HOW LONG DOES IT TAKE TO SELL A HOUSE IN 2022
In March 2022, the national average time to sell a house decreased from 42 days in February to 36 but for our clients, the average always sits around 20-23 days.
Points 1-4 below highlight the importance of tailoring the method of sale for your property type, location and value plus enlighten you about scrutinising property appraisals more thoroughly and why you should.
When selling a property of any description, being on the front foot will help you to influence a shorter sale timeframe, attract more offers, buyer competition and a premium sale price.
Most real estate companies don't publish commission fees but you can see an overview of how much it costs to sell a house here.
If you have purchased another property already or intend to, the tips here can help take a lot of pressure off by avoiding bridging finance. If this sounds like you, talk to us via Live Chat now or call 0800 789 532 - we're here to help and it's a genuine free service for New Zealanders.
HOW THE AVERAGE TIME TO SELL A HOUSE IS WORKED OUT
The number of days to sell a property is typically measured from day one live online to the unconditional date on a sale and purchase agreement.
Vendors do not receive payment from the property sale until settlement day. The buyer deposit is held in the real estate agency trust account.
The settlement date is agreed between buyers and sellers (with legal advice) at the time of signing the sale and purchase agreement.
When are Commission and Fees Paid to the Agency?
- Real estate agencies receive a deposit from buyers when a sale and purchase agreement is first signed.
- Real estate commission fees are paid to real estate companies when a property sale is unconditional.
AVERAGE TIME TO CLOSE ON A HOUSE IS INFLUENCED BY FOUR THINGS
1. The method of sale you choose, for example priced, auction, tender, deadline sale, 'buyer enquiry over' and so on.
2. Your choice of real estate agent - it pays to compare 2-3 agents who have been vetted for you - all at no cost.
3. The quality of your property appraisal and accuracy of the valuation for selling purposes.
4. Your overall pre-market preparation such as home staging using existing furnishings or hiring furnishings.
The following recommendations are well proven, simple ways to influence not only how long it takes to sell your house, but how long it takes to get your money released and into your bank account.
1. USE A REAL ESTATE AGENT PROVEN COMPETENT
(As of 7 April 2022, in New Zealand there are 16,172 licensed salespeople, 929 real estate companies and 30,992 thousand properties for sale.)
Be diligent about finding a real estate agent that has been proven competent, has integrity and is an industry example for provision of care to their vendors.
Vetting real estate agents has been well-proven by us for over 12 years. It independently and objectively establishes credibility and competence.
You can request a list of vetted real estate agents to sell your property type and location here.
Comparing 2-3 real estate agents is a good place to start
Once you have received your shortlist, it is wise to interview two or three real estate agents for comparison:
- their appraisal values (see advice about scrutinising real estate appraisals below.)
- methods of sale recommendations
- marketing strategies to reach maximum interest from buyers regionally, nationally and globally
- the cost of their advertising, real estate agency commission and fees.
- what real estate agency and agent is the best 'fit' for you and your property type/location/price range.
We can provide you with questions to ask real estate agents to help you make a fully informed decision. Get in touch.
Premium sale prices don't just happen - these will only be achieved with effective management by an astute agent and their real estate agency's standards of service.
Our clients' properties have mostly sold in half the average time for the areas in which they are located and have done since our inception in 2009.
Method of sale has proven to be an important decision.
Settlement day can be expedited with a vetted real estate agent.
2. METHOD OF SALE INFLUENCES SETTLEMENT DAY
Methods of sale can achieve both a quick property sale and expedite a settlement date.
Methods of sale managed effectively by your real estate agent can achieve two things:
- They should ramp up a higher volume of interested buyers
- They should then manage the competition between buyers ethically but as your advocate - they are working for you.
Essentially this is what various methods of sale are designed to do - but which method you choose should be a mix of a head and heart decision.
Take your time and understand them thoroughly and also see how home staging can influence how long it takes to sell a property.
When real estate agents are under pressure to conduct your property sale within a tight timeframe, you need to be sure you have listed with the best real estate agent available. (We have listed below some completely preventable scenarios that cause long drawn-out sales and settlements.)
Request methods of sale for selling a property - it's free advice.
3. HOW HOME STAGING CAN SPEED UP SETTLEMENT DAY
If you a selling a property that has been home staged or re-styled using your existing furnishings, your real estate agent will be more likely to attract multiple offers and sell within 3-4 weeks. Often sooner.
This has been well proven and real estate agents have often reported consistently that home staging a house can add 10-15% onto a sale price. In today's market, this can be a great deal more.
4. THE REAL ESTATE APPRAISAL DILEMMA
We are hearing more often of real estate agents over-estimating property values in their Comparative Market Appraisals (CMA) to entice you to list with them.
This behaviour is often a subject of justifable complaint to the Real Estate Authority. It should not be tolerated and the practice can result in repeated price reductions and pressure on vendors - a stress to avoid.
Many new clients have approached us about changing their existing real estate agents due to scenarios like this. Find out about changing real estate agents if you are already listed.
It doesn't have to be this way and is a scenario Agent Finder NZ helps vendors avoid as evidenced in our many reviews.
Get in touch or call 0800 789 532 for advice - we're here to help and it's a free service.
Page updated May 5, 2022 by Trish Willis | About | Member of Property Institute of NZ (IPAC)
Agent Finder NZ Awards:
Best Estate Agent Vetting Service NZ - 2018
Best Property Advice Hub NZ - 2021 - APAC New Zealand