Steve Koerber's Old Blog

Remuera's house sold name since 1998 – 021864166

US realtors pay for ads and NZ agents don’t

Posted by Steve Koerber on July 9, 2008

In the USA most homes for sale are advertised widely on the internet and only occassionally in newspapers.  In NZ, many vendors pay for (bigger) newspaper ads and agents pay for the internet.

A ballpark average fee to sell a million dollar home in NZ is $24,000 (approx Barfoot & Thompson fee). In the US my understanding is that the equivalent fee charged to sell a million dollar home would average somewhere between $40,000 an $60,000. At that fee, US realtors could afford to risk quite a few Property Press full pages! I’m guessing, however, that if I was a realtor in the USA and was earning their higher fees, being more internet focussed and less newspaper focussed would serve my own interests by increasing my profit. Perhaps the vendor’s best interest would be served if the US realtor spent more dollars on print advertising? Imagine doing something that would benefit the vendor!

When seen from this viewpoint it’s possible to understand why web based advertising is pushed more in the US than it is in NZ.

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