International property group making waves in Krugersdorp
It currently has approximately 700 offices and 95 000 agents worldwide.
Although Keller Williams Realty, the biggest estate agent group in the United States, and the second biggest in the world, made a low-key entrance in the South African market, it has been an overwhelming success – also in the Krugersdorp area.
In its first year of operations Keller Williams South Africa has become the fastest growing region for the US-based franchising giant with operations all over the world. There are now thirteen offices with more than 200 agents. One of the new offices is in Noordheuwel in Krugersdorp and has grown considerably since August.
Marco Coetzer, a former franchisee of the ERA group, started KW Advance West Rand with one agent on 1 May last year and now has twenty – more than he ever had during his association with ERA.
Keller Williams revolutionised the American real estate industry in just more than twenty years and the South African franchisees, which include various well-known names in the residential property market, predict that the same will happen in South Africa.
The American group that started selling franchises in 1991, became the largest real estate franchise in North America in 2013 and announced its goal of becoming number one in the world in agent count, transaction and turnover. It currently has approximately 700 offices and 95 000 agents worldwide.
Since the collapse of the American property market during the financial crisis of 2008 Keller Williams was the only group that has shown any growth. The other major groups lost between 25 per cent and 46 per cent of their franchisees.
After 19 years in the property industry Coetzer felt that his career was stagnating. He joined Keller Williams because he thought that this association could help to take his business to a new level. He says the comprehensive training and available tools will help any agent – from the newcomer to the experienced agent – to reach those higher levels.
“At Keller Williams the emphasis is on accountability, profitability and productivity and it is already bearing fruit.”
Keller Williams Worldwide president Chris Heller praised the South African team’s success. “Our South African region is truly setting a new standard. We are privileged to be in business with such talented real estate professionals,” he said.
The managing director of the South African operation is Niel Cronje, a leading figure in the South African real estate market for more than 20 years. He was responsible for the successful establishment of Engel & Volckers, the well-known European group that specialises in the luxury market in South Africa. The chief operating officer is Johan Gouws, a well-known property strategist in Pretoria.
Cronje contributes the success of Keller Williams in South Africa to the unique business model that enables successful franchisees and agents to be really profitable. Instead of forfeiting up to half or their commission to be part of a big group, they are rather independent entrepreneurs with the backing of a big international group. Agents pay for support services, but only up to a point, after which they keep all their commission.
The support services that agents receive include the best of the training and technology that are available and will enable them to deliver exceptional client service, Cronje said.
Another first in the industry is the growth share model that creates a passive income stream for estate agents.
