KEY POINTS:
Here is an earlier selection of Your Views:
Jeremy
We were told by our agent that auction was the best way to sell our farm that we wanted to sell. It cost us $15,000 in marketing costs, and on auction day no bids were taken. Soon after we entered into an agreement with a buyer that we had told our agent on more than one occasion that we didn't want to deal with (I accept that we did enter the agreement, although a fair amount of pressure was put on us by the agent, and we actually counter-signed $400,000 higher than he was offering, thinking that would get rid of him!) the deal went unconditional but come settlement it did not proceed. The Real Estate company got $50,000 in commission, and demanded the other $50,000 that they should have got, a total commission of over $100,000 and the sale never went ahead. I went right to the top of the firm, but they wouldn't budge. I accept that legally they have a claim on the commission, as the deal went unconditional, but morally? Ethically? Oh that's right, these are qualities that the industry DOESN'T have.
Happy Private Seller
After our agent (and a top one at that) had our property listed exclusively for 3 months, then we promoted it ourselves through online methods and the response was overwhelming straight away. We got a rush of people through wanting to rent or buy (as we had it listed for both) We ended up getting $720K for a place we had advertised for $680k (and had been thinking about accepting $630k) because we were in the process of negotiating with a tenant, and said to the very interested buyer that we'd rather hold on to it as a rental and if they wanted it, that was the new price. The final buyer was shown it by an agent, but they had seen it on our internet advert. In hindsight we had the ideal, marketing it ourselves but allowing agents to bring clients also, created much greater interest in stark contrast to the initial agents listing.
Lou (Christchurch)
Last year we sold our home using a REA, our house sold within 10 days to the first people to walk through the door. We paid in excess of $18,000 to the REA. The house we brought was being sold privately. The process was hassle free, negotiations were carried out in good faith and we weren't mucked around. They received the price they wanted and we believed we paid a fair price. They admitted the price was lower than what they would been prepared to sell for if they were using an REA. The only benefit I can see in using a REA is to do with time. If you are happy to take calls from prospective buyers and make time to show them around your property then go for it yourself. If you are busy, then it is probably best to seek a REA assistance. I believe no one is more motivated to sell your property than you are.
Georgie
One thing that sellers often don't consider is the role that real estate agents play in the negotiation stage of a property deal. I know solicitors who get frustrated when private sellers phone them looking for advice on how to bargain with purchasers. The answer: Get a real estate agent. Bargaining with the other side is what they do. Like any industry, there are good real estate agents and bad agents. The ones who do a good job will take away the stress and hassle of haggling with the purchaser, and make sure you get the best price possible.
Wendy
We recently had a private offer to purchase our home. We found another property we liked but when we made our offer, our purchaser couldn't complete the sale. We listed with an agent, who advised us on some key points and sold the house within 5 days for more than our original offer even after commission. Picking the right agent is obviously the key issue but once you've got that right everyone can win.
Jerry Flay
The reason there are so many RE agents in NZ is there is so much money to be made out of it. Very few are worth the commission they earn, which is why we will not use them any more
John (Wellington)
One of our friends is a real estate agent, and she said they (real estate agents) do everything possible to instil panic in buyers, telling them the market's lean and saturated with people lining up for miles to spend whatever it takes to secure realty. Then on the other hand, they tell sellers the markets bustling with buyers and encourage them to hike their price. They only care about the commission they earn, they have absolutely no feelings about buyers or sellers because it's "just" business to them. When the market eventually collapses, they're not going to give a willy about the people struggling to service mortgages for the obscene amounts they've been conned into borrowing. It's just a joke, buyers and sellers right now are acting like a bunch of sheep, no wonder the wolves are having a feast.
Maddy
I would never use a real estate agent, especially after my cousin is in that field, a person being really honest and not pushy but hasn't been able to sell many. But the fact that the listing agent will block other agent's offers to the sale for themselves, and it is supposed to be "ok" with the company. There is no consideration for the vendor who is paying this huge amount. It is just appalling just pathetic and greediness on part of the agents. They don't know the age, construction or school zoning in the area they are selling, buyer has to check LIM report, ring the school for zoning and pay the agent for what?
Larry B (Mt Eden)
There are plenty of resources available to would be sellers, which means you can by-pass Real Estate (RE) salespeople. Of course I am referring to the Internet. I find most RE people have ethical problems. I have had one submit a false valuation on my behalf to the bank. The list goes on. I have found if you deal direct with the vendor they are more honest. You start off with your lawyer first and most support the idea. If a RE agent says they can get you a better price, well that is soon sucked off by the commission. Give the internet a go first or organisations like Homesell first.
