Estate agents welcomes Property Charter

Estate agent heavyweights, Seeff Property Services and Herschel Jawitz Properties have welcomed the gazetting of the Property Charter by Trade and Industry Minister Rob Davies last week, saying it will go some way in promoting transformation in the sector.

Seeff national marketing manager, Ted Frazer, says because the property sector is commission-based it has been difficult for the previously disadvantaged to penetrate the market as agents. This is especially true following the global economic downturn post 2008 and the subsequent slump in the property sector.

Frazer says transformation was “growing healthily” prior to this period but many left the industry across the board for jobs offering a secure income.

Seeff says agencies have been working with the Estate Agency Affairs Board (EAAB) in exploring the granting of bursaries and training over a six-month period, for example, for prospective agents or to provide support until they become self-sustaining.

Estate agents generally need about nine months or longer in the field before they start earning commission for accrued sales. They mostly have to rely on their own transport and other resources like cell phones, laptops etc to perform their duties.

Frazer says the industry needs to be proactive in attracting agents to the industry and formulating incentives to make it more attractive. Transformation, he adds, is key to the sector and will change the face of the real estate business as we know it.

Jawitz CEO, Herschel Jawitz, is of the view that estate agents can do more in terms of transformation, but it will require capital and the involvement of agencies like the Southeastern Employment & Training Association (SETA), the EAAB and the Real Estate Business Owners of South Africa, REBOSA.

Jawitz says in this regard SETA has come to the party in awarding bursaries for interns, allowing for the payment of a stipend to assist with expenses and other challenges facing potential agents. He adds the EAAB will have to expand its role as a regulatory body to one that actively works with the industry in driving transformation.

He points out that the dominant estate agents in South Africa are 90% family-owned and run which might present a challenge in bringing on board non-family shareholders into the business. “I don’t think the industry is ready for this yet, but you have to start somewhere. Now that the charter is in place …this industry is going to have to think about these challenges.”

Pam Golding Properties’ CEO, Andrew Golding, says transformation in the residential real estate industry is lacking and that the Human Settlements Ministry should step in here.

“The powers that be …human settlements could create incentives which would make this (transformation) easier but in truth those incentives have not been forthcoming.”

Golding says while the estate agent sector is commission-based, this could change: “Why doesn’t the estate agent industry pay a salary? That isn’t the model. Can it move that way? That remains to be seen. The real estate agencies like ourselves take all the risk like the bricks and mortar, the advertising and everything else. The agents only earn what they sell and it’s always been like that.” Golding says that there is room for a different model to be introduced but there are other challenges that need to be overcome.

One way of dealing with this is to introduce bursary schemes and to provide financial support to new entrants.

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 24 Nov 2017
      Demand for secure estate living in Hout Bay has risen sharply in recent years, precipitating a spike in development with estate homes now accounting for 20.24% of the property landscape with the launch of an exclusive new gated development on 26 November adding 20 more units to the existing 1250 estate homes.
    • 24 Nov 2017
      There are some things that money can’t buy – spectacular views from Mouille Point to the V&A Waterfront and a trendy and lively neighbourhood that encapsulates the very best of the Cape Town lifestyle.
    • 24 Nov 2017
      Tshwane’s four-bedroom Mayoral mansion, nestled among ambassadorial residences in the upmarket suburb of Muckleneuk, fetched R5.1 million after spirited bidding at High Street Auctions’ final sale of the year.
    • 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.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us