Seriously thinking about selling privately - any reason why I shouldn't?

[lissie]

We are planning on selling our own home in Wellington in the near future. I'm recently back in the country and have been checking up on the changes regarding the Real Estate Act, but one thing I am not seeing changed is the real estate agent's commissions. On a sale of around $600k I'm thinking I will be up for around $20k in commission.

So I am now seriously thinking about selling the property privately. I work from home anyway - so access is not an issue. Yes my time is money - but that's an awful lot of time to make up for about $19k in commission.

Assuming I spend $300 for a LIM $400 for a valuation, $200 to list on trademe and $100 for duplicating some flyers for the neighbours - I am up to a $1000 in selling fees (plus the lawyer's fees which I'd pay for anyways). I gather from the very much reduced size fo the Property Press these days that fewer and fewer people are paying for print-based advertising. As the property will appeal to an upper-middle class family or couple (owner occupiers) its highly unlikely that they wouldn't be searching on trademe for properties. I am confident that I can write a compelling ad for the property - in fact few of the agent written ads are actually very good for people actually seraching via Google for a property (dont' have enough keywords in them).

I thinking of doing a closed tender with tenders sent to my lawyer within 3 or 4 weeks of us listing the property on trademe. This avoids the difficulty of an "amateur" trying to close the sale - I can provide all the relevant information to interested parties - they just need to work out their own price and conditions.

I'm not anti-agents per se - I know some good ones - but in this particular case - I know the property very well (lived there for 7 years and renovated it thoroughly and am available to show people through - I really can't see the value add for the fairly large commissions involved.

Am I missing something?

[Keithw]

The thing you are missing is the supposed database of prospects that a decent agent should have access to and listing in the MLS (agents multi listing service) and on realestate.co.nz

If you are not in a hurry, then give it a go yourself & see what response you get.

[Scott Miller]

TradeMe has a reasonable database of people looking to purchase houses.

[ream]

There are quite a lot of comments on here on various threads about how many of us don't bother following up listings without a price. On the other hand, if it's owner-occupiers it might not be such an issue as the heart will (hopefully) rule and overcome any obstacles put in their way. I still can't help seeing it as an obstacle though, and it's never a good idea to put those up unnecessarily. Is there a particular reason why you're thinking of a tender process?

[Davo36]

Lizzie, I'd say go for it in terms of selling the property yourself.

But do everyone a favour and get a registered valuation and put a price on it.

There's relatively little for sale out there so you should get some interest.

[essence]

But do everyone a favour and get a registered valuation and put a price on it.

There's relatively little for sale out there so you should get some interest.

Absolutely agree. SHOULD (hopefully not!) there be a problem during the sale process, at least you have a RV to prove how you got your marketing price.

A good quality, well priced property will sell very quickly in the current market.

[motivated]

If you state the council val in your advertising (unless it is much lower than it should be) you will have overcome many of the objections to marketing without a price.

[freezinhot]

TradeMe has a reasonable database of people looking to purchase houses.

I like that one!!

FH

[Steve Taylor]

As an agent I have sold properties that were on privately without a single offer. What you need to up price is multiple offers and selling it yourself you will probably not get any.

I have no interest in selling this property as I am in Christchurch.

[PC]

Keep a list of buyers who view the property.
If you do evenually hirer an agent - make the listing agreement exclude the buyers who have already seen the property privately.

It is quite frustrating when you have to pays $$$ in commission because a private buyer came back later.

[lissie]

Thanks for the intelligent comments guys- this forum is still one of the best places for decent advice on the old Interwebs!

@KeithW - yeah that "supposed" database. Over the years I have bought many properties (currently own 7 ) - often called agents and told them exactly what I was looking for - still waiting for that call back LOL

Does anyone have up to date indendent stats on the number of visitors to realestate.co.nz compared to trademe.co.nz ? I haven't seen anything recently - but I remember a while back that trademe was winning big time and I suspect that hasn't changed - trademe is so much easier to search than the realestate one

@Scott LOL - exactly my thoughts

@Ream - yeah the price or not price is the interesting bit. This is def owner occupier territory - and not first time buyer either (unless they just came from overseas) - I am getting valuation done anyways - I'll seek the valuers commetns as to how easy he finds it to put a value on it - if there are too few comparables sold recently I may tender because someone may well pay over the odds - otherwise if there is good recent sales I will put a price on it.

@Davo - my impression is that there is not a lot around in Wgtn at the moment - unfortunately we cannot list until mid Feb (fixed term tenancy in place)

@motivated the coucil val is a way too low - someone may have spent quite a lot more on renos than was on the building consent LOL

@Steve - why don't you think a private seller would get fewer offers than an agent - any thoughts on that?

@PC - I thought of that after reading another thread last niight - yes I will keep a register of anyone who contacts me

Does anyone have thoughs about how important a LIM is to potential buyers? The property has been extensively renovated (in 2000)

[ream]

I'd think most owner occupiers would get a LIM, wouldn't they? Their solicitor would advise them to if nothing else. After all this is probably going to be their biggest lifetime purchase to date. Are you thinking of getting one for them?

[lissie]

It had occurred to me - they cost $300 in Wellington - basically take the objections away which may stop them offering- though of course they could offer subject to a LIM - which I would consider reasonable

[Steve Taylor]

Agents

A couple of reasons a private seller would get few offers is that fewer people would come through. If you were with Ray White or REMAX for example you would be seen on Trade Me, realestate.co.nz, Google Maps doing a search with the real estate option ticked, the company website and the office website. I personally have a listing on 10 more sites as well.

Next buyers find it much less personal when going through an open home as they are not worried about what they talk about in front of an agent.

The agent may already have buyers on their database who may not have considered that area or type of house, but with encouragement may take a look. With a non 1 percenter agent other agents may ask to bring their buyers through.

The quality of the flyers MAY be better with agents. Drop into an open home of a possible candidate and see if you are impressed with the flyer they hand out. We personally only give out impressive tri fold brochures, but not many do this.

Again check out the agents you are thinking about on the web. Do the photos look great, not dark and wonky. Is the title attractive or just the usual boring heading. One I really loved was 'bigger than Texas'. That gets you thinking. Finally look at the description it should be more than a list of features with sunny and spacious thrown in.

Have a look here at the quality of these photos and description - realestate.co.nz/1180468 I would like a better heading, but it has eluded me so far. I get interest from Australia and have just sold one to a family in Australia, who had their father check out the property here.

I will end with choose wisely or choose a rolling 1 month contract. The offers may not be present in the first month, but if you are not impressed with what they do, you can drop them quickly. We have no problem with a monthly contract as our clients are always impressed with what we do and normally sign up for 3 months after the first month, if we have not sold it by then.

Steve Taylor (Ray White, Christchurch)

[PC]

Help remove buyer objections by getting:
- Valuation
- LIM report
- Building inspection

Lots of simple & cheap advertising:
- Print off some letterbox fliers
- Classified ads
- Supermarket notice boards
- TradeMe

Then again if the property & price is right - it'll sell.
I was going to look at a do-up in New Lynn the other day - but it sold too quick with eleven written offers! So much for the slump.