time and money advertising and bringing buyers to your property. Although it might not always look that way, a lot of time, effort and money is spent on marketing and communicating with buyers before they actually see the property and once an offer comes in, the real work starts. You want to make sure you are dealing with an agent that understands the selling and registration processes so the transaction can be as quick and painless as possible. A mandate can be seen as an employment contract where the salary (“Commission”) is 100% performance / outcome based.

Be accessible:

  • Many properties do not sell because you can never get in to show buyers the property. Between you and your agent you have to arrange that the property can be easily accessible. Most buyers (not all) view properties after hours in the week or weekends and they see more than one at a time so you have to “play ball” here. If a buyer can’t see your property he will go on and buy something else and you might just lose out on “the one”.

Clean up:

  • It’s a fact, neat houses sell quicker than dirty or untidy houses. Buyers are put off by the fact that the owner is not taking care of the property and as much as we try to tell the buyers to look past the mess in the kitchen, unmade beds, clothes all over the floor, underpants (and other similar items) lying around in the bathroom, on the couch etc …… most buyers will not see the “potential” we talk about and leave.

Don’t be stubborn:

  • Selling properties is what we do and I don’t believe that this business can be done as a part-time or side-line business so …… selling property puts food on the table for most agents and we need to sell to survive. As mentioned in point 3 above, pick an agent that you can relate with, trust and work with to sell your property and then go with what he or she tells you to do. If you don’t get along with the agent, don’t appoint him or her and find one you like.

…………… hope this helps, please feel free to pass this on or “share” with friends and watch this space for more tips, hints and industry related news and updates …………. Happy Selling!

SOLD PropertySelling Property

Heads UP

Leave a comment

… every now and again we have to look at some stats to see where we are coming from AND if we are on track to where we want to go. The last 17 months since Jan ’12 we have captured our transactions a bit differently so that we can extract valuable data on various aspects of our business.

RealPro is not a BIG Real Estate Agency, but we a fair a mount of business on the Westrand including Krugersdorp and Roodepoort. Enough to get some stats to look at ….. at least. In the last 17 months we registered just over R 72 000 000 worth of properties (Property Value)., with an average value of below R 1 000 000. We make use of bond originators where we can as we believe they add value to our business and to the majority of our buyers. We have some clients who prefer to go directly to their banks but the most use originators to see where they can get the best deal.

Yes, we do get many 100% bond applications, 54% of the registered deals applied for 100% bonds and 57% of them got it. Many got 95% or 90% or even as low as 75% and still continued with the transaction.

Below is a graph showing which banks granted the most applications (deals) during this 17 month period. Banks include ABSA, Nedbank, Standard Bank, FNB as well as RMB and SA Homeloans.

Finance 3 June 2013…. watch this space for more stats and info ….. all our properties can be viewed at www.realpro4u.co.za

Have a good one

McS

Note to self

1 Comment

So, I attended a function today where a local Attorney Firm, Leeuwner-Maritz, re launched a fresh new look for their Firm and we also had a nice breakfast ….. Thanks for that!

+/- 250 local agents, many of whom I work with, were also treated to an inspiring and motivational talk by none other than Cherie Power Coach and Speaker Cherie Eilertsen. I am so glad that the RealPro team got the opportunity to experience this. Cherie is such an energetic and dynamic person, you can’t help to feel like taking on the world after hearing her speak. Maybe the Sharks should invest in a talk or two …… Ha ha

What came out loud and clear from her talk was that our industry is an ever changing one. Principals, agents, attorneys and anyone involved in the Real Estate industry have to be looking for new and better ways to attract, service and keep clients. Our job as agents is a difficult one. We have to list new stock, find buyers and then put all the pieces of the puzzle together before we have a deal. Then, once we have the deal we have to start solving problems and finding ways for this deal to actually work …… Easier said than done.

Being a real property expert in the area where you work will go along way to making your job a lot easier and you will be able to work more effectively . Staying in touch and keeping a list of your hot prospective buyers is so important. If you are seen as the expert in your area, listings will come and if you have your list of buyers ready …. guess what, the offers will come as well. It won’t happen as easy as that every time and you will have to revert to advertising, showing etc etc but doing the hard work on a database of hot buyers will definitely be of great help …… Note to self!! This is an area of my business where I need to be a lot sharper and success will follow.

Thank you Leeuwner-Maritz and Cherie …. What a great morning and what a great privilege to have been able to attend, time well spent.

Posts to come …..

Leave a comment

So much is happening in the Real Estate market at the moment. Agents and agencies are fighting for a piece of the pie with less stock and most buyers struggling to qualify for bonds. Marketing of your brand, your stock and most importantly, yourself is becoming increasingly important for agents.

Most often than not, sellers want too much for their properties and they believe that somewhere out there is a buyer who’s prepared to pay more for their home than what similar properties have just sold for, and its up to the agent to find that 1 buyer!

Property websites are becoming more & more popular but many buyers are frustrated with all the duplicate and outdated stock on most of these sites. Not sure if we can solve this one but knowing how and why this happens might benefit buyers browsing these sites for properties.

Some issues I would like to blog about before 2013 ……..

1. Pricing right for sellers
2. Giving / Taking a sole mandate or not ….
3. Multi-Listing or not ….
4. What’s up with commission?
5. Finding your new home ….
6. Some smart marketing tips for agents ….
7. Stock on property websites …. what you as a buyer, and seller should know.

Watch this space for more details.

Happy blogging.

