A new entrant to the real estate industry seems to have accidentally fallen foul of the terms of business of the leading property magazine ‘Property Press’ as reported by the National Business Review.
Property Wizards has decided that the fixed fee model initiated with early success and much fanfair by ‘The Joneses‘ is worthy of revisiting with their $7,000 fixed fee plus marketing. There is no doubt that any industry which even in the current economic climate transacts business to the value of $20+ billion per anum will attract innovation and challenges to existing business models. It is certainly healthy and a reflection of a continual focus towards the consumer that innovative business models should appear and test the established model.
The part of the article that I found most interesting in the story as reported by both the NBR and Landlords was the fact that whilst on the face of it Property Wizards are frustrated that a slight oversight has seen them excluded from future advertising in Property Press – they are however not overly dimayed as they clearly recognise that the best value in marketing is delivered by the web.
This is very quickly confirmed by a review of their website which highlights that in the ranking of services offers to vendors – they place website marketing as the #1. This exactly correlates with the finding of the Nielsen Online survey of 2008 in NZ which when a sample of 1,100 property seekers were asked as to the top sources of information when searching for property cited specialist real estate websites as the #1 source – spending an average of over two and a half hours per week searching. By comparison all of the print media options fell below eighty minutes and saw a year on year fall whilst specialist websites grew from 161 to 167 minutes per week on average.