Major shifts coming in real estate industry

More than 70% of agents support the new education dispensation for the real estate industry and believe it will make the industry more professional and credible.
However, a new survey shows, about 23% also believe that the new qualification requirements will cause the industry to lose many good agents who don’t want to write exams after many years in successful practice – and 8% are in fact already leaving or planning to do so in January 2012 when the deadline for obtaining the new qualifications expires.
Nevertheless, says Dr Willie Marais, national president of the Institute of Estate Agents (IEASA), the survey also reflects that 64% of agents are already committed to try to comply with the new dispensation, despite the considerable cost involved (up to R12 000 per agent) and the investment of time required.
“And that is not really surprising, because most agents clearly recognize the value of training. As the survey also shows, 78% of agents currently registered to practice have passed the existing Estate Agency Affairs Board (EAAB) exam, and no less than 90% have received additional career training either in-house or from an external trainer.
“What is more, most agents start out on a pretty sound educational footing anyway. The survey shows that 94% have matric and that almost half (49%) also have a tertiary or post-graduate qualification.”
But, he says, the new legislation governing training in the real estate industry combined with the huge drop in agent numbers over the past two years does indicate that it is going to become more challenging for estate agencies to recruit and retain top performers.
“We see that company investment in agent training will have to escalate and that these costs plus competitive remuneration for top performers will put extra pressure on profit margins. Agencies will thus have to pay careful attention to their cost structures.
“It will also be more difficult for small agencies to obtain and train new recruits, but this does not mean the disappearance of such businesses.  Top agents’ income potential will escalate and many may prefer to strike out on their own in niche markets. It is not too unrealistic to speculate that the majority of agents will continue to work for smaller, independent agencies, as they do now (74%).”
The just-released survey of the industry was conducted by an independent researcher with the backing of IEASA and Property24 as well as the EAAB. It is only the second such poll ever conducted, the first having been completed in 2004.
Distributed to 42 000 agents registered with the EAAB, the survey probed a wide range of characteristics of agents and agencies, including demographics and compensation structures as well as business activities and technology usage, and although participation was entirely voluntary, it drew a strong response.
This revealed among other things that the typical SA agent is aged between 35 and 55 (54%); married with two children (72%) and earns R13 000 or less a month (54%) by working on a commission-split basis (74%).
Issued by the
Institute of Estate Agents of SA

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 23 Nov 2017
      Reserve Bank Governor, Lesetja Kganyago, said that the Monetary Policy Committee had once again decided to let the interest rates remain unchanged with the repo rate at 6.75%, and the prime lending rate at 10.25%.
    • 23 Nov 2017
      As the holiday season approaches, most of us are counting the days until that year-end bonus hits our account. There’s nothing quite like a little bank balance booster to get us in the holiday spirit.
    • 23 Nov 2017
      The Adelphi Centre (now entitled “ARTEM") in Sea Point, Cape Town, is being extensively renovated, and once complete will offer an ultra-luxurious galleria style shopping centre unlike any other seen on the Atlantic Seaboard or in Cape Town.
    • 23 Nov 2017
      If you are looking to sell your home in today’s real estate market, there are certain things that you need to include both inside and outside your house. Today’s generation of home buyers is looking toward a more eco-friendly, energy and water conscious home, and if your house stands out then you are more likely to be able to sell it.
    • 22 Nov 2017
      Most people know of the Community Schemes Ombud Service (CSOS) and that levies must to paid to fund its operations. In this article the experts at Paddocks will address some of the issues that are causing confusion.
    • 22 Nov 2017
      While sales have noticeably slowed in most sectors in most Cape town suburbs, the security estate sector in Constantiaberg has bucked the trend by remaining buoyant, with sales by August this year already surpassing total sales in 2016.
    • 22 Nov 2017
      The end of the year is fast approaching, and so are all the travellers, tourists and holidaymakers. For those who live near or own a property in a holiday-hotspot, the festive season also brings with it an abundance of short-term rental opportunities. Its a great way for property owners to make a few extra rand for their own holidays or to put towards their savings.
    • 21 Nov 2017
      The buying process is over, and the moving truck has delivered your household goods to your new property. Now it’s time to unpack and turn your new house into a home.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us