Pero slashes commissions on top home sales

Entrepreneur Mike Pero has again moved to undercut the competition by slashing his commission on homes sold over $390,000, by a further 1 per cent.

Pero, who last week announced plans to launch a low cost real estate company offering a 1 per cent reduction on the rate "charged by most companies" has now lowered the fee advertised on his website for higher value homes, to 1.95 per cent.

Property investor Olly Newland said the move could prove to be a "watershed" moment for the industry if Pero lasted the distance.

"All power to him if he can hang in there - he may have started a mini-revolution," Newland said, adding that lower commission rates were common in many other countries.

Rival agents would be "gnashing their teeth" and "putting pins in their waxed dolls" upon hearing the news, Newland said.

Pero said he had always planned to reduce the fee on higher value properties, but details were initially omitted from his website and other marketing material.

"Somehow it dropped off. We know that commissions reduce across the country at $400,000 or $500,000 so there would be no point us offering a dearer rate up top," he said.

To read the full NZ Herald article click here

Posted: 17 Feb 2011

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