Author: Peris Gachago

With Ardhisasa, what changed?With introduction of Ardhisasa platform, many things have changed on how people are doing land or property transactions. Before then, you would see many people especially lawyers, investors, property owners and brokers gathering outside Ardhi house with big files in their hands. These people would be seeking for different services ranging from land search, replacement of title, registration of certificate of titles among others. Now, most of these services has been put in one platform called Ardhisasa, an online platform that allows Citizens, other stakeholders and interested parties to interact with land information held and processes undertaken by Government.

Quick read:  Ultimate guide to understanding Ardhisasa

“At the click of a button citizens will carry out various land transactions, drastically reducing human interaction, delays and all other inconveniences that Kenyans have had to endure in our land registries,” President said.Services that have been moved online on ArdhisasaTransfer of ownershipIssuance of consentValuation requestsPayment & issuance of land rent clearance certificate.Payments of stamp dutyRegistration & consent feesApplication and withdrawal of caution/caveats/restrictionsRegistration of land documents and searches

You don’t want to miss: Services Offered by Ardhisasa Digital Platform

But what happens to those people whom their land parcels have not been updated?

If your land parcel has not been updated in to the Ardhisasa system, you have to register your parcel by adding your property details on the system and wait for your parcel to be verified by the ministry. No manual transaction can be done to parcels within Nairobi County. Even search cannot be conducted successfully.

Manual transaction can however, only be done for parcels outside Nairobi County and for the parcel in LR format. It is good to note that; LR are parcels registered under the old regimes or repealed laws, Block parcels are parcels registered under the new Land Act 2012. Some of the repealed legislations included the Government Lands Act (Cap. 280), the Registration of Titles Act (Cap. 281), the Land Titles Act (Cap. 282) and the Registered Land Act (Cap. 300).

Transaction for parcels in LR format are done manually at Central Land registry at the ministry of land. To transact on parcels in NAIROBI/BLOCK format, navigate to My property section in the Ardhisasa platform and add your property details then wait for a verification notification from the Ministry. Once the parcel has been verified you will be in a position to transact on your parcel on Ardhisasa.

The verification process involves cross-referencing and verifying data from three departments (Land Administration, Survey, and Land Registration. The process is still ongoing. Once the details are verified you will receive a notification. The notification will be done via phone, email address and on your Ardhisasa account.

 
Conducting a search at central registry is free. The requirements for a manual search are;

1.Duly filled Application for Official search Form. You can click this link to get the form.

http://kenyalaw.org/kl/fileadmin/pdfdownloads/LegalNotices/2017/LN278_2017.pdf

2.Title deed

3.PIN certificate (copy)

4.Identity card (copy) for the applicant if Kenyan.

Quick Guide:  How to add Property on your Ardhisasa Account

For enquiries, please visit Ardhi House, Off Ngong Rd: P.O. Box 30450-00100, Nairobi,Kenya or email: [email protected]. The ministry can also be reached on phone: 0743922876.

Keep visiting our website https://property254.co.ke/ or call us on 0726982982 or on email through [email protected]  as we continuously update our guides.

To become a registered real estate agent in Kenya, one needs to be registered with the Estate Agents Registration Board (EARB). Only EARB registered and licensed Estate Agents with a current practicing annual certificate can conduct Estate Agency.

Section 18 of the Estates Agents Act Cap 533, Laws of Kenya provides as follows: –

1. After the expiration of six months from the commencement of this Act or such further period as the Minister may, by notice in the Gazette, allow either generally or in respect of any particular person or class of person: –

(a) No individual shall practice as an estate agent unless he is a registered estate agent;

(b) No partnership shall practice as estate agents unless all the partners whose activities include the doing of acts by way of such practice are registered estate agents;

(2) Any person who contravenes subsection (1) shall be guilty of an offence and liable to fine not exceeding twenty thousand shillings or to imprisonment for a term not exceeding two years or to both.

Estate Agents Registration Board (EARB) is the regulatory body for estate agency practice in Kenya and it derives its mandate from Estate Agents Act, 1984 Cap 533 which was operationalized in 1987.Becoming a registered real estate agent in Kenya enables you to legally participate in selling and renting out buildings and land.  

In the civil case no. 94 of 2016 tree parties who had been engaging in the business of real estate were seeking Kshs. 46,250,000.00 as commission from the defendants. However, at least two of the parties in the partnership were not registered with the Estate Agents Registration Board(EARB). The court held that the Plaintiffs, having engaged in practice as Estate Agents contrary to the law they cannot file a suit and expect to be awarded commission arising from their illegal activities.  

