Our CCH Marketing Plan Selling you property as soon as possible for the highest price obtainable in the existing market conditions will be our goal Our marketing plan for your property will: 1. Provide you with an extensive range of tools to market your property 2. Help you to determine the correct marketing price 3. Provide you with a result driven and well communicated 11 Steps Marketing Service Package 4. Emphasize internet marketing - a crucial tool 5. Explain why you should choose a properly constructed Exclusive Sole Mandate 6. Caveat venditor – seller, protect yourself against hidden agendas 7. Seller Checklist – Preparing or Staging the property for Marketing 8. Provide you with a Seller’s Documentation Checklist 9. Explain the steps in the transfer process to you 10. Explain some of the legal definitions relevant to a transfer of a property 11. Introduce the CCH legal panel whom we recommend you to use 12. Provide you with a “de-stressing” checklist to assist you with the move
Marketing Program Tools
CCH employs the following tools in marketing your property: (1)
The existing contact or client basis within Cape Coastal Homes (CCH)
Marketing campaign on the internet & printed media
Co-operation of all the other estate agencies in the area &
1.1 Existing contact or client basis within CCH Our Helderberg office consist of 28 associates & 4 affiliates who work together on all Properties sourced and marketed by our members. Our agency has been established in 2006 and intentionally recruits only experience and successful agents who have been active in the area for sometimes up to 20 years. Every CCH member has built a contact basis through years of contact and working with buyers and sellers in the area.
1.2 Media Campaign 1.2.1 Printed Media We primarily use the Burger and the District Mail and on an ad hoc basis the Bolander. 1.2.2 Internet CCH subscribes to 73 South African websites and utilizes a variety of international property portals.. No other estate agency places a bigger emphasis on internet marketing than CCH. Your property will be uploaded on the CCH website www.cch.co.za and on:
www.privateproperty.co.za www.myproperty.co.za www.g.co.za www.cellproperty.com www.propertygenie.co.za
www.sundaytimesproperty.com www.property24.co.za www.propertytraders.co.za www.sahometraders.co.za www.iolproperty.co.za
www.real-estate-south-africa.com www.propertynow.co.za www.cyberprop.com www.cyberagent.co.za www.sa-properties.com
These websites will provide your property with an estimated 50% coverage of the 1st or 2nd pages of the search engines Google, Yahoo & MSN – with search words such as „Strand property“ etc..
1.3 Co-operation of all estate agents in the area I will organize an open house as soon as possible for your property to which I will invite all active estate agents in the area. All estate agents will be provided with all the relevant information about your property and will in future use me as the channel of communication to you as the seller – especially in terms of viewing arrangements. I will provide you with a weekly written progress report (by e-mail).
CCH agents do not close sole mandated properties to outside agents – i.e. prevents outside agents and their buyers access to the property within a certain period of time and at a disproportional or unfair commission split. Such “closing-up” is a contra-productive exercise and definitely not to the sellers benefit. CCH work with outside agents on an industry acceptable 50/50 split – and not on a 60/40 or 70/30 split as is unfortunately common practice at some agencies. A fair commission split is a very important incentive to ensure full outside estate agency participation.
1.4 Show houses A show house forms an integral part of the marketing plan as it allows buyers to view the property at a convenient weekend time. Show houses also lessen the frequency and the inconvenience of scheduled viewings during the week during mostly “uncomfortable” after hour time slots.
CCH Internet Marketing CCH’s internet coverage is one of (if not) the most extensive available to sellers in the property market. The proof is in the pudding – by using Google, Yahoo and MSN search engines for the towns or areas in which CCH are advertising. Type in the “search” block generic search words such as: name of the town / homes for sale / property / apartments for sale / etc. Check how many of the first 20 websites (i.e. on the first 2 pages) is covered by the package below. Allthough website’s Google rankings change from time to time, the coverage or strength of the group of websites or property portals CCH employs is so extensive that your property should always remain on Google’s first page – ensuring maximum exposure. CCH is at present on more than 50% of Google’s first page in some of the areas we are marketing properties. CCH also creates a personalized internet marketing campaign for sellers – focussing on the specific property by creating a dedicated Google ads campaign per sole mandate. This is an industry first in South Africa. CCH can also extend the Google campaign with other social media tools – such as Facebook.
