New real estate firm promises flat rate

Whanganui's first Tall Poppy Real Estate agent is eager to help the local housing market grow. PHOTO/ BEVAN CONLEY

There is a new kid on the block in Whanganui real estate.

Licensed sales consultant Peter Schmidt has brought Tall Poppy Real Estate to the river city in a bid to reduce "daunting" commission costs.

Mr Schmidt - who officially began working for the company at the start of this month - is the only "tall poppy" in the region.

The long-standing Whanganui local said he has received regular feedback from vendors that commission prices are simply too high and he wants to see a change.

"Tall Poppy uses a flat fee with no extra advertising costs...we also have an unbeatable fee guarantee," he said.

Mr Schmidt - former real estate agent for Ray White in Whanganui - said local real estate commission cuts sit between 3.5 to 4 per cent plus GST and extra advertising costs.

"For a $300,000 house the minimal price for commission is $11,000 as well as around $500 for advertising...Tall Poppy charges a flat fee of $10,000 plus GST for all properties between $300,000 to $500,000 "

The young company was founded in 2012 with the prospect to create "fairer real estate prices".

Mr Schmidt said one reason Tall Poppy had not come to Whanganui prior was because housing prices were too low.

He said he is keen to see growth in the local market and already has two listings.