Kiwi house buyers being 'ripped off' by real estate agents, says real estate agent

New Zealand houses are now sitting at an average of $500,000 - and real estate agents are reaping the benefits.

With real estate agents charging a steep 4 percent commission, one agent says customers are being ripped off, and something needs to change. 

Mike Van Wagoner appeared on Wednesday evening's episode of The Project to say he doesn't care if he loses his job, he just wants change.

"I don't mind being redundant if it means an improvement in the system. The model, as it is, is broken. It's outdated.

"It's not the agents, it's the format that's been going on for two decades at least," says Mr Wagoner.

"Values of houses have gone up, work has become less, and yet the commissions have remained the same."

He also says you don't always have to use recognised agencies.

"Perception among the public is that they have to use a brand - but a brand does not sell their house, a person does."

He says in order to save money, people should try and bargain with their agents - offer a price that is fair, but not extortionate.

"On this particular market we're in, it's actually common sense [to bargain]."

As for his reputation among his peers, Mr Van Wagoner says it could definitely be better.

"Yes I've had a few phone calls - I can't repeat what they're saying. It's understandable, I'm threatening their livelihood."

Watch the full interview above.



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