Qld Real Estate Commissions About to be A Free For All with Parliament Removing the Current ‘Capped’ Maximum

Not sure what this will mean to agents but frankly, I want to get into the mix and discuss it, on behalf of the agents that will be charging MORE for their services, ie MY inner circle members. So I put out a press release. Let’s see what happens.

But, if you want to prep yourself with the skills to be able to fight in this upcoming battle, best find an event of mine asap, and either late 2013, or early 2014, we should have a chat. Here’s the press release I sent out……

Up until now, real estate agents in Qld could only charge consumers a certain ‘capped’ commission. Until now. Next week, parliament are almost certainly going to pass a bill allowing a real estate agent to charge you whatever they want.

This also means for consumers, that you can pay THEM whatever YOU want. While this always was the case, that yes you could negotiate a lower commission than the ‘capped’ amount, many people just accepted the capped maximum as ‘standard’ or a common misnomer within the industry was it was called ‘REIQ’ commission, even though it had nothing to do with the REIQ.

So now, an agent will no longer just be able to say ‘oh we just charge the standard commission,’ the first part of a relationship with an agent will be agreeing on what their fee is.

This represents a dangerous time for consumers, because they are initially negotiating AGAINST the very person who will be negotiating for them in the sale of their house, so the ensuing catch 22 potentially could be a nightmare for the public. The better they do negotiating a low fee with their agent, means they are dealing with an unskilled negotiator, who may cost them tens of thousands of dollars on their house, and the brilliant negotiator who will get them top dollar for their house, will also be a great negotiator in requiring them to pay a much higher fee than before the ‘commission cap’ was removed.

The competition bloodbath though will almost certainly see many agents dropping their commissions so consumers on the front end will find it easier to find a lower cost agent in 2014.

The REIQ, the industry body that has been championing this movement has been remarkably quiet on the subject, even to its members, as this de-regulation gets closer.

An overwhelming majority of the parliament are for this de-regulation, so in 2014, prepare for the real estate war to commence, and will the consumers be the winners in this skirmish? Only time will tell.

Comments 7

  1. Neville

    What a load od rubbish a war.

    You will find that the fees will increase to a good level and the poor sales consultants will drop out of the market for the benifit of the industry.

    Go for it

  2. Phil

    Same as the taxi industry really – there will always be consumers prepared to pay a high fee for English speaking, white gloved drivers, in the latest model Holden Statesman that will get you to your destination (Airport for example) on time, compared to the Toyota Hybrid with the power cord still hanging out of the boot, unshaven toothless individual, while you explain to the driver how to use the IPhone maps app! (Note that the meter was still running at the red light!)

  3. Julia Prince

    The trends have changed in Brisbane and it is harder than ever to get into real estate. Now 90% of the properties are in 10% of the same hands (not 80% as previously). Having said this, in NSW and VIC commissions certainly went down and stayed down post deregulation!

  4. Graeme

    Lets see all the cheepies coming out of the woodwork. All the dull boring, lazy agents who cannot get a listing on merit. I cannot wait as it will help me enormously to find listings …second hand. After they have had the bad service it will certainly make the good agents shine.

  5. Julie Rayner

    WOW Glenn. Thanks for the head’s up! Haven’t heard a word about this from the REIQ or anyone else for that matter … I haven’t been living under a rock so I’m pretty sure that this information should have filtered through.
    If this passes through parliament, this is going to be one hell of a game changer and I’m not entirely sure it will be to the benefit of the public. Many are still in the early stages of their real estate education and to find that the rules have changed may shake a few, especially as this is going to hit them hardest where it hurts the most. Keeping up with the amount of information available to the them has been enough of a battle for some; bringing in another factor to assess their potential real estate agent on may overload the system. And just how are the public supposed to judge ‘value for money’ in this brave new era of commission?
    I will be interested to see just what value some of my competitors place on their services when it comes down to the crunch.

  6. Peter Mericka

    There should be no cap at all on real estate agent commissions – let’s end this nanny-state nonsense and let market forces operate in the real estate industry. But now for the flip side; let’s also dismantle the monopoly that real estate agents enjoy in providing real estate services (whatever that may mean) and allow conveyancers, lawyers and accountants to compete with real estate agents.

    I propose a single, national, Real Estate Advocates Act by which anyone who offers services as an agent (in the true sense of the term) or advocate by representing a party to a real estate transaction must be licensed. No more estate agent licences, no more conveyancer licences and no automatic right for lawyers to represent vendors and purchasers – all to hold a Real Estate Advocate’s Licence and to compete openly and fairly on a single and very level playing field.

    Talk of “cheapies coming out of the woodwork” and “good agents (who) shine” will be seen for what it is – meaningless puffery, because the market will determine who is “cheapie” and who is good value, not those with the biggest advertising budgets.

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