Hard not to think NZrs are being ripped off by RE Agency commission rates

[Davo36]

I'd rather the RE Agents are incentivised to get the best deal for vendor with their commission weighted more the top end so they will work harder for the extra $$.

The interested buyers should be working hard to get the property that's the way it should be.

cheers,

Donna

But this relies on a price for the property being established. So for instance you'd have to say something like "If you get me over $500,000, I'll pay 4% on that amount".

But agents have worked very hard to remove prices from the market place. They've done this by introducing auctions, tenders, price by negotiation etc. That way they can sell a property and the vendor never really knows whether he/she got a good deal or not.

[Maccachic]

They normally give you an appraisal (usually on the higher side just to entice) you could use this, then you would know if they actually believed in their appraisal.

[donna]

In Australia RE Agents have to get within $10K of what the property eventually sells for - and this knocks out any so called 'cheating' with presenting overinflated appraisals. So I guess in NZ RE Agents just present whatever they want for an appraisal and with no comeback if it's over the top etc?


cheers,

Donna

[Perry]

Interesting to see the banner advert, atop this thread, at this time (18 Oct 2014),
in our discussions on REA fees charged. In case its time is past, reproduced here:



Probably be better if the word was THOUSANDS, but, oh, well.

[m2 real estate]

Yeah I spotted that also Perry, already contacted Donna with a fixed version.

I've been running that business model for almost 3 years now with my small team and it works very well. We do have a minimum fee which is still very fair and we refund marketing costs on the sale of the house to the vendor. We need the minimum fee otherwise we would not be able to survive if people gave us say a $300,000 houses to sell for example and did it for 2%. As I sell a lot of houses in excess of $600,000 generally the minimum fee rarely applies so people are happy.

[elguapo]

In Australia RE Agents have to get within $10K of what the property eventually sells for - and this knocks out any so called 'cheating' with presenting overinflated appraisals. So I guess in NZ RE Agents just present whatever they want for an appraisal and with no comeback if it's over the top etc?


cheers,

Donna

Most properties sell at auction in Aussie, how are they going to manage to pick it that close?

[donna]

Yeah I don't know if they still need to do that - however properties vary less over there - e.g. lots of the same style homes in the same street and lots of sales so lots of data so it's probably not a stretch to get within the $10K either way. It would be a lot harder here to be that accurate in NZ - unless it's an apartment in an apartment block where they're all the same etc.

cheers,

donna

[Perry]

Yeah, I spotted that also Perry; already
contacted Donna with a fixed version.

You do need to use a proof reader!
It is now THOUSANDS, but there are
two spaces between estate & fees!

[Eugene]

Also in the home section of your site I found a typo

"...for holding any money we receive regarding your properties transaction"

Shouldn't this be "property's" ?

Worth paying attention to this stuff as it matters to some people, even if irrelevant.

[Wayne]

English is not irrelevant.
Poor English in the written word - especially on something like that - shows a lack of care.
Some people would wonder if that flows through to other areas as well.

[donna]

You'd be hard pushed not to find a spelling or grammatical error on most websites at some time during their lifetime.

Therefore I wouldn't judge a RE Agent's ability on a spelling or grammar mistake on their website.

Websites are more dynamic now - i.e. content constantly being added so the errors are more likely.

cheers,

Donna

[Perry]

You'd be hard pushed not to find a spelling or grammatical error
on most websites at some time during their lifetime.

So if others make a few typos or bloopers, that makes it OK?

On most web sites is too broad. The errors are in advertising
copy. Advert copy should be proofed and corrected by someone
with the right skills and competent in the appropriate language.

Therefore I wouldn't judge a RE Agent's ability on a spelling or
grammar mistake on their website.

As Wayne observes - in as many words - you don't get a second
chance to make a first impression. I.e. Sloppy presentation in one
area may indicate the same in others.

Websites are more dynamic now - i.e. content constantly being
added so the errors are more likely.

Not a valid excuse, in my book. (Forum posts excluded, of course.)

[donna]

Each to their own opinion of course - umm so what was the topic of this thread?

cheers,

donna

[m2 real estate]

Minor grammar mistake aside. I've picked up 2 nice listings from this add, which is great. The $30,000 I'll earn from selling them next month will allow me to employ a new designer and an additional proof reader. Fantastic!

[Wayne]

Minor grammar mistake aside. I've picked up 2 nice listings from this add, which is great. The $30,000 I'll earn from selling them next month will allow me to employ a new designer and an additional proof reader. Fantastic!

Fair enough too.
I like your style