"We'd have to have our heads in the sand if we didn't know the market was fed up with the amount of commission they've been paying, says Neville Ruske.
"We'd have to have our heads in the sand if we didn't know the market was fed up with the amount of commission they've been paying, says Neville Ruske.
Over the past five years, house prices in the Tauranga region have risen dramatically, and while that's been great news for sellers, something that's been less popular is the size of the real estate commission due on those high sale prices.
One company, Professionals Tauranga, Mount and Papamoa has respondedby lowering its commission to a level that leaves the average buyer with almost $7000* extra in their pocket.
"We'd have to have our heads in the sand if we didn't know the market was fed up with the amount of commission they've been paying, so we've decided to do something about it" says Professionals Tauranga, Mount and Papamoa director Neville Ruske.
"Home owners have various low cost options when it comes to selling their homes, and while these may seem appealing on the surface, most sellers know that the larger and better resourced agencies with sizeable networks of clients are likely to sell their homes faster, and for a higher price. To address that we've given sellers a new option - sell with a big company that charges like a small company."
Professionals Tauranga, Mount and Papamoa's new commission structure see sellers paying just 2.85% to $500,000 and 1.5% thereafter (plus GST).
"The feedback we've received from the marketplace in the short time since we've announced the change has been overwhelmingly positive, people wanted this change and we're happy to have been able to respond" says Professionals Tauranga, Mount and Papamoa director Gill Ruske.
"Likewise, our agents are excited to be able to offer sellers the professional skill and support they've come to expect from us at a much lower cost".
Neville says the new commission structure sees his sales people remunerated to almost the same level as they were prior to the commission cut.
Professionals Tauranga, Mount and Papamoa lowered its commission to a level that leaves the average buyer with almost $7000 extra in their pocket.
"We've consciously kept a percentage type commission structure so there's a monetary incentive for our sales people to work for the seller to get the best sale price. We're strongly against the flat fee model where there's no incentive for the sales person to gain a good price - it's not just about selling, it's about selling well, and that's what our people are good at".
With offices in Tauranga, Mount Maunganui and Papamoa, the Professionals have the Tauranga region well covered. They've responded to the market and their customers' needs in the best way possible - by listening to them, and by leaving them with much, much more money in their back pockets.
* Based on the August 2018 REINZ medium sale price in Tauranga Region of $640,000, saving of $6,842.50 over previous commission rate.
Professionals, NRG Realty Ltd, Licensed under REAA 2008
