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Commissions and agents decreasing as real estate market faces challenges

Real estate news

The real estate industry is facing tough times, with increased workload and reduced sales leading to a decline in the number of active salespeople.

According to Real Estate Authority data, the number of active real estate licenses has decreased consecutively over the past few years, now standing at 15,460, down from 16,053 last year. This drop reflects a broader downturn in the housing market, with significant declines in both the number of transactions and the national median sale price.

Infometrics reports a roughly 33% decrease in the total value of residential property sales compared to its peak in 2021. Real estate agent Brooke Gibson told state media that many are leaving the profession or shifting to part-time roles due to these challenging conditions, and anticipates further contraction in the industry.

Image credit: Tierra Mallorca

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4 COMMENTS

  1. Commissions and agents decreasing?
    People with no skills apart from the gob have skimmed commissions since decades.
    This obscene rort is coming to an end, or at least to a reasonable level.
    Maybe time for sales ‘mamas’ and yuppie dodos to get a real job.

  2. This shows how little you know. These days selling requires very complex legislation, complexed agreements, it is forever changing with higher court decisions covering all matters with land, dwelling titles, construction, specific taxes, tenancy and lease documents, anything that affects the land even if it is other land in the area. The forever changing contractual agreements to line up with law amendments. Salespersons, branch managers and particularly agents are far beyond that of a legal executive these days. And its not just the real estate act my friend. Unit titles act and more than a dozen other acts. Company shares in land. Bodycorp legislation and all the amendments and court decisions that change the law. Oh and we don’t just sell residential. We sell farms, commercial of all types. Maori land, water rights on land. Remember that saying “a person acting for themselves has a fool for a lawyer? Today and for a very long time now the same applies to those who choose to sell their own land, property, business who owns the land. You want to take the risk of years of litigation, tens of thousands, hundreds of thousands or even millions? Due to the amount of money involved, its High Court, Court of Appeal and Supreme Court stuff. On top of this, when you advertise, you will only capture those buyers who are looking that week. We have databases that go back decades, smart software, an army of dedicated support staff who are extremely skilled people. You are very welcome to have a go. I suggest you get extensive insurance first and if it goes south, prepare to be named and shamed in the news.

    • Well that just sounds like it came out of the Real Estate playbook to try and confuse the general public, and instil fear of reprisal.

      Well regurgitated!

      Anything commission based is sordid and contaminated with greed. The whole “we work for you the vendor” is complete rubbish. All Real Estate Agents work only for themselves. No sale means no commission, so there is major incentive to just sell the property.

      Adding insult to injury is the fact that a lot of real estates are franchises, which means a lot of the commission goes up the chain, for those to achieve returns for someone else’s labour and they just clip the ticket and do sweat FA

      Real Estate Agents are loathe-some, parasitic creatures

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