New real estate player set to shake up Invercargill market

Southland's property scene could be in for a shake-up this year as a new player moves into the market in Invercargill, with a system which could save vendors thousands of dollars in commission.

Former Gore man Ewen McLeod is set to challenge conventional thinking with Website Properties Limited, a website based company.

Website Properties Limited was a user pays system whereby the vendor paid a flat rate of $150 per week for access to advertising.

Included in the package are two newspaper ads per week, a website listing, flyers of the property and a for sale sign.

The vendor conducted their own open homes, but the company vetted all potential buyers.

While new to New Zealand, the sell by owner (SBO) method had already caught on overseas, taking the market share in both the United States and Scotland, Mr McLeod said.

He believed the same could happen in New Zealand in time.

While Website Properties was a listing agency, rather than a real estate company, it offered people an alternative, he said.

"Three years ago real estate agents were charging 4 percent commission on average.

"Properties prices had doubled in that time, and so have real estate agents salaries."

Many real estate agents were also wanting an advertising fee up front, he said.

Based on a property worth $150,000, and with an average selling time of 34 days, the system could save vendors thousands of dollars, he said.

Mr McLeod established Website Properties Limited out of Christchurch in October.

His experience includes 26 years in the real estate industry in Christchurch. He plans to have a franchise in Invercargill in the coming weeks and 60 across New Zealand before the end of June.

"The Joneses started reinventing real estate, we are saying we have reinvented it," he said.

Real Estate Institute of New Zealand president Murray Cleland said many "fly by nighters" had come and gone from the industry in his 25 years in real estate.

The fact that many of them had gone again told him people wanted the security of dealing with a licensed agent, he said.

Mr McLeod was the founder of No Commission Property in New Zealand.