by Paul McBeth
A recent survey by the Consumers' Institute found that many people were satisfied with the service they received from agents (see our earlier story). However, it also maintained that estate agents' fees had risen "relentlessly" over the past 20 years "and we think the time is well overdue for more competition".
One form that's come in is REAL, a combo of real estate, legal and mortgage broking services which launched in July. Its selling commissions are lower than a number of other agents at 2.95 per cent on the first $250,000, 2 per cent on the next $300,000 and 1 per cent on the balance (plus $400 plus GST).
We've written about them before (see Lawyers and Estate Agents get REAL, and Rev-up for REAL), but now they've attracted the very public attention of the Real Estate Institute of New Zealand - of which they're members.
The REINZ has gone as far as issuing a press release headlined "REAL difficulty unfortunate but predictable". This points out that REAL is having financial difficulties, says the public appeared reluctant to accept a low cost service and also says it raises the question whether the proposed Conveyancers Bill (likely to be considered later this year/ early next) to deregulate both conveyancing and real estate in New Zealand is necessary.
When Good Returns asked REINZ National President Rex Hadley about the Institute's beef with REAL, he referred to the press release and to a recent story in a weekly business paper (which again refers to the company's current cash-flow woes).
Meanwhile, REAL's National Project Coordinator Warwick Brown holds that the REINZ press release was "entirely wrong" in assuming that the public had been reluctant to accept REAL's lower cost option for real estate buying and selling.
"In fact, it is just the opposite," Brown said. "In less than three months there are 27 REAL branches operating from Whangarei to Timaru and some 1400 listings on the books".
Brown said that the housing market had been "unbelievably difficult" since REAL was launched, but the company was battened down and it planned to survive. Its listings currently represent just over one per cent of the market so far and he said that listings were continuing to increase.
Paul is a staff writer for Good Returns based in Wellington.
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