SECTION 8: The Property Room PDE 4
MODULE 4
REAL ESTATE MARKETING
Chapter 19 of the Real Estate Study Guide is covered in Module 4.
All the different aspects of marketing real estate are set out in Chapter 19
including marketing, selling and leasing of a property. The more important
aspects are discussed and summarised here and illustrated by means of
model examination questions.
Each of these aspects is summarised here with the aid of real life examples,
questions and answers and model examination questions.
Kindly read the relevant content in each Chapter and/or Section before
attempting to answer the questions. Once you have read it as a whole, read it
again in more detail and then again when finding the answers to the
questions.
MODULE 4.1 MARKETING PROPERTY
Chapter 19 section1:
Marketing a property………………………………………………..pp19.5 – 19.14
MODULE 4.2 SELLING PROPERTY
Chapter 19 section 2:
Selling residential properties……………………………………..pp19.15 – 19.35
MODULE 4.3 LETTING PROPERTY
Chapter 19 section 3:
Letting and hiring properties……………………………………...pp19.36 – 19.44
MODULE 4.4 AFTER-SALES SERVICE
Chapter 19 section5:
After-sales service in the sales process…………………………pp19.50 – 19.59
The marketing, selling and leasing of property are covered by means of model
examination questions in different formats.
Consult your ‘Glossary of Terms’ in Chapter 4 if necessary
AFTER ANSWERING ALL THE QUESTIONS CORRECTLY, PRINT OUT
THE QUESTIONS WITH THEIR CORRESPONDING CORRECT ANSWERS.
Module 4.1 – MARKETING PROPERTY
Chapter 19: Section1: Marketing a property
pp: 19.5 – 19.14
IMPORTANT FACTS
1. A MARKETING PLAN: The process involved in creating a marketing plan
for a specific property:
a) Having obtained a property the estate agent must create a marketing
plan which is specifically designed to suit the unique needs of the seller,
the property itself and be the within the marketing budget of the agency.
b) Profile potential buyers
c) Involves choosing the most suitable advertising mediums – newspapers,
house hunter magazines
d) Establish a show house time table
e) Prepare brochures for drops in the neighbourhood
f) For sale boards.
g) Show house days
h) Knowledge of the specific area and market
i) Must be cost effective
2. A MARKETING REPORT: What to include in a marketing report:
a) the address of property
b) reporting period
c) listed price
d) number of days property is on market
e) whether firm offers have been made
f) responses received from advertising
g) comments regarding selling price
h) summary of recent sales in area
i) recommendations to achieve a sale
3. CANVASSING FOR PROPERTIES: Canvassing entails:
a) Canvassing constitutes the opportunity for an estate agent to establish
area dominance and to personalise marketing efforts by meeting potential
sellers with a view to locating buyers.
b) Personalised marketing – newsletters, postal drops etc.
Hosting show houses
4. ADVERTISING PROPERTIES: Successful property advertisements:
a) Must contain a theme i.e. price, design or location
b) Concise message which relates to theme
c) Attractive layout and good photograph
d) Contain facts
e) Company logo to create brand awareness for the agency
f) Create a need for prospective buyer to see the property in person
g) Attract attention
h) Arouse interest
i) Create desire
j) Inspire confidence
k) Induce action (to buy or see property)
5. A PRESENTATION FOLDER: A very important aspect of canvassing is
having a good presentation folder.
Why is this and what does a good presentation folder achieve?
5.1 A good folder will emphasise the distinct advantages of your firm and your
service over others.
5.2 It should include:
a) Recent sales in the area
b) Current property listings
c) Copy of comparative market analysis
d) Proposed marketing plan
e) Copy of recent advertisements and brochures
f) Letters of recommendation
g) Copy of the sales document
Answer the questions below after reading through and consulting the
abovementioned section
1. List the seven elements of the marketing mix with reference to real
estate marketing and give an example of each.
2. Describe what you understand under the different product and service
elements in real estate in your own words.
3. Name three methods that can be used when sourcing properties to
sell.
4. What should a new estate agent’s plan of action entail, before he/she
starts canvassing for properties?
5. Name ten different marketing methods that can be utilised for a
relatively expensive residence in an up-market neighbourhood or any
other property type that may be relevant.
6. Name the advantages and disadvantages of advertising in various
media that are relevant to a selected property type.
7. Why is it important that an estate agent provides an after-sales service
to his/her clients?
8. What must a new estate agent do to create area dominance in the
canvassing stage of the selling cycle?
9. List the type of information that you would record in a presentation file.
10. Name the criteria for saleable stock.
11. How would you canvass for buyers?
12. Explain the principles on which a Comparative Market Analysis is
based in relation to own targets, business context and desired market
share.
