The second instalment of the strategic decision over the realestate.com.au NZ portal has emerged today. Realestate.com.au (REA) Group and Realestate.co.nz Ltd have formed an alliance that will see traffic directed to realestate.co.nz. This will see the REA residential portal, allrealestate.co.nz, shut down after the 30th of November 2008.
The alliance gives realestate.co.nz access to all who use the REA Group’s international network of real estate websites.

Realestate.com.nz is fifty percent owned by the NZ Real Estate Institute. 

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Realestate.com.au announced yesterday that it was closing its New Zealand real estate portal from the 30th of November.

New Zealand is a small but tough competitive market with some existing and established players. The Institute backed allrealestate.co.nz will benefit from the closure.

The decision is probably prudent financially however the release does not explain the strategic context.

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If any property professional is not sure, or hesitant about fully embracing Auctions as the most effective property marketing strategy for the current Queensland market… read Sharon Saul’s comments below.

Stephen…As you are aware we are holding an outside broadcast with Kevin Turner at our office on Saturday 6 December.  We have co-ordinated this with an auction event to be held on the day. To date we have 8 auctions happening on the day and also 1 on the Sunday(due to religion).  The entire team is very excited about this. 

By the way, yesterday we had an auction in Raby Bay – 42 Sommersea Dve – it sold under the hammer!  First home in Raby to sell in 8 weeks!  We had 8 registered bidders and it was great!

If any office in the network is in doubt as to how to handle this market–AUCTION!    

Congratulations to Sharon, Craig and Graham and the team at Cleveland… they really are gaining tremendous market share and have carved out a real place for Raine & Horne in the Redlands.  

 

If you have a great property story send it to me, as others are always interested ssharry@rhq.com.au

                       

         

     

   

     

   

  

 

 

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On Monday night I attended the launch of the REIQ book “Deeds, Dreams and Dedication”.  The book was written by Gary McKay and celebrates the 90th anniversary of the REIQ. Gary is a well known author with many titles including “All Guts and Glory” and “Delta Four”.

The MC for the evening at Customs House was REIQ CEO Dan Molloy.  Chairman Peter McGrath introduced the Governor, Penny Wensley, who launched the book in fine style.  Her Excellency had obviously read the book and quoted from many of the anecdotes and the more humorous stories throughout the book.

The author spoke about the enjoyment he got from researching the REIQ and writing the many stories.  The REIQ Journals were a great source of information.  Many REIQ life members attended and it was good to catch up with early Raine & Horne colleagues including Ken Jackson.  Previous CEO Don McKenzie was there and received a thanks for commencing the project some years ago.

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Discounters out….. 

United States real estate discounter Foxtons’, a subsidiary of the UK based firm of the same name, is facing bankruptcy and lawsuits of over US$40m. The demise should remind industry professionals that there is no replacement for professionalism and customer service. In a market where Real Estate sales ranks have increased and many homes sell by simply listing them on the internet and putting up a sign, discounters perpetuate the proposition that there is little value a Real Estate professional can bring to a transaction, thus the less they should be paid.

Competent professionals cannot work for peanuts; Real Estate Agencies need adequate revenues to stay in business. When you give away your commission you also give away your ability to get the property sold at the best possible price in all but the easiest of markets.

The Bankruptcy filing on Friday evening came a little more than a week after the company announced it couldn’t survive and laid off 350 of its 380 employees.

The announcement by Foxtons created waves in the US real estate market. The company made its name by taking direct aim at traditional real estate agencies by offering commissions that were lower than what competitors charged. Once the housing market slowed, though, the company’s losses mounted.

Foxtons had 4,400 listings in New Jersey and New York. The company wants to sell the listings, along with customer databases and any equipment, furniture and vehicles that aren’t leased. It believes those assets can generate $2.6 million, according to court documents.

This should be a wake up call for Australian Real Estate professionals. The service that is provided by the Real Estate industry has long been underestimated and undervalued by the general community.  The process of listing, marketing and negotiating the sale of a property either by private treaty or auction, is a complex and sensitive process that requires skill and knowledge.  Add to this the raft of legislative control, introduced in the name of consumer protection, that only adds to the complexity of the process and not the outcome, and you have a very difficult space in which to work.

And finally, Discounters not only undervalue the industry and themselves, they also undervalue their clients.  If a Real Estate agent cannot negotiate their own commission, how can they possibly negotiate the highest price for their clients?

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