“I am becoming a little tired of having to counter the perception that estate agents earn huge incomes for very little work.”

So says Lanice Steward, MD of Anne Porter Knight Frank (APKF), the Cape Peninsula estate agency, who adds that in “her experience the exact opposite is usually the case”.

“As in most sales jobs, 80% of the incumbents earn less than 20% of the fees. Many go two, three or more months without earning any income at all and their annual incomes can be distressingly low.

“The other 20% of the sales force who do earn the lion’s share are almost without exception hard working and skilful people. These good agents work seven days a week, are on call at all hours of the day or night and they do invariably go the extra mile on behalf of their clients.”

Many agents, says Steward, regularly provide a range of services for which they are not paid, sometimes not even thanked.

“We have had agents helping clients to find schools for their children, to get quotes for and supervise repairs, clean-ups, gardening and pool services. They regularly ferry clients or potential clients to and from airports, they put their pets into kennels or catteries, they help with passport and travel documents, find temporary accommodation and caretakers.

“They have also been known to help with the sale of surplus furniture or cars and more than once they have found themselves having to stock up refrigerators prior to the clients’ arrival. They sometimes find themselves having to devote a day or two to being unpaid tour guides of the whole of the Cape Peninsula and the Winelands.

“Occasionally they do end up as the client’s lifelong friend - but often they are simply used and then dismissed without thanks or reward.”

One of the many services which they provide, that of giving an accurate valuation on the property, is often the least appreciated, adds Steward.

“It can take four or five hours and involve research at the bureaus and the Deeds Office to arrive at a valuation that is genuinely market-related, but this service is almost invariably given free,” she says.

“Try asking one of the better interior decorators or landscape gardeners to give his consultancy services free - and you are almost certainly likely to end up being rebuffed.”

With the two-thirds drop in estate agency numbers, says Steward, South African clients may well find that the boot this year will be on the other foot: to get the services of a reputable and fully trained agent they may find themselves having to ‘join the queue’ and wait a day or two.

“I do hope that will not happen,” says Steward, “but it would not altogether be a bad thing. Estate agency bashing in the boom times became a favourite South African practice, but all too often those doing it ignore the long hours and hard work put in by agents over and above the call of duty.

“A good agent will know how to nurse both sellers and buyers through what can be a very trying, even traumatic time for them both. Agents are, after all, handling what is very often the client’s major asset and they are only too aware that getting an unacceptable price can lead to distress and anxiety.”

Readers' Comments Have a comment about this article? Email us now.

I totally agree. Like any other professions you have good and not so good people.

I have had a lot to do with agents in the past few weeks and i can tell you they work very hard for their money.

Seven days a week and long hours. Taking calls at any time of the day. – Christian Le Leon

Unfortunately difficult times bring out the worst in people and that goes for estate agents as well – we had a horrible experience with agents from a well known agency who were so eager to get their commission that they did everything in their power to push the sale through with no concern at all for the interests of the seller. – Disgusted seller

Value of my property in Cape Town Circa R950k

Agents fee of 8% (non-negotiable) = R76k

A particular agent sent me proof of how good they are, an e-mail containing information on all of their sales since June 2009.

19 properties sold in 9 months with a total value of R 22 280 000.00, with commission at 8% equal to R1 782 400.00 earned by two agents.

So even if they worked 24 hours a day for 9 months, their individual hourly rate would still be R133.

A normal working month for the average South African is about 170 hours, at the above rate this would equate to R22,610 per month gross, which is way more than the average salary of most South Africans.

So forgive me if I don't shed a tear for the POOR estate agents.

No offense to anyone, but if you are one of those not making any money in the post boom period, then maybe it's time to get a real job.

The business of selling property in South Africa needs to catch up to the rest of the world, in Ireland you can negotiate a flat rate of 900 Euros (R 9000), and on an average property value of 250 000 Euros, this equates to 0.36% commission.

This is not bashing, merely stating facts. – Anonymous

It must be noted that Estate Agents made a killing during the property “boom” and during this recessionary period, are not making that much. They should have saved for these rainy days. I am also of the opinion that the Estate Agents have contributed to the once exorbitant prices, by indicating to the Seller that they will fetch unrealistic prices in order to get the business.

The commission requested for the sale of a property is also ridiculous.

I therefore I don’t sympathies with them. – Sagren Naicker

@ Anonymous

Your way of thinking is an exact reflection of what the general perception is of us as Estate Agents. The R1 782 400 earned by these two agents are in fact not earned by them, but by the company. Generally speaking the agent and company work either on a 50/50 or 60/40 split depending on internal structures and company policy. Lets work on a 60% agent and 40% company split:

60% = R1 069 440. Divide that by the two estate agents = R 534 720

R534 720 Divided by 9 months = R59 413. Minus 42% supertax = R34 459pm.

Also then take into consideration that these agents then also publish their own glossy portfolios, business cards, calenders etc. and some even pay a desk fee, use their own cars, own cellphones, have no pension and medical aid benefits. This would work out to atleast about R8k-R10k a month.

Tell me, is it then still worth it to work on a client for weeks, sign offers, process everything, and two months later the whole deal falls apart… Which in effect means you then worked for MAHALA??? And to top it all if your work is done then still wait 60-90 days for payment?

Simply stating facts… I Know admin clerks who make more that these figures without worrying about where the next “Possible” paycheck would come through.

Keegan van Vuuren