Having now spent over 17 years in real estate, I have worked with many first time sellers and seen them through this unknown territory. I am sharing my advice on the do’s and don’ts for first time sellers, and my unfiltered answers on some of the common question’s sellers find themselves asking.
Which method of sale gets the best results? With the current market so active, do I really need to invest in marketing? Why should I list with one agent when I could list with multiple? Where do I even start, when looking for an agent?
1. What method of sale should I choose?
Auctions
· Auctions are well suited to second or third properties priced above 500k, and generally out of budget for first time buyers.
· Auctions are on a cash and unconditional basis. As a first time seller, your home is likely to appeal to first time buyers, who often need more time and assurance than an auction provides when purchasing a property.
· There are often additional up-front costs payable, with full due diligence needing to be done, and, even then, no assurance of ownership. A buyer may need to purchase a builder’s report, a home valuation, and pay solicitors fees for any auction where they plan to bid. Banks often require more paperwork from first time buyers, and kiwisaver funds can take longer to be released compared to a standard deposit.
Deadline Sales
· Deadline sales appeal more to first time buyers than auctions and therefore your pool of potential buyers increases.
· To get the best possible sale price for your home, you need to engage with the whole market; As soon as you limit your pool of buyers i.e. first time buyers who can’t participate in auctions, you limit your sale price.
There is no one size fits all. The best sale method depends on each individual property and vendor situation. However, if you are a first time seller it is likely your home will be more suited to a deadline sale, simply because first time buyers are likely to be interested in your property.
For more information of the benefits on both auction and deadline sales, please check out my video here.
2. Do I need to invest in marketing?
With New Zealand real estate experiencing some of the largest growth in the world, it is easy to wonder if you really need to invest in marketing. There are a number of principles that influence the answer to this question, but it largely comes down to the impact marketing has on your sale price.
High quality marketing is key in producing an exceptional sale. The first stage of buying a house, is finding it. The majority of searches are done online, and first impressions count! A good first impression leads to attendance at an open home. Whereas, mediocre marketing could see the house being discarded by potential purchasers.
By increasing a homes appeal through, for example, staging, landscaping, and great photos and video, you are increasing the number of interested buyers, which in turn creates competition. This has a knock-on effect, pushing the sale price up. When selling you want to engage with the majority of the market, and by not investing in quality marketing your buyer pool can reduce in size.
In my opinion, you must do all you can to get the best possible price for your home. This is, after all, your biggest investment, so the goal should be to extract every single dollar possible and maximise the value of home. You can attract more interested parties and increase your property’s value through quality marketing, therefore it is an investment definitely worth making.
More information on the added value of marketing can be found in my video, Why marketing is an investment you need to make.
3. Sole listing or multi-agent listing?
Previously it was common practice to list with multiple agents; however, this trend has become less common in more recent years. It was thought that by listing with multiple agents, you increase the exposure of your home. While this may have once been true, the way in which we buy homes has changed. Now only a mobile phone is needed and trademe.co.nz and realesate.co.nz are the go-to hubs for house hunters. You no longer need to feature in an agency’s magazine, to be seen.
In the past, multi-agent listings increased exposure, but now they only increase costs, with each firm requiring it’s own set of marketing payments. Multi-agent listings can often become logistical nightmares, with both agents organising open homes and viewings, and attempting to keep track of your buyers.
Today, an exclusive listing will get you the same amount of exposure as a multi-agent listing, be less hassle for both seller, buyer and agent, and ensures a higher level of dedication from an agent, while costing you less.
4. What should I look for in an agent?
It can be difficult to pick an agent, as so many agents tell telling you exactly what you ‘want’ to hear, not what you ‘need’ to hear. However, you and your property will be in better hands if you list with someone who is honest and realistic about the best method of sale, value of your property, and someone who doesn’t leave the sale price up ‘for the market to decide’.
Selling your house is a journey, so you need to pick someone you can trust and feel comfortable working alongside. I would recommend interviewing multiple agents to get a feel for who fits you best and who makes you most excited about selling your home.
After helping New Zealanders buy and sell homes for over 15 years I can safety say this is my genuine advice. If you are a seller looking for guidance, or have any other questions call myself directly or the incredible team at Najib, where the client’s interest always comes first.