13. Name the three factors that influence property values.
14. List the steps in executing a CMA.
15. How would you use of a CMA report to assist a seller?
16. What information needs to be gathered regarding the property
owner when listing a property to sell?
17. Select the true statements with reference to an exclusive sole
mandate:
A. It must be in writing
B. It must be signed by the estate agent only
C. The seller is still entitled to sell the property and the agent
will not be entitled to claim for damages
D. The agent must supply the seller with a written marketing
plan
E. The seller can withdraw the mandate, even if it is
irrevocable.
F. The mandate must have an end date
G. The agent must supply the seller with a copy of the
mandate as soon as the mandate expires
H. The mandator can extend the sole mandate verbally
18. Name the contents of a marketing plan for a particular property.
19. When an agent presents a property to a prospective purchaser, he/she
must keep a few aspects in mind. Name five of these aspects.
20. Which marketing activities need to be analysed and assessed on a
weekly basis and why is this necessary?
21. Which results must be measured on a weekly and monthly basis and
why?
22. Why does the portfolio of properties have to be assessed regularly?
23. Name the most important areas that would require adjusting to ensure
that a property portfolio stays up to date with the changing market?
24. Present a seller with your marketing and advertising plan relating to a
specific new real estate development that you are due to market.
25. You are to provide a Feedback Report to a seller on the progress
you are making with the marketing of a property. Based on your
experience, develop a template of a marketing feedback report that
can be used to provide sellers with relevant progress reports.
MODULE 4.2 – LETTING PROPERTY
Chapter 19: Section 3: Letting and hiring properties
pp: 19.36 – 19.44
1. Name the three essential terms that ensure the validity of a lease
agreement of immovable property
2. Must an option to renew a lease include the rental amount at which the
lease is to be renewed?
3. Which of the following statements concerning the conclusion of a lease
agreement of immovable property is/are correct?
At common law a lease of immovable property is invalid, unless:
i. the lease is in writing and signed by both the lessor and
lessee
ii. the amount of the rental is agreed upon
iii. the lessor is the owner of the leased premises
A: ii only
B: i, (ii)and iii
C: ii and iii
D: iii only
E: i and iii
4. Which of the following is correct to conclude a valid lease agreement?
A. The rental must be fixed by the parties themselves and cannot be
left to be determined by a third party
B. The lessor need not necessarily be the owner of the property let
C. The amount of the rental must be market related
D. The period of the lease agreement must always be specified
E. The rental must be expressed as a definite sum and not by means
of a formula
5. Which of the following statements are correct?
i. On termination of a lease the tenant must vacate
the premises, unless otherwise agreed with the lessor
ii. The ‘huur gaat voor koop’ rule applies to short leases
only
iii. An option to renew a lease need not include the rental
amount
A. i only
B. i and ii
C. ii only
D. ii and iii
E. i, ii and iii
6. Which one or more statements is/are correct?
i. The lessor does not need to ensure that the lessee is
not disturbed in his use and enjoyment of the leased
property.
ii. In the absence of an agreement to the contrary, the
lessor is required to maintain the leased premises in a
condition reasonably fit for the purpose for which they
are let.
iii. In the absence of an agreement on the time of
payment, the rent is payable in advance.
A: (i) only
B: (i) and (iii)
C: (i), (ii) and (iii)
D: (ii) only
E: (ii) and (iii)
(i) Which of the following statements is/are correct?
i. A person working for an estate agency but who only
lets property and does no sales, must register as an
estate agent with the Estate Agency Affairs Board.
ii. A deposit on a lease must always be paid into the
lessor’s bank account by the estate agent so that the
lessor can earn the interest on it.
iii. The agent has earned his/her commission even if the
lessee cannot afford to pay the rental.
iv. It is not a requirement for the conclusion of a lease that
the parties specifically agree on the period of lease.
A: (i) only
B: (i) and (iii)
C: (i), (ii) and (iii)
D: (iv) only
E: (i) and (iv)
(ii) Which of the following statements are correct?
i. An estate agent can be given a mandate only to find a
tenant for the lessor’s property i.e. procurement of a
suitable tenant.
ii. An estate agent can be given a mandate to find a
tenant and also to administer the lease for the full
duration of the term of the lease.
iii. Tenants must receive written receipts for all payments
made.
iv. The lessor can never expect the agent to attend to the
maintenance of his property
A: (i) only
B: (i) and (ii)
C: (i), (ii) and (iii)
D: (iii) and (iv)
E: (i) and (iv)
Module 4.3 – SELLING PROPERTY
Chapter 19 Section2: Selling residential property
pp: 19.15 – 19.35
1. List the elements that make up the selling cycle.
2. Which areas need to be qualified when interviewing a potential buyer for
the first time?
