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.
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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