RealNet strategy gets 70% of bonds approved
7/23/2010 9:46:50 AM
At a time when the average rate of bond application approval is around 50%, the RealNet property group is succeeding in getting the banks to approve more than 70% of the applications it makes on behalf of prospective buyers.
However, says group CEO Tjaart van der Walt, this is not the result of any “secret formula” or special connection with the banks. “Rather, we believe our success is due to the fact that we take as much interest in the prospective buyers that come to us as we do in those clients that are home sellers.
“We believe it is no use showing someone a property and getting them to sign an offer to buy it if they are not going to get a bond to finance their purchase, or are at risk of getting into financial trouble later on and having the property repossessed.
“So our interactions with potential buyers go a lot further than the usual financial qualification checks run by estate agencies. We spend a long time talking to them, finding out what their needs and budgets are and making suggestions about the appropriate type, size and cost of property to buy.”
Van der Walt says RealNet’s policy is not at all to dissuade people from buying – “but we do believe homeownership should be a joy and not a burden, which means trying to match buyers to properties that are not only affordable for them to purchase but that also suit their lifestyle and that they will be able to maintain so as to preserve and grow value.
“We also discuss with them the very strict lending criteria now being applied by the banks and explain how they might benefit from scaling down their expectations to lower-priced homes, and from using their deposit money to pay off a relatively higher percentage of the purchase price upfront.”
And this approach is also of great benefit to home sellers, he notes. “The fact that our franchisees are now getting 70% and more of all their bond applications approved means, quite simply, that we are finalising more sales first time around.
“Far fewer homes are having to be marketed and ‘sold’ two and three times over as a result of the buyers being unable to get finance, and that fact represents big savings of time and money for home sellers, as well as a lot less anxiety.
“This is the very rewarding payoff for the intensive training on buyer qualification and valuations given to our agents in practical workshops held around the country in 2009.”
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