 Conditions and qualifications for registration with the Estate Agents Registration Board (EARB)

To be registered as a real estate agent in Kenya, you need to be a Kenyan Citizen and:

a)      A full member of the Institution of Surveyors of Kenya in specified departments; or

b)      The holder of a degree, diploma or licence from any university or college or school which is recognized for the time being by the Board; or

c)       a person who

a.       is the holder of a degree, diploma or licence of a university or college or school or a member of an institution the membership of which is recognized for the time being by the Board as furnishing sufficient evidence of an adequate academic training for practice as an estate agent; and

b.      has had, to the satisfaction of the Board, practical post qualification experience in such practice of not less than two years of which not less than six months has been in Kenya; or

d)      a person who is not qualified under paragraphs (a), (b), or (c) but is of good character and satisfies the Board that he has not been convicted (whether in Kenya or elsewhere) of an offence involving fraud or dishonesty.

The registration is done on individual real estate agents. For partnership business, all the partners of such a business need to be registered as real estate agents as well. For companies, then the directors of such companies need to be registered as real estate agents by the board.

Wondering on what the procedure for an Agent to Register as a real estate Agent in Kenya? We break down the procedure as:

1. Obtain the necessary forms

Visit the EARB website and complete the online form. You may alternatively visit the Estate Agents Registration Board offices in Survey of Kenya for more guidance.

2. Complete and return the documents

  Attach the relevant Certificates as indicated in the form or online i.e.

•      Passport size photo
• b.      Copy of ID or passport
• c.       Curriculum vitae
• d.      Academic certificates
• e.      Letter of recommendation from a registered and practicing Estate Agent. A sample is available on the EARB website.
• f.        Certificate of Good conduct applied through ecitizen.

3. Pay the application fees

Pay the registration fee: The registration fee is Ksh 1,000, payable through a bank deposit or a banker’s cheque.

 To pay the Estate Agents Registration Board application fees,

• 1.      Go to MPESA menu.
• 2.      Go to Lipa na M-PESA options.
• 3.      Select Pay Bill option.
• 4.      Enter Business No. 522522
• 5.      Enter Account No. 1104163829
• 6.      Enter Amount. Kes. 1,000
• 7.      Enter Your PIN number
• 8.      Append the transaction code (e.g OKF4W7KG9KJ9) to the application form field required.

You may also pay the application and other fees through KCB Account number 1104163829.

4. Attend interview

Once you submit the application documents, the board will vet your application and after a period you will receive a call to pick up a letter to inviting you to attend an interview with the Estate Agents Registration Board. You will then need to pay an interview fee of Kshs. 3,000.00.

The interview usually seeks to get your understanding of the real estate profession including the regulations that apply. Key regulations include the real estate agents act Cap 533, the land Act  of 2012, Rent Restriction Act, The Landlord and Tenants Act and The 2010 Constitution.

5. Pay registration fees

If you pass the interview, you then register as a real estate agent. This will cost you an additional Ksh. 10,000. In case you do not pass the interview, you can re-apply and have another interview until you pass.

Click here to find more on Letters of Authorization to sell in Real Estate: Importance to an agent and Example

To increase the chances of passing the interview, the EARB conducts a pre-registration conference for interested applicants. This conference has been costing Ksh. 6,000. This conference is optional and you do not need to attend. It just helps to increase your chances of success in the interview.

Once you pass the interview, EARB holds an additional induction conference for all successful agents. This conference usually costs Ksh. 3,000 and attendance is optional. This conference allows you to interact with the board members, other agents and also learn more about the conduct of the real estate profession.

As a registered real estate agent, you will be subject to an annual license from the board. This license costs Ksh. 7,000. An annual but optional Trade license is issued by the board at  Ksh. 5,000. It would thus cost you Ksh 12,500 to operate as a licensed real estate agent in Kenya.

Letter of Authorization to source real estate

Depending on your county, you may pay county licenses as well.

Every year, you will also need to take indemnity insurance to guarantee that compensation shall be payable to persons suffering monetary or other property loss through your dishonest or professional misconduct. The minimum amount set in law is an insured amount of two hundred thousand shillings. The annual minimum premium ranges at Ksh 15,000 for this insurance.

So very year, you will need to renew your insurance, pay for your county trade license and the EARB license.

Real Estate Agents commissions in Kenya: Understanding what Commission to Charge

Why real estate agents should not pay single Business Permit to County governments

Please note the above fees may change from time to time but apply as at the date this article was written. To obtain up to date instructions, please contact us on 0726982982

To download the Estate Agents Act, Click here

One of the most thriving businesses in Kenya is the buying and selling of property. Once a buyer and seller agree on the property price, then the seller or transferor of the property needs to bear in mind that they have an obligation to pay Capital gains tax.  President Uhuru Kenyatta assented to the Finance Act, 2014 effectively reintroducing capital gains tax through an amendment to the Eighth Schedule of the Income Tax Act (ITA) to to reduce budget deficits and raise funds for infrastructure and development projects. The move was aligning tax laws within the East African Community, since Kenya was the only state that did not levy taxes on capital gains. Kenya’s levy is at the bottom with Tanzania and Uganda charging being between 10% to 30%.

