Mike Pero Launches New National Real Estate Company

Mike Pero Launches New National Real Estate Company

Kiwi entrepreneur Mike Pero has announced the launch of Mike Pero Real Estate Limited, offering customers a reduced commission rate of 2.95 per cent to sell their homes. Mr Pero says it is time New Zealanders moved towards a commission rate that reflects the challenging economic times that we are in today.

Mike Pero Real Estate is a partnership between Mike Pero and Mike Pero Mortgages Ltd, which was founded by Mr Pero in 1991 and made him a household name across New Zealand.

The new company is certain to prove popular with New Zealanders; according to a recent Colmar Brunton survey, 91 per cent say that a real estate company offering a commission rate of 2.95 per cent would be enough to put them on their shopping list. Pero also stated that the willingness of Kiwis in the survey to trust the Pero brand with the selling of their home was overwhelming. “It seems that our culture and philosophies from the finance sector have already gained us number three spot in the eyes of the New Zealand public in a business that has yet to start trading. We are honestly humbled by the response to our brand.”

“For a long time, I have felt that the 3.95 per cent rate charged by most real estate companies is too much. It’s one of the most talked about topics, and what people grumble about most, when selling their homes,” says Mr Pero.

On average, the lower commission rate of 2.95 per cent will save home sellers between $3,000 and $6,000. “At a time when every cent counts that’s a huge savings that for many people will be a couple of months salary,” says Mr Pero. The lower commission rate will not, however, mean compromising on high quality service.

“Times have changed and, like many businesses, real estate has been revolutionised by technology. It’s now less about bricks and mortar and more about clicks and mortar. Marketing and communication through the Internet and mobile phone technologies is massive in this industry – you don’t need to have huge overhead costs that are then passed on to customers through high commission rates. Our agents will work with state-of-the art technologies, including the latest iPads, with intensive online marketing and modern operating techniques and systems. Our new generation real estate company will make smarter use of agents’ time, meaning that they will individually earn more while they deliver a lower fee to their clients, even at the same number of sales. Realistically with a better proposition for the home seller the agents sales will increase, we believe, more than twofold. Effectively, we have taken a large part of the administration and management overheads out and shared those savings between the customer and the agent,” explains Mr Pero.

Since Mike Pero Mortgages was launched, the brand has gone from strength to strength, with more than 80,000 satisfied customers. “A real estate company is a natural progression; it sits well with the Mike Pero Mortgages and Insurance brands and will offer the same levels of trustworthiness, value and consistency across the country,” he says. Mr Pero has sold all of his shares in the New Zealand Real Estate Trust, which he launched last year, and a new director has been appointed.

When asked if now is the right time to be embarking on a new business venture, particularly in the real estate market, Mr Pero says it is the perfect time to launch the Mike Pero Real Estate brand.

“And it seems as though I’m not alone in my thinking! According to the Colmar Brunton survey earlier this month, nine out of ten Kiwis believe now is the right time to enter the market, with a company that has new values, lower fees and more transparency. The property market has hit its low and we’re now climbing back out of it. It’s all good,” says Mr Pero.

With Mike Pero Real Estate due to actively launch to the public in March, April of this year, Mr Pero expects real estate agents and salespeople across the country to be excited about the prospect of working under a next generation model. Plans for the company include bringing franchise opportunities down to a salesperson level, which can include exclusive territory ownership.

“To date, the industry has been unable to provide long term incentives and ownership opportunities for high performing salespeople. Our model has been proven in the home loan industry, where our people own their businesses. We really believe in the owner/operator business. After several years of hard work, why walk away from it all under the traditional real estate system? At Mike Pero Real Estate, we can offer our people ‘real’ ownership. We want our salespeople to be ambitious and tenacious and will provide them with the tools and brand quality to succeed,” he concludes.

Agents and salespeople wishing to explore this opportunity further are encouraged to view the website at www.mpre.co.nz

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