This is according to Jonathan Acutt, general manager of Acutts Estate Agents, who said agents left behind from the recession "blood letting" operate in what is still a difficult and testing residential market.
"However, those remaining are reaping the benefits of having survived through the hard times with light beginning to appear at the end of the tunnel. Things will get better and those on the ground now will be well placed to reap the rewards when the market turns," said Acutt.
With this in mind the Acutts Group is using the economic downturn as an opportunity to help develop the country's promising property entrepreneurs.
Pat Acutt, chairman of the 158-year old group, says his company is about to launch a new initiative called Acutts Agent@Home.
"Acutts Agent@Home has been designed to help township-based operators and those in the traditional areas become part of a big brand without having to pay heavy franchise fees. To the best of my knowledge, the concept of a major brand offering lower-than-average start-up fees and then significantly reduced monthly payments in addition to the normal royalties is new to South Africa."
With estate agent numbers slashed to less than 27 000, it was no secret that the current market downturn was impacting severely on estate agents.
"I don't mourn the loss of the non-performers but I do care about retaining those people who, despite their limited means, have the potential and commitment to make a successful career out of real estate given the right support," said Acutt.
Those selected to participate in the Acutts family mentoring initiative will have access to group training, bursaries, discounted marketing material and all the other perks available to members of a super brand. In return, Acutts, which currently has more than 60 offices and franchises throughout the country, will swell its national footprint without incurring onerous expenses.
The new initiative will also differ from the established model in terms of allocation of areas of operation.
"Areas have traditionally been restricted to a single franchise operator," he explains. "The new model allows for a number of agents to operate from their home offices within the same area and share listings. They will also be able to buy into adjacent areas, except where these are closed to existing franchises."
Calling it an ideal opportunity for previously disadvantaged operators and ambitious self-starters to develop their entrepreneurial skills while partnering with a national group, he says the initiative will allow them to grow into branch status, which will in turn increase demand for additional agents and thereby help create much-needed employment.
"It's also the solution for existing estate agents who have to reduce their operating costs during these tough economic times in order to remain in business. In addition, it's a much-needed chance for the younger generation to create their own real estate businesses in an atmosphere of mounting unemployment."
With regard to converting their regulatory status from non-principal to principal, Acutt said "Agent@Home" members would be required to house their Fidelity Fund Certificates under a national close corporation with him in the role of "Godfather" principal. Once they had upgraded their Fidelity Fund certificates to that of principal status, they would then be required to trade either as a personal cc or sole proprietor.
Adds Acutts General Manager Jonathan Acutt: "In keeping with our group's commitment to community upliftment, the Acutts Agent@Home initiative has been designed in such a way that it can be operated in any economic climate and in any market segment.
In conjunction with the 12 month learnership program offered by the Acutts National Training Academy, which covers the full spectrum of estate agency requirements, Acutts Agent@Home will equip entrepreneurs with the right tools and support to start and run their own successful businesses wherever they may be."
For more information contact Jonathan Acutt on 031 563.
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