What is Capital Gains Tax?

Capital Gains Tax (CGT) is tax that is levied on transfer of property situated in Kenya acquired on or before January 2015.  The rate of tax is 15% of the gain and is paid by the seller or the transferor of the property. It is a final tax and therefore not subjected to further taxation after payment.

 
Capital Gains Tax is separated into three types.

CGT 1 for land and buildings

CGT 2 for shares and

CGT 3 for exemptions.

Property may be transferred from one party to another through different ways such as gifting, inheritance, selling e.tc. It is important to note that not all cases of transfer of property attract payment of Capital Gains Tax.

When computing Capital Gains Tax, three terms are used.

Net transfer value – The transfer value less incidental expenses to the transfer.

Adjusted cost of the property – The cost of acquisition, expenditure for enhancement of preservation of the property; cost of defending title over property and incidental costs of acquiring property.

Capital Gain or Loss- Net transfer value less the adjusted cost of the property.

When these details are captured in system during the payment process, then the amount payable will be 5% of the gain made.

Exemptions on Capital Gains Tax.

The following transactions are exempt from Capital Gains Tax  because they are deemed to be non-profit transactions.

•          Charging property as security for a loan
•          Property (including investment shares) transmitted under inheritance.
•          Transfer of a deceased’s property to the personal representative;
•          Vesting of a company’s property in the liquidator by an order of the court during winding up.
•         Vesting of property in the Official Receiver or Trustee in Bankruptcy.
•          Transfer of property to a beneficiary by a trustee subject to a trust.
•          Sale of a decease’s property to administer the estate of the deceased provided the sale is completed within two (2) years of the death of the deceased.

How do I pay for Capital Gains Tax?

Capital Gains Tax is due on or before transfer of property but not later than the 20th day after the transfer. Payment is initiated online by logging into iTax where you generate a payment slip. You can then make payment by cheque or RTGS at any KRA appointed bank. The payment slip expires within 30 days, so you need to make payment within this period.

Conclusion:

As a real estate agent in Kenya or a purchaser, please consult a tax or legal expert to guide you so that you do not incur any penalties for unpaid tax. As a buyer, please take into consideration the tax implications as you determine the budget available for property purchase.

For more details, give us a call on 0726982982.

Real estate is a rewarding career but many real estate agents don’t survive the first year. Part of this could be attributed to lack of sales that makes a real estate agent lose faith.  Learning how to network as an agent helps as you can generate more leads for the properties you are selling or obtain properties available for sale. When you network, you get a chance to introduce your business to your peers, new prospects, and maintain relationships.

Use social media effectively: 

Social media platforms have become an incredible way to connect with your clients. It creates a great opportunity to share your knowledge as a real estate agent and expertise with your clients easily. Whether you are using Facebook, Instagram or any other social media platform, ensure you answer all the emails, reply to all the texts and messages across all the channels smoothly.

Attend Professional Networking Events: 

Networking events are planned so that people can meet each other and make business connections, ideas and share whatever they can regarding business. So, it is good to plan with some professionals to guide you in those areas. You will be much more memorable if you meet people and discuss ideas physically. Consider registering with the  Estate Agents Registration Board ( the regulatory body for estate agency practice in Kenya) for a chance to attend its networking forums.

Avoid working alone and instead focus and get to know people who are striving to make good connections with the experts in the industry. If you are shy, try to look for a place that will suit you and make conversations. It is very easy tying to catch up with people that you already know so make effort to break ways and meet new people. There are friendly events where everybody is the to network so don’t be afraid to approach people and make an introduction. In case you need to set up a networking event yourself, contact us and we can assist in planning.

Join Local Online Groups:  

Online connections are important to your business just as the connections you make in person. When you join a local group, you will become a member of the group and you can discuss what you have. Members of the group post all the things about the community, ask recommendations and ask each other’s questions, share your challenges because that is an opportunity for you to find solutions to some of your business problems. If you are not a member of any online group, we can give you recommendations.

Try to answer all real estate questions with a link to your page and instead focus on providing relevant and consistent answers. Register as an agent with us and you can then share a powerful profile. These are always good forums for making connections and building names, recognitions but should not be considered free advertising. If you don’t want to post about your business, make note of the ground rules first since soliciting for business may end up getting you banned.

Network with one person at a Time: 

Invite other agents for lunch or coffee. By taking your time to make a one-on-one meeting and conversations, you bring that person to your sphere of influence in a very meaningful way. It is also good to meet someone who is out of your circle. Real estate is a full-time commitment so make sure you reach out to people you want to know.