1. South African Property Portals CCH markets properties on www.cch.co.za and at least 73 other websites. CCH also employs a growing number of international portals in its marketing effort – excluding those which are part of the SA property portal’s reach. CCH employs 7 South African website groupings to market property and 2 websites for Comparative Market Analysis (CMA) valuations: www.cch.co.za Cyberagent (SA) Myproperty (SA) Private Property (SA) Property24 (SA) Propertygenie SA-Properties Sahometraders
: 24 websites (100 in total available) : 10 websites : 3 website : 19 websites : 5 websites : 4 websites (optional) : 8 websites (23 in total available)
1.1 www.cch.co.za The CCH website is a marketing tool employed by the member agents to pro-actively market properties to their databank of buyers. All new properties that are being uploaded will be e.g. automatically forwarded to all registered buyers.
1.2 Cyberagent : 23 websites All properties uploaded on www.cyberagent.co.za are transferred to about 100 websites of which the following 23 websites in the Cyberagent group will be relevant for properties in our area: www.cyberprop.com , www.cellproperty.com , www.ananzi.co.za www.sundaytimesproperty.co.za, www.real-estate-south-africa.com, www.g.co.za www.propertytrader.co.za, www.iolproperty.co.za, www.brabys.com, www.properazzi.com (one of the largest property websites in the world), www.findire.com (international)
1.3 Myproperty : 10 websites The myproperty group of websites consist of www.myproperty.co.za and 9 other websites www.clickproperty.co.za, www.homeq.co.za, www.viewr.co.za, www.ananzishopping.co.za, w ww. m we b sh o p p i n g .co .za , www. jumpshopping. co. za , w w w. pr icecheck. co. za , www.realestate.co.za and www.g.co.za . Myproperty receives a high number of local and international visitors averaging more than 100 000 visits per month. It is one of the top ranking property portals in all major search engines.
1.4 Property24 : 19 websites The largest website in South Africa – i.e. with the most properties listed on it. The listings are also distributed to a variety of other media related websites with extremely high traffic rankings, including www.mweb.co.za/property, www.bidorbuy.co.za, www.kalahariads.net, www.property.mg.co.za, www.sport24.co.za, www.beeld.co, www.health24.co, www.women24.com, www.channel24.co.za, www.dieburger.com, www.wheels24.co.za, www.rapport.co.za, www.parent24.com, www.sake24.com, www.volksblad.co.za, www.citypress.co.za, www.afrikaans.news24.com, www.24.com
1.5 Private Property : 3 websites Private Property is the busiest property website in South Africa – i.e. attracting the most unique viewers per month. It is always on Google’s first page for searches and has the highest traffic ranking in South Africa of all property portals. The listings are also uploaded onto www.thepropertymag.co.za , www.property.brick7.co.za
1.6 SA-Properties : 4 websites The SA-Properties group of websites consist of www.sa-properties.com , www.propertynow.co.za , www.b1.co.za , www.rentmyproperty.co.za . This group of portals are very well placed for South African property searches for a variety of search keywords on Google etc.
1.7 SA Hometraders : 8 websites (23 in total) The SA Hometraders website grouping consist of the following 5 portals which are consistently listed in the top ten search results for property search criteria : www.sahometraders.co.za, w w w. s a r e n t a l . c o . z a , w w w. s a f a r m t r a d e r s . c o . z a , w w w. s a d e v e l o p m e n t s . c o . z a , w w w. s a c o m m p r o p . c o . z a a n d o f t h e 1 8 r e g i o n a l w e b s i t e s i n c l u d i n g , w w w. w i n e l a n d s p r o p e r t y f o r s a l e . c o . z a , w w w. c a p e t o w n p r o p e r t y f o r s a l e . c o . z a , w w w. o v e r b e r g p r o p e r t y f o r s a l e . c o . z a , w w w. w e s t c o a s t p r o p e r t y f o r s a l e . c o . z a , www.gardenroutepropertyforsale.co.za for the different areas in South Africa.
1.8 Propertygenie : 5 websites Propertygenie website is one of the largest property portals in South Africa. It also downloads onto www.iafrica.com , www.thetimes.co.za , www.realestateweb.co.za and www.ooba.co.za. The abovementioned internet coverage is probably one of the most extensive in the South African property market. The simplest way to verify such a sweeping statement is to use the Google, Yahoo and MSN search engines to check for the towns in which CCH are advertising. Type in the “search” block generic search words such as: name of the town / homes for sale / property / apartments for sale / etc. Check how many of the first 20 websites (i.e. on the first 2 pages) form part of the above package. 2 International Property Portals The usage of international property portals by CCH extends our internet reach, focusing not only on those portals with the best Google page ranking in the English language (UK buyers market), but also on the more dominant international languages property portals whose users are also buyers in the areas where CCH members are active. 2.1 www.themovechannel.com It is rated the second best property portal in terms of Google page ranking for English speaking users in Europe. 2.2
It has a very good Google page rank for South African keywords in the major European languages such as German, Dutch, French, Italian, Russian and Spanish.CCH is continuously experimenting with other international property portals – always looking to grow our coverage on websites that generates international buyer leads for our mandates.