Robert (St Heliers)
Estate agents in New Zealand seem to operate a cartel of extremely high commission fees, and the double whammy of getting the seller to pay exorbitant advertising fees, which benefit the estate agent as a lot of the advertising is for the agent themselves (and their company)! I sold a house in Henderson privately recently. It took three weeks. I conducted my own open homes, and had sale and purchase agreements drafted by my own solicitor - a very easy process. I had my own registered valuation and LIM report available to viewers, and within three weeks had four offers, all in excess of the asking price. I would never use an estate agent in New Zealand again! Perhaps this is a wake up call for estate agents to reduce their fees, and justify their existence instead of using every sharp practise imaginable to fleece both buyer and seller!
Mel
I am considering selling my rental property and I will definitely do it myself. When I bought it, I naively thought I should engage a 'professional' to look after it, so listed with a major real estate agent. After six weeks and one drop in rent it was still untenanted and the agent was insisting I needed to drop my rent again and offer a free week. Instead, I wrote my own advertisement and took all the calls myself. Within half a week I had a couple of dozen people through and found an excellent tenant at the original rent I wanted (free of 'management' fees). I was just one of probably dozens of clients to the agent, and therefore low priority, so they didn't expend any energy. When I market my property, I'll know it's being done by someone who really cares - and I'll keep that $15K commission for myself too.
Happy (Hillsborough)
We recently purchased a house privately and had no troubles what so ever, in fact it was hassle free. Just make sure you have good legal advice and do the normal checks, ie. LIM report, inspection and check out the neighbourhood etc. When it comes time to sell we have already decided we will sell it privately - a $12,000 saving on real estate agents commission will end up in our pockets and not the agents.
Peter W
A real professional will sell you a service for a set fee.
Colin M
If the real estate agents had a sliding scale, then perhaps I may think of using them to sell my house. Perhaps a real estate institute member could explain why it costs $12,800.00 (4%) to sell my house?
Murray (Henderson)
I have my house for sale privately through Trade Me. The response has been outstanding hundreds of hits on the listing & with many good qualified prospects contacting me. I will save $17,000 agent commission and a lot of stress too. My solicitor will still safeguard my interests. The only people unhappy are several aggressive REINZ agents who cold-called us to inform what we are doing is "stupid & dangerous", I will never use an agent to sell ever again!
Marion (Auckland)
I sold my house privately in February last year for over $100K more than I paid for it. It sold in 38 days. In October last year I sold my partner's house for almost $200K more than he paid for it and it sold in 32 days. I didn't use the internet, or HomeSell or any other private sale company. I did it on my own using professional full-colour signage that I had made by a signage company along with open homes every weekend. I made sure my open home times were at the same time as other houses for sale in my street, so that I would get any drive-by traffic. I dressed professionally and made up professional-looking flyers for people to take away. I did the negotiations verbally and both deals were checked, signed and sealed with my solicitor's help. It was very easy, exciting and a lot of fun. Some of the people who came to my open homes even asked me if I had any other listings! I would definitely do it again.
I wouldn't recommend it for everyone though, as some people aren't good negotiators and wouldn't promote their house very well. Lots of people said to me 'I don't have the time to do that' - they are lucky if they don't have time to save $15,000+ in commission!
Dave (Auckland)
Real Estate people in NZ are on one of the highest commission rates in the world, for what? Most have failed at any other job they have undertaken or want more time 'at home' or 'to play golf.' Selling a house in Auckland & other high demand areas is easy & you don't need an agent to sell what you could do yourself with a sign outside, using trade me & putting an ad in the paper. They advise 'mugs' to go to auction just to increases their share!
Forget them, they are overpaid & mainly speak the obvious. Get your own conveyance lawyer, advertise it yourself & save a bundle. I do & have never regretted having that extra thousands of dollars in my bank as a result! You won't either!
Private house seller
No, I would not use real estate agents again. Some 8 years ago when the market in Auckland was relatively down compared to now I put my unit on the market. After going through 3 contracts with 3 different real estate agencies and lowering the price considerably to meet their advice I decided to sell it myself. I ran open homes twice a week and within three weeks had sold it at the original asking price. It is quite a simple process. Visit a good lawyer and get their advice initially as to what you should watch out for and the processes required. Get a valuation and a LIM report done, and then advertise. You don't need to spend large sums on this, Trade Me offer a good deal, I simply placed small ads in the NZ Herald on the days that I had open homes. I had large numbers of people through to view the property, far more than over the 6 month period it had been in the hands of agents. And, being a woman made no difference to my doing business. I was polite, friendly and helpful to all those who visited my property, I am sure that this helped my success.
