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Thousands of real estate agents leaving industry

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Wed, 08 Jun 2011 4:23a.m.

The number of real estate agents in New Zealand fell 26 percent over the last year

The number of real estate agents in New Zealand fell 26 percent over the last year

A year of low sales in real estate has caused a quarter of New Zealand real estate agents to leave the industry, Real Estate Agents Authority (REAA) figures show.

The number of agents in New Zealand fell from 17,809 to 13,092 - a drop of 26 percent – over the last year.

Real Estate Agents Authority chief executive Keith Manch says in the current economic situation agents need to be “pretty committed” to retain their licenses, and many in the industry consider the number of agents could fall to as low as 10,000.

Ray White agency chief executive Carey Smith says the real estate sales force – which depends on commissions for income – had been “pulverised” by the slow market.

“Sales are down, particularly in rural, and that had people seeking other employment,” Mr Smith says.

One Papakura realtor’s office has shrunk from 30 staff to ten.

Ray White Papakura branch principal Ted Ingram says all staff who left did so for the same reason.

"They can't make any money - sales are down. It's just too tough."

The CEO of real estate education provider REAL ITO Lesley Southwick says although the number of people in the industry has declined, the standards of education have increased proportionately.

REAL ITO administers the education standards for the industry through on-the-job training programmes.

Ms Southwick says the number of people in training through the ITO for nationally recognised real estate qualifications has grown since the qualifications were introduced in July 2010.

"We may have lost some quantity for a while, but we are definitely gaining in quality of real estate professionals and licence owners," she says.

“What we can expect from the industry in the next five years as it inevitably recovers will be higher standards of behaviour and a significant decline in the number of complaints and disputes."

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Comments

16 Jun 2011 07:37p.m.

Mike wrote:

EXCUSE ME, but the above comments about Real Estate agents are sheer dribble!

To the uninformed...Real Estate is more than putting up an Open Home sign or completing a Sale and Purchase Agreement! Just like any other business, Real Estate requires skills in sales, marketing, psychology, and business management to name a few. It is a life changing experience for people who enter it!

It is not for the faint hearted and how dare Nick A make reference to Real Estate agents getting a "real job..if they could". Many who enter the industry come from the other occupations with professional qualifications, all seeking a lifestyle change (for whatever reason).

I personally worked with an ex Snr School Master, a Project Manager, Police Inspector, and Accountant to name a few. They are all great people with demonstratable skills and attributes.

It takes guts and sheer determination to succeed in any business. Real Estate is no different. Certainly, the economic downturn has created new challenges for the industry but I never worked with any agents making "outrageous commissions".

They are simply trying to survive like everyone else in bloody difficult economic times. The commission paid to an agent is a ‘fee for service’ and that fee is only paid when a house is sold. Hours of effort are put into a successful house sale transaction, for a premium price. It can take months for a property to sell, meanwhile the agent is incurring expenses and working while not receiving recompense for their labour!

Remember, it was the market that created artificial highs in house prices, not Real Estate agents! Banks were more than happy to lend money and people stretched themselves beyond their means.

08 Jun 2011 12:29p.m.

nick a wrote:

Well said @Phill...perhaps they will now have to get a real job! if they could do one?

08 Jun 2011 10:38a.m.

Phil wrote:

These are the people very people who, along with others, were complicit in fuelling the economic disaster we now find ourselves in. They played a major role in the hiking of real estate prices throughout New Zealand so that now many New Zealanders will never or now only with great difficulty own a home. It must be twice as injurious for them to be able to solicit such little sympathy from the rest of us for their plight. It could not have happened to a nicer bunch of crooks.

08 Jun 2011 10:16a.m.

Derek wrote:

This is no surprise- the market is saturated with wannabe "agents" all trying to make big bucks from the outrageous commissions which are charged on property sales. Now let the REAL survivors get on with the job!