You don’t have to wait for an event for you to network. If you want to reach out to someone, make sure you try hard and reach out to them. Talk to them and tell them to share their ways of becoming successful in the real estate industry.

Create a professional website and Blog: 

In today’s business world you need an online presence. That means having a real estate website of your own. That is important as a marketing tool and an online office. If you would like a website like ours, we will be more than happy to help you build one. Please contact us and we shall get you online in weeks, not months.

 Learn to treat your real estate business as if it were a digital media business. Work with a good team that will help you create good blogs and post them on your online platform to help to promote your business. Make use of local imagery don’t rely on stock buildings and property photos.

In many ways, you are just selling a house, you need to know that you are selling a whole geographical culture. Showcase the best that your area has to offer by publishing high-rest photos of local town landmarks and familiar sites.

Support Local Business:  

Take tour time and visit local businesses and try knowing people behind the counter. Do this everywhere you go. With time you will come familiar with those businesses and you will have created a good connection to the homeowners you visit. Just be sure that you mention that you sell real estate for you to be in a position of getting referrals and good clients too.  Even if referrals never come. It is so good to support the businesses in your community.

Bottom Line

The real estate business entails more than just meeting people and exchanging business cards. It is about making meaningful connections with people and connections business-wise. When you network, you expand your base of potential clients and create a strong relationship that will open doors for future business.

Many people always dream of becoming successful real estate agents. But not all of them do well in their career. The profession requires hard work and building relationships with clients. The real estate industry is constantly changing, meaning it is up to the investors and the agents to go the extra mile to stay current and ahead of the competition. Some daily habits of a real estate agent include:

Plan your day: Goal setting is essential for any project or plan. A real estate agent has to develop a good morning routine which will help in the good management and give a good program of the day. Every morning, plan your day. Look at your leads and identify who you need to call, message or email within the day. Remember to schedule all property visits needed for clients while also looking to add inventory that you have for sale.

Network Daily: Continually prospecting maintains a sales pipeline. Outbound calls to potential sellers and following-up with all potential buyers/clients occurs daily.

Updating your social media: Your online presence is key. Social media is an excellent tool to optimize your marketing efforts. You can do this by posting new property, tips to your followers or offer general property advise. Interaction with clients is a very important thing because you will come across as a professional real estate agent.

If managing social media platforms looks too overwhelming, we can provide you with a trained assistant who can manage your social media pages by helping you promote events, listings, and blog posts, as well as showing off your local knowledge. This way, your clients remain updated.

Learn more about the neighbourhoods: The real estate business is largely local, successful real state agents are always learning more about their area. They track all the crucial housing and demographic data as well county politics and events. Become involved more in the community to expand your network.

Goal setting is always a key and it is very important for real estate agents who want to succeed. Goals will always give you a way to track and track progress. Setting goals will help you see the improvements in your business and lead you the right way. Goal setting will also help you manage the competition in the industry.

 Have a Habit of making your wealth and Wellness a priority

Always have a strong baseline of health by getting enough sleep, exercising, and valuing nutrition that will give you good energy and motive to work the following day and many years as you invest.

Constant Networking: Community involvement, fast responses, and technology all facilitate continuous, effective networking. These tools allow you to constantly prospect, planting the seeds that will grow into leads and clients. It can happen every day, like handing out a business card or mentioning to the person in line at the store that you’re an agent.

Passion: You must have a passion to serve people by showing them the best properties within their budget. Real estate also requires respect for diversity so that people from all cultures and neighbourhoods are accommodated, satisfied, and happy. Real estate will never have an agent who is frustrated and bored you have to make good motives habitual for success comes with hard work.

Believe in Yourself: As a real estate agent that would love to succeed, a habit of believing in yourself and in your work has to live in you. Ask yourself one question. That if you don’t believe in your self how will your clients do? Many people hold themselves back by making excuses on why they can’t or why they don’t do something. Always remember to give no reason to clients to look elsewhere when they are ready to sell or buy.

Effective time management: Real estate agents are essentially small business owners, juggling everything from accounting and taxes to marketing and hiring. It is your duty to maintain clients and keep up to date on market and your continuing education. The only way you can do that is to stick in your lane and have smart time management.

Ending

Coming to the end of our discussion of the habits of a successful real estate agent, we learn more that is on the way for us and realize to work on the above-mentioned habits and more which will help us grow in your investment. Habits are things that we need to learn and make them part of our life to boost our businesses and have good relationships with people.

Most people would prefer to deal with someone who is passionate and committed to their work and who will go the extra mile. A habit is a good version of business no matter the type of industry that you are in.

