Hamilton – commonly known in Real Estate circles as the Conjunctional Capital of NZ….
What are Conjunctional Sales ?
Conjunctional Sales occur when the Agent who holds the exclusive rights to sell a property, presumably to deliver benefits to the Vendor, then allows only pre selected Agents to bring customers to the property, and in the event of a sale, the commission is shared between all parties.
A wee bit of a BIIIG Commission Pie for everybody, well that’s if you’re in the Club that is – a bit for this Franchise, A bit for that Franchise, some for this Company, some for the other Company, a bit for the Lister of the property, and a wee slice for the seller…
Hey that’s a 6 way split – no wonder they need to keep the old Commissions right up there….
Everybody’s happy – and the consumer pays a big fat fee to spread round the ever increasing numbers of Salespeople our Traditional Agents continually recruit – so just where is the benefit for the vendor under this scenario ?
Another indicator that the traditional model has reached the end of its cycle.
Hamiltons Big Agencies will tell you you need a couple of hundred or so Salespeople, (many inexperienced, self proclaimed, ‘ Experts in your area ‘, ) to sell your home and of course the BIG 3 Companies Conjunct and work together, so you’d be a fool not to list with them – Right ?
Well Wrong actually – They expect you to swallow this line so they can lock you into their 4% Fees and add on costs – and at the same time, eliminate competition.
Let’s be clear, to sell your home you need One Experienced, dedicated Agent, a total On-Line marketing Strategy, and Open Homes – that’s it.
New Model Agencies are delivering a full, professional Real Estate service, and at the same time bringing real savings to consumers by eliminating these outdated, inefficient and obsolete methods and habits of the past.
Big thinks of ways to help themselves – Small thinks of ways to help you…
Hamiltons’ Club Scene
Definitions of a Club – Webster Dictionary
- A group of people associated because of a shared interest
- A Large usually wooden stick wider at one end and used as a weapon
The Hamilton Real Estate Club scene associates with both definitions in the Webster Dictionary, and has for years.
I have seen this since the early 1980s when a group of five Real Estate Agencies came up with a plan to work together, conjuncting only with each other and excluding all others, and began the process of competitor elimination.
Hamiltons’ “Group 5 “ was born.
So what’s changed since then? Well, nothing really, except it’s now 3 instead of 5.
With the Pattern proven, now, like then, Hamiltons Big 3 Companies, collectively holding around 90% market share, work closely together, actively encouraging the sharing of their listings with each other.
We now have laws against collusion and anti competitive behaviour, see Here http://www.comcom.govt.nz/business-competition/anti-competitive-practices/
The recent charges laid by the Commerce Commission against some large Hamilton Agencies will no doubt, highlight these business practices, and accelerate the process of delivering a level playing field leading to more new Real Estate start ups, headed by Dynamic young entrepreneurs, with great new ideas and Professionalism, and the winner will be the consumer.
The Future of Real Estate Has Arrived….
Things have now changed – because of the ease of Open Home shopping, Buyer Loyalty has disappeared, Property research is now conducted on line, so removing yet another major cost and perceived BIG Agency advantage – the now obsolete dozens of Newspaper pages each week.
( As I write, News has just broken of more job losses across the Tasman, Fairfax retrenches again – see my Blog Death of Traditional Real Estate Franchises )
The newly emerging generations of Home sellers and buyers have no loyalty to old established names and ways, and in fact, are eager to dismiss them in favour of consumer choice, best price scenarios and a more professional, personal service from experienced Industry professionals.
Netzone Real Estate ‘ Turning Disruption into Opportunity’