Thursday, November 5, 2009

The profile of an Estate Agent

Real estate barriers breaking down, survey shows



29 September 2009



Transformation in SA’s real estate industry is speeding up, a new survey shows.



The results of the just-released poll show that black agents now make up 10% of the total, compared with just under 4% five years ago, when the number of agents registered with the Estate Agency Affairs Board (EAAB) was roughly the same as it is currently.



“In real terms the increase means that the number of black agents registered has risen from about 2000 to around 4200,” says Dr Willie Marais, national president of the Institute of Estate Agents (IEASA) “and we are delighted at this growth, which we see as an important sign of that the residential property market overall is becoming more integrated.



“It reflects not only the rising percentage of black buyers in the market but the fact that the divide between the so-called township markets and the traditional suburban markets is narrowing, with more people now transferring freely from one to the other.



“Indeed, this is underlined by a further finding of the survey, that 18% of all agents, or almost one in five, now include township homes in their marketing mix alongside suburban houses, sectional title and cluster homes, retirement units and agricultural properties.”



The 2009 survey, conducted by an independent researcher with the backing of IEASA and Property24 as well as the EAAB, is the second such poll ever conducted in the SA real estate industry, the first having been done in 2004.



Distributed to 42 000 agents registered with the EAAB, it probed a wide range of characteristics of agents and agencies, including demographics, business activities and technology usage, as well as compensation structures 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 in an independent agency (74%). IEASA will release further findings over the next few weeks.



Issued by the

Institute of Estate Agents of SA

Tuesday, November 3, 2009

The EAAB declares an official dispute.

The Estate Agency Affairs Board (EAAB) wishes to advise that it has formally declared an intergovernmental dispute with the Services Sector Education and Training Authority (SSETA) in terms of the Intergovernmental Relations Framework Act of 2005.



The dispute between the two organs of state arises from various activities engaged in by the SSETA from time to time with reference to the estate agency profession and the training of estate agents which, not only exceeds the legislative mandate of the SSETA but, also, undermines the standing and authority of the EAAB in the exercise of its powers and functions as the statutory regulator and professional body for estate agents.



The EAAB can only conclude that the SSETA seeks unlawfully to intrude on its autonomy, infringe both the rule of law and the principle of cooperative governance, exercise purported powers in an unlawful and unauthorised manner, engage in illegal self-help and, generally, act in a manner unbecoming an organ of state.



The parties to the dispute are now be required to convene a meeting to determine the nature of the dispute, to identify mechanisms or procedures to assist in the settling of the dispute and to agree on such mechanisms and procedures for this purpose and to designate a person to act as facilitator in settling the dispute.



The EAAB will make every endeavour possible to resolve the dispute with the SSETA in compliance with the constitutional obligations to do so imposed on organs of state and for the benefit of the estate agency profession and allied stakeholders.



Issued by: The Estate Agency Affairs Board



Contact: Ms. Portia Mofikoe

Portia.Mofikoe@eaab.org.za



Date: 2 November 2009

Monday, November 2, 2009

Print giving way to the Web in SA real estate

30 October 2009

Print is steadily losing ground as the Internet becomes the number one advertising medium for estate agents, a new survey shows.

The results of the just-released poll show that local or community newspapers are now the only print options that command more support than the Internet, with 54% of agents regularly placing adverts in these papers while 47% make use of online property portals to showcase their stock.

What is more, 74 percent of agents now also regard their company websites as important advertising channels.

By contrast, only 34% of agents advertise in the property magazines that are distributed for free, and only 29% support the weekly property supplements to major newspapers. Even fewer make use of glossy property magazines (15%) and just a handful (3%) ever advertise on TV.

“To a large extent, this sharp shift towards online advertising is a result of the property market downturn,” says Dr Willie Marais, national president of the Institute of Estate Agents (IEASA). “With sales and income way down, agents and agencies have been forced to cut costs wherever possible, and print advertising has always been one of the biggest items of expenditure for most real estate companies.

“Consequently, they have turned more and more to Internet advertising, which is relatively low-cost and sometimes even free, and has several other advantages too, including global reach and a much longer ‘shelf-life’ for each ad, which can remain on view as long as a property remains unsold.”