When you think about real estate investing, the first thing that comes to your mind is owning a property. Rules are some set of laws that are set to guide or govern someone when thinking to invest in real estate. Real estate has become one of the most developed industries in Kenya hence leading to one of the best businesses that one can invest in.

 Rules are always to direct one on various ways of becoming successful in real estate investment. You should learn a lot of rules for you to safely profit from real estate investing in this economy. Investing in real estate is a popular choice for good reason. Below are some discussed rules to guide you in real estate investing.

1.     Educate Yourself

It is well known that education is always the key to success therefore, no success can come without education or hard work, and more. Educating yourself is more important when dealing with any business because it will help you learn and understand more about your business, how to deal with clients or tenants the management system, and more.

Knowledge applies everywhere when doing anything more so when handling big business such as real estate. Whether you are talking about equities and the stock market or any other thing. You need to be professionally educated to succeed in your career. It is also important to have financial education because, this will help you know how to handle money, knowing about assets, understanding income and all the expenses in the business.

2.     Making of Long-Term Investment

A temporary hike in the market can make you invest in real estate for the short term, but every seasoned investor knows that real estate investments are made in lo terms of appreciation value in mind. You need to study the real estate market and figure out where investing makes the most sense and invest accordingly.

You have to consider the cash flow and appreciation potential of any real estate venture before coming to conclusion.

3.     Consider Outsourcing Property Management

After having your property whether rented or bought you need to consider management where you can either manage your portfolio or rent it for a certain firm to do it. A good number of investors will always allow one to do it because this delegates the task of rent collection and property maintenance to the third party and the investor is left with more time to expand further their portfolio.

There are traits that a good landlord must have in order to retain good tenants and the small efforts have always kept the tenants happy. Handling property issues or complaints as well as finding the right tenants is left for a professional property manager.

4.     Setting a clear investment strategy

Being a real estate investor is a smart way of being financially independent. This will only happen when you take a businesslike approach to it. When starting a business, you set a business strategy with very well-defined goals. One needs to be very realistic on both investments and revenues.

Before investing in a property, look at the numbers carefully, and analyze the returns it needs to generate for you. If you are in long-term business you need to set a multi-annual strategy.

5.     Invest for Cash Flow

Cash flow is the glue that sticks the investment together. It covers all operating expenses and debt. Having a positive cash flow enables you to acquire more properties faster, get greater Tt

One needs a solid conservative plan to stabilize the property and make its cash flow positive.

6.     Take a Top-Down Approach

Always start by selecting the best market that aligns with the type of investment that you have. When one considers what is in the market then that’s a good investment. Using a top-down approach means looking at the state, the city the neighborhood, the local economy and then the job market, the demographics of the population the growth rate in the area, and the unemployment rate. All these are factors of a good real estate investment decision.

7.     Leverage your investment Capital

Real estate is the only investment where you can borrow other people’s money to purchase and control the income-producing property. It is a good thing because it makes you leverage your investment capital into more property than purchasing using all cash.

On top of that, you can borrow money from banks and any lending institution at closed to historically low interest rates. With that, you are able to control a lot of real estate with a relatively small amount of down payment capital. Leverage magnifies your overall rates of returns and therefore accelerates your wealth creation.

8.     Know the Basics

It is possible for anyone in business to invest money in real estate, Uninformed investments too often become dismal failures. To mitigate risk and give yourself the best chance of success. You need to learn the basics of real estate investment. For example, how you will determine whether a property will be profitable? How will you screen your tenants? And what strategy do you need to exit the environment?

In a nutshell, you need to know that real estate investing offers the opportunity to control your own destiny. You need to be observant and study the market in-depth before making a decision of investing in a particular property. Study the local trends as they might differ from the average expectations for the market.

Make sure to have a diversified portfolio so you don’t go bankrupt if one fails. Ensure there is a flow of cash so that you can continue building your investment business.

Real estate can be a fluid industry that adapts and evolves quickly. However, there will always be some problems that the investors will be encountered through the process. The challenges that real estate investors face in the market can impact their business significantly. This shows that the investors have to be ready and to find solutions on how to cope with the challenges to grow in the market.

Along with all the sometimes complicated situations, real estate still possesses good marketing stability in the country and this has been common. The idea of real estate is an expensive investment that actually requires much money as some of the other business was to put down the business idea. Some of the challenges include.

1.  Covid 19.

2. Low Inventory.

3. Buying Real Estate in Sellers Market.

4. Lack of Affordable Housing.

5. Unrealistic Home Buyers.

6. When the Neighborhood Reputation is a deal-breaker.

7. An Economy in Recovery.

Covid 19

Covid 19 is one of the most disrupting forces that real estate investors have experienced. When looking at the real estate market, You should consider existing fragility, adaptability to new demands, and potential relevance to new markets. Covid 19 has brought up new strategies and demands that should be followed and this has led to low-income rates in real estate.

