CHALLENGES OF DEALING WITH AGENTS

I was discussing with a friend who seemed to have loads of issues with Real Estate Agents and i requested that he wrote what his challenges were and how to solve them and this is what he sent:

“My wife is 6 months pregnant with triplets. I was shocked when we found out and in 3 months we will be a family of 5 with many visitors to celebrate with us. Presently we stay in a 1 bedroom apartment and we need to move to a bigger apartment that can accommodate the whole family. I have to put my taste to test, I think I will go for a 4 bedroom detached house so my kids can play in the compound, my wife and i can have our own room, another for the triplets and then my mom or mother-in-law, relative or friends. I made my requests known to agents to search for accommodation for my new family. My specifications were clear in terms of location, size, budget and rental period. And I still had the following challenges with Agents:

  1. Engaged two agents who requested that i pay a certain amount to mobilize them to look for a property for me and this does not take away from their expected agency fee afterwards. I paid but they were disengaged for non-performance.
  2. Meeting with a long chain of agents. One of the agents took me to another agent who took us to another agent who introduced us to a security who then directs us to another security who knows the owner(all this at your expense – time and money). Only to be informed by the owner that the property has been taken by another tenant (what a waste of time!!)
  3. Agents are only after the fees, when a client makes payment they varnish without rendering after-acquisition services.
  4. They do not verify property documentation for authenticity of ownership.

I believe it can actually be made easier and smooth to get a client a befitting apartment without much stress using the below recommendations:

  1. Reduce the long Agency Chain. The client does not need to know there are 1000 agents involved in a transaction such actually discourages the client. Transactions should be agent- client – property owner. To keep the peace it may be advised that Agents should have a preexisting written agreement, where there is a long chain of agents involved, with other agents on fees as that will ease the client dealing with so many people.
  1. Communication/visitation: a preferred mode of communication suitable to the client should be established either phone calls, emails or social platforms. A fixed time and date which all the parties involved will be available to meet should be agreed and the agent should confirm availability of all parties before parties set out.
  2. An agent should understand the clients request in order to be able to advise in terms of location, price etc., and also negotiate favorably on the client’s behalf. Advise in terms of contract clauses which should be fair to the client and also go as far as negotiating a rent free period for his client e.g negotiate 2 weeks rent free period for your client to make modifications, where necessary or at least to pack and settle in.
  3. Agents should verify the authenticity of a property document to ensure that the genuine owner is who is being related with and also do some due diligence to ensure that there is no court matter or any form of encumbrance on the property.
  4. Agents should have a database of their client with their contact details and program a reminder for quarterly follow-up call on satisfaction (between landlord and Client or vise versa) of the property and with this follow up it gives a client value for the services from the Agent. With this follow up you have provided value which is your after-rental service to the landlord and Tenant. You gain in 2 ways when the tenant is searching for another apartment and also you are made aware of the landlords vacant property. Your preexisting relationship with the Landlord and Tenant helps you to understand them better and know how to satisfy them.

Agents have to be real with Real Estates as it only when you are real and really satisfy clients that you can make real cash.”

As an agent I particularly find the long chains insane and do not like to work with Agents that long chains. Agents have to focus less on body counts (quantity of clients) to quality & sales.

I find the tips given by the writer very helpful and hope you do too, as an agent or a client. Have a great read and share your experiences with agents with us.

Written by:

Braimah Suleman Igekie
SKYPE: braimah01

OF LAND AND ITS UTILITY

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Land – as an asset

Investment in real property is a conscious venture investors need to make. Land is real estate or property, minus buildings and equipment that does not occur in a natural way. Land ownership may offer the title holder the right to natural resources on the land.

The term land can be looked at in a number of ways, and its definition viewed differently depending on the nature under which it is analyzed. The basic concept of land is it is a piece of earth, namely a piece of property that has an owner. Land is inclusive of all physical elements, bestowed by nature, to a specific area or piece of property. This includes environment, fields, forests, minerals, climate, animals and bodies or sources of water. In terms of being an asset, land includes anything that is on the ground, which means buildings; trees and water are a part of land as an asset. This is the reason banks, property consultants, investors, financial experts and financial institutions are extremely attracted to land because it is one of the oldest form of security and because it cannot be moved, stolen, wasted or destroyed. Air and space rights are also covered by the term.

Land, as a resource

There is a wealth of natural resources that may be present on a property or piece of land that the owner, or title holder, may be entitled to. This includes plants, human and animal life, soil, minerals, geographical location, electromagnetic features and geophysical occurrences. Whenever any resource or reserve is traceable to a land, it is of great value. Drilling and oil companies, in many instances, pay landowners substantial sums of money for the privilege of using an owner’s land to access such natural resources, as well as shell out small fortunes for large acreages of access, specifically if the land is rich in a specific resource.

Land, as security 

When applying for mortgages or any other loan, most lenders ask borrowers to list personal property values on a financial statement. This overview gives prospective creditors a proper measure of personal net worth and how firmly a credit applicant is positioned to repay debt. Individuals seeking the extension of credit are asked to assess the fair market value of personal property. Fair market value reflects the price a reasonable buyer is willing to pay for a particular item.

Some personal property assets, such as furniture, clothing, and automobiles, tend to depreciate. Other movable assets, such as collectibles and antiques, often appreciate in value. When assessing creditworthiness, lenders consider the total value of personal property added to real property and financial assets. The total assets are weighed against what an applicant owes to determine risk assumed by the lender in extending credit.

Of all the properties of available, special recourse is made to real property and a high premium is placed on it depicting its immense value. The extent of value accrued to a land or real property is largely determined amongst others by whether the land has been registered or title of its owner has been perfected or not.