KEY POINTS:
Although private sales are on the rise, most real estate deals are still done through traditional real estate agents.
"Green Door and HomeSell are not licensed [they are marketing companies], so you should treat them with caution," advises Sue Chetwin, chief executive of the Consumers' Institute.
"GoGecko and The Joneses are licensed, but they are still pretty minor players, compared to real estate agencies."
Chetwin told the Herald on Sunday that a competitive agent market should benefit canny buyers and sellers.
"As the market toughens, and it looks like that is beginning to happen, buyers should make sure they negotiate," she said.
"For instance, in Christchurch it's common at the lower end of the market to negotiate commission rates of 1 per cent. Elsewhere, buyers should be able to negotiate fees from between 2 to 4 per cent." Much depends on price. "The fee percentage rate can come down as the price goes up," she said.
"People should also be striking deals on advertising and marketing costs. Some agents you can get a LIM report out of, and you don't have to pay for it as a buyer. That's $200 in Auckland."
Everything was up for grabs, she said.
"Quite often, the owner will have provided a valuation, and the buyer is often in a position where they can demand those sorts of things [without paying for one themselves]."
Special conditions like building inspections can also be written into property deals, as well as traditional information about finance and moving dates.
Chetwin thought the review of the Real Estate Agents Act "should be good news for consumers".
