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RE/MAX FLOUTS TOUGH TRADING CONDITIONS WITH LATEST FIGURES

While challenging conditions have prevailed in the property market during the first half of 2012, RE/MAX of Southern Africa has seen a marked increase in the number of property sales achieved per agent over the last six months. 

Even though general market improvements are attributed to the continued low interest rate and a bigger credit appetite shown by financial institutions, Adrian Goslett, CEO of RE/MAX of Southern Africa, says that the correct pricing of property has remained an essential element of a successful sales process.

He notes that correct pricing is one of the main reasons why RE/MAX of Southern Africa agents have managed to achieve such a high return on asking price within a reasonable amount of time on the majority of properties on its books. “In fact,” he says, “each RE/MAX agent has sold between 9% and 10% more properties during the first half of this year compared to the same period last year. This outstrips the national industry average of less than 5% by far.”

According to Goslett, the South African property market should remain on its current path of consistent improvement over the next 12 to 18 months; however factors such as the high household debt-to-disposable-income ratio coupled with the fact that South Africans have a poor savings culture are holding the market back. “South African consumers really need to focus on clearing their debt and starting a savings programme to ensure their ability to secure home loan finance in the future,” he says.

Goslett points out that with the high levels of debt and the fact that South Africa only has a domestic savings rate of around 20% of GDP, compared to other emerging markets like China which has a domestic savings rate of around 50% of GDP, distressed properties will remain a reality for the South African property market in the foreseeable future.

He says that in light of this, RE/MAX of Southern Africa has continued to train its agents to handle the specialised elements of distressed property sales. To date, over 600 RE/MAX agents have received the internationally acclaimed Certified Distressed Property Expert Professional Designation (CDPE), a course which is delivered under licence of the Charfen Institute based in the USA exclusively to RE/MAX agents. 

The qualified RE/MAX of Southern Africa agents who have been marketing distressed properties have managed to achieve, on average, 91% of the asking price, with these distressed properties spending an average of 45 days on the market before selling. In addition, the number of distressed property offers that have been accepted by the banks has increased considerably. 

Goslett notes that it is the extensive training and technical and marketing support that RE/MAX agents receive from the brand that allow them to be as successful as they are and flout current market conditions. This is evidenced in the fact that RE/MAX of Southern Africa reported a 12% increase on registered sales in the first half of 2012 compared to the first half of 2011.
Furthermore more than 11 RE/MAX franchises have been sold so far this year and more than 188 agents have joined the brand due to the value proposition it offers.



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