Some background: The changing property market has brought about a opportunity to change the way estate agents have been conducting their business from offices with high monthly fixed costs such as rentals and an administrative staff component – restricting their activities to the specific office or area. Several independent estate agencies have also closed down due to the big contraction in sales volumes estimated at between 30 - 50% countrywide. We only need to look at statistics to see the drop in property deals. In South Africa, (2012) an estimated 10 000 to 12 000 property transactions per month was done with an estimated 120 000 to 140 000 transactions per year and a value of approximately R 96 billion per year. Prior to 2007 the yearly transactions was approximately 200 000 per year. If we consider that Estate Agency office generates only about 3-4% of all property transactions – and the estate agent’s circle of influence responsible for about 80% of all property transactions, the question arise why the need of a Estate Agency Office? A business model with such a disproportional return on investment is only made possible on the back of the member agents who are subsidizing it with 40 to 50% of their commission earnings. To quote Richard Branson’s latest book titled “Screw business as usual” we think it is time to make a change. The technological advances and tools available to estate agents have since the advent of the cellular phone and the internet abolished the need for a physical or conventional shop front based estate agency all together. Estate agents do not sell property. They sell information about property – i.e. deliver a service to buyers and sellers of property. The level of their service is based on their expertise, experience and the © PropertyTime 2012
quality of the databank of property information compiled by participating member agents in the area to which they have access to. According to an article in the Rapport newspaper, the author Tim du Plessis says that predictions are also made that printed newspapers will disappear in the USA by 2017 and be replaced with electronic media. The quality of a real estate agent’s service cannot be improved by a professional office site in the same manner as a shop in a mall forms an integral part of the shopping experience – especially when it comes to convenience for the client. The window shopping element of “properties on display” has been replaced by a much more informative and private tool - the website of the estate agency and other property websites available to the general public. The buyer or seller can in this way avoid direct contact with the average dependent (non entrepreneurial) estate agent who needs to survive from unqualified and mostly “lukewarm” or “by chance” clients. Sellers and buyers of property will rarely entrust the largest transaction they will encounter during their lifespan to a stranger in an office just because the office provides a professional environment for “an encounter by chance”. The non tangible nature of an estate agent’s service, is the relevant information and knowledge the agent bring to the property transaction, fits perfectly into the mould of a cost effective and professionally managed virtual office. The quality level of the agent’s service is what sets the estate agents apart and not the venue from where their administration is handled. The abovementioned 80% of property transactions is
2 a direct result of the different service levels provided by the different estate agents creating a system of referrals for the top 20% of estate agents which captures and will keep on capturing the majority (80%) share of property transactions all over the world.The need for a physical venue only arrives at a fairly advance stage of the transaction - when the buyer needs to make an offer. The “home office” of the PropertyTime agent offers a perfect venue. The other alternative option for a straight forward property transaction is a table at a local “Coffee shop”. Our idea to grow the largest real estate network with the best equipped Estate Agents in South
Africa has turned into a dream. How? By putting action to the idea and "Empowering Estate Agents". This is the "PropertyTime Family" dream that we share with our franchisees, agents, our customers, our owners, our employees, our trainers, our partners - and when we all "live this dream” we can all say; PropertyTime - "Where all stakeholders gain"
Tell me more:
join PropertyTime. The following will enable you to operate within PropertyTime:
PropertyTime has introduced a virtual office concept to the South African real estate market.
PropertyTime is a Real Estate Agency with a unique concept which “Empowers Estate Agents” to run a business from home under the PropertyTime umbrella giving them the opportunity to manage their own affordable business and time for themselves but not by themselves. The PropertyTime system creates an environment where you stop working to survive and start working to excel and we believe that we run a life success company. PropertyTime is significantly different to any other Real Estate business and it is one that is designed to create a symbiotic and co-operative relationship between agents, whose common goal is to market property and make a decent living. This ultimately benefits our customers (buyers and sellers) who are always “KING”, as they both have Estates Agents working together as a team with the common goal to market their property more effectively and/or finding that new home.
