HOW TO MINIMISE THE COST OF SELLING A HOUSE IN NZ
When people want to know the cost of selling a house in New Zealand, usually what they are most concerned about is the real estate commission.
But there are other potentially costly situations to be aware of. One of these is avoiding the risk of being liable for paying double commission should you have to list twice.
The unforeseen costs of an unfulfilling real estate experience at the end of a 90 day contract can have far greater financial impact than the commission cost you budgeted for, and can come down to your choice of agent.
We help sellers find the best agents for them and help them narrow down their choice by comparing real estate agents whose integrity, experience, character and negotiation experience is all at the level you deserve, leading to an optimum result.
Pay particular attention to real estate appraisals and what properties have been used as comparative properties to help establish what sale price range you could achieve.
Overestimation of property value by the agent to incentivise people to list is a common behaviour - frowned upon and one to watch out for. As a result, properties can end up languishing on the market and not selling within the agency contract period agreed and paid for, potentially leading to soured relationships.
Find out more about vetted real estate agents and the difference they make - a genuine free service NZ-wide
HOW MUCH DOES IT COST TO SELL A HOUSE IN NZ?
To get you started with your planning, we have prepared some examples of commission costs based on average percentages charged by real estate companies.
Commission will make up the bulk of the cost of selling your property but does not include advertising, photography, auctioneers, home staging or legal advice or documentation.
This detailed page explains these costs and how to keep expenses low
HIDDEN COSTS OF SELLING YOUR HOME
Hidden costs of selling your home result from:
- non-disclosure by a real estate agent or withholding a cost until after you have signed an agency agreement.
- needing to spend additional money on advertising above your budget because it hasn't sold.
- additional legal fees that are required to address legal questions or issues.
- obtaining a building inspection - repairs and maintenance costs can be additional. We recommend you use an independent and qualified building inspector whether you are buying or selling a house.
These are just examples as in reality, there is no one fixed cost when it comes to selling a house as every transaction, property, location, real estate agency and agent is different.
Find out what sets real estate agencies apart or call for free advice on 0800 789 532 now.
NO SURPRISE EXPENSES!
There should be no surprises at all as real estate agencies are obligated to itemise all of the costs prior to you signing an agency agreement with them. (When you sign an agency agreement, it is with the real estate company, not the individual salesperson).
Any additional real estate costs after signing up or changes to your marketing or advertising must be approved by you in writing via your signature. Make sure to keep your eye on the ball at all times, even with small details which can turn into costly details.
On the upside, being aware of how you can add value to your property, negotiate costs, prevent mistakes and avoid long drawn out sales will all contribute to your equity.
If you need help, get in touch - we've been helping Kiwis prepare to sell their homes since 2009.
ALL REAL ESTATE COSTS ARE NEGOTIABLE
The good news is that all costs to sell a house in New Zealand are negotiable and often real estate agents will offer complementary advertising. This is something we can help you find.
Be mindful that the financial value of a competent real estate agent can mean tens or hundreds of thousands difference in a sale price, while the commission percentage is usually a few thousand, so whether to engage an agent shouldn't be based on fear of paying the commission, but rather their competence level. This is what we establish on your behalf using our established stringent criteria.
Home sellers find our Agent Questionnaire really helps them narrow down their choice when interviewing our short listed agents.
Free phone 0800 789 532 or request a free list of vetted real estate agents to compare now
Agent Finder NZ Awards:
- Best Independent Real Estate Advisors 2022 | BUILD 2022 Real Estate & Property Awards
- Best Property Advice Hub New Zealand 2021 | APAC
- Most Reputable Property Advice Hub New Zealand for Wise Up NZ 2020 | APAC
- Best Real Estate Agent Vetting Service 2018 | APAC
Page updated March 23, 2023 by Trish Willis | Member of the Property Institute of NZ (IPAC)
