So how does the chief executive of leading property group, Pam Golding Properties, Dr Andrew Golding, describe a successful agent?
Relationship. Relationship. Relationship
“There is, without question, a level of competence, expertise and professionalism that is a given, but there is then an additional so called x-factor, that makes an exceptional agent, which is not necessarily that easily defined and is also not necessarily one thing. In many cases it will be their innate drive and competitiveness but in others it can be specific aspects of their character, their human qualities that make them so exceptional.
Fundamentally though, the common qualities of successful agents include a passion for the combination of property and people, and that they love what they do.
“Surprisingly, top agents are very seldom primarily driven by money. Generally speaking, an important driver and intrinsic motivator is being able to influence lives and participate in the positive, exciting and significant moments in people’s lives. Fundamentally, agents are in the business of nurturing and cementing relationships, and effective communication is a key skill. Top agents need to be empathetic but also with the skill to understand both the said and unsaid.
Furthermore, top agents need to be unwaveringly dedicated to an exceptional level of service, says Dr Golding.
Lanice Steward, former president of the Institute of Estate Agents South Africa, describes how to become an estate agent, from that first decision to embark on the journey, to obtaining your real estate qualifications.
From there, it’s up to you whether you become a successful agent--essentially that means being part of the top 20%--or remain part of the average 80%.
According to Steward they are two very different jobs.
Debunking the most common myth
There’s a perception that becoming an estate agent is easy--simply write an exam that’s not too difficult, head out there, sell lots of homes and make lots of money.
This is not true and it is this thinking that historically gave the industry a poor image.
Fortunately, the Estate Agents Affairs Board (EAAB) identified the need to step in 15 years ago to implement a tighter qualification process to obtain a real estate license.
Today, unlike in the past where you could write a three-hour multiple choice board exam and open up your own business the next day, there are a number of hurdles over which to leap. This has already significantly professionalised the industry.
First steps
Your first task is to find a company who is willing to take you on as an intern and who will register you with the EAAB for a Fidelity Fund Certificate (FFC).
These are renewable annually, for every agent, even once qualified.
As an intern agent, which is a minimum of a 12-month programme, you could potentially start earning quite soon, however, bear in mind that it takes an average of three months to transfer a property from date of sale and earn commission, so the reality is that you may need up to nine months’ worth of funding to back you up.
Until you are a full status agent, you are not permitted to sign any documentation and will be required to have a mentor who will accompany you when you list a mandate or complete an offer to purchase document.
The three hurdles towards estate agent qualification
In a nutshell, there are two journeys, so to speak, which are completed simultaneously, followed by an exam.
Journey A is an academic one, resulting in a NQF4 qualification required by the Services SETA (Sector Education and Training Authority), who require the intern to enrol with a service provider -- for example, Chartall Business College.
You are taken through five modules that require research, answers to questions, and the submission of practical examples.
Your service provider will have to find you compliant in each of the five modules. After this, your file goes to SETA for moderation.
Successful candidates are issued with a certificate of compliance (NQF4), a copy of which should be sent by you to the EAAB.
This process could cost you, however, SETA does offer learnerships, which you could enquire about through your chosen agency.
Journey B is one that satisfies a practical requirement of the EAAB in the form of a logbook.
Essentially, this is a compilation of practical examples that demonstrate your experience as an agent. This content is very similar to the examples that have to be submitted for SETA’s NQF4 practical requirement.
To guide you, the EAAB website provides an outline for both the format and content of the logbook.
The company you work for will be able to advise you on several providers, including some law firms, who offer further direction on how to complete the logbook. During your 12-month learnership, your mentor will be required to periodically sign off your logbook and ensure that all obligations towards completing it are fulfilled.
This is really a step in the right direction considering that estate agents are signing legally binding contracts and, in most cases, dealing with a client’s most valuable asset.
Once the EAAB has both your logbook and your NQF4 qualification from SETA you can register for the three-hour PDE (Professional Designation Exam), which is a three-hour, open book, multiple choice exam.
It is advisable to take a course on how to index your textbooks so that they are easy to reference during the exam.
Once you have fulfilled both the SETA and EAAB requirements and passed the PDE you are a Full Status Agent.
Find out if you are exempt from parts of the process
Depending on the subjects you took for your matric qualification or your tertiary education, you may be exempt or partially exempt from the NQF4. Regarding matric, for instance, if you have two of the official South African languages and maths (or maths literacy), you are immediately exempt from the language and maths sections within the NQF4 modules.
If you have a degree or other tertiary education, the subjects that you have completed may entitle you to further exemptions.
In recent years, property degrees through universities have also become an option, but remember that, regardless of exemptions or even a property degree, both the logbook and PDE exam need to be completed.
To apply for exemptions through the EAAB, there is a non-refundable cost of R1 600.
What is it really like to be an estate agent?
According to Steward, it’s important to know that the industry norm is that 20% earn 80% and that 80% only earn 20% of the pie.
Unlike in other jobs, if you give 40% you’ll get a very low return.
Because of the perception that it’s an easy way to earn an income, many people think they can do it as a job that fits in between the rest of their lives, whereas in reality, the life of the agent fits into the job.
There is also a public perception that agents earn too much commission, but remember that a large portion of that income goes to their costs, like petrol, maintaining a car, a smartphone, various marketing tools and, often, paying assistants to grow their business.
The 20%
These agents fully understand that real estate is more than just a fulltime job--it’s a lifestyle.
Agents who are hard-working, dedicated and exercise good time management can actually benefit from the flexibility of the job and be really successful.
The 80%
These agents work a 2-4 hour day and, because real estate is not really a half-day job, will earn the average income for most agents in South Africa, which is around R16 000 to R20 000 per month before tax and running costs.
Entrepreneurs who are in partnership with a brand
In essence, an agent is an entrepreneur who is running their own business in partnership with the company they work for and who is, in effect, capitalising their business, says Steward.
“Don’t be surprised if the brand you work for demands a solid performance from you. Remember that agents cost the company an average of R15 000 to R20 000 every month for their office setup, admin support, training, advertising and marketing.”
What does an agent need to have?
Top agents know that they never stop learning, so if you are serious about a career in property, choose a company where training is a key business strategy.
Steward endorses Andrew Golding’s views: “Apart from the learnt skills, like how to negotiate or understand the many legislative processes, there are definitely inherent characteristics shared by top estate agents. These include drive and passion, but almost always a love for people that is expressed in sincere empathy and compassion.”