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Like-minded real estate groups across the country are coming together to take collective action against realestate.com.au's fees, according to the chairman of one of Australia's leading networks.
The news comes after it was revealed that over 300 offices in Melbourne had joined forces to establish a new collective bargaining group in an attempt to secure fairer listings charges.
Century 21 chief executive Charles Tarbey has confirmed to Real Estate Business that the movement by agents against the REA price hike is gathering pace on a national level, not just in Melbourne.
Mr Tarbey, who is one of the network leaders heading up a the new industry site, revealed he's aware of similar moves being made in South Australia and in the Illawarra region of New South Wales.
"I've never witnessed as much interest from various groups in the industry as there is right now,” he said.
"We’ve been raising the issue of the industry controlling its data for the last 15 years, but this is the biggest move I’ve ever seen. It’s very much a massive sign of the recent dissent [to fee changes] we’ve witnessed."
Mr Tarbey said it's not happening in a "uniform way", dominated by the franchise groups, but it's more of a national shift, including individual agents at a grass-roots level.
"I know about it because I get a national perspective, but I don't think the guys in Victoria would probably know that the guys in South Australia are doing something very similar,” he said. "It's all happening at the same time.”
However, Mr Tarbey warned that organising real estate groups to collectively negotiate fees with listings sites could only be viewed as a stop-gap solution.
“What are they going to do? Go to Domain or realestateview and still get charged?,” he asked. “Are they going to give someone else a monopoly and then in two years' time have the same problem? To me, it’s a temporary fix and won’t solve the problem."
Mr Tarbey also questioned how REA will be able to justify to its shareholders that they’re going to take a big hit if realestate.com.au needs to reduce its prices to do a deal with the newly-formed buying groups.
"How does realestate.com.au justify going back to its shareholders with a story like that?" he said.
- <p>I think it has a lot to do with this.</p><p><a href="hfgapps.hubb.com/asxtools/Charts.aspx?as...a=0&TimeFrame=M3" rel="nofollow">hfgapps.hubb.com/asxtoo...</a></p>0
- <p>If you recall State Institutes chose to back various different options for listings a number of years back, some went with an Industry option some went with a commerical one. Likewise franchise agents either backed Homehound or whatever it was called then or they backed a commercial option.</p><p>The point is the Industry didn't come together and work together, how hard can it be to agree on a commercially run industry supported listing facility that provides a base listing and website facility.</p><p>The public want to go to one site and see all property that suits their criteria, they don't want to sensored or look at a number of different sites and hope they don't miss something.</p><p>Of course agents couldn't do this, because we are too dumb</p>0
- <p>The leaders of the major franchise groups AUSTRALIA wide need to take the lead here as they can deliver the most offices and listing in one hit. But keeping in mind that the smaller independent groups and brands are Key and just as important as the big guys. They will not join if the playing field is not even for all, ( for Big or Small) Let hope the major franchise groups don't make the same mistakes REA did and underestimate the market. ( our industry )</p><p> The industry is looking for a single strong industry owned and ran website that service OUR needs as professional real-estate people and provides the public a real national alternative and service.<br>If we don't work together and STOP REA NOW!! in there tracks, we will see an increase in all website costs from other providers. We must stand strong and do what we are all saying and deliver a world class industry owned website.</p>0
- <p>The problem is not REA, it is "us" the agents. We created this monster and by feeding it it has been biting us on the backside for years. I am a small independent operator and my fees have increased by over 15% per annum 5 years in a row - ie they are more than double of what they were 5 years ago!! If my enquiries had increased by even 10% pa I would not have an argument. Instead, I am not only expected to pay 15% more than last year, but to get more enquiries I have to pay even more for feature or premier listings. The answer is not to have a buying block (because those that aren't members will end up subsidising the block) but rather not to advertise with REA at all. But this is not going to happen - well not until the new .realestate domain names become available. Only then will REA be brought down to its knees. Technology changes very quickly and I am sure there are some clever young minds working away quietly trying to figure out how to bring down this monopoly - and I am sure they will. But until then, we are simply at their mercy.</p>0
- <p>fealthefear - Its crazy stuff, REA pricing , the public are often price sensitive when buying ( give or take 5% to 10%) and all the upgrades and features have done is confused a pricing order. Not to mention the ridicules costs to us or the public.</p><p>We stopped using and promoting upgrades about 11/2 years ago and like you have just discovered it didn't make a difference to our business.</p><p>We use to have a system that every new listing had a few days on the top spot and then it dropped down with all the other listings and it was ranked by price. and with all listing advertised in there correct suburbs. A pretty simple structure that worked well.</p><p>It would be interesting to see what REA shares are doing at the moment</p>0
- <p>After upgrading every single property I've listed on REA for the last 9 years, I finally reached breaking point and decided to abandon upgrades entirely. This was about 5 weeks ago. So far I have not noticed any drop off in buyer or seller inquiry. If everyone stops upgrading how long do you think it will be before their prices come down?</p>0
- <p>Remember that they need you more than you need them. I changed to Domain 2 years ago and the other sites that leech the listings and noticed no drop off in enquiry for either sales or rentals. Obviously it has reduced my overheads substantially.</p>0
- <p>There has been a lot said about the REA Group in recent weeks and justifiably so.</p><p>Mr Tarbey's concerns that this may lead to simple monopoly shifting is a genuine concern & it will be up to the industry (both franchise and independents) to regulate online marketing costs. Marketing costs should be industry set & it should be the job of 3rd parties to try & offer a more competitive advertising rate. Currently, having the entirety of online marketing in 3rd party hands has only proved that monopoly creation is a definite outcome.</p><p>I also have noted an air of silence regarding the other leading online advertising website <a href="domain.com.au" rel="nofollow">domain.com.au</a>. My question I would like to raise is why do <a href="Domain.com.au" rel="nofollow">Domain.com.au</a> think that they can raise their own agent subscription costs by 15-20% this next financial year and not provide any justifications for such an increase.</p><p>A case of the pot calling the kettle black perhaps?</p>0
- <p>WA agents also would like to be involved in this movement. For far too long have we been dictated to by rea. It will continue to get worse</p>0
- <p>I am interested in joining you Barbara. My only concern is the 'new force' provide equal opportunities to the smaller companies such as myself as they do for the larger franchises.</p>0
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