The real estate battle that is saving you big money
5:00AM Sunday May 06, 2007
By Ann Newbery
Home buyers look set to benefit from a more aggressive real estate market, as traditional agents compete with a new breed of property-sales companies offering to sell your house for less than ever before.
The newest deals promise to save homeowners more than $10,000 on the sale of a $500,000 house through a fixed-fee scheme. Companies that offer only marketing packages, such as HomeSell, could save owners almost $16,000 on the same house.
But many real estate agents are also willing to negotiate their traditional commission fees, as the battle intensifies.
Agents' commission rates vary, although fees of 3 to 4 per cent on the sale price plus advertising and administration fees on a property are traditionally typical, especially in Auckland.
The battle between agents and the newcomers coincides with a review of the more than 30-year-old Real Estate Agents Act by Building Minister Clayton Cosgrove, who has been scathing about many aspects of the industry and in particular of the Real Estate Institute.
Peter Hammond, national co-director of marketing company Green Door, said the real estate industry had reason to feel threatened as the number of private sales of homes increased, up from an estimated 10 per cent last year to 12-13 per cent this year. With an expected overhaul of the industry in the wings, he said: "I don't believe we'll still see the existing system two years from now. The writing is on the wall."
More
here .
A bit more about
real estate agents .