The importance of pricing your property correctly 1. Why is pricing important?: This is probably the most important factor in a successful sale. Pricing your home correctly is essential in achieving the highest selling price in the shortest period of time – i.e. maximizing your return. Your property has to be priced at a level that is competitive with other similar properties on the market, creating an impression of good value. Correct pricing increases advertising response, stimulates buyer interest, compensates for property shortfalls and provide the seller with a negotiating advantage. By overpricing your property, you will attract buyers in a higher price range with higher expectations, leaving you with no realistic chance of selling your property.
2. Reasons for overpricing : Seller’s reasons for overpricing: • • • •
To build bargaining room into the marketing price Need money for a bigger home in a better neighbourhood Need money for transfer fees, bond costs removal fees or alterations Need to recoup money spend on renovating the property
Buyer’s reaction to 4 reasons above: • • • •
Educated buyers recognize a fair price and will be more likely to pay it Your destination property has no effect on your property’s value Your need for money has no effect on your property’s value Overcapitalization is not a good investment
Agent’s reasons for accepting an overpriced mandate: • Secure the mandate & blow away the competing estate agencies to dominate the market • Free advertising for the agent – especially if it is on a busy road • Finds buyers for correctly price property through boards, open houses and media Advertisements of overpriced property • Hopes for a price reduction close to market value and possible sale
3. Setting the price: In establishing a marketing price 3 sets of prices need to be investigated: • Comparative or similar property for sale in the area (what your property will compete with) • Comparative property recently sold in the area (what buyers are willing to pay in recent times) • Comparative withdrawn property in the area (what buyers are not prepare to pay) Avoiding selling your property under its real value speaks for itself. Making the same mistake when it comes to overpricing can be as a costly mistake because the selling price of a property in the market tends to decline as time passes. Buyers in general do a much more thorough comparative market analysis of the properties in the area then any seller who focuses more on his or her own needs or financial obligations in terms of his or her next property or life style choice. Buyers learn the market value of properties in your area by comparing your property to all the others that they have seen. If your price is too high they will simply
dismiss it or if it is not priced correctly (that is offers them less value than other competing properties), they will rank it as one of the lower choices on their “short list”. If the seller chooses not to put their home on the market at the suggested marketing price, but rather at the higher price indicated by the agent, the agent will usually comply. It is however advisable to reduce the price if there has not been any offers after three weeks. Sellers should be aware not to compare the price of their home to the listed prices of other homes in the area which may have sold – but rather to the sold prices achieved.
4. Wrong Pricing – Expected Results: There is a direct correlation between the marketing time span and the price of a property – as a correctly priced property will tend to attract the most buyers within the first 4 weeks of the marketing program. A property which is priced +-10% above its real value can extend the marketing time beyond 2 to 3 months, whilst a property which is priced +- 15% above market value can prolong the marketing period up to 6 months. Properties which are 20% or more above market value can remain in the market for up to a year or more. Such properties unfortunately become a measure stick to their owner’s detriment – i.e. they act as a confirmation of comparative real value that potential buyers will find in the correctly priced properties. The stigma attach to a property that have been for too long a period in the market can also be relayed directly into the type of offers the seller will receive. Experience show such offers can be below the property’s market value, as the buyer will test the level of urgency or despair of the seller.
5. Estate Agent’s Role in Pricing: Correct price counseling is the foundation of all successful sales and the estate agent’s most valuable service. The agent who has not researched the market and cannot justify his valuations by comparing them with other similar sales, is damaging the seller’s changes of success. Sellers have to be provided with the statistics on which every valuation is based. In an upswing or downswing market, a good estate agent need to take care in explaining to the sellers exactly what formula - i.e. rise or fall in buyer activity he or she has worked into the price of the property. Monitoring all recent sales activities is therefore crucial. Awarding a sole mandate to a reputable agent can help a seller achieve the highest possible price for his or her home, as it avoids the temptation for competing agents to undercut on price for the sake of closing the sale — in other words, it is important to let buyers compete for the sale and not the agents. It is common practice for sellers to favor an agent who gives them the highest valuation for their property. This is not always the most accurate valuation – especially if the valuation is done by a dependent agent who need in terms of her or his employment contract to secure a fix amount of sole mandates in a specific period. Sellers will then be disappointed when the market does not react positively to the unusually high price and may find that their home stays on the market for a long time, with the price dropping continually. It is of the utmost importance to select an agent based on honesty, ethics, competence, experience and previous sales results in your area – NOT on pie-in-the-sky price promises. It is also vital for your selected agent to continuously measure market response to the property, monitor market trends in the area and to communicate with you as the seller to make speedy adjustments to the price - should buyer interest lack and no offers realize within the first 3 weeks.
