RealTrades: Nice Idea Pity About the Implementation

Recently we looked at innovative ways to sell in a falling market and now I want to review a new real estate trading website just launched in the New Zealand market: realtrades.co.nz

The idea is that in a falling real estate market people are prepared to be flexible when they sell their home, investment property or business and may prepared to trade for part or all of the selling price. Yes we’ve reinvented bartering: with a twist

Highlighted in one of the New Zealand major Sunday papers this week the site now proudly claims to have received 7000 hits: all of which would be from off-line publicity because they are not showing in the google.co.nz search for “property trade Auckland” or similar terms. All of which would be excellent except for one small little problem in their own words on the frontpage:

“Website Under Contstruction

Due to demand there may be a delay in displaying your property after we receive your listing form

Website will be fully functional October 14″

Well sorry guys but saying that the website will be functional in 2 weeks time is forever in internet years. Its not so much the limited listings either which is the issue: for every listing there is a short blurb and a good photo - but when you “click here” for more information - nothing happens. You don’t get a sorry we are under construction page: you get absolutely nothing at all. It suggests to my techie side that the database is not yet connected - this is all a bit of “fake it to you make it” website.

The front graphics are attractive, the overall navigation is clean and the site loads quickly (important in a country with poor broadband coverage). But it comes across as well, cheap. Clicking on the link to see a list of valuers: takes the visitor to yellowpages.co.nz - I mean could you not list some local valuers who work the area ? The main contact methods are confused - there is a nice contact form - but with an annoying captcha (type what is in the box) - which is really not necessary for this type of website. Elsewhere the agent’s contact details are listed: one as hotmail (MSN free account) and xtra.co.nz (NZ’s largest ISP) - nothing screams - I don’t understand internet marketing and branding more than that. You have the domain name - set up some emails: if you fancy design web company can’t do that for you - fire them, and ask a teenager!

This is not a low budget amateur operation: or it shouldn’t be anyway. The website is actually owned by 2 licensed real estate agents. If you fill in the form to list your property on the site you are actually signing up with Century 21 Real Estate to do the actual selling. The standard fees appear to apply 4% for the first $300,000 3% for the next $700,000 or a flat 3% of $1,000,000+ properties If you throw in the boat or the car it better be valuable because the fee is 5% with a minimum of $10,000 fee. Those are all plus 12.5% GST too. In other words this is no a cheap sale. By comparison the popular NZ auction site trademe.co.nz will charge you $199 flat rate to list a property or $19 for a car: OK you don’t pay realtrade until you sell: but boy do you pay then!

I also assume too that you would need to be careful if you already have an exclusive agency agreement with another real estate agency to sell your property: you will not be able to list your property on realtrade until your existing agency agreement expires. Is that an exclusive agency you are signing with Century 21? I don’t know its unclear from the website.

There is obviously a lot of Aucklanders interested in trading their property if those 7000 hits are for real. There is however a bit of mismatch at the moment with practically all the houses listed asking for a trade down regardless of their price. Hmm does anyone see the supply /demand thing of buying/selling working here - maybe not ?