1. A valid Fidelity Fund Certificate 2. Successfully completed RPL and PDE or being in the process of or having applied with intention of completion within the specified time frame. 3. Vehicle and drivers license. 4. Fixed telephone line, cellular phone or both. 5. Computer, preferably a laptop with Windows professional XP operating system or a later version. 6. Internet access. 7. Printer with the following capabilities: Copier/Scanner/Fax or individual machines that can perform these functions. 8. Digital Camera with, download capabilities. 9. Email address. 10. Skype connection. 11. Fax to mail number. 12. Bank cheque account.
Who can join? Any Estate Agent who says “yes” to the PropertyTime dream and believes he/she has the ability to run his/her own business (with training and back-office support from PropertyTime) can
Candidate agents can join with certain limitations (Please enquire) The items above are important but a positive friendly attitude and contagious energy is an absolute must and is not negotiable.
© PropertyTime 2012
Who should not join? 1. Agents who believe they can only work for a “boss” who continuously looks over their shoulder. 2. Agents who have a “bad” and negative attitude. 3. Agents who are only “happy” when they are miserable. 4. Agents who believe they are not “team” players and think they know everything and therefore don’t realize the power of a good brand and tapping into a network of similar business owners working together to reach a common goal. 5. Agents who can’t “live” the dream. 6. Agents who lack integrity. 7. Agents who have no passion for the industry.
Who can’t join: - any person who has at any time by reason of improper conduct been dismissed from a position of trust;
- any person who has at any time been convicted of any offence involving an element of dishonesty; and - any person who is an insolvent and who has not yet been rehabilitated.
Commission Structure The commission structure is one aspect that sets us apart from other agencies as the bulk (91%) of the commission goes to agents instead of principals or broker/owners. Commission is earned on registration of a sale at the deeds office. Once commission is paid over to PropertyTime head office by the transferring attorneys, the PropertyTime levy is deducted, and the commission split will be as follows: (see example below) Your Commission. 9% PropertyTime Balance Selling Agent Listing Agent PropertyTime HQ
R100 000.00 9 000.00 91 000.00 45 500.00 45 500.00 9 000.00
Other Agencies Comm.R 100 000.00 20 % LIST FEE Balance Selling Agent Listing Agent Broker Owner
20 000.00 ÷ 2 (50% to Principal) 80 000.00 ÷ 2 (50% to Principal) 40 000.00 10 000.00 50 000.00
Selling agent receives R5 500.00 more with PropertyTime and listing agent receives R35 500.00 more with PropertyTime. © PropertyTime 2012
4 If the selling agent is also the listing agent, he/she will receive the full amount of R91 000.00 so the agent will receive a difference of R51 000.00 more with PropertyTime. PropertyTime will pay a maximum 20% off the top inclusive of VAT referral commission which will be paid to the Referral agents Agency, who will supply PropertyTime with a VAT invoice. Your Comm. Referral comm. Balance 9% PropertyTime Balance Selling Agent Listing Agent PropertyTime HQ
R100 000.00 20 000.00 80 000.00 7 200.00 72 800.00 36 400.00 36 400.00 7 200.00
Other Agencies Comm.R 100 000.00 Referral comm. Balance 20 % LIST FEE Balance Selling Agent Listing Agent Broker owner
20 000.00 80 000.00 16 000.00 ÷ 2 (50% to Principal) 64 000.00 ÷ 2 (50% to Principal) 32 000.00 8 000.00 40 000.00
Selling agent receive R4 400.00 more with PropertyTime and listing agent receives R28 400.00 more with PropertyTime. If the selling agent is also the listing agent, he will receive the full amount of R72 800.00 so the agent will receive a difference of R40 800.00 more with PropertyTime.
