• Mike Van Wagoner has been actively involved in residential sales for over 32 years
  • He owns the real estate company Emphasis Real Estate Ltd REAA2018
  • He is a licenced and registered auctioneer, a role he has enjoyed for over 21 years
  • Emphasis Real Estate was started 5 years ago to bring fairness to an out of date, excessive corporate real estate percentage-based-commission structures
  • Thirty years ago, agents earned their money even if it was still high
  • Corporate real estate commissions have not altered in over 30 years
  • The price of houses has sky-rocketed and so have the commission charges from corporate real estate companies because of higher sale prices
  • Through technology, (Real Estate Institute of New Zealand’s I-forms, E-forms and Digi-sign) agreements can be completed within a half hour
  • All the agent requires is the name of the purchaser, his solicitor’s details and any conditions of the sale
  • Conditions of sale come from the e-form programme, and it is a simple matter to drag them from an available list of all conditions and place them into the agreement
  • Agents can access this system via mobile phone and literally anywhere in the world which has internet access available – think Fiji, home by the pool, on the beach, skiing etc
  • House sale prices have escalated exponentially over the last 4 years with property being sold in hours or days of the listing becoming available. The agents have made a fortune with this circumstance
  • Their workload has been reduced drastically due to technology
  • Their commission charges remain the same
  • We are currently in a real estate market reminiscent of the 70’s where house prices are dropping 20% in some areas
  • An economist recently stated that if homeowners are serious about selling on this market, they would have to reset their expectations of obtaining their current asking price
  • Homeowners are shortly, if not now, having to re-mortgage their property as their short term mortgage loans are due
  • These new mortgages are going to cost them more than their original loan and a lot of people will simply not be able to afford this new rate, especially in recessionary times
  • Why don’t these corporate real estate companies, who have made a killing over the last 4 years, have mercy on the families who find themselves in the situation of having to sell or at least, seriously wanting to sell?
  • Why continue with antiquated and excessive commission charges ????
  • SIMPLY BECAUSE THEY CAN !!  AND WHO IS TO BLAME – THE PUBLIC !!!!!
  • Because the public selling their property on today’s market have been brain-washed into accepting these charges. They are naïve and accept that paying excessive commission charges is just acceptable and that is the way it is!
  • For the sale of a residential property at 1 million dollars or any amount over 1 million dollars, Emphasis Real Estate’s FIXED FEE commission is $21, 850 (gst included)
  • Corporate commission (from a brand name company who shall remain nameless) on 1 million dollars alone is $29,727.50
  • One and half million dollars from Emphasis Real Estate remains at its highest FIXED FEE commission charge of $21,850 whereas the same corporate office is now $41,227.50
  • Two million dollars Emphasis Real Estate remains at $21,850, the same corporate office is now $52,727.50
  • We do exactly the same job (some say better – have a look at the testimonials on our Emphasis web site), use the same advertising schedules for internet and yet we remain at a reasonable fixed rate of fee structure, without any compromise to service or results
  • I mentioned before the nativity of the sellers – outside of the myths and brainwashing they have been exposed to over the last 30 years regarding why they must pay excessive commission fees to sell their property, here are a few totally illogical things they have been and are being told by real estate agents when pitching for a listing

1/        “I have a buyer, or we have buyers waiting to buy your property”

  • Look at this logically, I mean, do they have buyers locked up in a cage within their offices, blindfolded and unable to read an ad on the internet?
  • Buyers will go to the house that looks interesting to their requirements; buyers don’t belong to anyone. They see a property and they really don’t care who has it, they will go to that house to inspect and offer

2/          “We have 26 offices, 3000 salespeople who will have a buyer for your place”

  • Again, think about this logically, and refer to number one myth above

3/          “ when comparing their excessive commission prices to a fixed company like Emphasis Real

Estate Ltd, they will often state “you get what you pay for”

Love this one ! – what the seller GETS is an unconditional sale on their terms, otherwise,

no one gets paid anything and what they PAY for this, is either $57,272.50 or $21,850 from

Emphasis Real Estate Ltd

 

4/         “we will throw in all advertising charges or we will reduce our commission”

  • They can afford to throw in $1,200 for advertising or drop 2% off their commission when they are charging $41- $52, 000 of commission to sell your property

 

The list goes on, but these are the most illogical ones, of what is coming out of the agent’s mouth