Seven tips for sellers - and why hiding info can land you in trouble

Brian from Mount Roskill

For sellers, hiring a real estate agent can be a challenge. Selling a property isn’t an everyday event; most Kiwis will likely come into contact with a real estate agent once every 10 or 20 years. The right one, though, can often mean the difference between a life-changing sale and a stressful ordeal.
The Real Estate Authority (REA) has provided OneRoof with its top tips for establishing and maintaining a successful working relationship with a real estate agent when you’re selling:
1. Select a real estate agent who is right for you
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Step one is choosing an agent. Among your key considerations should be the agent’s level of knowledge of your suburb and their experience selling your type of property. Meet with a few different agents so you have some options. How you relate to each other personally is important. You’ll want them to listen and demonstrate they understand what’s important to you with your sale. Ask them about their recommendations for advertising and marketing your home, and consider requesting testimonials or references from people whose property they’ve recently sold.
We also recommend you look them up on REA’s public register of all licensed real estate professionals. This is a great way to check they have a current licence and see if they’ve had any formal complaints upheld against them in the last three years.
2. Do your homework
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Your agent works on your behalf, but as the seller, you are the ultimate decision-maker. When you’re selling your home, do your homework. Selling a property involves important formal documentation and legal agreements. You will want to be familiar with agency agreements, Land Information Memoranda (LIMs), records of title, building inspection reports, and other important documentation. (Check out the REA’s consumer information website, Settled.govt.nz, for more information.)
3. Ask your real estate agent plenty of questions
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Your real estate agent is there to guide you through the sales process and should explain anything unfamiliar or confusing. Don’t be shy - ask for explanations, information, or clarifications. Make the most of your agent’s technical expertise. When it comes to something as important as selling your property, you don’t want to encounter an issue or point of uncertainty you could have avoided if you’d only asked about it sooner.
For example, when an agent recommends a method of sale for your property (tender, auction, by negotiation, deadline sale), you should ask them to explain the benefits and downsides of each one. After an open home, you could ask for feedback from people who came through, and whether there are any changes they’d recommend (such as staging) before the next one.
4. Be upfront and honest about your property
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Don’t be tempted to withhold information about your property from your agent because you think it might impact the sale price. If you try to hide a physical defect or a legal issue, it will more than likely be discovered in a pre-purchase inspection and cost you the sale. If it’s discovered after the sale is complete, you could be facing serious legal issues. Make sure you’re transparent with your agent to ensure they know the property as well as you do.
5. Keep good records to avoid any misunderstandings
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Make sure you keep copies of all written correspondence and paperwork involved in your sale. When discussing actions your agent will take on your behalf, such as in relation to marketing or offer negotiations, it’s valuable to confirm them in writing via a follow-up email. This ensures you are all on the same page about specifics. Be sure to save your records securely. We sometimes receive complaints at REA where better written records may have enabled a more satisfactory resolution.
6. Seek legal advice
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The REA requires that agents ask their clients to seek legal advice before signing any contracts. They should give you the REA Guide to Agency Agreements and Guide to the Sale and Purchase agreement. You can also find those on REA.govt.nz. You should understand the purpose of the documents involved in the sales process, but when it comes to the particulars of your specific agreements and reports, property lawyers and conveyancers are the experts. They can review all the essential paperwork every step of the way and advise you on the details.
7. Raise any concerns promptly and professionally
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If at any stage you have concerns about how your sale is being managed by your real estate agent, raise these early and professionally. All agencies are required to have internal complaints procedures available to clients and customers. If you have a serious concern or are unsatisfied with how your complaint was managed, ask to speak to the agency manager. If they are unable to resolve the matter, contact REA to find out how we may be able to help.