Agents have also discovered the joys of interactivity, he says, with most property portals offering a ‘matching’ service that immediately advises potential buyers of new listings that match their home search criteria, as well as the facility for those who are interested in a particular listing to instantly contact the agent via email or SMS.

“And then there is the greater manageability of online listings, with agents being able to instantly upload a new photo, for example, or to change price and other details that may make the property more attractive to potential buyers.”

Indeed it is not surprising, Marais says, that many agencies have in recent years actually diverted resources from print advertising to developing, fine-tuning and promoting their own websites to local and global audiences.

The 2009 real estate survey, conducted by an independent researcher with the backing of IEASA and Property24 as well as the Estate Agency Affairs Board, is the second such poll ever conducted in the SA real estate industry, the first having been done in 2004 – when only 62% of agents were using the Internet to advertise.

Besides advertising preferences, the research probed a wide range of characteristics of agents and agencies, including demographics, business activities and compensation structures. It was distributed to 42 000 agents registered with the EAAB and although participation was entirely voluntary, it drew a strong response.

Issued by the
Institute of Estate Agents of SA

Wednesday, October 14, 2009

Property prices on the rise.

Ooba's price index rose 1,89% year on year Sept 08 to Sept 09. The ave price was R791 478 a year ago and last month R 806 494. Have we turned the corner?

Sunday, October 11, 2009

New blood for the Johannesburg Metro branch of IEASA

PRESS RELEASE
(for immediate release)

The move towards professionalising the Real Estate industry received another boost this week with the unanimous election of Charl Heydenrych as chairman of the Jhb Metro branch of the Institute of Estate Agents of South Africa (IEASA). Since he passed the board examinations in the early 90’s he has been involved in the property industry. Lately as a Skills Development Facilitator for some of the leading agencies in the region.

Currently IEASA has 5 500 members – the Jhb Metro branch, which potentially represents the highest proportion of this membership, has the lowest. Mr Heydenrych said of this situation: “We will only be taken seriously as a professional industry if we are truly represented by the number of our members.” He added: “Specifically in this region there have been many attempts to unify the voice of the players in the field – without much success. But now, in the light of recent developments on the regulatory front it is imperative for estate agents to act in unison.”

He urged members of the profession to throw their weight behind the new committee which is not only embarking on a drive to get new members, but also plans to canvass member views on issues that affect the industry. “While the recent spat between the Services Seta and the EAAB has had an effect on the ongoing attempts to professionalise the industry, it has also provided us as real estate agents the opportunity to mobilise and contribute to the future landscape of the industry – not just to act as spectators but as drivers of our own destiny” said Heydenrych.

The IEA was founded in 1937 to promote professional standards in the estate agency industry. Over the years it has introduced many training courses, established a recognised code of ethics for its members, and fought for industry interests. Membership is voluntary and, in the interests of the public, they are bound by a strict code of ethical standards.

The Jhb Metro branch is looking to expand the range of services to agents, from training and information sharing events, to assistance with obtaining the new qualifications and supporting new blood into the industry through Seta and DOL sponsored learnership programmes.

The Jhb Metro branch of IEASA can be contacted on 011 431 4107 or admin@ieasajhbmetro.co.za.


8 October 2009

Tuesday, September 15, 2009

Property Sector guide launched

The South African Property Owners Association (SAPOA) has launched a new grounbreaking document to help black service providers to the property sector. Make use of these contractors and score BBBEE points!

http://www.contractorsguide.co.za

Property Trends

www.myagent.co.za/property_trends/

Saturday, August 15, 2009

Bond Calculator

http://bondcalculators.co.za/repayment-calculator.htm

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If you wish to submit your organisation's details go here:

Tuesday, July 28, 2009

Get your new qualification as soon as possible

COLUMN FOR PROPERTY PROFESSIONAL
June 2009

Get your new qualification as soon as possible

Wherever you go and whoever you speak to in the real estate industry these days, the major topic of conversation is surprisingly not the state of the economy, or even the banks’ unusually tough lending criteria, but the Department of Trade and Industry’s new education and training requirements for agents.

