Real estate agents are more popular than banks – at least, that’s according to a recent survey by the Consumers’ Institute.
The latest Consumer magazine says that, out of the Institute members who replied to its survey, 77 per cent of people who used an agent to sell their house rated their performance "good" or "very good".
"That’s a higher percentage than the banks managed in our recent member survey," Consumer says. However, it says that estate agents’ reputation for misleading buyers and pressuring vendors to sell "is not altogether undeserved".
"The Commerce Commission has concerns about agents’ misleading practices. And a ruthless streak among some agents is perhaps to be expected when you consider about 80 per cent of salespeople do not make it past their third year in business."
However, it says an experienced agent can advise you on pricing, how best to present your house to potential buyers, advertising and negotiating a good price.
"A large percentage of our members gave their agent’s manner and advice the thumbs up. Agents are also an excellent source of potential buyers."
Consumer says that half those people surveyed tried to negotiate a lower fee with their real estate agent. Of those, two thirds were successful, often saving themselves $1,000 or more.
As for advertising, 40 per cent of those surveyed paid for at least some of the cost. Of those, around 60 per cent paid up to $1,000 and another 30 per cent paid between $1,000 and $3,000.
Meanwhile, agents’ fees have risen "relentlessly" over the past 20 years, Consumer says, even when adjusted for inflation. "Agents tell us this is because their costs, such as advertising, have risen, but we think the time is well overdue for more competition."
Consumer cites the advent of REAL (see our earlier story) as providing some hope on the horizon.
