After decades of mounting pressure from real estate consumers, the Real Estate Authority was established under the Real Estate Agents Act 2008. Their job is to improve the standard of service and professionalism of the real estate industry and help protect buyers and sellers of property.
Until this reform, meaningful change was resisted by an industry that many felt put their own interests ahead of those of real estate consumers.
Reform was necessary because real estate transactions account for a colossal flow of money. During the past 12 months alone over 1.2 billion dollars’ worth of residential real estate changed hands in Hawke’s Bay.
For most consumers the sale or purchase of a property is relatively infrequent, which means consumers lack the experience or knowledge to inform their real estate choices. Instead they rely on real estate agents for information and advice. Now the REA provides several useful resources for sellers and buyers and provides an independent forum for consumer concerns.
While the regulatory framework in the real estate industry has improved, we believe there is a big difference between agents acting within the law and behaving ethically. At best, rules and laws only prescribe a minimum standard of ethical behaviour.
We don’t see ethics as a business issue, a social issue or a political issue – it’s a PERSONAL issue. The “Golden Rule” guides our business decisions in the same way as it informs our personal choices. In any situation we ask, “How would I like to be treated in this circumstance?”
Ethics is good business.
Yet it breaks my heart to see Real Estate Agents continuing to rank amongst the bottom five of the least trusted professionals (along with politicians, car salesmen and sex workers!).
In our view, there is one significant obstacle to a significant improvement in the integrity of the industry – REMUNERATION. Most real estate salespeople are paid commission-only, and this tends to lead to a high staff turnover, and an overly aggressive, self-interested culture in most real estate offices.
Research shows that the best high-performing teams exist in a blended compensation environment, which offers a good base income with incentives that reward achievement. After witnessing success within other industries, Cox Partners introduced a blended remuneration system 15 years ago. When combined with the right business culture, we now see that sales performance can be augmented by three – four times using a blended compensation system.
Three other factors are also necessary for these exceptional results:
choosing and developing the best people for the team;
implementing proven systems that deliver the best results; and
maintaining a high-performing, collaborative culture fully focussed on creating “delighted” clients and customers.
If you’re thinking real estate, call Cox Partners Estate Agents first.
We guarantee our results! Let’s talk: (06) 835 4321
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