These came into effect last July and have already caused many people (including, hopefully, most of the fly-by-nights) to leave the industry for good, and bring the number of registered agents crashing down from 84 000 to 38 000 in the past two years.

They are also costing many of those agents who remain in the industry a great deal of time and money to obtain – at a time when things are particularly tight financially. In fact, the total training bill for those agents currently registered with the Estate Agency Affairs Board (EAAB) can be estimated at close on R400m – and that does not include the fortunes spent by training providers on developing their learning programmes and course material for accreditation by the Services Sector Education and Training Authority (SSETA)

Consequently, it is not surprising that recent moves by the Estate Agency Affairs Board (EAAB) to earn further income from those trying to get qualified has been particularly badly received.

The issue came to light a few weeks ago, when reports began to emerge of agents being told by the EAAB that the qualifications they were obtaining from certain training providers accredited by the SSETA would not satisfy Department of Trade and Industry regulations for registration by the EAAB. The effect of this would be that the agents concerned who had completed the NQF4 qualification or the RPL process through such a training provider would not be able to obtain a Fidelity Fund Certificate after the cut-off date of 2011 and would thus would not legally be able to practise.

It subsequently emerged that the EAAB was trying to make the purchase of its own 800-page textbook a prerequisite for agents’ new qualifications to be recognised. It also issued a directive to various training providers that the book was to be used exclusively as the basis for their learning programmes or their qualifications would not be recognised for the purposes of registration with the EAAB or qualifying for a Fidelity Fund Certificate.

This prompted a swift reaction from the SSETA, whose CEO Ivor Blumenthal has pointed out in two strongly-worded letters to training providers and estate agencies that:
* The EAAB has no authority to question the validity of estate agent NQF4 and NQF5 level qualifications offered by any training provider that has been accredited by the SSETA - which is the only organisation officially delegated by the SA Qualifications Authority (SAQA) to accredit real estate industry training providers.
* The EAAB has no authority to dictate any particular curriculum or learning material to any training provider that has been accredited by the SSETA, or is seeking accreditation. In fact the principle of the accreditation process is that the training provider must develop its own course material and learning programmes.
* The EAAB is not entitled to make the use of its textbook compulsory in order for estate agents to be registered or issued with a Fidelity Fund Certificate. The book in any case contains no reference to the curriculum design process inherent in the SAQA accreditation process, and nor has it been accredited as formal learning material for the new NQF4 and NQF5 qualifications for agents.

The SSETA, says Blumenthal, will be meeting with the DTI to resolve these issues, which it has already taken up with the EAAB, but in the meanwhile, agents should be very clear that as long as they have obtained their NQF4 qualification from a training provider accredited by the SSETA, that qualification will be a SAQA-approved national qualification.

He also says agents should disregard “any and all” indications that such qualifications will not meet the DTI regulation for EAAB registration, and urges training providers to continue their activities in terms of their original conditions of accreditation.

As chairman of the board of the Real Estate Chamber of the SSETA, I support the decision by the SSETA to also obtain a legal opinion on these actions by the EAAB, so that clarity can be obtained on the correct processes, and have also said that IEASA will continue to be involved in the process of searching for a solution.

As things stand, the IEASA regions around the country are strongly promoting the new qualifications and working with accredited training providers to ensure that members obtain the necessary training as soon as possible, in many cases with the aid of a SSETA bursary.

For new agents and those with less than a year’s experience, the route to qualification is quite simply an NQF4 course and an exam pass. For others, however, the process is a somewhat more complicated as it involves assembling the necessary material to obtain a Recognition of Prior Learning (RPL) assessment and quite often some classroom time to fill in the “gaps” in the knowledge needed to obtain the new qualification.

Meanwhile, progress is also being made with establishing the unit standards for the NQF5 qualification for agency principals and the NQF7 qualification which may relieve agents with more than 10 years’ experience from having to go through the RPL process. The real bottleneck here currently is the lack of people qualified to moderate and assess agents at these levels, but we are confident that this will be resolved within the next few months.

