RE/MAX Nigeria

The Central Bank of Nigeria (CBN) on the 25th of November 2014 in Abuja announced the devaluation of the Naira by N13 as part of measures the bank said were aimed at strengthening the nation’s economy. Has the decision by the Central Bank to devalue the Naira strengthened or weakened the real estate industry in Nigeria? Is there a silver lining for the real estate industry amidst what looks to be a tough year ahead?

Since the official devaluation of the Naira in November 2014, the value of the naira has continued to decline. The current exchange rate currently stands at about N199 to $1 as compared to $165 to $1 in November 2014 buttressing the continuous devaluation of the Naira.

As the Naira continues to fall against the dollar, industry experts at RE/MAX Nigeria have predicted an average of 27 percent increase in the cost of housing projects. The effect of the depreciation is already being felt by developers as the cost of construction has risen since most of the materials for construction are being imported from foreign countries such as China. Due to high building materials, development costs have risen; notwithstanding the drop in demand resulting in a glut in supply of developments already in progress.

Furthermore, the devaluation of the Naira has affected the availability of funds and interest rate as well as hindered the growth of mortgages in the country. The devaluation could easily be blamed on falling oil prices. Since Nigeria depends mainly on oil as its main source of revenue, drop in oil prices have huge impact on the Nigerian economy.

Additionally, pre-election campaigning and spending also contributed significantly to the drop in the value of the Naira but a brief post-election bounce by the Naira has quickly fizzled and black market prices for the dollar have settled at around 220 Naira to a dollar. Finally, according to a report by Tribune Newspaper, a significant amount of real estate projects in the country are funded (directly and indirectly) by government, meaning that drop in oil prices means less funds for property development. And with governments struggling to even make monthly salary payments to workers, contractors and organizations, there will be even less cash in circulation.

Another effect of Naira devaluation is what close industry watchers have described as ‘crisis of currency’. As the Naira continues its downward trail towards further devaluation, property owners and landlords, mostly at the upper end of the market, have chosen to transact their business in foreign currency rather than the Naira. Numerous stakeholders, especially property vendors, see this as an unwelcome development for a market that is still advancing, exhorting that dealers and purchasers must locate a meeting point or an exit plan so as to keep the showcasing going.

Is devaluation a bad idea? According to Mr. Bode Adediji, of Bode Adediji Partnership, “the devaluation of the naira is not on itself a bad thing if there is a robust local capacity to produce, manufacture and distribute internally instead of importing materials from overseas.” In agreement with Mr. Adedeji, Sparklight Group Chairman, Chief Toyin Adeyinka stated that the real estate industry in Nigeria has suffered the effects of devaluation largely because real estate developers depend mainly on imported materials for construction. He added that the effect of devaluation would be much milder if construction materials are produced locally thereby cutting down the cost of construction and in turn making properties more affordable for the average Nigerian.

So where does all this leave us as close followers of the industry? It stands to reason that in any economic downturn, there is an opportunity. The opportunity here lies in the ability to innovate and persevere. It is important for all parties to demonstrate the true value of Nigerian real estate. For too long, our infrastructure, design and construction do not match the premium prices that our real estate demands especially in the highbrow areas. The barrier to entry in the marketplace has been too low and creative problem-solving has been lacking.

The players in the industry who recognize that 2015 cannot be “business as usual” are primed to thrive in the short-term and dominate in the medium term. It is all the more important that developers find new and quality local (and international) products and solutions; government find avenues of supporting mortgage growth and improve lands regulations; estate agencies deliver on holistic consulting services and quality customer service; and that buyers are more exposed and educated about their options in the market as well as find creative bargaining solutions.

As you might have gathered, RE/MAX Nigeria is all for and about great customer service! It's what makes us refreshingly different from the lot.

Have you been trying to build strong long lasting relationships with your clients for a while now or are you just passionate for great service? Well, here are some tips that you could use to win over the most difficult of customers. It all starts from within!

