The importance of engaging a good realtor
Homeowners who use a real estate agent can expect to get on average 15% more for their property than they would by selling it privately, said Tim Kearins, owner of Century 21 New Zealand.
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A 2020 analysis by REINZ showed that engaging an agent to sell a home would achieve the vendor the highest premium in 18 years. But with house prices softening, Kearins said, some Kiwis could be tempted to sell their home themselves and save some money.
“REINZ’s research has shown time and time again that while selling privately may save vendors commission, they’ll end up with less on average compared to what an agent would’ve delivered,” he said.
The message that private sales often cost money, not save it, seems to be getting through, as the REINZ analysis showed a drop in the percentage of people choosing to sell their property privately – down to 14% in 2020.
“It’s also important to consider that because a buyer knows a vendor won’t be paying for commission in a private sale, they often use that as a negotiating tool from the outset to reduce the price accordingly,” Kearins said.
DIY vendors also often overlook the importance of property presentation, including decluttering a full house or staging an empty one, as well as the increasing importance of using drone and video footage, virtual tours, 3D floor plans, and extensive social media exposure in attracting buyers and achieving top dollar.
“Since COVID-19, we’ve noticed more buyers have got used to doing their shortlisting online, rather than by property visits in person,” Kearins said. “Hence, a property’s online appearance and cut-through is more critical than ever. A good agent and agency can deliver a world-class marketing package at considerably less cost than what most individuals could achieve.”
Read next: 'Done-ups' more popular now – C21NZ
Dealing with an agent also provides vendors the benefits of legal protections, honed negotiating skills, and a wide network of contacts.
“Human nature also dictates that many buyers simply don’t like dealing with sellers directly,” Kearins said. “They’d rather liaise with a professional third party. When all is said and done it’s easy to see why, overall, agents continue to achieve the best sales result for a property.”
