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.