Real estate agents' charges 'too high'

Homeowners are paying too much to real estate agents who have a stranglehold on the industry, a property expert has claimed.

Massey University senior property lecturer Dr Susan Flint-Hartle said the big firms' stranglehold was stopping fees from reducing.

The comments came as a Wellington agency, charging half the standard commission rates, defied the property slump by expanding into the Auckland market.

Flint-Hartle said real estate fees were far too high for the level of service rendered.

"There are some very good sales people and agents but there are a lot of not-so-good ones, as well. Like any established industry, there's a stranglehold on the way things are done."

As well as commission of 4 per cent of the selling price, owners can pay advertising costs of up to 1 per cent. For a $400,000 home, that could mean an extra $4000 on top of a $16,000 commission.

To read the full NZ Herald story click here

Posted: 5 Apr 2009

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