REINZ can't keep up with the Joneses
This is rich.
The Real Estate Institute must be the most flat-footed organisation in the country. This evening the TV3 News reported the case made by the REINZ against new real estate agency The Joneses for 'bringing the industry into ill-repute'. I can hear barely muffled laughter rippling through New Zealand's Internet community.
The Joneses have created their business model to work on the basis of flat fees, rather than a sliding scale of commissions. Why should you pay more for facilitating the sale of your 3 million dollar home than if it was worth 1.5 million? I can't think of a balanced reason. But the Institute's members obviously have a vested interest in protecting the status quo and discouraging those members who might have maverick ideas that win them market share at the expense of own unearned profits.
It's not so long ago that accredited advertising agencies were bound by law to pocket a 20% commission paid to them by the media for placing client's ads. The more a client invested in promotion the more Porsches and Ferraris were parked in the agency parking lot. Not that it required any more work or expertise on the part of the agent.
With the scandalous behaviour of Real Estate agents in new Zealand in the past couple of years - which the Institute self polices (though not very effectively).
If you are selling your home I recommend you have a very serious negotiation with any potential agent.
If it costs you more than $7995 call the Joneses.
As for REINZ call PRINZ now. Oh and rethink your future.