ADVICE ABOUT SELLING A HOUSE PRIVATELY
If considering a private house sale to avoid paying real estate commission fees, understanding how premium sale prices are achieved can help you decide.
Private home sellers make up about 10% of real estate sales in New Zealand and going it alone will certainly put your 'project management' skills to the test.
In today's real estate market, properties listed with licensed real estate agencies continue to sell for extraordinary sale prices. In Auckland, Wellington and Tauranga, many are selling for hundreds of thousands above expectations which far outweigh any real estate company fees.
These results are not being achieved by selling privately as explained below.
Learn what areas add the most value to a property.
WHO BENEFITS MOST FROM THE FEES SAVED?
People intending to sell their own home usually go into the process with a minimum sale price they are prepared to go down to.
Unfortunately this is often achieved as cheeky buyers push for lowest sale prices because you are not forking out commission. So who is really the beneficiary of your private sale?
Do you want to achieve your asking sale price selling privately or test how much a buyer is willing to pay using the traditional real estate system?
METHODS OF SALE DRIVING PRICES SKY-HIGH
Methods of sale cleverly managed to leverage buyer competition and using real estate agents with tenacity and substantial experience are what primarily drives record-breaking results. Now is an optimum time to sell but unlikley for those selling privately.
You can use these latest Real Estate Institute statistics to establish what houses are selling for in your area. (You can compare month by month changes by scrolling down)
Find out what real estate commission and fees cost.
OWNER RESPONSIBILITIES IF SELLING PRIVATELY
Firstly, the consequences of not fully understanding the information contained in (or omitted from) a sale and purchase agreement, legal clauses, amendments or other legal documents such as a Certificate of Title or building inspections can be far reaching.
If you withhold information or (unknowingly) misrepresent particulars about your property that home buyers should legally be made aware of, you may put yourself at risk of legal action.
If choosing to sell your house privately, be warned that legal responsibilities, (mis)information, documentation collation and interpretation are your responsibility. There is no come back if it goes wrong.
If buying or selling a house using a licensed real estate agent, you have the backing of the Real Estate Authority should things go awry. Better still, if you use a vetted real estate agent, you might be amazed at what difference it can make.
Among pitfalls could be information omissions, clauses and amendments, errors, unmet deadlines and unverified property-specific information. Anti-money laundering administration is also now required.
CONDITIONS OF SALE FOR A PRIVATE SALE
Managing buyer conditions and/or barriers to purchase within the required timeframe can be a race for time.
Many people think selling a house just requires a sign at the gate and showing buyers through the property and voila.
However, the part of the process that is most challenging is the period between the date the sale and purchase agreement is signed and the unconditional date.
LIAISON A CORE PART OF THE PROCESS
This can involve engaging with banks/mortgage brokers, insurance companies, EQC, building inspectors, valuers, accountants, lawyers, LINZ, builders, tradespeople, councils and surveyors.
Your property and situation may be straight forward, but for real estate agents to complete a property sale, they have to manage a buyer's situation and problem solve - all before a property goes unconditional. They may have a house to sell to enable them to buy yours. You may want a long settlement date. The variations are many and so are the relationships needed.
If real estate agents didn't multi-task during property sales, many would fall over.
SAVVY BUYERS GOING OFF THE BOIL
Property buyers are well researched, savvy, seek due diligence and expect a quick turnaround time for information they have requested. If it's not provided quickly, they can go off the boil. They are likely still viewing other properties so time is always of the essence.
Be mindful that yours is not the only house they will be looking at. Timeliness is as important as quality.
Selling a house requires 'expedited project management'
REAL ESTATE AGENTS AND LAWYERS USE REAL ESTATE AGENTS
If selling a house was straight forward, lawyers, real estate agents and all the professionals who understand due diligence wouldn't list their properties for sale with real estate agents - but they do.
Over the years a number of people have contacted us for vetted real estate agents following an unsuccessful private sale - disillusioned and desperate to sell at almost any price. It never has to be like this and especially in this market.
THE SALE PRICE DILEMMA WHEN SELLING PRIVATELY
We have found that private home sellers aim for a minimum sale price whereas competent real estate agents focus on "how much can we get?" by using the right method of sale for your property type at that time.
After over a decade assisting home sellers this has been well proven. It has also been a priviledge to help kiwis prosper from their property sales, sometimes hundreds of thousands more than they expected.
It is understood that on average, New Zealanders sell only five houses in their lifetime so every sale is an opportunity to gain equity. Check out some of our reviews.
WILL SELLING PRIVATELY SAVE YOU MONEY?
The financial value of a vetted, competent real estate agent can equate to tens of thousands more in a sale price, compared to any commission you were trying to save.
Before you decide whether to sell your house privately or not, find out what real estate costs are and how you can keep commission and other fees to a minimum. Obtaining a free property appraisal first might help you make that decision.
Negotiating a prime sale price is not every real estate agent's forte. If you do decide to use an agent, use a vetted one - it's the safest way to choose a real estate agent - and Agent Finder NZ offers this as a completely free service.
A successful real estate outcome has a lot to do with a planned, coordinated and managed legal process by a competent, licensed real estate agent.
Request a shortlist of vetted real estate agents to compare - It's a genuine free service for New Zealanders.
Article updated July 29, 2021 by Trish Willis | About