Why the high listing commission? PropertyTime provides equal commission for selling and listing agents, as we firmly believe the one is dependent on the other, and both work equally hard to satisfy the client, who is “King”. The selling agent would not have had a sale if there was no stock (listing) available and the listing agent would not have earned commission had the selling agent not provided a buyer therefore both agents deserve an equal share of the commission after deductions. Bonus is where the selling agent and listing agent is one and the same person. Therefore, if you are a good selling agent, you need not be prejudiced by giving so much listing commission away to the listing agent. You would be giving it away to the broker owner anyway! You are however able to sell your own listings for a much greater rate with PropertyTime. The best of all is you have a greater chance of having your listings sold by other Agents that work with you, than you would have if you were waiting for the broker owner to sell your properties, in other agencies. Therefore, you may unexpectedly, receive a good high listing commission from an agent you work with, for a listing you did, and if you list more you have more of a chance to sell your own listings at a much higher rate of commission. If you list more, you effectively force other agents to work for you. Clearly one can ascertain from the above how important listing will be for the Agent working under the PropertyTime system. There are large sums of money to be made by the listing agent that is able to list property at the correct price for the area, and under circumstances that will enable the property to sell. Good listing agents with right priced property will have the selling agents working for his/her benefit as they will endeavor to sell the property as quickly as possible. The listing agent under these terms and conditions with the PropertyTime system will be able to make a good living without ever having to sell a property. The listing agent that is also an active selling agent will benefit greatly by this system as he/she will enjoy the best of both worlds particularly if he/she sells his/her own listing. © PropertyTime 2012
With this system it is vital that both the listing and selling agent cooperate and work together as a team drawing on each other’s experience and knowledge to successfully conclude a sale as it will be mutually beneficial to both parties.
large sums of money that can be earned if their listing sells.
Listing Procedure: It is expected/recommended that listing agents assist selling agents by: 1. Supplying as much information about the listed property as possible.
2. Staying in contact with the seller and keeping listing updated with any changes. 3. Ensuring that the selling agent has ease of access to property concerned and that the property is in a reasonable state for viewing – organize access, perhaps go ahead and open up, open curtains, put lights on, neaten up and generally make it easier for the selling agent to sell your listing.
The Selling Agent: It is common knowledge in the industry that 20% of the agents sell 80% of the properties and the balance of the 20% is sold by the other 80% of agents who probably listed the majority of the properties that were sold. The PropertyTime system allows for Agents to survive during the dry periods when they do not sell because of the good listing commission earned. The selling and listing Agent effectively take care of each other during hard times. Selling Agents need to build up a good rapport with the listing agents as they will need to call on their expertise and help during busy periods to perhaps find stock and to assist with making
1. Obtain listing via usual manner i.e. leads, cold canvassing etc. 2. Before making appointments check the system to see if the property is not already listed with us, this will save unnecessary expenses and time. 3. Make appointment with seller to list, and try to let other agents know about the listing as it is always easier to sell a property that has already been viewed by the agent. 4. Ensure that all the necessary information to list a property is obtained and that the property details are correct, as the property cannot be uploaded to some website’s unless it has been verified in the deeds office. (PropertyTime will supply each agent with Lightstone and Prop Data software and will also pay the monthly cost thereof).Get owners full names, ID number if possible, lot number or correct street name and number. 5. Where possible obtain a sole mandate. 6. Make sure that the photos are in focus and take as many as possible to best show it off. Photos are all to be landscape, not portrait, as these will distort when uploaded. 7. Complete listing form neatly and accurately and ensure that all the fields are filled in. Good descriptions help market the property. 8. Once completed upload all the information on your system but do not Publish. (Publishing will be done by PropertyTime HQ only) This arrangement is instituted so that listings can be checked by PropertyTime HQ to ensure that all listings are executed professionally before they can be viewed online.
