by Grant Wakelin
The commission charged on the average Auckland property has increased more than 30% in the last 3 years. Nothing has changed for the agent in terms of the work required, skills applied, technology used, and value added. If anything property has become faster and easier to sell over that time.
What has changed is that house prices have increased, driven by economic conditions like immigration – factors completely out of the agent’s influence and control.
It’s about as relevant as basing real estate commissions on average temperature. Although I guess with that agents have some impact – exhaust emissions from their cars contributing to global warming.
The Auckland real estate market provides a useful current example, but it is not the exception.
It’s time for the industry to talk about commissions – the quantum and the method of calculating.
The commission on the average Auckland home in March 2012 (value of $495,200) was $21,137 and in March 2015 (value of $720,000) was $27,600. Calculated on the basis of 4% up to $350.000, 2.5% thereafter, plus $750 admin fee plus GST
jarvis said:
nice
Posted 30 th January, 2016