Stock – Listings available

Leave a comment

Stock, stock and more stock ………. Just a quick one regarding some available stock the I will be advertising for next week. Some well priced family houses in Krugersdorp and Townhouses available in Roodepoort. Small holding properties in a secure estate in Honigklip as well as some stunning estate houses in Chancliff, Krugersdorp.

For all my, and all RealPro listings please remember to visit the RealPro website at www.realpro4u.co.za

Can we be blamed

1 Comment

As with any business and or industry, one has to roll with the punches and adapt in order to stay at the top of your game.

The Real Estate industry is no different. Providing a professional service to buyers and sellers means that you have to do everything in your power to make sure you act in the best interest of your client. You also have to make sure that you cannot be held responsible for defects that wasn’t declared by the seller. One way of doing this is by having a professional property inspection done prior to the listing or selling of a property.

This is much easier said than done as many sellers already want too much for their properties, having an inspection done will, in many cases, mean that the seller will now have to spend more money on fixing the problems or he will have to drop his price to compensate for the problems. The cost of the inspection will also be for the sellers account unless otherwise agreed to by the buyer.

The positive side to all of this is transparency. Buyers will know what condition the property is in and they won’t have to worry that the seller or agent is hiding something. The inspection will also cover the seller and the agent and will assist in the valuation process, making sure that the property is marketed and sold at the right price. All (or most) agencies and agents do little defect lists on their mandates and offers and sometimes these are even completed on behalf of the seller just because the agent didn’t see anything wrong with the property.

Whether a buyer can legally take you to court or not is not the point, providing a professional service is …….. in most offers I have ready through, buyers acknowledge that they have thoroughly inspected the property and that they buy it as they have seen and inspected it …… I have never had a buyer climb in a roof …… neither have I as I wouldn’t know what to look for any way!

My personal opinion is that a pre-listing property inspection will become mandatory in our industry and being pro-active in this field will be to any agencies’ advantage. Sellers need to take responsibility for the condition of the property and disclose as much of the condition of the property as possible. Agents need to take ownership of their stock and make sure they know what they are selling ……… Reputation can make or break any agent.

For more on the industry follow me on twitter @marnusuragent or on Facebook.

Marnus Steyn

Q: How long will it take for my house to sell?

Leave a comment

A: This is very difficult to say as there are many factors to take into account. The industry average is +/- 14 weeks at this stage. If the property is priced right, in a popular area and in a good condition, it should sell relatively quickly. In Krugersdorp we are seeing lots of demand for well priced family homes, around and below the R 1 200 000 mark. In Roodepoort, Honeydew Ridge and Wilgeheuwel areas we have many buyers looking for 2 and 3 bedroom townhouses between R 600 000 and R 900 000 …. Over priced properties are not selling unless a lower, market related offer is made and accepted. This often takes a very long time to get as the Seller becomes more desperate the longer it takes for an offer to come in, moving up the average time which can be 6 months or more.

Property Business: Outlook for 2012

Leave a comment

I have only been in the Real Estate industry for the last 5 years, since March 2007 and have had my own agency since July 2007. It didn’t take me long to realise that it might not have been the best time to start an agency as this was also the time when the market started to go for a bit of a “dive”, if you know what I mean. The bond lending rate was at 11% in July 2007 and went up to 15.5% (June 2008) before coming all the way down since then to where we are today.

The market and business as we knew it was changing and then the new National Credit Act came into play. There were no more 108% loans where the banks financed your loan, your deposit, your costs and your new lounge & dining room suit. Many prospective buyers become tenants and the words “qualified buyer” took on a whole new meaning. The “boom” was no more and the property industry became a touch place to make a living. Many agents and agencies have gone “walkabout” to find greener pastures and the industry became a lot more regulated. We have also been through a recession and many economists are predicting more of the same to come.

So, what should we do now? Well, I might not have 30 years experience in the property business but I have enough experience in life to know that our situation is not unique and that many before me and even more after me will be able to make a success in tough times. Looking at 2012 and remembering my brief 5 years of experience, marketing and selling houses on the Westrand, I am very positive and looking forward to a great 2012. Will it be tough? Yes! Will buyers struggle to get bonds? Yes! Will there be less stock? Probably! But the fact is that there will always be people who need to sell their properties and there will always be those who see opportunity in buying property for themselves or for investment purposes. Economists all over agree that property in SA is still a good long term investment. There are also less qualified agents to assist buyers and sellers so those that make the effort will get the listings and take the offers.

My focus will be on learning, finding more effective ways of marketing to buyers, sellers and agents, building business networks, delivering great service and being more than just an agent. We have so much to be thankful for in this country where owning property is a great privilege for most. Helping someone find a new home or selling there’s so that they may start a new chapter in their lives is what I love doing …….. Thank you for taking the time to read my blog, may you have a fantastic Festive Season filled with love, warmth and happiness and may 2012 be THE year, for you, your family, loved ones as well as your business.

20111202-232732.jpg

Local Service Directory

Leave a comment
One of the projects I am busy with is a Service Directory on two of my property websites www.krugersdorprealestate and www.roodepoortrealestate.co.za

I am building up a directory of services offered by local business in the local community on a Property Website that also only carries properties listed in that area, Krugersdorp and Roodepoort. The idea is for home buyers and sellers to use the directory for any service they might need in the area such as schools, medical centres, emergency numbers, council contact details, electricians, plumbers etc. I also want to use this directory as a referral base for my own clients who have just bought ion the area.

It is still very new but it will grow over time ….. go have a look. To advertise your business here, please contact me or just send a mail to mcsmaximark@vodmail.co.za

KDP Real Estate

RDP Real Estate