An investigation into the quality of service delivery by the estate agency industry in the Bloemfontein region

Abstract

Research was conducted into the quality of service delivery by the estate agency industry in Bloemfontein. The purpose of the study was to determine the service of estate agents in Bloemfontein, as well as (to determine) whether estate agents act in accordance with the prescribed Code of Conduct, and also the image of the estate agent. In order to determine the above, both clients and estate agents were surveyed. It was therefore a comparative study. A sample of 600 respondents was selected from a population of 3 000. These respondents had either bought or sold property, or both, in 2002 and 2003. Respondents were selected from a list of all 'Title Deeds" registered within the specific period, available at the Deeds Office. Systematic sampling was used. A response rate of over fifty percent (332 respondents) was obtained. Clients were divided into two groups, namely buyers and sellers. They were surveyed by using a combination of two survey methods - mail and telephone interviews. Respondents received a two-section questionnaire by mail. A separate section was allocated for both buyers and sellers individually. However, respondents who had bought and sold property were able to complete both sections. A list of respondents who completed and returned the mailed questionnaire was kept. These respondents were accordingly not contacted during the telephonic interviews. Non-respondents were contacted telephonically and asked the same questions as those contained within the mailed questionnaire. Respondents could again complete one or both sections, dependant upon their situation. Only registered estate agencies were surveyed. These estate agencies were identified by contacting the Estate Agency Affairs Board in Johannesburg and obtaining a complete list of all registered estate agencies within Bloemfontein. A total of 128 currently (October 2004) practising estate agencies were identified and contacted. Principals were provided with a questionnaire to complete. Seventy-five respondents completed the questionnaire. A separate questionnaire was compiled for principals of estate agencies than to that compiled for clients. Questions relating to the services delivered and the training of estate agents were contained in the questionnaire. Research indicated that respondents (clients) were generally satisfied with the services delivered by estate agents. The results indicated that estate agents deliver a large number of the prescribed services. However, there are high levels of dissatisfaction in relation to the marketing strategy, discussion of transfer costs and the conducting of a Comparative Market Analysis by estate agents. Further research indicates a tendency by estate agents to deliver higher levels of service the higher the selling price. It is also respondents within the higher selling price categories that experienced the most satisfaction with services delivered than other respondents. This applies to both buyers and sellers. Therefore, it is possible to determine that estate agents deliver more and a higher quality of service to respondents selling I purchasing higher priced properties. This situation is also repeated in connection to age, in that estate agents tend to deliver more and higher quality services to younger clients. In relation to estate agents respondents operating for a shorter period deliver fewer services than in relation to older estate agencies. Principals of younger estate agencies train their estate agents less often, and in fewer areas than the principals of older estate agencies. The areas respondent's train more often are primarily methods relating to the improving of sales and the Code of Conduct. Estate agents identified the escorting of buyers through properties, the explaining of the Deed of Sale and the notification of the outcome of Offers as services that they always deliver. Respondents identified that they consistently deliver a large number of services to clients. However, the reduction of commission, in order to ensure a transaction, was not a frequent occurrence. Estate agents also identified that they do not maintain contact with clients after the registration of the property. In addition estate agents also indicated that the Code of Conduct was impractical in certain instances due to the fact that the Estate Agency Affairs Board does not regulate the industry. It was suggested that estate agencies address the extent to which they deliver the services of marketing strategies, discussion of transfer costs, as well as Comparative Market Analysis. An improvement in these areas could improve client perceptions of service delivery. Attention should also be given to the delivery of services to buyers aged over 50 as well as to sellers who are selling property priced below R250 000. These respondents indicated lower levels of satisfaction in relation to the services delivered by estate agents. Uniform service delivery is required. To help achieve this a standardised marketing strategy and Comparative Market Analysis form is provided.