The pandemic is one of the challenges that hinder investors since it has dropped a high percentage of buyers across the world. Another important factor to consider is the lockdown all over the country and the confidence with which consumers and real estate investors came out of state and areas specific lockdowns. This brings attention to everyone if people will ever leave closer to each other or sit in theatres or even go back to shopping in crowds.

In addition, both the commercial and residential real estate buyers must think about people moving from high-density cities to lower-density rural areas and will the social distancing habits persist because this has affected the marketing industry in real estate as well. If social distancing persists, then the companies will need more physical space to accommodate demands while keeping up with the social distance guidelines.

   Low Inventory.

It is always simple that if someone has no inventory then you have no income. And once there is no income it means there is no business. Finding listing in a low inventory market has always become a challenge even for agents with years in the field. New agents will find difficulty in finding sellers and this can highly be caused by lack of experience that will make the new agents less attractive to homeowners seeking to retire comfortably and profit from the sale of their homes.

In this field, one cant get business if no one lists with you, this is why you have to shift your focus and find people who will list with you for you to make a profit on your business. And these are referrals. Referrals are the best source of leads in any market. They are even more crucial to your business when inventory is low.

Sellers are much likely to trust a referral over a stranger when buyers are hard to come by. And given that most sellers interview 1gent, expanding your sphere of influence should be your top priority. One way to grow your sphere of influence is to interview local business owners. You should publish and promote each other’s interviews as videos or even stream live on social media.

If this is done, local business owners will also promote you in return. They will share their interview with their social network increasing your exposure as well and this will help deal with the low inventory that has been seen as a challenge and there will be change.

   Buying Real Estate in Sellers Market.

There has been a surge in new construction homes going up in the market and it is not still enough to meet demand. Inventory is hard to come by in the seller’s market because everything sells faster. In this case, a new building may be an option hence taking fewer months to be completed. Inventors looking for renovative homes will also be competing with the home buyers on the market.

Buying an investment property in a seller’s market can be a difficult proposition, But there are more benefits that come with buying from the seller’s market. There are high chances that whatever the inventors buy from the sellers will go up in value. The value of homes increases in the seller’s market so owning a property under this market is a pro.

If the inventors want to avoid in seller’s market they should avoid feeling pressure to make a rushed purchase due to lack of inventory and overpaying for a property. Or even buying a property that is not the best investment opportunity. Real estate investors understand that the real estate market ebb and flows. while it might be the seller’s market now, eventually the market will even itself out.

         Lack of Affordable Housing.

All over the country, it is realized that there is a huge lack of affordable housing. Currently, it is said that there are so many houses that have a shortage of affordable rental homes for extremely low-income households. In addition to the affordability crisis is the lack of homes for sale, which is contributing to rising and home prices.

The homeowners, therefore, need to check the housing pricing in order to meet our buyer’s targets to avoid clients not buying the houses. Another challenge that is affecting the inventors is poor short-term prospects in rental rates and occupancy until the pandemic is under control. I, therefore, urge them to educate the marketors on the long-term prospects of historical property appreciation.

  Unrealistic Home Buyers.

In any business, you will always come across clients that are unrealistic. They want it all for nothing. They bargain too much and make lower pricing for the home that is not worth it and that brings a big loss to the inventors. These types of buyers may also come up with a lot of unreasonable opinions about the condition of the home.

The unrealistic home buyers are the types of buyers that the home sellers should not rely on since they are not dependent. Their major work is to lower the quality of our homes and those are not the aims of a property owner. Because these homebuyers don’t always turn to realistic home buyers. Therefore it is important to note that there are a lot of options that any customer could explore and most of them know this fact for realtors.

To overcome this common problem that real estate agents experience, You need to have an understanding of the home’s condition, the condition of the economy, sellers, and overall market. Have a direct and affirmative approach to dressing a client’s concerns should be backed up with facts in order to allow them completely trust your decisions.

     When Neighborhood Reputation is a Deal Breaker.

Sometimes you will come across a client who has found the house they have been looking for or rather their dream home but not in their dream location. A neighborhood’s reputation is beyond your control. This might make you feel you have gone back to square one of the real estate process.

However, many neighborhoods have sub-neighborhoods that may have a better reputation with similar styles in the home. Always provide your clients with improvements that have been made within the community give reasons why that particular neighborhood is highly desirable.

      An Economy in Recovery.

This has highly been brought by the pandemic that has caused massive uncertainly surrounding income. With so many businesses affected across the market and this has to lead to the low rate of buyers hence affecting the inventors and the industry at large. With the slow recovery of the economy, we need to have an understanding of how to recover and go back to the way the economy was and this will take time.