appointments for their listings etc. Listing agents will be only too willing to assist because of the
© PropertyTime 2012
Once the office manager has received the listing sheet he/she will check to see if the property has not been previously listed, as the listing are on a first come first served basis. Where 2 listing are received together, the time on the fax or email will be the deciding factor as to whose listing it is. Incomplete and ineligible listing sheets with inaccurate information will not be accepted. The uploaded listing reflects on the company and on the agent, a badly listed and captured property reflects as a sloppy unprofessional agent. Listings done via the PropertyTime System are dually owned by: 1. Agent who submitted the listing 2. PropertyTime If an Agent leaves PropertyTime they will be entitled to retain his/her own listing but they will also stay on the PropertyTime database and will be randomly shared between the remaining Agents at PropertyTime. If an Agent resigns from PropertyTime and then sells a property that was listed by another Agent at PropertyTime during his/her time of employment with PropertyTime he/she agrees that he/she will still pay the listing Agent his/her share of the commission as if he/she were still working for PropertyTime (by virtue of the fact that he/she obtained the knowledge about the property for sale from another PropertyTime Agent). This will be in force for a period of 2 months after he/she has left PropertyTime. What will your responsibilities be at PropertyTime? The PropertyTime Agent is self-employed and is responsible for his/her own costs incurred in the running of his/her business.
© PropertyTime 2012
All accounts that the Agent needs must be opened by the Agent and paid for by the Agent. The office manager will place adverts for the Agent if so required and the cost of these will be added to monthly billing, or the Agent is at liberty to place his own adverts, which will be for his own account. It is the Agents responsibility to adhere to the contract as it is, and in the spirit in which it is written. The Agent must acknowledge that working together to achieve a better future for each other is a noble goal and must in no way jeopardize the other Agents or his/her own aspirations by undermining the work of others. The Agent must acknowledge that he accepts, that if a listing is done by another Agent, and is registered as such and he sells the property “privately” or “under another contract” to avoid paying commission he will be liable to pay all costs for any legal action taken against him/her to claim the commission as this is considered fraudulent. Any act of fraudulence against either another Agent or PropertyTime Agency will not be tolerated and will be prosecuted as such. If the Agent is found to be guilty of fraud or improper conduct in any way his/her contract will be terminated immediately and declared null and void. Insurance against defective work must be obtained by the Agent to compensate a client in the event of loss of information by the Agent or other losses by negligence, error or misconduct. This insurance is provided for, by the Fidelity Fund. The Agent must acknowledge and work within the code of conduct as set out by the Estate Agents Affairs Board and his/her contractual agreement with PropertyTime. Furthermore we encourage each and every agent to Promote yourself, advertise as much as you want, negotiate your own commission (within certain parameters), decide your own deals, grow your business the way you know best and enjoy no restricted sales and listing boundaries.
How do we communicate? With today’s technology it is now possible to communicate with each other over a vast expanse as if we were sitting in the same office. There are various ways in which to communicate and it is no longer necessary to sit in an office, do duties and only obtain leads when one is on duty. The PropertyTime Agent will be able to work from the comfort of his/her own home and concentrate on building leads by referral as well as obtaining leads via the internet. The prosperity of the business depends on the effort that the Agent puts into his/her own business. Every effort must also be made to attend a once weekly meeting with all PropertyTime Agents in your direct area. This meeting will be vital for the growth of your business and relevant topics will be discussed and some training provided. Methods of communication: 1. 2. 3. 4. 5. 6. 7. 8.
Skype Email SMS Fax Cellular phones Landlines What’sapp Dropbox
Back Office Support: Each PropertyTime agent will be supplied (at no charge to you) with Prop Data Property Management software, a complete back-office software solution for estate agents that take care of all of your property listing, management and sales needs in one simple and easy-to-use desktop interface. In consultation with leading industry professionals, Prop Data developed and supported by same, an industry leader in software development for property professionals. Although PropertyTime will do all the “publishing” of all agents’ listings onto various Property portals on their behalf, the agents can keep their focus and attention on building their business with the help of Prop Data and take the lead. In addition each agent will also receive Lightstone Property software that provides reliable property data, including property valuations and related statistics to the property industry. Lightstone's Property Solutions offer significant value to property professionals, from estate agents, developers, valuers to mortgage originators. PropertyTime also undertakes (as our agent numbers grow) to get the best ongoing training available for all agents from specialists in their fields, which will help agents to grow their business. PropertyTime understands the connection between training and results and creating a “Life Success Company”. PropertyTime will also supply all documentation and take orders for marketing material.
