‘Bang for buck’ important agents say

When putting a property on the market, deciding whether to sell privately and do all the work yourself, or employ a Real Estate agent, is a key first decision. So, what do you get for the commission you pay an agent?

The key advantages raised by local agents are that you are employing someone who is a specialist in buying and selling property, bringing in-depth knowledge to the table. Bayleys Ōrewa agent, Janne Adams, says trusting the sale of your property to a professional increases the likelihood of a smooth, efficient and advantageous transaction.

“While selling privately may appear attractive at first glance, an agent’s expertise, market knowledge, marketing resources, negotiation skills and guidance cannot be overlooked,” she says. “It is wise to consider the potential savings against the potential risks of a private sale before making a decision.”

Sue Donoghue of Harcourts Cooper & Co has been in the business for 15 years. She says an agent can save the seller hours of frustration when it comes to things such as taking calls, answering questions, showing buyers around and writing contracts. She says good agents understand what attracts buyers, can provide confidence to potential buyers and negotiate well whether there are conditional offers, multioffers or back-up offers.

“With one of our properties this year, we got three interested parties to all offer at the same time, which resulted in a sale above the asking price,” she says.

Another option is something in the middle – such as a new local company owned by Rich Brookes called the Private Sale Company. Brookes says if you need help to go down the DIY route when selling your home, his company facilitates and supports, offering things such as marketing packages.

Online, independent advice is also available from The Real Estate Authority (REA) – a government agency that regulates the NZ Real Estate industry. Its website, www.settled.govt.nz/ has information and resources to help you decide whether you want to employ an agent, or sell privately.

CoreLogic NZ Chief Property Economist Kelvin Davidson says key reasons for the relative strength of first home buyers, include using KiwiSaver for all or part of their deposit, a willingness to compromise on the type and/or location of a property, and making use of the low deposit lending quotas at the banks. “The wider downturn in values and relatively high stock of listings on the market has also helped financeapproved first home buyers, and brought a wider range of properties back onto their radar,” Davidson says.

The national trends are being reflected across all the main centres.

“Looking ahead, even if the downturn in prices ends in the second half of this year, we doubt that the market is going to boom again straightaway – especially if caps on debt to income ratios are imposed in March or April next year, which now looks almost certain,” Davidson says. “In other words, first home buyers should continue to see relatively favourable conditions for a while yet, although mortgage rates seem unlikely to suddenly fall sharply anytime soon.”

CoreLogic’s report is at www.corelogic.co.nz/