Key segments of our economy are still in disarray. Many industries have been affected such as Air travel, construction, leisure, hospitality have suffered huge losses in revenue and they will recover over time. Therefore the real estate industry inventors should adapt with the economy at hand and adapt as they work on areas that will make the economy better for our clients and to the homeowners as well. Because when the economy is much affected there is less income for the real estate inventors because a lot of our customers will not be able to meet the target prices.

       Conclusion.

To conclude, ups and downs are always part of every business but besides that, we as the business owners and the whole team at large should be ready to come with some solutions that will help the industry develop and overcome the challenges. That makes any business always have an idea of enhancing their business in terms of providing more to customers and living the experience and journey of conducting an enterprise in the best possible way.

Once known that these common real estate problems are part of the job, one should always be ready in thinking and working with good management that will add valuable information that will overcome any challenge that arises.

The Real Estate Industry is constantly changing in Kenya, this means that as new Investors or new agents we have to work an extra mile to know how we will archive our goals which success comes as one. Success comes with how you plan yourself and how you accomplish them. the aim that one has in the business leads to a successful Real Estate Agent.

Knowing when to follow conventional wisdom and when to pursue new tactics will help you create a successful real estate business.

1. Set Goals and Create a Plan.

You need a plan for how to be successful as a real estate agent. You need to set goals and develop a business plan. Most plans cover activities for attracting new clients.

Here are some helpful tips:

• Write one or two sentences about what could make you attractive to potential clients. This is your unique selling proposition.
• Develop a budget with a focus on the activities that you identify as having the potential for the highest ROI. This will ensure efficient use of funds for the right reasons.
• Create a calendar to guide planning for marketing and networking activities like emails , social media and paid advertising.
• Develop metrics and daily activities all driven toward helping you meet your goals.

After you develop your plan, hold yourself accountable to it.

  For a good business owner, one needs to have a business plan that will guide the business. For a good beginning, a business plan is more important. Don’t let your enthusiasm for getting a client right away keep you from important business organizing and planning tasks. Take time to understand your market and customers know their likes and dislikes and all these will walk you through a successful business.

Understand your business and know what sets you apart from the real estate agent, develop the right tools and skills to ensure that your business grows. Always stick to your plan make sure it is archivable but not easy because it is not a career with instant gratification. Always remember that you can’t control buyers, sellers, or even the market but you can control your effort.

2.Team Up with Other Real Estate Agents.

As always said, that ‘two heads are better than one.’ There must be truth to it when it comes to the real estate industry. When you team up with other real estate agents, it will help you grow your business in one or two different ways other than thinking alone. You will get different helpful ideas from different agents that will work well for you. And that will ultimately help you increase your profit and succeed in your business.

Being a new agent, you may have not gone through some challenges that may be the older agents have gone through teaming up will help deal with this. It will help you get an overall feel of what the market is and other issues that you will come across as a new inventor. It allows you to benefit from market knowledge, experience, and clientele.

3. Ask for referrals.

Referrals are the bread and butter of real estate. According to the National Association of Realtors, 39% of sellers found their agents through a referral from friends or family, and 24% used their agent twice or more. Also, 69% of sellers and 70% of buyers say they’d use the same agent again. Here are some tips for getting referrals that you can use at the beginning of (and throughout) your career:

• Ask friends and family. Let them know you’re licensed and are actively seeking buyers and sellers. Tell them you intend to work hard for anyone they refer to you.
• Keep asking. Once people have sent clients your way, ask those clients to tell other people. Keep up with past clients so you’re top of mind when they need an agent again.
• Go above and beyond. Clients appreciate and remember hard work on their behalf, and they’ll tell their friends, coworkers, and families. So always go the extra mile.
• Show your gratitude. Write a thank-you card to each referral source. For your best sources, consider a special token of your appreciation.

4. Use networking possibilities to their fullest potential.

Networking is an art that can be fun and rewarding. All it takes is knowing where to network and following a few simple rules for networking. Places that offer multiple networking opportunities are your local chamber of commerce, networking groups and real estate meetups, expos and events such as a home decorating showcase or a fair for expectant parents, volunteer groups and charity programs, your children’s school, and online groups like those on Facebook. When you’re networking at an event or meeting, here are some helpful hints for doing it effectively. Dress appropriately and professionally. If you look sharp, you make a good impression. Also, listen more than you talk. That conveys empathy and concern, which people appreciate. Focus on helping and answering questions rather than asking for referrals. Just slip someone your card at the end of a conversation. Also, take other people’s cards, too, because you never know when a contact might help you or become a lead. And, finally, enter any of your leads in your customer relationship management system as soon as you can after you leave.