© PropertyTime 2012
Agents Billing: There is a monthly charge of R 990.00 and this will be invoiced to the Agent as well as any other costs incurred such as adverts, business cards, boards etc. that were obtained from PropertyTime. The monthly charge will/could escalate by no more than CPI + 5.5% on anniversary each year for the duration of the agreement. (For agents that cannot afford this monthly charge a 85/15 commission split with no monthly charge is available) Monthly billing is to be paid directly into PropertyTimeâ€™s bank account, which details are on the monthly billing invoice and a copy of proof of payment sent to the office manager who will then issue you with a receipt. Billing can be paid in advance if you wish, or when the Agent has had a large sale and would prefer to pay ahead as opposed to paying monthly he/she can instruct the office manager in writing to deduct it off the commission. Billing will be more from time to time as there are sometimes other fees linked to the billing, as explained above. Employing your own PropertyTime System:
The PropertyTime Agent is his/her own boss and enjoys the benefits of the unparalleled PropertyTime system that allows the Agent to build his/her own business in a structured and continuous manner to the level that he/she wants to. The Agent is not in any way hampered should he/she wish to employ other agents to assist him/her in the quest to grow his/her business. It is however essential that all employees of the PropertyTime Agent are registered with PropertyTime and are registered with the EAAB and are in possession of a valid fidelity fund certificate before commencing with any duties for the said PropertyTime Agent. If a PropertyTime Agent employs another Agent he/she will be liable for the said fees payable to PropertyTime as their inclusion into the system puts pressure on other members of the system such as the Office Manager. Agents can appoint their own personal assistant (we actually recommend it) and there are no fees payable for such a person. However PropertyTime must be made aware of such appointments with the appropriate information. The commission structure that the PropertyTime Agent wants to set in place for his employees is his/her own affair and he/she can build a team of agents working on a 50/50% split with his/her commission earned under the PropertyTime system if he/she so wishes. ÂŠ PropertyTime 2012
However it is totally the PropertyTimeâ€™s Agents own responsibility to control his/her own group of Agents. He/she is completely responsible for the behaviour of any of the Agents contracting on his/her behalf and he/she as the team leader will be the one liable should anything go wrong as he/she is the employer. The PropertyTime Agent will have to sign off any deals done by his team and it will be his/her responsibility to ensure that any documentation, listing etc. are forwarded to the office manager.
How do we register a buyer? In some instances a potential buyer will contact numerous agents working in the office, via the Property website alerts sent to the agents by means of SMS, email or cell phone. To avoid confusion and possible in house fighting between agents, the agent will on receiving the enquiry, log the buyer with the office manager, who will then notify all the agents. Obviously if other
agents also received an enquiry from the same buyer they will make contact with the Agent who first logged the client, and let him/her know the property the buyer enquired on and get the agent to show the buyer their listings as well. Logging a buyer is also on a first come first served basis.
What happens to buyers that contacts/calls PropertyTime HQ? There is no landline or number for the Property HQ except a share-call number (not implemented yet) that will reach an automated exchange that will reroute the calls via SMS equally to all agents, therefore there is no bias or favouritism
for any agent! The system will determine who gets the buyer or listing. All advertising and personal listing only have the agents contact numbers on. If an agent wishes to advertise another agents listing he/she must first ask the listing agent if he/she can advertise the property – this is to avoid double advertising, and it is also just courteous to do so. It would be in the interest of the listing agents to allow other agents to advertise his/her property, as he/she would receive the listing commission for any sale generated from the ads. The listing agent however has the right to refuse if he so wishes.
What about record keeping? When a sale is made it is of utmost importance that the agent faxes or emails a copy of the agreement and all relevant documentation as well as any correspondence pertaining to the sale, to the office manager, and also instructs the appointed attorneys to mail the office manager with all the correspondence as well. As per the FIC act the company has to have a copy of all transactions, which they can view at any given time. Failure to have all the necessary documents will result in a heavy fine for both the Agency and the Agent concerned. It is also necessary to have all the above, to be able to work out the commission that will be due in order for the company accountant to make payment. Once the deal is registered commissions will be worked out and forwarded to the agents who will then issue PropertyTime with an invoice, (a template will be given to each agent) who in turn will forward to the company accountant to effect payment.
