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CPREA

Geoff Baldwin Sat 17 May 2014

Focus on respect not fees

The ongoing war of opinion on selling fees can do nothing but damage the public perception of our industry according to www.CPREA.com.au Chairman, Geoff Baldwin.

"From the day I kicked off my career as in real estate almost three decades ago I was confronted with having to compete with agents who were willing to cut their fees to gain a listing", he said.

"On a global scale, fees charged by Australian agents are expensive compared to many European countries but average around half of those charged by agents in the US and Canada where 6 to 7 percent is the norm.

"Offerings of varying fee models is nothing new but what has become a lot more prevalent and damaging to our industry's reputation, is the propensity for agents to publically denigrate each other based on differing fee models.

"It is not unusual for agents who charge lower fees to low fee accuse their more conventional competitors, on their websites and in other media,  of overcharging amongst a myriad of other commercial and moral sins.

"On the other hand, in defence of their higher fees, it has become common for many agents to belittle the so called "discounters" almost to the point of accusing them of devil worship.

"All professions and industries compete to some degree on the fees they charge but very few resort to the levels of denigration such as that exercised by real estate agents.

"The truth is, there are agencies prospering today on models designed around charging lower fees and no amount of negative aspersions will hinder their progression, in fact the opposite could be argued.

"In a mostly deregulated market, agents have the right to choose what they feel is a just fee scale but, in the long run it will be their skills, reputation and results that will depict their ability to justify those fees and what others charge should not enter into the discussion.

"It is time for us all to respect each others right to set a level of fees sufficient to sustain the profitability of each of our businesses and to focus on our own abilities and activities rather than publically criticizing our competitors", Mr Baldwin said.

Ends

Media contact - Geoff Baldwin - 0413754414

 

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