5. Advertise like a pro—it’s less expensive than you think.

Marketing and advertising play a big role in succeeding as a real estate agent. The good news is it doesn’t have to cost a lot. It starts with a memorable slogan that sets you apart. After that, there are a number of ways to effectively reach new clients and market yourself both online and off, on any budget. For example, you can advertise on search engines without shelling out thousands of dollars for a banner ad by using their pay-per-click programs, which only charge you if someone clicks your ad, and the fee for those clicks can be surprisingly affordable for locally-targeted keywords.

Social media can also boost your leads with just a small investment. Facebook and Twitter offer ways to advertise at a reasonable cost. And finally, round out your marketing plan with a real-estate-based ad platform, where you can post and highlight listings, as well as engage new clients. The gains often greatly outweigh the initial cost.

6. Embrace working at night and on weekends.

People shop for homes in their free time, which is typically nights and weekends. Buyers and sellers expect their real estate agent to be available for showings, open houses, and office visits on their schedules. Don’t treat working off hours as a chore. Instead, embrace it, especially early in your career.

Volunteer to work open houses for other agents on weekends. Let clients see that you’re happy to be available whenever they need you, even if it’s at an odd time, because that instills confidence in you. In some cases, it can even lead to a sale in a competitive market or during a bidding war. Clients remember these things and tell their friends, which can lead to referrals. As you become more successful, you can dial it back and work one day of the weekend to balance client service with your personal life.

       7. Work on your social media platforms.

Real estate is an industry that has really developed by being present on social media. Social media have platforms where you will post your properties, do online marketing, and with all these your business will eventually grow. Here are some platforms that you should join as a new real estate agent to boost your success.

         LinkedIn: This is one of the best places to do networking with your qualified team in your industry. A good place to note good entrepreneurs to work with and as well ask questions.

       Facebook: Facebook is also another social media platform that has good number of users. You can advertise your job on this platform by either showing your properties and discussing what you offer. It is a platform that one will use to make his/her dreams come true.

       Instagram: This is a platform that majorly contains a young generation. Tap into your more creative side and create a visually appealing profile by uploading interiors and exteriors shots from your open houses.

       Twitter: Keep your clients up to date, keep them posted in life with Twitter. Go direct to your point and business and you will walk through it.

Conclusion.

There are many attractive ways of becoming a successful real estate agent. It only requires time and effort. The goals you set for yourself and for your business will help you navigate your path to success. The above-listed steps are just to guide you to walk through your way as an entrepreneur.

Great agents work tirelessly to find novel ways to market their business generate new leads and retain clients. Learn about new technology and find ways to incorporate it into your daily practices. Success never comes easy it entails effort, Commitment, and struggles.

Now that you know how to be a successful real estate agent…

You’re ready to get started. Click here to start listing your properties.

Every business has its own ups and downs. It is not always a smooth ride. Just in that sense, real estate investments have their own disadvantages as much as it would be having its own advantages. In  this article, we are going to cover the disadvantages of investing in real estate in Kenya. This gives you an insight of the many risks and the problems that you may incur while in such and industry period

The industry requires management and maintenance

One of the essential skills that an investor in the real estate industry should have is his management. Real estate investment involves monitoring and managing of property and especially to those who have invested in rental property. property needs to be taken care of, with frequent repairs and renovation. Any property must be maintained and if ignored, it can extend high costs within a short period of time. It is not just about the buying but also about the maintenance.  

Real estate has low liquidity rate

 Many investments are known for high liquidity. They can be bought faster and sold in the same way. Real estate on the other hand is highly illiquid in emergency need of cash and in emergency need of cash, the property cannot be sold quickly. Real estate investment is considered a long term investment because of its nature. Also investors in real estate investments should be prepared to hold the property for a longer period of time.

Hidden costs

Real estate investments have a lot of hidden costs including higher transaction costs. These hidden costs may significantly influence the value of the property. This also includes the transaction costs that are always high. Such costs also affect the value of property by making it harder to either purchase or make profits.

Insufficient information

Real estate investment especially for the first time buyers, they may lack information there is related to the property. This is realised later when we are paying for the same property. They lack to know if they’ve made a good deal or not until we have done buying the property. Investors in the rental property also lacked the information on when they have fluctuation in demand demographics. This leads them into costs such as vacancy costs. Real estate investments therefore means dealing with information that is correct in the market as well as having alternative ways in which you can deal with inefficiency of information in the market.

Take away

In other investments, there is always an advantage to aids as well as its disadvantages. A wise investor will always balance the advantages of certain businesses over the disadvantages. In real estate investment, the advantages outweigh the disadvantages. It is always advisable to have a purpose and goal while investing so that it can be satisfying as to whether the advantages make sense in the future or not, or if it is worth waiting for or not.