Our 11 Steps Marketing Service Package Our marketing service includes the following steps : 1. Valuation • • • • •
Gathering lifestyle information re the property with your help Liaising if necessary with CCH colleagues re the property’s value Researching Deeds Office data of sales in the area Compiling list of similar properties sold & presently in the market Compiling a CMA (Comparative Market Analysis) of your property from the above data to determine the value – making provision for a lower, proposed & higher marketing price • Proposing the marketing price & the marketing program for the first month
2. Preparations • Advising you on what is important in staging your property correctly for the most beneficial Sale (see “staging” article attached) • Taking at least 12 photos of the interior as well as the exterior • Writing applicable marketing material for usage in both printed advertisements & internet marketing covering the cost of the local printed media and the internet marketing on risk • Producing a marketing synopsis about your property for all potential buyers • Producing a cash flow spreadsheet for investment property – if applicable
3. Initiation • Erecting a For Sale board on your premises • Introduction of the property by e-mail to all other CCH and local buyer agents • Multi-listing the property by way of an open house to ensure participation in the property’s Marketing by all estate agents in the area • Providing you with all other agencies’ feedback on the marketing price • Forwarding a synopsis of the property to potential buyers on the agent(s) / agencies databases. Automated distribution of the information of your property will also take place on a variety of the websites CCH is subscribed to.
4. Viewing Arrangements • Introducing potential buyers to your property during either suitable times for yourself, or • with a set of keys if you are comfortable with such an arrangement • staging your property correctly for the whole of the marketing period will be crucial and therefore viewing arrangements need to be a carefully managed “set of rules”
5. Show House Days • • • • • •
Upload the show house dates onto our website Include show house notification on the printed media advertisements Erect show boards along main routes Prepare a show house brochure Personally attend the property on show days Provide you with feedback as received by the show house visitors
6. Regular Feedback • Weekly reports by e-mail about the progress or feedback from clients viewing the property • Meet with or phoning you regularly to discuss the marketing program or any proposed alterations to it
7. Screening of Buyers • Qualifying potential buyers to ensure that they have the financial ability to purchase your property • Contacting CCH panel of bond brokers to assist in pre-qualifying potential buyers according to their income levels etc.
8. Preparing or Negotiating The Offer to Purchase • If a buyer would indicate a willingness to make an Offer to Purchase to the mandated agent directly, a standard CCH Offer to Purchase will be provided and negotiated with the buyer • If another agent would indicate that his buyer would like to make an Offer to Purchase, only an Offer to Purchase on a CCH contract will be accepted – minimizing legal risks
9. Negotiating the Sales Agreement • It is advisable to prevent direct contact with the buyer – especially if you have limited experience in selling property • Negotiations with either the buyer or the agent of the buyer will be handled on behalf of the seller by the CCH agent – versed in the art of property negotiations and achieving the highest possible price for the property • The CCH legal panel are always available for legal advice or for drafting or redrafting Sales Agreements
10. Buyer Support if Required • Providing details of experience bond brokers to assist the buyer with obtaining finance • Assisting the buyer to sell his property (if it will be a subject to sale of your property) or Referring him to the most experience or successful agent in the area where the buyer’s property is located
11. After Sales Services • Instructing your conveyancer or one of the conveyancers on the CCH legal panel to handle to registration process • Arranging your beetle & electrical inspection if required • Ensuring that you receive a regular registration progress report – can be a written weekly report if some of the CCH legal panel members are employed with even a real time updating system where you will be supplied with a private access code to obtain the exact status quo of your transaction at any given moment.
Why choose a properly constructed Exclusive Sole Mandate? An exclusive sole mandate is both a marketing and service agreement between the seller and the estate agent – designed to formalize trust and responsibility between the parties by defining the role and service levels of the agent and the financial obligation and level of participation of the seller. A properly constructed sole mandate ensures maximum but controlled outside agency participation from the beginning and creates a win-win situation for both parties.
