Traditional real estate need to change the means, says university

5:00 Wednesday, February 27, 2008 By Anne Gibson Your Views What's neighbours liquidation means for the real estate industry? The real estate industry can not afford to insist on the traditional model of selling real estate, an academic and former real estate agent said. Dr. Susan Flint-Hartle, senior lecturer in property studies at Massey University's College of Business, attacked the marketing costs amounted to selling houses. She also asked if there were a partnership or risk-sharing between the seller of the house and estate agents when people are invited to pay $ 5000 in cash to market a sale that could fail. The former real estate agent Auckland dates back to the study 10 years ago. "She has just completed a doctoral thesis on real estate franchises," said Massey News. "She says the industry can not afford to reject innovation in how the property is sold - regardless of the reasons for the recent collapse of the real estate agency neighbours." The first report on the neighbors is due from Meltzer Mason Heath this week. A handful of agents are authorized to sell the properties for less. Malcolm Russell of Kiwi Real in Orewa, is charging $ 6900, Jeff Brill, rental houses on the North Shore wants $ 5000, Diane Astle Realty Ferrymead in Christchurch costs only 1 per cent plus marketing and channel Go Gecko may sell for only $ 5950. Green Door sells a home for $ 995 or 1.3 percent of the value of the house. Home Sales load is also low fees. Advertising Advertising Traditionally, agents sell homes for 4 percent of the value of the house up to $ 300000 and 2 percent thereafter. Peter Hammond, co-owner of Green Door Palmerston North, said he knew of 130 companies and agents authorized to sell cut-rate houses. "A year ago, there were only 25 to 30 do, but it has grown rapidly." Dr. Flint-Hartle said the cost of the sale of real estate by the traditional method has not been well understood. "Vendors expect to obtain high prices because they factor in the costs of marketing and high commissions. Not only did the commission rate among the highest around, but the sellers are forced to pay for marketing Mass - say $ 5000 for the anticipated sale of $ 700000 property, which is the partnership and the sharing of risks in the present? "Although the current model of selling real estate locations increasing financial burden on vendors adding on the cost of commission rates, already high, the majority of suppliers do not always want to abandon the system approved by the Real Estate Institute. "Participants on the market are largely caught in the system ... and in many cases, people can not see the value for money." News Massey said new real estate agencies such as Go Gecko Green Door and offered various methods of sale, indicating a real demand for price-based alternatives. "This is a narrow view to suggest that the best sellers for the committee, focused on agencies because some prefer a team-based approach and employees ... It is time for the world of '... real estate offer real choice for the public. "
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