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MONIQUE FORD / Things
Craig Lowe isn’t “surprised” by REINZ’s analysis of sales prices.
Top realtors are not “surprised” by REINZ’s assessment of private sales, saying that reaping higher sales prices is just one of the benefits of selling with an agent.
Craig Lowe of Wellington-based real estate agency Lowe and Co says real estate agents are an essential “middle man” in sales, “lubricating the market” and making home sales more efficient
They also provide a sounding board and much-needed distance between parts during what can be an emotional and difficult process.
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Private sales have been losing popularity lately, as more and more people chase big sales.
“The reality is that qualified real estate agents spend their professional lives trying to maximize the sales price for a seller, and they do it well.”
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On December 15, the New Zealand Institute of Real Estate published an analysis showing that, on average, sellers who use a real estate agent can expect 15 percent longer than those who sell their home privately.
Liz McDonald / Stuff
People who sell with agencies can expect a 15% higher return.
The national median price for real estate agent sales was $ 673,000, compared to $ 585,000 for those selling privately. The commission on a $ 673,000 sale would be up to about $ 28,000 for high-profile agencies, but that still meant a 15% better result for the people who sell with them.
“This is the highest premium REINZ has seen in 18 years. That means the true value of an agent when it comes to a property sales process and the result is the best since 2002.
“That’s a very compelling proposition,” says Derryn Mayne, owner of Century 21 New Zealand.
While it may be tempting for Kiwis to think that they can save some money by selling their home themselves, Mayne says that is more likely to put off many buyers.
“Many buyers just don’t like dealing directly with sellers. They prefer to contact a professional third party. “
She says that DIY providers overlook the “critical importance of property presentation,” such as ordering or staging.
“Professional photography and, increasingly, the use of video and drone images, virtual tours and 3D floor plans are playing a key role in attracting buyers and achieving the best price.”
Since returning Kiwis choose to buy houses without being seen from abroad, these marketing tools are more important than ever.
“They are effectively buying first impressions,” says Mayne.
“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 do so.”
Lowe says many people find it “incredibly uncomfortable” to buy from an owner, and that simply having a middle person gives you the “ability to be objective and make a sale in a way that an owner cannot.”
“Real estate deals don’t seem complex on the surface, but they are actually incredibly complex transactions with many moving parts.
“A really good seller will find more buyers and market it in a way that will generate the most competition and therefore generate the best selling price. So I’m not surprised by REINZ’s numbers. “
Despite that, there are good reasons why a seller could benefit from a private sale.
“Not all people are shooting just for the money,” Lowe says.
“Real estate agents exist to lubricate the market … but if you have a family member or friend to whom you want to sell your own house and you can do it efficiently, that could have value to you.”
The current real estate model, where agents work on commission for an agency, has been criticized for driving higher sales prices, and Stuff Business editor Susan Edmunds noted that while they have an obligation to treat buyers fairly, agents are not the interests of the buyer. to protect.
Lowe says, anecdotally, that he sees buyers get prices he considers “the biggest bargains” when they buy privately, suggesting that seeking a private sale could be a tactic for buyers and bargain hunters.
Mayne acknowledges that real estate agents will naturally promote the benefits of their own service, but says REINZ’s analysis confirms that selling privately doesn’t necessarily save providers money. In fact, it could cost them.