What does the rule book entail? Agents are asked from time to time to make rules that govern their behavior in a fair manner with respect to their colleagues, and other agents. These rules are discussed and agreed upon during the weekly meetings that are held and then paid up agents have one vote. These rules must be adhered to, for the good of all, but from time to time they can also change to improve the system. This is done in a democratic way and these rules can be obtained from the office manager. In certain instances management have the final vote/say. It goes without saying that all PropertyTime agents must religiously follow the Estate Agents Affairs Board “Code of Conduct”. They must protect their business at all cost by believing in the brand and dream. Franchise/Area Manager Opportunity: PropertyTime can only be as strong as its leaders and agents, and therefore need strong franchise owners with above average knowledge and experience within the industry. Management experience, integrity, honesty with team player and natural leader skills. A go getter with enthusiasm and a passion for the PropertyTime brand and dream. Interpersonal skills is very important and a love for people. If you consider the franchise opportunity please first consider the following: PropertyTime brokers don't just recruit top agents; they actively scout them. Imagine a company today any company, in any industry- recruiting its people by identifying those with the right mix of capabilities and behaviors in other companies, watching their performance from a distance, getting to know them © PropertyTime 2012
10 personally, discovering their individual wants and needs, and waiting for just the right moment to encourage them to jump ship. This isn't a sideline job for PropertyTime brokers or an occasional reason for them to look up from other important tasks. PropertyTime brokers focus on this activity as their most important role. They spend most of their time making calls, keeping records of conversations, calling again, meeting to exchange views and ideas, encouraging, enticing, figuring out what really matters for each individual, and calling some more. In doing so, they stock PropertyTime with the very best people. PropertyTime brokers know what makes a successful PropertyTime agent. Numbers are not the only consideration; cultural fit is also critical. Recruiting an agent who doesn't fit the PropertyTime values-even if that agent is a star-would adversely affect the morale of the other agents just as severely as if the broker had hired a subpar performer who couldn't keep up. Not every selection will work out. Those who don't fit must be promoted to the competition as fast as possible. The broker looks for someone who is positive and ambitious, who has high aspirations but is independently motivated. Brokers are also concerned that they bring on people who are balanced, in other words, people whose career ambitions do not consume their personal lives. Perhaps the importance of this relates to other qualities that contribute to success as an agent. Top agents tend to be learners because they are engaged by and curious about their profession, which makes them more likely to seize on training and development opportunities that maintain their knowledge edge. They also tend to have strong interests in family, community, and recreational activities, which make them more empathetic to the needs of home buyers. Top agents aren't just gunning for a sale; they understand that it is more important to create the conditions for the right sale. Customers tend to make clouded decisions about their most expensive and important asset; a top agent is there to provide a measured balance of perspective, experience and judgment. If the customer is satisfied months or years after a purchase, he or she is more likely to recommend that agent to a friend or a colleague. The true value of quality service is long term-to the agent, broker and PropertyTime. Still interested and up for this exciting and very rewarding opportunity? It goes without saying that the franchise owner will share in the income that PropertyTime generates through their agents.
Opportunity for Strategic Partners PropertyTime is looking to offer strategic companies the opportunity to share in our dream and a “Where all stakeholders gain” environment is created. The idea is to give these partners an opportunity to earn good money and to then plough back some of this money into a PropertyTime “training fund” that can be used to invest into our biggest asset namely our Estate Agents. It goes without saying that it is expected and non-negotiable that these partners will have to operate with the utmost of integrity and enthusiasm so that our combined dream of “Empowering Estate Agents” can not only be reached but also be protected. What next? That is for you to decide. The question you should be asking yourself is not if you can afford to join PropertyTime, but rather if you cannot afford to join PropertyTime. This is the future of Real Estate and it starts now. PropertyTime will embrace their mission – “Empowering Estate Agents” for decades to come! © PropertyTime 2012
Pierre Rousseau PropertyTime Founder & Operations Manager Mobile: 0823789233 Fax: 0866103968 Email: email@example.com
ÂŠ PropertyTime 2012