Stories by Maduka Nweke
Real estate business has become a money spinner in Nigeria in recent times. Because a lot of people have began to understand that shelter ranks top among human needs, many people are going into real estate. While in the years past, young man builds his house (hut) and leaves his parents with his wife, today people have seen a lot of business opportunities in real estate. This is the reason many now decide to make career in the real estate.
A career in real estate can be both rewarding and challenging because while some people earn six-figure salaries, others, just a few thousand per year. While it can be a great career; challenging, flexible and exciting, the profession should not be for everyone because there are certain levels of knowledge you need to have before you get started in real estate business.
As a real estate agent, you are essentially working for yourself. Although, there may be a few jobs available that pay an hourly rate, a typical real estate agent works strictly on commissions generated from the sale or rental of a residential or commercial property. In developed economies, people pay their bills of whatever size through incomes earned from marketing estates and properties. But, just as you would before starting any business, you should make sure you have the right character traits to work for yourself before becoming a real estate agent. At least the ambition to eke a living via real estate must be high. Then you have to organise yourself to know the branch of real estate you should delve into. You should know that what you earn is your pay; call it salary, honorarium, emolument, commission or what. This therefore calls for dedication to succeed where others have failed. There could be great challenges, obstacles and distractions but you must be focused knowing you are always on your own so you must be on your toes with ears sharply open. You must persevere because, initially, the road could be very rough and unless you continue, you may not make it there. Above all, you must develop manners of approach, friendly relations; you must mingle among peers and above peers including associations, clubs and societies that cut across class.
To make career in real estate, you must set your own schedule, but you will need to be organised and ambitious enough to actually work at your business every day. Organization skills are important because you will be dealing with contract deadlines, client appointments and follow-ups with other professionals in the field.
According to Rhonda Taylor, a Realtor with Blakemore Real Estate, in Salt Lake City, Utah, in the Western region of USA, “It is so great because you are your own boss. You get to dictate everything about your work day. You get to wake up when you want, work when you want, work with who you want. The down side to that is, you have to be really diligent and hold yourself accountable because it can be easy to not work when you do not have a boss looking over your shoulder. It’s basically owning your own business. You’re not going to make money if you don’t work.”
On all these, just like any business has its gestation period, so do you, as one who wants to make a career in real estate should bear in mind that most real estate agents don’t make huge commissions during their first year. It takes time to build a client base and get accustomed to how the business works. If you go in thinking that it is something you will try out for a few months, then give up if you are not earning lots of money, real estate might not be for you.
Before you get started as a real estate agent, you should ideally have 6 months to 1 year’s worth of living expenses in the bank, which provides a cushion while you build your business.
You will need to like working closely with people, because real estate sales is all about helping people buy or sell their homes, so you will be in frequent contact with clients every day. Rhonda while discussing working with people, said, “You need to be comfortable dealing with people. You need to have a customer service mindset and be ready to help them when they need you. Whether you are helping a young couple find their first home, or representing a family who is selling their home and relocating, you have to be confident, knowledgeable and above all, absolutely willing to go the extra mile for people.
“There are so many possibilities. Your income is not limited. It depends on how hard you want to work and what you want to put into it. How many jobs exist where you can earn a six-figure income without a university degree? That does not mean that you do not need an education, though. You will have to put in lots of time learning about the business, about the real estate market and about techniques like marketing and networking. It is an education… just not on a university campus!”
The vital things you must have to get started –
To get into real estate career is relatively inexpensive, compared to other businesses. Some of the things one would need to start include;
Real Estate License: Though requirements vary from state-to-state, all require licensing. Check with your local Board of Realtors or your state’s Department of Real Estate to find out what you need to do to obtain a license. Typically, you will be required to attend training classes. Then you will take a state exam. Once you’ve passed, you will pay a fee and receive a license. Most states also require continuing education and license renewal.
MLS Access: The MLS (Multiple Listing Service), is a comprehensive online tool that allows agents to find properties for buying clients, and list properties for selling clients. The MLS charges a monthly fee for access.
Board of Realtor Dues: If you choose to join the Board of Realtors, you will pay annual dues. Though it is not mandatory that you join, most real estate professionals do. Visit the National Association of Realtors site for more information on the benefits of becoming a Realtor®.
Computer: Ideally, a laptop that you can take with you to the office and to client meetings.
Smart Phone: You will be on the phone a lot as a real estate agent, taking calls from clients, getting updates from appraisers, home inspectors and loan officers, and setting appointments with potential new clients. Get a model with GPS so that you can easily find addresses when taking buyer clients to look at homes. You will also be able to stay in contact via email and text, and can look up properties in the MLS (Multiple Listing Service).
Car: While you do not need a fancy car, it should be in reasonable working condition. Keep it clean and clutter-free; you’ll drive clients around occasionally.
Business Cards: While many people don’t use these any more, they are still a staple for real estate agents.
Signage: You will need signs to advertise homes for sale, open houses and other events. Design your own signs using your broker’s logo (in most states this is required). Check with your state’s Real Estate Division for other things to include on your sign that may be required by law.
Invest in a mix of signage: directional signs to help people find your listings, vinyl banners for larger-format advertising and car magnets to alert people that you are a real estate agent. Some signs can be designed to work for every property (such as directional signage). Others should be designed specifically for one listing (list the features, price and address of a home, for instance).
