Why a career in real estate is a good choice
Considering
the rising levels of unemployment, perhaps it is time to consider a career as a
Real Estate Practitioner and here is why......
By
Jan Davel
According
to Statistics South Africa, unemployment levels rose to 25.2 percent from 23.9
percent in the first quarter of 2012. Yet many people hungry for meaningful
employment have not even considered a career as a Real Estate
Practitioner.
In recent
years the real estate industry has metamorphosed from a poorly regulated
environment peppered with ‘fly-by-night’ operators, to a professional
environment with Real Estate Practitioners who conform to prescribed
guidelines, hold compulsory qualifications and meet other barriers to entry. As
a long term career, the real estate industry now offers a solid return on
investment and the excitement and safety of pursuing a career within an ever
growing market. In fact, if one considers the investment of cost and time required
to obtain a regular formal qualification, the real estate fraternity could be a
highly favourable career option. Let’s explore further…
Advantages
§
Flexibility
The flexible working hours is a plus for most
agents. On the flip side, agents must be available whenever clients require assistance
and business is often conducted outside the typical nine to five.
§
Business ownership
The Real Estate Practitioner basically owns a
business within his Principal’s business. Within this set-up the agent’s
‘business’ can be as large as he wants it to be depending on the amount of time
and focus he wants to dedicate to his career. The reward potential is of course
directly proportional to the agent’s investment of time, energy, funds and
other resources. Subject to the approval of the Principal, an established agent
may employ an assistant to manage administrative tasks while the agent is out
in the field. The agent can thus determine his own business structure and
strategy within the framework of somebody else’s business.
§
Windows of opportunity
Working in this multi-disciplined industry, agents
acquire skills and practical knowledge of several related disciplines such as the
legal, financial and marketing sectors. The opportunity exists to specialise in
residential sales, property rentals, agricultural sales, commercial sales and
rentals and maybe even new property developments and retirement villages.
§
Retirement asset
Over
time, as the estate agency owner builds on the value and goodwill of his
business, he may be able to one day offer it for sale as an established going
concern. This may even form part of the estate agency owner’s retirement plan.
§ Return on investment
A career in real estate is mostly about long term
relationships. Excellent client service will yield future rewards and any
existing Real Estate Practitioners can attest to the power and value of a
satisfied client’s word-of-mouth to his social sphere. Many clients also prefer to
return to the same Real Estate Practitioner for real estate services years down
the line when he upgrades or downgrades according to changes in his lifestyle.
The
number of agents registered with the Estate Agencies Affairs Board (EAAB) has dwindled
from around 86,000 agents in 2007 to around 20,000 at present. Therefore, a
larger piece of the pie is available to the new generation of suitably
qualified professional Real Estate Practitioners in 2012.
Earning
potential
With
unlimited earning potential very few people realize just how rewarding a career
in the real estate industry can be. Although earning potential is directly related
to the agents’ efforts, skills and know-how, top performing agents earn incomes
on par with doctors, lawyers and accountants.
In fact, many
successful estate agents are professionally qualified individuals who migrated
from other industries to the real estate arena. This migration is mainly attributed
to the flexibility, financial reward and excitement the industry offers.
Four
steps to becoming a Real Estate Practitioner
Step 1
The agent
will require a reliable car, a mobile phone and an income to sustain him for at
least six months.
Step 2
The agent
will have to serve as an intern Real Estate Practitioner within an agency for
twelve months while completing the Further Education and Training (FET) Level 4
Real Estate Certificate followed by the Professional Designation Examination
(PDE) of the EAAB.
Step 3
The agent applies
for a full status Real Estate Practitioner Fidelity Fund Certificate from the
EAAB, where after he may work independently, ‘without the supervision of a
Principal’.
Step 4
To become a
Principal Real Estate Practitioner, agents must complete the National
Certificate in Real Estate (Level 5) and the PDE of the EAAB.
Certain
exemptions exist for experienced agents who have been in the industry for five
years or longer as at 15 July 2008 and Real Estate Practitioners over 60 are
exempt from completing both the Level 4 and 5 qualifications as well as the
PDE.
With the
assistance of a Services SETA accredited training provider, prospective agents
may also apply for Recognition of Prior Learning, exempting them from certain academic
requirements.
Join a
Franchise or an Independent Real Estate Agency?
§ Credibility
By
joining a franchised real estate agency, the prospective agent enjoys the
benefit of a tried and tested business model supported by a brand that is
already recognized.
§ Training, coaching and
mentoring
A
franchised agency operating under the banner of a responsible franchisor will
have access to training of a higher standard as well as practical coaching and
mentorship.
§ Economies of scale
In
the “right” franchise group, the economies of scale allow the franchisor to
negotiate more beneficial terms, rates and services for its franchisees.
§ Proper systems
A
reputable franchise group also offers a referral system which creates an additional
income stream and reduces the frustration and administrative burden associated
with this practice.
In
addition to the latest IT systems, a franchisor provides search engine
optimized websites, ensuring maximum exposure of available properties,
mobi-sites, document libraries, marketing and advertising templates.
§ Access to additional
income generators
A
few reputable franchise groups, such as the select group of agencies the four
major banks utilize to market and sell their distressed property portfolios, are
accredited to participate in special projects.
§ Rentals & Property
Management
Franchisees
who have partnered with responsible franchisors enjoy access to professional
and risk-free solutions with regard to property rentals, property management
and related administrative services.
§ Up-to-date information
A
franchisor provides its franchisees with up-to-date industry information and polices
the group’s corporate governance initiatives. This protects franchisees and
agents against negligence, ignorance and sometimes just forgetfulness.
Furthermore, pertinent legal documents such as Offers to Purchase are promptly
updated to comply with industry and legislative requirements.
§ Cross-pollination and
competition
Franchisees
usually share their knowledge and practical know-how with agents, creating a
platform for cross-pollination of ideas. The real estate fraternity is a very
competitive environment where the best-of-breed enjoy benchmarking and friendly
rivalry.
Due to the
nature of the business, independent estate agencies miss out on several of
these considerations and may potentially leave themselves, and their agents,
exposed to various risks.
Approximate
costs
A person
who is new to the industry, with no prior work experience or qualifications,
must complete:
§ The FET Real Estate
Certificate (Level 4) and a 12 month learnership @ approx R18,240
A person
who is new to the industry, with prior work experience and/or
qualifications, must complete:
§ The FET Real Estate
Certificate (Level 4) and a six month fast track learnership @ approx R11,970
A person
practising as an agent for more than one year, must complete:
§ For an estate agent: A Recognition
of Prior Learning and FET Real Estate Certificate (Level 4) @ approx R6,270
§ For a Principal: A
Recognition of Prior Learning and the National Certificate in Real Estate
(Level 5) @ approx R7,410
Thereafter,
the person must pass the Professional Designation Examination of the EAAB.
Level 4 for estate agents at approximately R550 or Level 5 for principals at
approximately R750.
Any person
interested in evaluating a career in the real estate industry may visit the
RealNet website www.realnet.co.za
for more information.
+27 12 460
4605
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