Want to be the biggest loser – then go ahead and sell your house privately

When it comes to losing weight, being the biggest loser is something we all strive for, but when you lose money on property in a market where sellers are nothing but winners, there is seriously something wrong.

Many homeowners think that selling their house privately saves them paying commission to a real estate agent. Well facts speak louder than assumptions. Local research recently undertaken by Phillip Boustridge shows us clearly that private sales in Havelock and Hastings are reaping 11% less than house sales sold through a real estate agent.

Yes, that’s a whopping 11%!

Let me convince you, let’s do the math:

If you sell your property for $1million, potentially a real estate agent could sell your property for $1,100,000.

That’s $100,000 more that you can achieve through selling privately.

Then even if you paid 3.25% on the sale of $1,100,000 to the Real Estate Agent, you are still left with $1,064,250

So go ahead and be the biggest loser, but don’t sell your house yourself until you have at least discussed commission with an agent. You might be pleasantly surprised.

Disclaimer - This is a opinion piece written by Linda, and is not the opinion of Ray White.

Comments

Post a Comment

Popular posts from this blog

The consequences of not getting your finances right

I’ve seen it and I’m seeing it. You have a 30-year relationship with your bank. “Yeah, no worries they will lend to me”. That’s exactly what was spoken to me last week by a couple who put an offer on a property without securing their finances. They have a long-standing relationship with their bank, and have heaps of equity in their property, so what was the problem? They confidently put an offer on a property without checking with their bank. Unfortunately, their offer failed, as without confirmed finances it gave no assurance to the property owner that the purchasers finances were secure. Time wasting, disappointing and heart wrenching for that purchaser. In this market, you have to have all your ducks lined up. You are putting yourself in a disappointing situation if you haven’t had a discussion with your bank or mortgage broker before placing an offer. Long standing relationships don’t cut it with banks’ any longer. The greatest asset you can have is your ability and security to rep...
Read more

Should I sell by Auction, Tender, Deadline or By Negotiation

The right method for selling your property is an important question and is one that an agent needs to consider carefully when guiding a property owner. If an agent sticks to one method of sale, it may mean that they haven’t thought through the selling method for your particular house and your particular situation.   Typically, in a hot market when buyer demand outstrips housing supply, you will see the method of selling via Auction spike. Critically you need to understand that Auctions aren’t necessarily suited to all properties and owners, and or all buyers. In the case of the buyer, this is because buyers are required to be in a cashed-up position to purchase a property and need to have done their due diligence on a property e.g. building inspection, prior to bidding at the Auction. Whilst the cost of an Auction can add up for a buyer, it places the owner in a prime position. When the hammer drops the sale is inevitably a cash offer. An Auction also means that the owner CAN’T put...
Read more

Changes happening – so there is no time like now to Sell your house

Typically, when market demand for housing is high and there are few properties available to choose from, the property market favors sellers, and results in sellers ‘achieving outstanding prices. So right now, this is the best market to sell in! Not great for buyers, but perfect for sellers. However, there is a hint of change on the horizon. The economy is doing better than expected, and it is forecasted that there is no need for further stimulation of the market. This hints that interest rates may be increasing in 2020 as opposed to the forecasted increase in 2021. Just this week, the loan to value ratios increased for investors and first home buyers. These changes also see banks insisting on a valuation of many properties before they will approve a loan. So, what does all this mean if you want to sell your property? When there are restrictions in the market like banks requiring a valuation, if the valuation is lower than what a buyer has offered on a property, then the bank ...
Read more