Before real estate, Kim Scott spent 15 years in the hospitality industry working as both a waitress and a bartender, as well as eight years as an administrative assistant to a financial advisor, a position she still holds. “I learned a lot during those years from interacting with both happy and unhappy customers,” she says. Here’s what Scott has to say about offering superior customer service:

Empathy – The ability to relate to how someone is feeling and to understand what they are going through is a customer service skill that involves being able to see past your own frame of mind and see the world as someone else does. We may never see it just as they do, but trying can make all the difference.

Active listening – Always try to repeat back to customers what you hear them saying to you. This ensures you heard them correctly and gives the customer a chance to clarify if there seems to be a misunderstanding.

Problem solving – It’s crucial. Problem-solving derives from both empathy and active listening. You should be committed and have a sincere desire to solve the customer’s problems. The ability to ask the right kind of questions will be a major factor in providing a solution. You also need to prioritize your time around their customers’ needs and wants.

Being proactive – It’s always better to anticipate than to react. Although you can’t predict all that’s coming during the transaction process, use your experience to minimize surprises.
Flexibility – Being overly rigid can make customers feel like they’re just a number. While it’s good to have systems and processes in place, you never want to be so bound to them that you’re unable or unwilling to try and accommodate customers’ unique needs and wants.

Friendliness and courtesy – It doesn’t get any simpler than this. And these traits go a long way in earning clients’ loyalty, and their referrals.

Professionalism – Never forget you’re representing yourself, what you stand for, your trade, and your clients with every move you make. Regularly ask yourself: “Am I giving every client the right impression of me and my service.

Source: ABOVE, the RE/MAX magazine abovemag.remax.com

One thing fast-food market giants KFC, Mc Donald’s and Domino's all have in common is the power of numbers. Their continued and growing success is an accumulation of the perks that come with being part of a large network. Franchising has enormous benefits and is also plagued with its drawbacks but when operated under an organised, tested environment can prove to be very profitable from top to bottom. This business model does not just work for fast-food retailers, its profitability is demonstrated in the fashion, oil and gas, agriculture and real estate industry to name a few.

For the sake of clarity, a franchise is a license that permits the franchisee access to the proprietary knowledge, processes and trademarks to allow the party sell a product or provide a service under the businesses name. Will this work sustainably in Nigeria? Yes. Yes it will.

Looking inwards, the likes of Chicken republic, Mr Biggs, Shoprite, Nike, MAC etc. support this conviction that when executed with precision, the franchise system at national and international level will work. Here are some reasons why:

1. The selling power of an established brand

Building rapport with an ideal customer base is not an easy task to execute for a start-up and even when it has been established on a comfortable scale, the need to grow and expand will arise. In an ideal franchise system, one of the key benefits remains the immediate brand awareness that lies with the consumers actively and inactively seeking the good or service offering.

2. Shorter time to opening, Initial training and ongoing support

The opportunity cost of getting a franchise is the freedom that comes with doing your own thing. With a franchise, you have given up a certain degree of your independence (this varies from organisation to organisation) as franchisers exert some control over brand standards, goods and service coverage and so on. Because it is a model that works, Franchisers understand this and so they help ease the transition with extensive support and training. In addition, some franchisers alleviate the burdens of tiresome start up through their network of contacts and lower costs achieved through economies of scale. With a franchise, you are not alone from the start.

3. National and regional advertising

Have you ever seen a catch phrase or a heard jingle so awesome that you wish you had thought of it yourself? Well with a franchise system in place, the franchisee is free to use that and all other marketing material that was before them. Brand awareness is centralised with the franchiser bearing the costs and stress of advertising, all International, national and regional campaigns are available for use by franchisees.

4. Higher chance at success

T.E.A.M – Together, Everyone Achieves More. This benefit is somewhat self-explanatory as it rides on the fundamental principles of team work and the concept of the ‘wolf pack’. A franchise system that works, provides the franchisee with all the necessary tools for success. The franchisee can rely on an established business model that is often customisable to suit market forces to foster their development and ultimately, success.

