WOuld Discount Realestate Agents work in QLD?

[TILT]

Ring any large chain realestate agent in QLD and ask for a cut in commission and you get the same response.
"We charge the standard REIQ rate of 5% on first $18000, 2.5% on remainder plus GST" They will not discount. There is no competition between the big chains in QLD. Fair Trading in QLD has done very little to stop it.

Would discount agents work in QLD?.

 

[jim1964]

Ring any large chain realestate agent in QLD and ask for a cut in commission and you get the same response.
"We charge the standard REIQ rate of 5% on first $18000, 2.5% on remainder plus GST" They will not discount. There is no competition between the big chains in QLD. Fair Trading in QLD has done very little to stop it.

Would discount agents work in QLD?.

I can never understand companies following each other like sheep.I have run numerous companies,knew what the competitors were charging,and priced just below,then used that as a marketing tool.Its simple economics,charge LESS and provide a better service.

 

[Truly Exotic]

In victoria, in the frankson area there used to be a real estate agend that charged I believe $5k flat fee regardless of price

I thought it was a good idea at the time, however, they didnt market themselves very well plus the market didnt warm up to it for some reason,
they changed names and went back to the traditional model

 

[TILT]

Yes there have been a few discount agents in QLD that have had very little impact.
Why is this?. What are they doing wrong? One agent told me there was enormous pressure put on him to stop discounting.
Clearly the the chain real estates have a vested interest in having an agent on every corner and the REIQ has a vested interest in keeping them there.

If pressure was put on the industry by Fair trading in QLD to make the industry more competitive then half the state would be unemployed.The Premier wouldn't like that would he?

Selling real estae is not rocket science. We simply don't need twenty realestate agents in every suburb. Reduce the agents and reduce the commission.Simple

 

[Rolf Latham]

Go Gecko seems to do ok in my neck of the woods

t
arolf

 

[DJBarnstar]

Go Gecko seems to do ok in my neck of the woods

t
arolf

Heaps of Go Geckos have gone broke including the top tier ones

 

[buzzlightyear]

In victoria, in the frankson area there used to be a real estate agend that charged I believe $5k flat fee regardless of price

I thought it was a good idea at the time, however, they didnt market themselves very well plus the market didnt warm up to it for some reason,
they changed names and went back to the traditional model

Yes, Network One Real Estate was there name. I actually bought my IP down there from them. I always wondered whether there was sufficient remuneration for their sales people to attract & retain sufficient talent. My agent was a young 20 something who was very green. With the downturn in volumes over the past few years in real estate turnover, competing on price alone was a recipe for disaster. Not sure how their cost structure was sufficiently less than a traditional REA office which could have also supported their reduced fees...

Yes there have been a few discount agents in QLD that have had very little impact.
Why is this?. What are they doing wrong? One agent told me there was enormous pressure put on him to stop discounting.
Clearly the the chain real estates have a vested interest in having an agent on every corner and the REIQ has a vested interest in keeping them there.

If pressure was put on the industry by Fair trading in QLD to make the industry more competitive then half the state would be unemployed.The Premier wouldn't like that would he?

Selling real estae is not rocket science. We simply don't need twenty realestate agents in every suburb. Reduce the agents and reduce the commission.Simple

Under competitive markets which I believe the REA market is, why don't more participants enter the market? Are you saying there is additional regulation which should be taken away to allow more participants? What would you have Fair Trading do?

You don't take into account costs. If no new entrants are coming into the market, then it would indicate profitability would be at normal levels. If profitability was high, then I would expect more competition to enter the market.

 

[Rolf Latham]

Heaps of Go Geckos have gone broke including the top tier ones

yes, but I think u will find the same goes for all flavours of fran in most businesses.

Often the issue isnt the fran, but the operator or the specific turf

ta
rolf

 

[TILT]

Yes Go Geko has been reasonably effective in discount real estate sales in QLD at the bottom end of the market. I do realise that the margins are skinny at the bottom end of the market. That is the section of the market Go Geko has wrongly chosen to concerntrate on. It is the middle and top end which concerns me. Nobody selling a property for a million dollars should have to pay close to $30,000 commission for such a basic service.


The chain agents are constantly inferring to potential customers in QLD that commission rates are not negotiable below the maximum rate of close to 3% including gst. Many people believe they are not.The more they promote this outrageous commission rate for selling middle and top end market properties the more franchises they can sell. The only way they can constantly open new offices is by keeping this commission rate at this outrageous level.

Fair Trading in Qld does very little to educate the public on this matter other than to have it on the contract for sale . By this time it is too late for customers to hunt around for a better deal.

 

[Rolf Latham]

Yes Go Geko has been reasonably effective in discount real estate sales in QLD at the bottom end of the market. I do realise that the margins are skinny at the bottom end of the market. That is the section of the market Go Geko has wrongly chosen to concerntrate on. It is the middle and top end which concerns me. Nobody selling a property for a million dollars should have to pay close to $30,000 commission for such a basic service.


The chain agents are constantly inferring to potential customers in QLD that commission rates are not negotiable below the maximum rate of close to 3% including gst. Many people believe they are not.The more they promote this outrageous commission rate for selling middle and top end market properties the more franchises they can sell. The only way they can constantly open new offices is by keeping this commission rate at this outrageous level.

Fair Trading in Qld does very little to educate the public on this matter other than to have it on the contract for sale . By this time it is too late for customers to hunt around for a better deal.

Im not sure I agree.

My commercial reality hat on says if there was a viable alternative we would have one in place already at that market level.

Its all good and well to talk about BIG comms...........reality is that those BIG comms are probably few and far between.


ta
rolf

 

[Jtkumnick]

No offence OP but your posts are quite stupid.

There are plenty of discount agents.
Many normal agents discount.
Real Estate is not a walk in the park.
The mandated paperwork makes it painfully obvious.

If you cannot negotiate a commission- its not the REIQ or OFT's fault.

 

[thepeoplesagent]

Tilt, if you were my vendor I think I would charge you double.

 

[TILT]

Typical peoples agent

That would be illegal in Queensland. Don't you know that?

Do you do this sort of thing regularly?

 

[thepeoplesagent]

Typical Tilt…

It was only a joke.