Ever wondered what real estate agents actually do to earn their huge commissions? Interested in finding a way to save on real estate fees? Then read on to find out the difference between selling privately to Your Property Solutions and using a real estate agent to sell your property in New Zealand.

 

Real Estate Agents

 

Selling your property with a real estate agent offers you the peace of mind of leaving the ins and outs of the sale to a professional. However, you do pay the price for these professional services in the form of commissions and fees based on the final sale price.

 

What Do Real Estate Agents Do?

 

Real estate agents draw on a variety of life skills to attract and build relationships with potential buyers and sellers, advertise and market the property, arrange and host regular open homes, help you fill out Sale and Purchase agreements, negotiate the sale/purchase price, and research local sales and housing market data.

 

 

How Much Do They Cost?

 

Agents charge a variety of fees, including marketing fees and a commission, which is usually a percentage based on the property’s final sale price. Before an agent does any work on selling your property, you will be required to sign an agency agreement stating the period of time the agency has the right to sell your home, and any extra fees such as marketing costs, along with the commission calculations.

 

In New Zealand, real-estate agents fees tend to range from 1% up to 4% and often work on a tiered system where a base rate is applied to the first few hundred thousand, and a reduced rate applies to whatever comes in above that.

 

Generally speaking as an example, between 1-4 percent is applied on the sale price up to $400,000, with a 2-2.5 percentage applied to any amount received over that. Of course, everything is negotiable, and these figures are just given as an example only.

 

3 Benefits Of Using Real Estate Agents

 

Selling your home using a real estate agent does have its benefits, and for many New Zealanders, it is the norm. Here are three of the top benefits when using a real estate agent to sell your home.

1. Good Negotiation. Agents are more easily able to avoid an emotional connection to the sale which can result in better negotiating tactics.
2. Time Saving. Agents are able to take care of all of the phone calls, emails, meetings and communication aspects of the sale process, saving you time.
3. Local Knowledge. Agents working in your area have a great deal of insider knowledge regarding what houses are selling for in your area and how many buyers there are out there at any point in time.

 

Your Property Solutions Private Sales And Purchases

 

Many people turn to private sales as a way to avoid real estate agent fees when selling their property. However, traditional private sales can mean a significant investment of your time – want to find a better way? Your Property Solutions is a property investment company that will purchase your property directly without the need for agents, open homes, or even any cleaning!

 

Who Are We And What Do We Do?

 

Your Property Solutions are as-is-where-is property investors with offices in Christchurch and Hamilton. We buy all kinds of property directly from the homeowner without the involvement of a real estate agent, and we also sell fully repaired and renovated properties privately on an ‘off-market basis. Some of the highlights of selling your home privately with us are:

 

• Fast Offers. We operate on a 24 hour turnaround basis where we can get you an offer on the table within 24 hours of seeing your property.
• Flexible Settlement. We offer flexible settlements and/or delayed settlements. There is also the option to rent back your property for longer periods of time.
• No Fees. There are no fees or commissions charged on the sale or purchase of property with Your Property Solutions.
• Greater Scope. Yes, we do specialise in as-is-where-is property, but we are property investors, and we are interested in all kinds of properties of any size and in any state.
• Help With The Legalities. We can provide all the paperwork, however, we always advise clients to have their lawyer take a look at the Sale and Purchase agreement before signing, just as you would in a real estate brokered deal, and we also include a “subject to solicitors approval” clause in every agreement as standard procedure.

 

 

What Is A Private Sale?

 

In the New Zealand real estate market, a ‘private sale’ means that you are not going to work with a real estate agent when selling your home. This means you will take on the process of selling your property and what that entails.

 

Selling privately doesn’t always mean having to do everything by yourself though, you’ll still need to hire a lawyer, and when choosing to sell with private buyers such as Your Property Solutions, you are able to get professional assistance every step of the way.

 

6 Benefits Of Selling Your Property Privately With Your Property Solutions

 

Thinking of selling your property but don’t want to waste time with real estate agents and pay huge commissions? But selling privately seems a little daunting, and you’re not really sure how to go about it? Your Property Solutions offers you all the benefits of selling privately without all the hassle. Some of the benefits of selling your property with your Property Solutions are:

 

1. Greater Flexibility. More flexibility around terms and conditions
2. More control. You get greater control over the negotiation process
3. Less Work. No need to undertake any marketing or promotional aspects
4. No Cleaning. No need to tidy up or plan for intrusive open homes
5. Better Communication. You get to talk directly to the buyer
6. No Realtor Fees. You avoid paying realtor fees, saving money!

 

4 Quick Tips For Selling Privately

 

Here at Your Property Solutions, we want to make sure you are getting the best deal, and everyone is happy with the outcome. That is why we have put together this list of tips for selling in any private sale situation, not just with us.

 

1. Know Your Legal Obligations

When selling your home privately, you have a legal obligation to share any and all relevant information about your property. This includes any known weather tightness issues, boundary or title discrepancies, any unconsented additions or alterations, and even whether there are any proposed neighbourhood developments that could impact access, views or enjoyment of the property. Failing to do so could result in legal action or put the sale in jeopardy.

 

2. Get An Independent Valuation

This one applies across the board – whether you are selling through a real estate agent, privately or with as-is property specialists like Your Property Solutions. To avoid the risk of underselling your property, it is always best to gain an independent valuation. Do not rely on your Government Valuation; these figures are often out of date and far from today’s market value. Hiring a registered valuer will mean peace of mind for both the seller and the purchaser (and likely your bank too!)

 

3. Yes, You Will Still Need A Lawyer

While you may avoid the real estate agent fees, you will not be able to avoid legal fees, unfortunately. All Sale and Purchase agreements and any other legal docs such as Titles, LIMs, building inspection reports and mortgage paperwork should be passed through a lawyer. Your lawyer will also facilitate the transfer of the deposit and final settlement.

 

4. Get The LIM And Building Report

While it is often on the buyer to source these documents for themselves at their own cost, research has shown that providing these docs upfront often facilitates a larger degree of interest and a much faster sale process. Plus, with everything already on the table, it is less likely the sale will fall over at the last minute.

 

 

Interested in selling your home without using a real estate agent but don’t have the time to put in the hard yards by selling privately the traditional way? Then Your Property Solutions is the answer! Give us a call today, and we can have an offer on the table within 24 hours!