*For more details about the new qualifications and training requirements, agents should contact their nearest IEASA regional office, or visit www.ieasa.org.za

(Received via e-mail from Anthony vd Riet)

Monday, June 1, 2009

Study Guides for the NQF level 4 qualification for Real estate practioners are now available



They are available from the EAAB at R 490 (incl VAT).

They look impressive - at this point I would say well done to those that made it happen!

Sunday, May 10, 2009

Zimbabwe here we come: The thin edge

Geoff Doidge, the minister of public works, did not want to lose momentum with the Expropriation Bill, which was withdrawn from the parliamentary process in September, he said on Friday. My question is "What effect is tthis going to have on investors?"

Work would continue on the legislation and the consultation process would be reopened.

Doidge acknowledged arguments that the bill was unconstitutional, but "some of the legal opinions I have been reading indicate that it is not unconstitutional", he said. My view is that the use of force to achieve social objectives were wrong during the Apartheid era and are wrong for our current democracy. Any deviation from that should be avoided.

Doidge, a former house chairman of the national assembly who was appointed minister a month ago, said the reworked bill would be put to Nedlac, the government, labour and business negotiating chamber. He hoped to forge a consensus on the legislation, between the Nedlac partners.

The legislation was sent back to the government by the national assembly's public works portfolio committee because there had not been sufficient consultation and the committee had concerns about unconstitutionality.


The land affairs department says the legislation is needed to fast-track land reform because land acquisition costs are rising exponentially as the 2014 deadline for transferring 30 percent of arable agricultural land to the previously disadvantaged draws closer.

South Africa has redistributed about 5 million hectares of the 25 million hectares so far.

Doidge expected the legislation, which was first tabled in April and became subject to some stormy hearings in June, to come before parliament again after the elections next year.

The original Expropriation Act of 1975 regulates only the expropriation of land for public purposes, while the new bill suggests the addition of the expression "in the public interest". What happened to the willing buyer willing seller concept? Force should not be used - it could be the spark for farm invasions and other Zimbabwe like abuses.

It sets up an expropriation advisory board operating at national and regional levels, according to the Sabinet Law website.

The chief justice should appoint a panel of judges to adjudicate disputes, Doidge said.

Friday, March 13, 2009

The questions and the answers

Clive,



I need to come across a bit more convincing on the following issues – can you help?



What is the current status of the level 5 qualification for principals.
Are any materials available relating to the level 4 qualification. Where can I get information relating to FAIS for example? (the content relating to the other Unit Standards also, if available).
I heard that the professional designation examination is going to be removed as a compulsory requisite to practice as an Estate Agent – is that true?

==================================================================================
Dear Charl,



Many thanks for your e-mail, the contents of which have been noted. I would advise as follows:



1. The SSETA is presently in the process of preparing the necessary RPL instruments and facilitator, assessor and moderator guides for the NQF Level 5 qualification. Once these have been completed the EAAB will be in a position to commence the writing of the study material for the National Certificate: Real Estate, as it has done with the NQF Level 4 material. The SSETA has undertaken to expedite the process to ensure that the NQF Level 5 qualification is up and running as soon as possible.

2. The Study Guide for the Professional Estate Agent: NQF Level 4 has now been finalised and the printing of this comprehensive work (which runs to 800 pages) has commenced. It is hoped that the work will be available for sale to estate agents, RPL candidates and learners by 1 April 2009. The unit standard dealing with FAIS is fully dealt with in the work.

3. It is amazing how these strange stories start. There is absolutely no truth in the rumour that the PDE is going to be removed. An examination such as the PDE is, in fact, essential for any profession and it is hoped that the first PDE for non-principal estate agents will be held on 18 June 2009. The removal of the PDE as a requirement for estate agents would, in any event, require an amendment to the education regulations by the Department of Trade and Industry and this is certainly not on the cards.



I do hope that this assists you.



Kind regards,



Clive



Clive Ashpol HonsBA, MBL, LLB, LLM

Education and Training Department

ESTATE AGENCY AFFAIRS BOARD




If you can help me to be able to answer these questions I will appreciate it.

In the streets of Johannesburg.

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