Clothing: Dressing professionally is important in the real estate business. Invest in some nice suits, quality shoes and accessories so that you’ll look nice and feel confident.
FG targets low income earners in 10,000 housing units –NIESV
The Nigerian Institution of Estate Surveyors and Valuers (NIESV), has said that the 10,000 housing units being planned by Federal Government for states would be for the low income earners in the population.
NIESV said the formal housing sector, which constitutes about 15 per cent of the housing market, is insufficient to meet the demand because it is targeted at high-income earners, while houses categorized as low income are mainly outside the reach of low-income earners.
Speaking during a press briefing for the 5th National Housing Summit, Elder, Biodun Odeleye, Chairman, NIESV Faculty of Housing, said that as at 2010, 85 per cent of the urban population lived in rented accommodation, spending more than 40 per cent of their income on rent.
Adeleye stated that since Nigeria has a housing deficit of about 20 million units, it requires about N70 trillion to bridge housing deficit based on an estimated average cost of N3.5 million per housing unit.
According to him, whilst some of these projects were helpful and successful in some parts of the country, it was a flop, a waste of resources, hideout for criminals, home for lunatics, abandoned projects and so on in some other parts of the country due to lack of infrastructure, inhabitable, deserted, out-of-town locations, abandonment, lack of security and non-conformity with the social and religious lives of the benefiting communities.
“We learnt of a proposal/scheme in some quarters for 10,000 housing units to be built in each state of the federation including the Federal Capital Territory. Such appears a giant step and a quantum leap towards getting out of the housing quagmire in Nigeria. This proposed project will supply about 37,000 housing units into the housing market which implies that in about 54 phases of similar exercise, Nigeria would be pulled out of her housing deficits. Combining the efforts of the private sector, Nigeria may come out of her housing crisis earlier than projected.
“However looking at the current economic depression in our country which has caused tremendous cash squeeze on government, private sector and individuals, the outlook is unclear as to how to actualise the project. Almost a year since the programme was announced, Nigerians are yet to see genuine efforts towards actualising it.”
“Government should put in place a mechanism that will ensure the workability of this laudable project by reducing to the barest minimum, corruption of all kinds, while keeping focus on producing houses that will meet the needs of the people, as well as being affordable to the low income group. Government should make available the designs, types and prices of these houses as well as the mode of acquisition,”he said.
Adeleye said, the NIESV 5th National Housing Summit hopes to draw the attention of the Government and the general public to the elements that are capable of derailing the programme and what it takes to bring about a successful housing programme that will impact on the society positively, as well as engendering confidence and goodwill for the government. “Ten thousand Housing Units in each State of the Federal Republic of Nigeria: Issues and Prospects” with Professor Timothy Nubi, Dean of Environmental Sciences, University of Lagos presenting the Lead Paper for the summit,”he stated.
The Keynote Speaker and Special Guest of Honour is the Hon. Minister of Power, Works and Housing, Mr. Babatunde Raji Fashola, the Chief Host for the Summit is the Executive Governor of Rivers State, His Excellency, Nyesom Ezenwo Wike, with the National President of the Nigerian Institution of Estate Surveyors and Valuers (NIESV), ESV. (Dr.) Bolarinde Joshua Patunola-Ajayi, playing host to all participants.
The expected participants include Industry players/stakeholders in the housing sector, ministries/government agencies, housing corporations, property development companies, members of Real Estate Developers’ Association (REDAN), estate surveyors, architects, town planners, engineers, quantity surveyors, land surveyors, builders, the academia and the general public.
… Plans 300,000 new homes to reduce housing deficit
Plans to launch a new housing finance initiative that would cover about 300,000 housing units by the Buhari administration have been completed, according to the Minister of Finance, Mrs. Kemi Adeosun.
She said, the Federal Government is planning a mortgage system that will catalyse the development of the mortgage market in Nigeria with the provision of single digit interest rate mortgages and longer repayment periods such as 20 years.
Speaking through Mr. Seye Senfuye, the Minister said; “Nigerians deserve to acquire affordable homes, built to standard located in well serviced estates that will create ideal environments in which they can raise their families, instead of being saddled with the challenges and risks of trying to build their homes organically.
“Due to the current high rates of interest, we believe that government’s intervention to bring down rates and enhance affordability is needed and we are committed to doing this,” she said.
The scheme when on stream would aim to provide 300,000 affordable homes supported by mortgages and would create 700,000 new jobs across a range of disciplines and professions.
Adeosun who was speaking at the Annual Conference and General Meeting of the African Union for Housing Finance (AUHF), observed that with housing deficit at over 17 million, Nigeria was ripe for radical intervention in the provision of housing.
“We are committed to fundamentally addressing historical challenges to housing. This requires innovative financial solutions that will stimulate housing development, related industries, create jobs across the nation and satisfy the yearning for security through home ownership,” she noted.
The Central Bank’s Director of Other Financial Institutions, Ahmed Abdullahi, noted that the housing market in Africa and in Nigeria is underdeveloped, and that the contribution of the market to the GDP in the country is less than one per cent, compared to the United States, which is about 80 per cent.
Abdullahi stressed the need to address absence of long-term capital that could be used to create mortgages, high cost of building materials, and problems of registering and enforcing property rights.
His words: “Mortgages are not short-term but the deposits we have in the banks are short-term liabilities, and you cannot easily use them to create mortgage. So, we need to address these challenges before we can improve the contribution of the market to the GDP.”