Other benefits of a franchise include moral support through the network of co franchisees and franchise associations, customer generation and leads and economies of scale through group purchasing. The beauty of the franchise system is the security and integrity it brings to an already established business and/or a start-up.

RE/MAX Nigeria is a franchise owned Real Estate establishment with its headquarters, RE/MAX LLC. In Denver Co. RE/MAX is currently present in 97 countries worldwide through a network of independently owned and operated franchise offices, amassing a whopping 100,000 top performing agents in these locations. RE/MAX is the number one seller of real estate worldwide and remain the market leader in several countries that hold the trademark RE/MAX hot air balloon.

RE/MAX Nigeria will become the market leader in the dynamic industry that is real estate and we call on hardworking resilient people of integrity to be a part of this journey through franchises. An established real estate broker or someone with no prior experience can take advantage of this opportunity to grow a legacy that they can leave behind for generations to come. We are here to help every step of the way.

To find out more please contact Chisom Olisaemeka – colisaemeka@remax.ng & 0700-GO-REMAX

We have been asked why getting a RE/MAX franchise is better than being out on your own so we have compiled a list of reasons why like-minded professionals working collectively in Nigerian real estate is better than being a lone ranger. The reasons are quite compelling.

It’s a bird, it’s a plane.. No, its RE/MAX.

The RE/MAX brand has steadily gained momentum since inception in 1973. Ever since, it has become a globally recognised household name in over 97 countries with 100,000 RE/MAX agents worldwide.

RE/MAX is know for the bright blue white and red hot air balloon that glides unperturbed in the cloudy blue skies. Coupled with extensive national advertising through print, outdoor, digital/mobile social media with RE/MAX you gain instantaneous access to recognition and top-of-mind awareness amongst millions of consumers and potential agents each year.

The moment you attach the RE/MAX name and iconic RE/MAX balloon to your business, you open yourself up to a wealth of global/national recognition and reputation for success and reliability, a rare mix in this economy.

Worldwide real estate leaders

“Nobody in the world sells as much real estate as RE/MAX”

- RE/MAX LLC

Owing to the nature of the business model we operate, we are sad to say that being part of the RE/MAX network is not for everyone.

The RE/MAX model serves top-producing professionals and those who aspire to be. Performance inspires performance, creating high energy, winning office environments that agents love to be a part of.

While experience is key, self motivation and the drive for something bigger than yourself- the bigger picture are common traits found in RE/MAX agents.

Entrepreneurial approach

“Dave Liniger had a controversial idea to build a real estate powerhouse where experienced, productive agents would keep more of their commissions and enjoy the freedom to run their business as they saw fit”

- RE/MAX LLC

As a broker/owner you remain in control of all aspects of your business with the added benefits of the RE/MAX brand.

R/MAX has an entrepreneurial core that places control of your business right where it belongs – with you, the expert in your market. But you also receive personal, hands-on coaching, support and attention from day one

Recruiting and Franchise support

We’re commonly asked what sort of support we offer to franchisees, well lets put it this way if you don’t succeed, neither do we nor RE/MAX LLC. There is extensive support at every level – broker, agent and office personnel in terms of training, business development support, technology, marketing and the list is endless.

We understand that recruiting the right people is the lifeblood of any real estate brokerage. RE/MAX provides a full set of tools to help you attract great agents and help them reach their full potential.

Build your Niche

With RE/MAX you have the opportunity to diversify your business. While being the jack of all trades works for some, others may excel by focusing their energies and resources in one direction.

RE/MAX is a leader in commercial real estate with over 3,000 RE/MAX Commercial practitioners. The RE/MAX Collection marketing program is a valuable connection to buyers and sellers of luxury homes and properties.

Everyone wins

Our model is fool proof in the sense that we operate an open rewarding system for brokers and agents, the first of its kind.

