There is more than one rate that is followed very closely in the property market, and it seems as one rate rises there’s a very real expectation another will fall. I actually don’t agree with the philosophy behind that expectation. Here’s why…
Of course, I’m talking about interest rates. The 0.5% rise announced this week by the Reserve Bank was expected, but certainly not welcome. It will add further unwanted weight to the residential property market as potential buyers are forced to re-evaluate their purchasing budgets and vendors subsequently need to re-evaluate their own price expectations.
In tune with those adjustments, we see an increasing focus on the rate of real estate agent commissions. Aah yes, that old chestnut. Rarely discussed in public but undeniably a key influencer in vendor decision-making.
The expectation is that agents will be willing to reduce their rate of commission to reduce vendor costs and so deliver clients a result closer to their original value expectations prior to the market turnaround.
Here’s what I know is wrong with that argument. It doesn’t acknowledge the true value of the role of a real estate agent. Commissions at Morton don’t move with the market because regardless of the market our team of agents work with the same commitment, determination, and diligence to deliver the absolute best possible result for their clients.
The value delivered by our agents is not negotiable.
Even in the hottest market, a property does not ‘sell itself’. It might sell quickly but a hard-working, experienced agent doesn’t just settle and sell it quickly – they work until the final moments in a deal to secure the very, very best possible outcome for their client.
In a waning market, it is obviously harder to maximise the result. Our team work hard to nurture potential purchasers anxious of overcommitting or ‘paying too much’. They provide the right evidence and information to help justify a value so buyers can feel confident in their decision-making.
That commitment doesn’t ever change. We consistently review the value provided by our team and that value is reflected in the carefully considered Morton commission structure. The additional rise in interest rates this week will make the market tougher to penetrate but Morton agents will work as hard as always to deliver. Our work rate will always be exceptional.