Many of the larger estate agencies are welcoming the consolidation of the property market in SA which is separating the bigger brands from the “rats and mice” in terms of service offering.             

Barak Geffen, Executive Director of Sotheby’s International Realty SA says, “as the market turns more into a buyers market the agencies that really add value and offer excellent service are gaining larger market share.

“A consolidating market is measured by the increasing percentage difference in asking and selling price across the board.  Buyer resistance increases as sellers resist the change.  This difference usually stands at 10% in a rising market, however it can increase to as much as 30% on average in a consolidating market, which is starting to be seen in SA.

“In booming markets, a relatively larger segment of the market is happy to place their property in the hands of an agency who will do nothing more than process the transaction, as stock is turned and prices are realised relatively easily. However, in a consolidating market, more clients seek out the companies better equipped to add significant value by finding and extracting the best price from the right buyer.”

Geffen says industry leading consumer service delivery is driven by companies who have the infrastructure and the means to conduct widespread marketing and who have invested massive funds in research and development in order to build on levels of service delivery over time. 

“The property boom gave the ‘fly by nights’ a foot in a door that is rapidly closing. There is now no room for a lack of professionalism as sellers cannot afford to waste their valuable time with inexperienced and ineffective agents.  

“An agency’s strike rate is considerably important in demonstrating how many homes the agency actually sells or doesn’t sell in relation to how many they attempt to market.

“While 33% is the industry norm – Sotheby’s International Realty has maintained a 50% strike rate. We put this down to the brand reputation and infrastructure attracting a high calibre of agent, and the best practice, training and sharing of information between local and international franchises, among other factors”.

- ENDS

ISSUED BY:                  LANGE STRATEGIC COMMUNICATIONS
ON BEHALF OF:            SOTHEBY'S INTERNATIONAL REALTY

For further information please contact Barak Geffen at Sotheby's International Realty, operated by Lew Geffen on 082 600 8522 or Robyn Creer at Lange on (021) 448 7407