tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Tuesday, March 19th, 10:57AM

News

rss
Latest Headlines

Changing the game

Investors keen to minimise the costs that come with selling properties might want to look to a new real estate agency which is aiming to disrupt the industry.

Wednesday, September 11th 2019, 8:00AM 2 Comments

by The Landlord

Arizto is a new agency which wants to revolutionise the way Kiwis sell and buy property by offering an alternative to commission-based fees.

Rather than a traditional percentage-based commission structure, it offers a flat $7,500 (plus GST) fee structure, which includes photography and marketing fees, and only needs to be paid once the property is sold.

Arizto founder Pernell Callaghan says they take a customer-centric approach, much as Amazon and Uber do in providing tailored solutions, in order to provide a quality service.

He estimates that each person who sells with Arizto saves, on average, over $17,000 on commission fees.

“Taking into consideration the Auckland average house price, traditional agencies charge between $30,000 - $40,000 per sale, so we offer sellers a more attractive option.

“But while the cost is much less, we do not compromise on premium sale price or a personalised service, open homes, buyer viewings or negotiations.”

Callaghan founded the agency as he wanted to disrupt “an outdated industry”, as well as help Kiwis buy and sell property using a transparent, cost-effective method.

To that end, Arizto makes use of an interactive online platform and internal app with back-end automation for vendors to access their property information, analytics, feedback and offers in real-time.

Removing the need for physical offices reduces overheads and enables the agents to focus on actually making sales happen, Callaghan adds.

The Arizto model can work well for investors who want to keep their costs down when selling.

Property investor Kieran Fitzsimmons was once a real estate agent himself and has been involved in hundreds of sales over the years.

Over the last year he has listed three Auckland properties with Arizto.

Two of those properties sold well while he ended up keeping the third after the agent advised him that it was not selling because it was overpriced.

“Arizto works for me as it’s an honest company, the agents present the property factually, they charge a flat fee, sell the property and move on. It’s all about getting a deal rather than being your friend.

“Plus it saves you money. I typically sell properties in the value of $1 million so I was paying easy $40K in agent’s fees. This costs just $7.5k – that’s $20k to $40k less than usual. Yet it’s got everything you need.”

Launched just over 12 months ago, Arizto currently operates in Auckland, Tauranga, Wellington, Rotorua and Hamilton, although the plan is to go nationwide in the future.

Tags: house prices housing market landlords property investment real estate sales activity

« Ronovationz faces $400k fine for price fixingSales fall highlights sluggish market »

Special Offers

Comments from our readers

On 11 September 2019 at 11:28 am Garrick said:
About time. Agents commission fees are now at an outrageous level and for some sales with very little effort other than putting out signs and holding open homes. In addition to sales fees vendors are still expected to stop up advertising and staging costs as well. The last five years have been a bonanza for any licenced agent experienced or otherwise, almost a licence to print money at the vendors expence.
On 11 September 2019 at 11:29 am Garrick said:
About time. Agents commission fees are now at an outrageous level and for some sales with very little effort other than putting out signs and holding open homes. In addition to sales fees vendors are still expected to stop up advertising and staging costs as well. The last five years have been a bonanza for any licenced agent experienced or otherwise, almost a licence to print money at the vendors expence.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.24 6.79 6.65
ANZ 8.64 7.84 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.24 6.79 6.65
ASB Bank 8.64 7.24 6.79 6.65
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.24 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.84 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 7.04 - -
Co-operative Bank - Owner Occ 8.40 7.24 ▼6.79 ▼6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.74 ▼7.29 ▼7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.69 6.45 6.19
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 ▼6.75 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 7.79 ▼7.39 ▼7.25
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 8.25 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 7.25 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.75 7.35 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.30 7.89 7.69
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.30 8.89 8.69
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.84 7.45 7.25
SBS Bank Special - 7.24 6.85 6.65
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.74 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 8.04 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 7.24 6.75 6.65
Unity 8.64 6.99 ▼6.79 -
Unity First Home Buyer special - - 6.45 -
Wairarapa Building Society 8.60 7.15 6.85 -
Westpac 8.64 7.89 7.49 7.25
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.29 6.89 6.65
Median 8.64 7.29 7.32 6.65

Last updated: 14 March 2024 9:32am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com