Tough Market Reduces Agents

The information in this article is courtesy of RealEstateWeb (Market forces cull more agents – new stats – 14 January 2009)

With the number of estate agents cut by around 20% from 2008 it seems inevitable that this number might become even higher in 2009. RealEstateWeb reports that roughly one in every 4 agents in business in January last year has left the industry.

The Estate Agents Affairs Board (EAAB) has released figures stating that, as of last week, 30 528 existing agents had applied for the Fidelity Fund Certificate (FFC) renewals and almost 28 000 have been issued with their FCC’s. This certificate entitles agents to legally receive commission on sales.

According to the EAAB, 2603 existing agents renewed their FFC’s after the extended deadline on November 30 2008. Of the 43 000 agents that were given FFC last year, 26 000 failed to renew their certificates.

Tough economic conditions have forced agents to leave the industry, that only a few years ago, supplied work to 80 000 – 90 000 people.

Some of the agents left have already started businesses on the side to keep their heads above water. Tony Ferreira of Help-U-Sell in Mpumalanga is among those who have decided to throw in the towel.

There are however those who are staying positive in these tough times. Wilma Smit of Property Voyage in Pretoria said that her agency would definitely take on new agents this year. According to her, the 12 agents at her company did well in 2008.

For those agents who focus mainly on commercial and industrial property, things are looking better.

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