Selling House

Tony from Tahunanui

Some time ago I posted on Neighbourly my concern that real estate agents were taking rather large commissions for doing very (very) little given that houses in Nelson sell themselves pretty well overnight. You know, agent signs seller up, places ad in property news or wherever, rings around likely names in notebook and house sells for what it would have sold for anyway but agent takes $20,000 for an hour or twos work.


I pointed out that it was relatively easy to find what percentage above the valuation houses were selling for ‘on average’ and all you had to do, if selling privately, was (having engaged your lawyer) to advertise your place on Trade Me yourself at 10% ABOVE that valuation-plus-percentage price and be prepared to negotiate downwards depending on what reaction you get from buyers.


Obviously you can safely come down the first $20,000 (or whatever the agents fee would have been) explaining to the buyer that you are (reluctantly, yeah, right) willing to forego the fee as it is a private sale albeit a canny negotiator will first offer a discount of half the fee.
Do try this – it does work and I speak from experience. In nelson buyers queue to buy – an agent is an irrelevancy with Trade Me available to you as everyone looks there.


Mike Pero the agency that is posting on Neighbourly (for Tahunanui at least) the average above CV that houses are selling for is to be congratulated. That is transparency and transparency is good.


It also allows you to see if YOUR agent is earning his/her $20,000 clip. Money I reckon is better off in YOUR pocket and simply silly to give away for next to no work.


If your agent can get you that any more than that valuation-plus-percentage and his/her fee ON TOP OF THAT then the agent has properly earned that money.


May I recommend again you not sell your house through an agent unless either:
• The agent can get you more than anyone can get just by using Trade me or
• The selling process is beyond you whether mentally or geographically.


$20,000 is better in your pocket and if you do not want it yourself then donate it to the SPCA or favourite charity.