Cost Of Private Sales Now Confirmed – Don’t Do It Vendors!
“It will be tempting this summer for Kiwis to think than can easily sell their home themselves and save some money. In reality, it will put off many buyers, with vendors unlikely to get top dollar,” says Derryn Mayne, Owner of Century 21 New Zealand.
Her comments follow REINZ analysis released this week which shows homeowners who use a real estate agent to sell their home can expect to get on average 15% more for the property than they would by selling it privately.
“This is highest premium REINZ has seen in 18 years. That means an agent’s true value when it comes to a property sale process and outcome is the best it has been since 2002. That’s a very compelling proposition,” says Ms Mayne.
REINZ’s research also shows a decrease in the percentage of people choosing to sell their property privately – down to 14% in 2020.
Some skills and advantages dealing with an agent include legal protections for vendors, licensed agents having to adhere to a professional code of conduct, bringing significant marketing expertise, honed negotiating skills, and a wide network of contacts.
“Given that the majority who sell privately sell by negotiation, REINZ has observed the price difference an agent can achieve could also reflect on the industry’s use of auctions as a marketing and sales technique. We also know that many buyers simply don’t like dealing with sellers directly. They’d rather liaise with a professional third party,” she says.
The Century 21 boss says another thing those contemplating listing their house themselves need to consider is that buyers know the vendor won’t be paying commission and so often use that as a negotiating tool to reduce the price accordingly.
“Often, DIY vendors overlook the critical importance of property presentation including decluttering a full house or staging an empty one. What’s more, professional photography and increasingly the use of drone and video footage, virtual tours, and 3D floor plans are playing a key role in attracting buyers and achieving top dollar.”
Ms Mayne says in this Covid-19 world, and with property listings in New Zealand short and sales running hot, more buyers are making their determinations via their computer. She says this year Century 21 has sold more homes and holiday houses sight unseen.
“Many Kiwis living overseas are buying sight unseen, so are people who even live here! They simply don’t want to miss out, so they are effectively buying off first impressions, with a condition to then have it physically inspected. That’s why a strong, professional online and social media presence is so critical in this market, and an agent is much more likely to deliver that,” she says.
Derryn Mayne says real estate agents will naturally promote the advantages of their own service, but this latest REINZ analysis confirms in concrete that selling privately doesn’t necessarily save vendors’ money. Instead, on average, it costs them.