How Real Estate Agencies Can Maximize On the Festive Season.
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How Real Estate Agencies Can Maximize On the Festive Season Period In Order To Survive the First Quarter of 2022
By Matseleng Mogodi
This article was originally published by Real Estate Investor Magazine.
1. Why is it important for real estate agencies to maximize on property deals at this time of the year?
The most important thing is not to view this period as too different from any other month. If an agent has not been performing throughout the year, they will not suddenly feel the ‘urge’ to maximise sales in December. Most people receive some extra cash in December, and it is up to the real estate property practitioner to provide them with a good reason to want to buy or sell.
It is indeed important for the property practitioner to ensure that they do obtain sales because in January the focus is usually on the new year, and on school fees and new expenses, some of which may be due to expenses incurred in December. Therefore, it is vital to perform in December because property transactions take a few months, and if there are no sales in December, chances are there might still be no sales in January, and therefore this property practitioner may find it difficult to survive the first quarter of 2022.
2. The significance of cash-flow management for real estate agencies going into 2022?
The irony for real estate agencies on cash flow is that during this period and the whole pandemic situation, for companies that have had big offices and huge overheads, a lot of those have actually learnt to become leaner and in the process saved on costs, because a lot of work can be done remotely. The old methods of doing business in real estate were quite costly, with lower results, and right now the same cost has the potential of yielding much more work is done online when one knows what they are doing.
Therefore, property practitioners already know that they cannot just spend, at least I hope so, because earning on commission can be both rewarding as well as defeating to one’s spirit. This requires a real estate property practitioner to know what they have in the pipeline, and what they have in the bank and weigh that against all the expenses, to make sure that one does not live beyond their means simply because it is December. Unlike other professions, the salary may come in even without doing much work, but in real estate, the financially savvy ones always make it.
3. Knowing that property registrations take time and real estate practitioners earn an income through commission, what would be your advice to them?
The key aspect is for the property practitioner to know what they are worth, per hour, this means that they have to first decide what they want to earn per month, then divide that into let’s say 4 weeks of a month ( if you want to be precise, use 4,3 weeks). Then in that one week, how many days will they work, let’s say 5 days. When we look at this, they would have worked say 20 days. It, therefore, means whatever the monthly income is, has to be divided by the 20 days to determine how much they must make in one day, and if working 8 hours, how much per hour.
With property, one may think that only the signing counts, but actually what counts the most is everything else that one does that leads to the signing of that Offer to Purchase, and if those important activities are not performed, then zero rands are earned. Real estate/ property practitioners have to attach value to all activities so that they see the value, otherwise one ends up doing nothing, and as they say, we all hit our goals, whatever they are, and if your goal is nothing, you’ll always reach that goal, and get nothing.
4. The impact of servicing your niche market as an agency in 2022 since relationships are a crucial pillar in real estate and business
Every business requires building relationships with its customers. Real Estate is even more sensitive because it is a huge commitment, which may take the buyer over 20 years to service, therefore it is imperative that a real estate property practitioner ensures that they know who their customer is, so that they can plan for the customer and solve the problems of that customer.
Sometimes an agency can cast its net wide, but the danger is that they can end up servicing a client who is available but is not looked after by anyone specific. Also, these clients may become permanent customers, but they may slip away when another real estate company starts to provide solutions for their needs. It’s like being in a conference, then everyone who’s being looked after goes into break-away rooms, and then those that have nowhere to go get serviced by anyone who ‘will see’ what to do with this group. Besides, every buyer and seller, landlord and tenant, deserves better, and therefore it is important to spend some time planning who this client is, and what you as an agency as well as a property practitioner are willing to do for this client.
5. The crucial role being played by vacation rental properties during this period?
Vacation homes usually get fully booked during this period. However, a lot of these have suffered due to the pandemic. These rental properties do very well during the festive season and other holiday periods, but some suffer tremendously during the year, hence it is important for them to offer flawless service to attract clients even outside these holiday periods.
6. Marketing tactics that will drive efficiency in 2022
It is critical to speak to the people you want to service, know what message you want them to hear, and offer what you know they need.
Real estate agencies have to look at what products are popular, and most of these popular products are due to advertising and marketing, not necessarily about the product sometimes, It is because they put themselves in front of us that we start to remember them when we think about the service they offer. They seem to understand how the brain works.
In property, even though the brain may work, the heart must also participate, putting someone in a home for 20 years where they cannot even move around in that home, is a very painful 20 years for them, therefore, while we do the marketing, we must also be transparent so that our clients can make informed decisions.
7. Closing remarks regarding survival tools for real estate agencies in 2022
- Have a great online presence so that your clients can find you
- Know how much commission you have in your pipeline so that you can plan properly
- Do not relax after you sign an Offer To Purchase, continue to find more to sign
- Learn about the industry, be curious about the latest trends
- Dress smart, this helps even when there are other flaws
- Treat your family well, after all the rejections, they are there to support you, do not make them your doormat
- Make sure that your friends and networks know that you are in real estate, and offer your best
- Build and service your database
- Clients are loyal to themselves, make sure you offer them your best performance
- Be truthful - the law of all lies says “All lies rise up to the surface” so you should know that the lies will ultimately catch up with you.
- Love your work, and your clients will sense it, and they will want you to help them.
Author: Matseleng Mogodi