Government on the money in real estate agent clean

30 March 2007

Media release
For immediate Release

Government on the money in real estate agent clean-up

An Auckland company is delighted the Government has announced plans for a legislative overhaul of the real estate industry.

"For years we have been saying that about 20% of real estate agents are really good value," said Malgosia Wyndham-Smith of Real Choice.

Real Choice has pre-qualified more than 300 agents nationwide in a bid to filter better performers from among the country's 18,000 licensed real estate sales people.

Mrs Wyndham-Smith, the company's operations manager, says the announcement by Associate Justice Minister Clayton Cosgrove yesterday is overdue. "Property owners need to be able to trust their real estate agent, and unfortunately this hasn't always been the case."

Real Choice was started after an agent in Wellington was willing to sell her elderly mother's home for more than $100,000 below market value. "She had bought it for a few thousand pounds and when she went to sell was prepared to accept $100,000 for a home worth nearly three times that. I was shocked she had found an agent prepared to make a quick sale at vastly under market value," Mrs Wyndham-Smith says.

So Real Choice was launched in 2002. Since then Real Choice has helped in the sale of property worth more than $200,000,000.

The company refers sellers to a list of agents whom it has pre-qualified based on set quality criteria, including an ability to negotiate sales at the top end of a property's market value. An approved agent's performance is also evaluated after each sale, with calls being made to sellers to see if they are satisfied.

Mrs Wyndham-Smith says the country's real estate salespeople each sell an average of only 6.5 properties each per year.

"The real issue for sellers is not finding an agent and negotiating a sales commission, but finding one of integrity who can also negotiate the best final deal. The ability to negotiate is paramount. That's where good agents can make a multi-thousand dollar difference for sellers, or a nearly a million dollar difference as evidenced in a recent Auckland case."

Real Choice's service to sellers is free. It takes a share of a successful agent's commission, and in some cases also rebates part of this to the seller. The seller using Real Choice is under no obligation to use the agent recommended by the company.

Real Choice's 300 pre-approved agents are in every main centre and town throughout New Zealand. Sellers can find the firm via the web at www.realchoices.co.nz

ENDS

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