A Knock Out Blow to Trade Me - Can Realestate.co.nz Deliver?

Is Trade Me Property “on the ropes”, or perhaps pretty close to it?

I’ve been hearing comment in the industry that indicates the move to not list properties on Trade Me has been gathering pace. Certainly agents are encouraging owners to consider that realestate.co.nz has more properties listed for sale and has other advantages over TradeMe.  Indeed some analysis shows Trade Me listing volumes dropping off. 

How close is TradeMe to the tipping point where listings start declining rapidly and it loses its credibility as a destination for property? It would seem realestate.co.nz has Trade Me exactly where it would like it to be, on the ropes, being battered and slipping closer and closer to the count.

Trade Me Property, of course, would beg to differ and presents an “all under control” position.

But, is the industry letting Trade Me off the hook (again)?

Trade Me Property became the beast it has been simply because the real estate industry allowed it. As soon as individual agencies started listing their properties alongside private sales and used that as a competitive advantage against their fellow agents the industry had lost. To nullify the advantage all agencies started to list on TradeMe.

The reaction to Trade Me Property’s price changes within the real estate industry has been severe. Agents now realise what they missed the first time round.  The agent controls the listing and if they deprive Trade Me of content, that is, listings, it has no value. Agents know that Trade Me can market around them all they like to consumers - most home owners don’t focus on the issue. They will go with the agents recommendation.

Some of the cause of Trade Me’s issue was a lack of account management I think. But, from what I hear Trade Me is expanding its “in field” sale forces while realestate.co.nz is consolidating its force at headquarters in Auckland.  This is interesting because realestate.co.nz has come more under control of the Real Estate Institute of New Zealand (REINZ) recently.  REINZ works to communicate out to all groups, but one criticism it faces is that it is pretty much driven by the major franchise HQ’s in Auckland. Is this influencing realestate.co.nz?  

Agents are face-to-face sales people. They run individual businesses and will make decisions that are in their best interests, not their branch office, franchise owner or franchise group.  Selling to them directly is best, something I stressed previously. So a good move from Trade Me.

TM is also upping its game technically - there have been good improvements to its wireless app and new search capability coming out, as well as new information for example school zones. Great to see.

The industry website realestate.co.nz has done some marketing, a TV advert for consumers and general agent meetings in some centres around the country. While more than what it has done for a while, it still feels "more of the same” and pretty passive. 

Trade Me Property acted quite aggressively going direct to consumers when agents started pulling listings. But there has been nothing radical or aggressive from realestate.co.nz.  Agents are playing their part it would seem, Trade Me listings have fallen.   What would happen to TradeMe if realestate.co.nz included private sale listings? A killer move I think.

The industry portal realestate.co.nz has the opportunity to put its foot on the throat of Trade Me Property. 

Does it have a chutzpah to do it?

Picture by Kenmore (Own work) [CC-BY-3.0], via Wikimedia Commons