Pricing and Model Changes
Why are you increasing fees?
We have looked at the pricing and value that we offer real estate agents and vendors on Trade Me Property. We believe a listing fee of less than $200 per listing remains great value for money, given the results Trade Me Property delivers.
Why the new pricing structure?
There are 3 main reasons:
- We recognise that given our traditionally very low price point, the vendor has not been charged for a base listing. We support vendor funding, and combined with the new price we expect many agents to pass on this cost.
- We are conscious of the disclosure requirements for agencies when on-charging their vendors. The new structure is transparent, so you know the cost of a listing.
- We want to provide flexibility to agencies regarding what is charged – that’s why we have the standard 20% discount. Agents can choose to pass the discount on to the vendor, or charge a commission (and disclose this appropriately under the Real Estate Agents Act 2008).
What will happen to my existing listings when my pricing changes?
You will not pay again. You still pay just the one fee for the lifetime of the listing. As you do now, you will just need to ensure you keep extending any listings or should it expire, relist it within 45 days. NB: Any feature products on expired listings will be recharged should you relist them.
Are all agents eligible for a discount?
Yes. All agents and all business customers receive a 20% discount.
Why are you removing the ‘cap’?
We wanted to create a transparent pricing model that does not penalise smaller agent offices, but also incentivises large volume commitments. The new model also makes it easier for agents to move to vendor funding, which we fully support.
You mention commissions. What is the story there?
The discount/commission element in the model provides flexibility for you or your agency to determine whether you pass on the discount benefits to the vendor, or use this to cover your own costs of administering the listing on Trade Me.
Why are you increasing prices now?
We review our fees from time-to-time and make a call about a price we think is good value. However this is not just about a price increase, in fact some agents may spend less. It’s about a structural change in our pricing, removing minimum fees and providing a transparent pricing structure for all our customers.
The Value of Trade Me Property
You talk about the value of marketing and advertising via Trade Me Property. What do you mean?
First and foremost, Trade Me Property is still an incredibly cheap place to market a property. We deliver more eyeballs than print (or any other digital option) and our base listing remains available to view for as long as the property is for sale. Our mantra remains ‘one price until sold’ and we are open 24/7/365. We have seen our potential audience for sellers increase 14% over the past two years, with 127,000 average unique daily browsers in May 2013 and over 280 million total page impressions for the same month.
Have you done any research?
Yes. Recent independent research found that:
- 67% of recent buyers considered Trade Me Property their primary property search tool – 7 times higher than the next most popular choice.
- 47% of recent buyers said they found their new property on Trade Me Property;
- 75% of recent sellers were willing to pay their agent to list their property on Trade Me Property;
- The average amount vendors were willing to pay for a listing (including those who did not want to pay) was significantly more than our price ($328).
Advising of the changes and your options
What are my options as an agent?
Firstly, we hope you continue to use Trade Me. The statistics support the value we bring, and the Trade Me Property cost remains a small proportion of the average marketing spend on a property. You have options around:
- whether you ask your vendors to fund the cost of Trade Me advertising, in the same way many already do for print advertising; and
- if you do vendor fund, whether you pass on the discount or charge a commission.
Are we getting advance notice?
Yes we have provided nearly six weeks’ notice. Our standard T&C’s require 30 days’ notice.
How do I cancel my subscription?
Just get in touch by calling 0800 866 266 and we can walk you through your options on this front. Note that we no longer have a minimum monthly fee, so you may be best to retain your membership and the ability to post listings in future. Until you list or feature again, there will be no further costs after you change to your new pricing. If we did close your membership, we will need to remove your listings from the site.