Going, going, gone at $300,000 discount

[Patu]

Tho not good for invrestors ....

... it's very good news for low income people.

Quite frankly I think residential properties all around the country are ridiculously overpriced, been deliberately over inflated by the greedy Real Estate industry!

My 5 cents worths.

Patu

[tpr2]

how exactly does the Real Estate Industry get the blame for the supposedly high prices Patu?

Once you answer that question you can answer this one for me..... when you finally get to buy your first home Patu, and you have spent a few years paying off that lovely mortgage and now you want to sell it so you can move to the bigger nicer home, what will your view of house prices be then?

I am just about 100% positive you will try and find the Real estate agent who will sell your house for the highest price you can get and you will be absolutely pi##ed when they tell you that what your asking is too much......

[mjmarketing]

... it's very good news for low income people.

Quite frankly I think residential properties all around the country are ridiculously overpriced, been deliberately over inflated by the greedy Real Estate industry!

My 5 cents worths.

Patu

Agree with Terry - I too would like to know how you think that the Real Estate Industry manipulate the price of houses? Do they go round with guns in sellers backs to make them sign at your quoted ridiculously high prices?

A sale is made with a willing buyer and a willing seller - they are the people with the power - they are the ones with the pens in their hands, they have the choice to sign or not.

The real estate agent is only the person who puts them together for which they get a commission for the service - nothing wrong with that as I see it.
If you don't want to use the services of a REA you can sell privately, which a number of people try, but generally they end up listing with a REA because they haven't achieved a sale - so it would seem that REAs provide a necessary service.

When you come to buy are you going to look with
REAs or just buy privately and cut out those nasty agents??

I will look for your reply.

[Dean@Massiveaction]

Couldn't agree more. Firstly property is not over priced, it just is what it is. And secondly the real estate industry doesn't make much money out of real estate.
Agents are probably one of the lowest paid professionals in New Zealand. Their average salary is 23K last time I saw a stat for it.

Our substandard wages and drop in net worth courtesy of Labour for the last 9 years, now there's something to complain about.

[Viking]

Low paid for two reasons. Most are not "professionals" but short term or part time agents.
The agencies themselves encourage churn and create an over employment of agents because it costs them peanuts. They are not like any other employer they do not have to fund a wage bill every week regardless of sales. If they did then we would see a more professional and stable industry. No reason why incentives shouldn't be in place but total commission employment gives the industry the problem it deserves.
Tell me of any other business that operates this way?

Oh and yes I agree with Dean about the last 9 years and the results.

[tpr2]

Theres actually a few other industries similar viking but guess what, they have the same issues.
Mortgage broking.
Financial planning.
Car sales.
Office equipment.

Obviously the larger potential commission gets people heading towards the real estate industry though and you don't have the overload in those other examples, except perhaps mortgage broking.

The PAMD made it illegal in 2002 for a QLD Real Estate salesperson to be employed on commission only unless they could show they had a minimum amount of experience and the ability to earn a minimum amount of income.

A damn good idea in my view. It certainly changed the face of some of those Qld agencies.

[Viking]

Terry, you got that right and you can add insurance to that list. All have the same problems. Can't understand why any business would operate that way.

[tpr2]

lol... I forgot about that one, yes another classic.

[Davo36]

Terry, you got that right and you can add insurance to that list. All have the same problems. Can't understand why any business would operate that way.

Then why don't you start up a real estate business and pay the people a salary?

You'll pretty quickly answer your own question.

David

[Viking]

No different to many sales organizations. Trouble is anybody with a couple of dollars and a car can start a business that deals with transactions that are often the largest the customer ever makes. Not many other business can do that.

[tpr2]

Davo does make a very relevant point though viking.

I have seen hundreds of thousands of dollars disappear into the big black hole called wages over the years in an effort to shift the emphasis from straight out sales type people to service oriented people, the problem being they never sell anything because they don't need to when they have a nice fat retainer coming in each week.

I might jump off this soap box quickly.....

I certainly understand the appeal in having commision only sales people though.