There are many reasons for choosing to sell real estate privately:

• Cost savings: the main driver for most vendors is cost savings. In New Zealand, the average real estate agent’s fees are somewhere between 3% and 5% of the total property sale price. This equates to $9,000 to $15,000 commission charged on a $300,000 home. Marketing your own property can cost a lot less, depending on how you choose to go about this. Real estate agents will frequently quote a percentage figure for their fees rather than an amount. The fees will then often be paid out of the buyer’s deposit, giving vendors a false sense of security that what they have been charged is not too significant.
• Personal knowledge: you as the vendor know more about the home than any agent is likely to know; you are aware of your property’s strengths and are working for yourself to get the best price. No agent is more motivated than you to achieve the best outcome.
• Control: private real estate sales allow the vendor to control interest and enquires in the property, which ensures that the home will always be in a smart condition when potential buyers show up. An agent may turn up without warning, or in some cases show people through when you are not at home, if you have given permission for this.
• Online reach: with the trend towards online real estate websites as a major source of real estate listings, private property sales in New Zealand have become more attractive. Technology allows buyers to browse through and look at details, many pictures of a home and in some cases video. In the past, a ‘For Sale’ sign and advertising in the local paper was about the extent to which one could go to in terms of advertising private sale real estate.
• Agent pressure: some vendors find that real estate agents put too much pressure on them to drop their price, or encourage them to market in ways that result in a lot of extra expense.
• Lack of value: many vendors just do not believe that a real estate agent is providing them with any value.

Guidelines for private sale in New Zealand

1. Make sure your home is in good presentable condition, looking at both interior and exterior aspects.

2. Research your asking price by looking at recent sales in the area – Quotable Valuation is good for this. Going to other similar open homes in your area is also an excellent idea, as is getting a registered valuation done.

3. Get a professional sign made to go in a prominent place on the border of your property.

4. Full colour brochures outlining comprehensive details of the property are essential to give to any potential buyers when they inspect the home.

5. Ensure you consult a legal professional before signing any agreements.

6. Advertise on the Internet; it is a cost effective way of reaching the largest number of would be buyers of real estate in New Zealand.

7. Decide how to market your real estate privately. Advertising options include newspapers, an ‘advertorial feature’, running open homes, and online options such as writing a blog about your property or making a website.

There are several private sale networks and agencies in New Zealand. These firms provide assistance to help the vendor sell their house privately. For a fixed fee, these companies will do the ‘for sale’ sign, advertise on their own websites, and help construct a marketing plan for the individual property in order to maximise the use of a vendor’s marketing budget. Private sale agencies may be a good option for vendors who are looking for some professional assistance to sell their home, without the burden of a commission payment.

This article was kindly supplied by NZS, New Zealand Search. To learn more, click here.