Posts tagged: real estate

Margo McAuley dies

Margo MCauleyMany many people in Wellington will be as shocked as I was to hear of the death of Margo McAuley.

She was a ‘celebrity’ real-estate sales woman who ran her own series of very tastefully designed and conceived billboards. And she was very very successful at selling real estate, which in turn helped to pay for the advertising profile.

For her friends and family who are no doubt hurting deeply it will be a mixed blessing to see her name associated with property still on the market. Just do a Google Search to see how many results come up.

Whatever you think of real estate agents Wellington and the real estate industry has lost a trailblazer and a vibrant enthusiastic go-getter.

My sympathy goes to all her colleagues and family.

Death of the Joneses

Well, another good idea bites the dust. Joneses Real Estate has gone into voluntary liquidation.

I wrote a post here several months back on the Joneses. It seems that any alternative to the commission sale model on selling your house is doomed to failure. Which is a pity as there is a market for it, perhaps not on the scale that the Joneses began with.

So, Real Estate agents rule the day, with their huge commissions – once again we have no choice.

The Joneses, and the Real Estate Institute

I’ve just finished watching Sunday on TVNZ .

The first story was about the recent spat between the Joneses Real Estate company, and the REINZ (Real Estate Institute of New Zealand).

Chris Taylor of the Joneses talked about their flat fee structure. All of their agents are on salary so that, they say, effectively removes commissions from the incentive to sell a property. They charge a flat fee of $7,995 including GST to sell a property. Other agents can take around $15,000 to sell a $350K house, or $28,000 to sell a house worth $700K.

Chris made some good points – the one about an agent working hard in Invercargill to sell a $140K house and earning a $5K commission, compared to an agent working as hard in Auckland and getting 3 or 4 times that commission hit the nail on the head. As Sugar pointed out the agent in Invercargill probably has to work harder to sell the house because the market is smaller and there are less buyers.

We saw the wealthy agent selling $5 million apartments in Parnell, who assured Cameron Bennett that the commission wasn’t why he sold homes. He maintained he never thought about it, but then admitted that if he was on a salary (a la Joneses) that wouldn’t be very motivating for him. Cameron neglected to push home the point that he’d just told the viewer the commissions weren’t important.

What a real estate agent brings to the sale of a home is a list of potential buyers. I’m not convinced they offer much more than that anymore, since, for a modest sum I can go onto QV and find an up to date valuation for my property plus find out what all other properties in my area sold for.

The discrepancy between a Joneses agent and a commission agent was not made clear in the article. I don’t know how big the Joneses database of buyers is or how long they take to sell homes compared with the others. I suspect that I’ll never truly know that information.

But if I am selling my home, and I can go for a $7,995 commission, which I only pay once I have sold my home then I guess it’s a good gamble, and worth the risk. Especially of I’m likely to save in the region of $21,000.

This WordPress theme is a variation of MagicBlue