The Developer Journal Issue 2 | Page 16

INDUSTRY NEWS SELLING YOUR DEVELOPMENT ESTATE AGENT VS SALES TEAM Your development is ready for sales, and you need widespread marketing to reach as many potential buyers as possible, followed by a flawless sales process. What is the best way – a dedicated sales team, or an estate agency? T o be clear about their different functions, a sales team or rep works directly for your company, usually from within the property itself, while an estate agent is self-employed and works as an independent contractor, with multiple other clients that they represent. Large developers with multiple properties, like the Amdec Group (Melrose Arch, Harbour Arch, the Yacht Club), often use both a sales team and an estate agency, but in the case of smaller developers, a contracted estate agency may be sufficient. THE CASE FOR ESTATE AGENTS Cost saving is the biggest plus. ‘Using an agency eliminates massive marketing costs, as it has an existing database of clients and marketing platforms, and also, HR management is done by that agency,’ says Pamela Naidu of ID Realty, specialising in premium luxury real estate in Durban. Estate agents are also experienced in navigating what can be a long and complex process. 16 Lanice Steward, head of training for Pam Golding Properties, says: The purchase or sale of a property is around a six-month process and can be complex and uniquely nuanced, involving hundreds of small steps that include expertise in a number of different disciplines from area knowledge to valuations, marketing, finance, legal and conveyancing. And no one sale is ever exactly the same as another – there are many different dynamics and needs and also numerous obstacles that can occur with each negotiation, as well as with the transfer process. In development sales, using a single estate agency is better than using several, she explains: ‘Having a dedicated agent achieves much better results than having it overexposed and available through all or several agencies.’ Not only is this a security risk, it can also lead to double commission claims, and buyers thinking the seller is desperate to sell – which could lead to lower offers. Finally, good estate agents are