It is of the utmost importance that the seller secures with the exclusive sole mandate the 4 pillars of effective property marketing: 1. A marketing plan driven by result orientated feedback 2. Introducing the correctly priced property to all buyer agents from the outset at a fair Commission split, 3. A concentrated effort by a motivated and incentivized agent, and .
4. Security and privacy of the seller and property
1. The philosophy of a mandate is simple - you as a seller need your agent to be answerable. If an agent is not answerable to the seller the property can fall to the bottom of the agent’s priority lists. With a sole mandate the agent has greater inducement to study the property thoroughly and to devote time and effort. Very little work is done on an open mandate as it literally only attracts real attention or agent dedication if it is priced competitively. Pro-active marketing of the open mandate property will definitely not be part of the agent’s daily tasks as an estate agent is not paid for time — only for results. Accurate price counseling is also not part of an open mandate – as nobody wants to be the bad news guy! The absence of result oriented feedback by estate agents will emanate from an open mandate. 2. Agencies who negotiate sole mandates purely for their own benefit by preventing all outside agents immediate access to the property, uses the seller’s sole mandate to strengthen their business to the detriment of the seller – as they want to keep rival agents out of the market to ensure maximum possible return for the marketing effort and expense. Market dominance is here preferred to a win—win situation for both seller and agent. It is crucial to have all agents participating in
the marketing of the property from the very outset through your contracted sole mandate agent - since the property is considered a “fresh commodity” during the first 4 weeks. Both estate agents and potential buyers will have higher perceptions of competition and urgency and a sale is likely to be concluded not only within a shorter period of time, but also at a higher price. A fair 50/50 commission split between the mandated agent will not only ensure a return on the agent’s investment in your property, but will also encourage other estate agencies to introduce their buyers as soon as possible to your property. 3. It is important that the agent will be secured of an income (commission) should he or she succeed in sourcing a buyer. It is too risky for an agent to spend time going through buyers’ lists, canvassing potential buyers, liaising with colleagues — and spending money on expensive advertising and marketing, without earning a cent for his or her efforts. A sole agent will often obtain a higher price when they know they have time to negotiate with the buyer, without worrying that another agent might "get in first with an offer”. .4 Last but not least - your security and privacy are better protected with an exclusive sole mandate as only your sole agent will contact you and bring the buyers to your home.
Steps in the Transfer Process
Transfer Process • • • • • • • • • • • • • • • • • • • • • •
Finalise the Agreement of Sale – i.e. offer to purchase is accepted by yourself The Seller nominates the transfer attorney (conveyancer). Apply for a loan from your selected bank or bond broker. The bank’s valuation department will inspect and value the property. Bank approves bond in principle Guarantees from the purchaser’s bank are submitted to the conveyancer The conveyancing attorney is instructed by the purchaser to proceed with the transfer. The conveyancer will source the title deeds from the Seller. The conveyancer will apply for cancellation figures of any existing mortgage on the property. The documents are prepared by the conveyancer. The Electrical, Beetle, Plumbing (and gas where applicable)Clearance Certificates in terms of the Deed of Sale is arranged by the Seller and/or his Agent. The documents are signed by the buyer at the conveyancer’s office. The documents are signed by the Seller. The pro-forma transfer costs and conveyancer’s fees are payable by the Buyer. The financial guarantee is obtained from the Bank providing the mortgage. Where applicable, the conveyancer will arrange for the exemption of Transfer Fees. A rates/levy clearance certificates obtained from the necessary authorities – municipality, body corporate or home owners association by the conveyancer. The documents are logged at the Deeds Office. Registration takes place. The payment of sale proceeds. Commissions are paid. You are the owner of your new property
CCH assistance • Forwarding of sales agreement to conveyancer and distributing of copies to buyer and seller • Obtaining copies of all necessary FICA documentation for the conveyancer • Assisting the buyer if required to ensure that the bond application is completed by a bond consultant from either a bank or a bond originator • Arranging for electrical and beetle (where necessary) inspections • Communicating with the conveyancer during the whole registration process – ensuring that the Parties will be updated on the progress
General Tips • Ensure that you give at least 90 days written notice of your intention to cancel your home loan to avoid paying penalty fees • Ensure that your personal income tax as well as your rates and taxes on the property are up to date to avoid delays in the transfer process • Time period of transfer varies: cash transaction (6 weeks) / with bond approval (2 months) / Conditional upon sale of other property (more than 3 months).