Cut-price realtor welcomed

Russell Malcolm, licensee at Colonial Realty, said agents were over-charging.

The Go Gecko real estate agency, based in Queensland, is promising to open 82 outlets, a move Malcolm said could only be good for buyers and sellers.

Go Gecko says it will charge a flat fee of $5950 to sell a house, regardless of the house value. It plans to open its first office in Tauranga on March 1.

"I would say the public pay agents between $500 million and $700 million too much every year," Malcolm said of commission rates.

Clients paid real estate agents about $1 billion in fees annually, he said, citing data from a review of the Real Estate Agents Act.

Commission rates were too high yet agents spent 70 to 90 per cent of their time getting sole listings.

Read More - Opens in a new window