I am not allowed to charge for real estate services on a commission basis. The fee for selling the property will be fixed at the time you sign with my agency to sell. It will be significantly less than you would be charged by the traditional real estate companies and it will not change.
In my time as a lawyer dealing with property I have seen the commission rate charged by traditional real estate agents climb from 3% to 4.25% (and even 5%). I can see no justification for that rise other than the greed of the agencies or their inept operating practices. I believe the cost of using an agent should be much less than that charged up until now and my charges will reflect that belief. My charges will be based on the criteria for costing set out in legislation in the Lawyers and Conveyances Act Rules 2008 in chapter 9, which are as follows:
- The time and labour expended;
- The skill, specialised knowledge and responsibility required to perform the services properly;
- The importance of the matter to the client and the results achieved;
- The urgency and circumstances in which the matter is undertaken and any time limitations imposed, including those imposed by the client;
- The degree of risk assumed by the lawyer in undertaking the services including the amount or value of any property involved;
- The complexity of the matter and the difficulty or novelty of the questions involved;
- The experience, reputation and ability of the lawyer;
- The possibility that the acceptance of the particular retainer will preclude engagement of the lawyer by other clients;
- Whether the fee is fixed or conditional;
- Any quote or estimate of fees given by the lawyer;
- Any fee agreement (including a conditional fee agreement) entered into between the lawyer and client;
- The reasonable costs of running a practice;
- The fee customarily charged in the market and locality for similar legal services.
Under that legislation, the overriding factor is that the charge must be reasonable having regard to interests of both the client and the lawyer and also to those above fee factors.
Save 25% — 33%
Our fees will be set in advance in each case but you can save between 25% and 33%.
The median price of a house in Hawke’s Bay is just under $300,000.
Traditional real estate companies would charge a minimum of $13,500.
Our fee for that same sale would be between $9,000 and $10,000.
That is $3,500 to $4,500 directly into your pocket.