RE/MAX puts the success of the business in the hands of the agents and they are at the core of the business, what’s more important to note is that they know it.

Rather than look for ways to take advantage and short-change, they are motivate to excel to earn more.

In short, RE/MAX is a group of outstanding professionals committed to raising the bar and working hard to produce outstanding results for their customers – and, in turn, themselves.

So what are you waiting for? Join the RE/MAX community today!

Contact Info

Address: 52A Omorinre Johnson St. Lekki Phase 1. Lagos.

Phone: 0700-GO-REMAX, 07004673629

Email: Info@remax.ng

Website: www.remax.ng
RE/MAX Nigeria Twitter Page
RE/MAX Nigeria Facebook Page
RE/MAX Nigeria YouTube Channel

Think about it, why would you spend 10 minutes viewing a property you may end up living in for years? RE/MAX Nigeria has compiled a checklist of things NOT to overlook and how to steer clear of dodgy houses and agents!

Agents

Source: Shutterstock

The average Nigerian agent is a hustler and time is money to him/her. They are going to try to rush you through the viewing but that won’t be happening. Always remember that agents have taken their time to inspect the properties and they will not mention or worse still, try to hide flaws they’ve noticed just to get that cheque! Stand your ground, be firm and most importantly take your sweet time. A genuine agent will understand and assist your need to take your time in making a life defining decision.

Plumbing & Electric

Source: Googleimages

Go ahead to inspect the bathroom and kitchen fittings, are they attached? Does water run? Anything broken? Run the taps to check for water pressure, if there are water heaters, do they work? What is the water supply like – Local supply or Borehole? Be sure to check and ask these questions.

When it comes to electricity, agents and landlords can be quite evasive, however there are some general questions you need to ask such as the general situation of power supply to the area and how many electric outlets are assigned to each room, note them down. Be sure not to get carried away by the appearance of things, be thorough.

History & Construction

Source: Homedsgn.com

Has the property repeatedly changed hands? How long has the property been on the market? When was it built? These are questions you may not think to ask initially but trust me, when you get a serial leaky roof you’d want to have known it was 29 going 30 years without any maintenance and checks.

Most importantly check the walls for hairline cracks and damp. A coat of paint won’t hide a poor construction job, ensure the house you’re moving into is structurally sound enough to stand the test of time. Again, it’s easy to be distracted with a fresh coat of egg white paint so constantly remind yourself that it’s not your home but a building that needs inspecting.

Location, Location, Location!

Source: Mashable.com

Spend your time in your prospecting neighbourhood. Is it child and family friendly? Proximity to work and general amenities or are you the social kind? Is it in convenient proximity to your favourite karaoke bar? Also be sure that the area is secure, spend time (on other occasions) going around the neighbourhood at different times of the day just to have a good idea of what you’re getting yourself into. If you can, speak to your potential neighbours and hear what they have to say, remember, there is a home, no matter how quaint or distinct that has your name on the front door. Don’t be in a hurry to settle.

WHY RE/MAX?

Nowadays choosing an agent in this economy is like a game of Russian roulette. You keep pulling the trigger praying it doesn’t go off because then, you’re one step closer to your goal. Well, what if I told you that you can put the gun down and still achieve your dream? With RE/MAX you’re sure to get the best in real estate whether you’re selling, buying or leasing a property. Our best practices and world class service have been modified to suit the peculiarity of the Nigerian real estate industry and this gives us the confidence to say that no one else sells real estate like we do.

Think Real Estate, think RE/MAX.

Have you been looking for the opportunity to be the best at what you do? Well you’re on the right path and coincidentally, reading the right stuff. Why, you ask? RE/MAX Nigeria has franchise opportunities for a unique set of individuals who realise that the norm isn’t enough anymore and are looking to take the next step towards personal and industry-wide revolution.

Like I mentioned, this opportunity is not for everyone but if you think you’re ready to be a part of a movement so big, it might just make history then get in touch. We await you.