3. Explain the critical success factors in organizing sales teams.
4. Compare the principles relating to value-based and cost-based pricing
methods and state in which circumstances each of these methods can be
utilized successfully when estimating the market value of property.
5. Discuss the qualification of a seller of real estate and give suitable
examples of instances that should be viewed with caution.
6. Explain the procedure of making an offer to purchase a property.
7. What do you understand under a buyer’s ‘cooling-off’ right?
8. Explain what a ‘voetstoots’ clause in an agreement of sale of residential
property is and why it is necessary.
9. What is the seller’s position with regard to contractual capacity if he/she is
married in community of property?
10. How can one validly amend a signed agreement of sale of residential
property?
11. Explain the meaning and consequences of a ‘counter offer’ made by a
seller to a buyer.
12. Explain the common law position in respect of ‘risk’ of damage to a
property after date of signature in a deed of sale and before date of transfer.
How can the risk be minimised by agreement?
13. A company still to be formed enters into an agreement to purchase a
property by means of a trustee on behalf of the company. What must the
estate agent do to protect the seller’s interests?
14. List the requirements/formalities for a valid deed of sale.
15. List the requirements/formalities for a valid option to sell property
16. List the requirements/formalities for a valid pre-emptive right.
17. According to Johnston and Marshall there are nine basic strategies for
negotiation. Name them and give a real estate example of each.
Module 4.4 AFTER-SALES SERVICE
Chapter 19 section 5: After-sales service in the sales process
pp 19.50 – 19.59
IMPORTANT FACTS
The furnishing of periodic feedback progress, in the form of a marketing report
to sellers, is a very important aspect of the marketing process, because:
a) it keeps the seller informed of progress made in marketing of the
property;
b) creates the possibility for price reviews;
c) the seller does not feel neglected if property does not sell quickly; and
d) it re-assures the client.
After sales service is important to the marketing of the estate agency, because:
a) good after sales care will create room for a happy client – good word of
mouth; and
b) repeat business and/or referrals may follow
QUESTIONS
1. List the variations to an agreement of sale of immovable property
that must be in writing and signed by the parties to the agreement.
2. Name the documents that must be delivered to the conveyancer
attending to the transfer of the property.
3. Describe the terms of a valid deed of sale of immovable property that
must be in writing.
4. Explain the Common Law requirements relating to an agreement of
sale of immovable property.
5. Explain which variations (made after the contract has been concluded)
in a contract of sale of immovable property must be in writing and
signed by the parties.
6. An offer to purchase contains a clause that makes the offer “subject to”
a mortgage loan being approved by a financial institution by a specific
date. Explain the meaning and consequences of this condition.
7. An offer to purchase contains a condition that makes the offer “subject
to” the buyer selling another property by a specific date. It also contains
a clause whereby the seller is entitled to continue marketing the
property during this time and in the event that the seller should accept
another offer, the first buyer is given 72 hours within which to waive the
benefit of the condition. Explain the meaning and consequences of this
escape clause.
8. Explain an ‘option’ to purchase immovable property with specific
reference to the validity of an option
9. Explain a right of pre-emption in relation to immovable property with
specific reference to the difference between a right of pre-emption and
an option.
10. Explain the meaning and consequences of a ‘risk’ clause in a deed of
sale for both the purchaser and the seller of property.
11. Describe how an estate agent can expedite the transfer process.
MARKETING CASE STUDY.
EXAMPLES OF POSSIBLE QUESTIONS
1. You need to provide a marketing report to your estate agency principal
regarding the last three properties that you sold in your area as well as the
seven other sole mandates that the company has that have not yet sold.
Please indicate all the matters that you would include in such a report and
prepare the report making up the information of the content of the marketing
report. (5)
2. There are seven unsold sole mandates on your books. Please compile a
comprehensive canvassing and advertising plan for those properties. (5)
3. Compile a comprehensive report on the factors that influence property
values (5)
4. Draft a comprehensive checklist that you can use in qualifying prospective
property purchasers in your area. Include factors pertaining to the National
Credit Act, i.e. the calculation of a purchaser’s net surplus income. (5)
5. In order to run a successful estate agency business, a business plan is
required. What is the purpose of such a business plan? Draft a brief business
plan in respect of your own estate agency firm and in particular cover the
following aspects: a plan overview, an operational plan, a marketing plan and
a financial plan. (6)
