Agents offering cut-price deals, says real estate commentator

They won't advertise it, but many real estate agents are already offering cut-price commissions in a bid to secure sales in the current market, says a leading property commentator.

The trend for low commission agencies heated up again this week with mortgage broker Mike Pero announcing plans to enter the real estate game offering a commission of 2.95 per cent - 1 per cent less than the rate "charged by most" agents.

Commentator Olly Newland wished Pero "the best of luck", but said most agents were negotiable on their fees anyway - if homeowners were willing to speak up.

"Kiwis aren't good at haggling - they usually get very embarrassed about it. I'm used to it, but that's my game.

"The tricky bit is knowing whether to haggle at the beginning or when the pen is poised over the paper," Newland said.

Some agents were slashing up to 20 per cent off their commission, and Newland said he wouldn't be surprised if even Pero's commission was negotiable.

To read the full NZ Herald article, click here

Posted: 16 Feb 2011

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