Lynn Lacy-Hauck
Selling your property yourself sounds pretty tempting doesn't it? Being able to by-pass all the fees and do it yourself. No harm in trying anyway, or is there? Selling what is likely to be your biggest financial asset might require some professional expertise in contract negotiation and marketing. My parents recently bought a home privately and the process was a nightmare for them. At one stage, they ran the risk of owning two houses (not intentionally) and nearly didn't notice several major flaws in their Sale & Purchase Agreement that could have cost them dearly. After having sold their property through an agent who guided them through multiple offers, obtaining an exceptional figure for their property (above the registered valuation), it all looked so easy. Problem is, you never know what you're up for. There are differences between the skills of salespeople and there are a variety of different companies and products now available on the market. Make sure that whatever options you choose in marketing your property are well informed, every step of the way. Otherwise, your 'thousands saved' could sadly result in 'thousands lost'.
Nini (Auckland)
Some of these 'agents' have only done a weeks course at Unitec. The commissions are far too excessive for the work put in. We know of a few people who have had their house listed for up to three months with an agency and then list it privately on Trade Me and it sells in a few days. Selling privately is the way of the future..
Tim (Auckland)
In my experience, most real estate agents work solely for themselves, with not much regard for the buyer or the seller. As a seller, I've been subjected to "conditioning", where the list price has been agreed to, an exclusive agreement has been signed, only to have the agent later put pressure on the reduce the price. Unfortunately, when that happens that you are already tied to them for several weeks and you're left with little choice in the matter unless you can delay the sale for the duration of their exclusivity. Most agents won't agree to sell your property unless you go "exclusive". Of all the sales made via agents, I'd be interested to know how many are made for within 5-10 per cent of the listing price? Not many, I'd say. The same goes for auctions. Many agents will claim a 90 per cent "success rate", but at what price to the seller? How many auctions have you been to where the reserve is not met, but after paying thousands of dollars in advertising fees and spending valuable weeks in the selling process, the agent then puts immense pressure on to sell it below expectation? After the sale, that is then listed as a success by the agent! I'd rather pay $350 for a registered valuation by an independent valuation firm who has no interest in actually selling the property, before selling privately and saving thousands.
David
We sold our last home on Trade Me. One $50 payment, the house sold in 2.5 weeks and we saved ourselves $13500 in commission to an agent. Real estate agents are overpriced and vastly exaggerate their abilities. Selling a home is not rocket science, it's not even primary school science. The ill-informed and wealthy (who can't be bothered) will always keep agents in work, but for the rest of us, they're a complete waste of time and no longer (if ever) required.
Erica (Brisbane)
I sold our house privately prior to moving over for the plain and simple reason of not trusting agents. I got the property professionally valued and then marketed it as such. I managed the marketing and sale and sold the house within a month and was five months pregnant at the time. It was stressful but not anymore than if an agent had been handling the sale. The buyers were relaxed and so was I for the most part. Lawyers looked after the details and we both came away with a deal we were happy with without all the bollocks of an agent.
I had a few agents hounding me to use them and I knew they would be a backstop should I need them but their pushy behaviour and talk of inflating the price made me trust them even less and I was glad that it didn't come to the point of my needing to use them. I miss the fact that private sales are common in NZ as here in Aussie no one seems to trust anyone so we are forced to deal with agents who are cut from the same cloth as kiwi agents. What a step backwards.
Dave
Whilst I am aware that things can go wrong when selling your house privately, I do not see how a real estate agent can prevent this any better than a lawyer. It is important to have your lawyer check all documents. Interestingly, the lawyers charges are far far below any real estate agents commission. When selling my last property I got a market valuation done and then took out a $55 ad in The Press and pitched it as "highest offer over" the valuation. I was astounded by the interest in the property and at the end of the day had 3 offers (1 of which I accepted). Once the paperwork was signed it was sent to my lawyer to deal with. Everything went smoothly.
Adrian
We sold our house a year ago on Trade Me. It was published on Thursday, we had an open home on Sunday and a signed contract on Thursday. On top we got more money than selling through the agent once you take the commission off. So why would you go with an agent? We enjoyed dealing with the purchaser directly and discussed all aspects with them. They are happy too, we are still in contact with them, one year on. The lawyer helped us through the legal paper work. The outrages charges that real estate agents charge are incredible. Why should they now earn double just because house prices doubled? No one else earns double for the same service, don't they?