A real estate agent named Grace, a member of the RED and a co-founder of the real estate agency called Expat Housing, has recently taken to social media to expressed her frustration regarding clients who refuse to pay search fees. She has had enough with investing her time and money in elaborate property viewings, only to come out empty-handed. This frustration has led her to draft a petition in form of an emergency notice, addressed "to whom it may concern," calling for the "Implementation of a Standard Service Fee," locally referred to as "Search fee" or "Inspection fee."

In her petition, Grace begins by drawing the attention of fellow real estate agents. She then outlines the collective experience that informs the background of her petition, highlighting the components of her proposed "Standard Service Fee", which include fair compensation, professionalism, and improved working conditions. Subsequently, she details the benefits of her proposal and concludes the petition by outlining the next steps to be taken.

This frustration is not unique to Grace; it is a common issue among top-tier agents dealing with high-end clients. Conversely, it is less prevalent among lower-level agents handling local clients. Many agents on the RED have also voiced similar frustrations with clients taking free property tours/rides with multiple agents, and a detailed blog has already been write about the same.

 

The root cause of the frustration lies in the significant time and financial investments that real estate agents make in tours for clients who lack commitment. Grace has shared some real-life stories illustrating her frustrations and those of other real estate agents as shown (verbatim) below:

 

So today! After getting enough, I posted on my status my frustrations as an estate agent in Kampala! My inbox has spark conversations and many of us feel the same really. SO, ADMINS/ AREA UG AM PETITIONING! WHO IS WITH ME?

Picked up someone from their hotel in Mbuya, from 9:00 to 3:00, drove my own car, they asked me to take them to Acacia to grab a bite while I waited in the car, and never even offered water but ate their cafésserie take away from my car and telling me how Hungry they were, Bitch... I know... we have been together for 6 hours... yeah, she asked me to drive her back to her residence where we found another broker waiting for her next FREE viewing and no she never gave me the business note even a REVIEW...

You cancel the appointment, it sucks because you already invested quite a lot of time, money, and effort. You meet them (because Kampala is particularly small), they stress how disappointed they are that you asked them $13 for gas out of $4000 they intend to spend on rent, they thought you looked professional BUT you are UNPROFESSIONAL because you asked to have hours of your time to be valued and they wanted it FREE of charge because EVERYONE is doing it for FREE! Now if that is not COLONIALISM... tell me what that is because my dear Expats... what's not happening.

Someone wants a house in Lubowa of 15 million per month. Because you are not based in Lubowa, you spend so much coordinating and networking, come viewing day, they want you to pick them from Kololo, spend 6 hours together viewing and navigating the horrible traffic whose know what industrial area looks like knows and bring them back to Kololo... in the meantime, You make a request from them to pay you 50,000 shillings so that you cover some of the costs, NOT ALL!! We are talking app tox 13$ which they spend on coffee at Devino no problem... Someone tells, forget about my request, everyone else gives this service for free...

I think...bullies will always bully you into believing that you are not enough. ENOUGH. Meanwhile, being a professional estate agent in Kampala means 'your services is 100% Free of charge' when they say you are very professional.

Grace and other top-tier agents may be aware that high-end clients from Western countries, such as those in Europe or the USA, are unaccustomed to paying search fees. They assume that market conditions in their home countries are the same as those in Uganda, which is not the case.

 

Consequently, all agents are encouraged to inform and educate such clients about inspection fees in the local market before scheduling any viewings. This preemptive communication ensures that if clients refuse to pay search fees initially, agents do not waste unrecoverable time and money on useless tours and rides across town.

 

Please note: If you are hesitant (or unwilling) to communicate to the buyer that you require search fees, fearing they may opt for an agent not charging search fees, then refrain from subsequently expressing dissatisfaction after accepting the tour. Complaining that the buyer did not appreciate your services by failing to compensate for your time and resources is contradictory because search fees are intended for this purpose. Once you agree to the tour, then treat all associated expenses with that buyer as operational costs, which you will need to cover from previous or subsequent deals.

For an agent seeking inspection fees from a client originating from Western countries, it is advisable to position oneself as a "buyer's agent." Emphasize the fact that you get paid by the client/buyer, as they are the ones who contacted you to be their agent. This approach proves particularly effective and is the sole method to secure a commission from the buyer, especially when dealing with landlords notorious for not paying commissions.

Regarding the proposal for a "Standard Service Fee," implementing it might pose challenges due to varying costs incurred by different agents based on distance and time spent on viewings. Perhaps what should be considered is the implementation of a "minimum service fee."

It is recommended that Grace directs her petition to a specific organization or person, such as AREA Uganda (assuming she is a member). A petition addressed to "whom it may concern" is less likely to prompt action. Additionally, all real estate agents in Uganda are advised to join the Association of Real Estate Agents (AREA) for several reasons, among them is to collectively address their most pressing problems and frustrations with a unified voice.