Selling a property privately in Auckland

Forums › Home Workshop DIY › Selling a property privately in Auckland

1 | 2 | 3

5059 posts

Uber Geek

Trusted

#2625516 22-Dec-2020 15:24

Yeah, I'm pricing it high to see if the net catches any fish. If not, I'll go back to my original plan of renting it out.

I thought I would give it a punt?

Buying a Tesla? Use my Tesla referral link and we both get discounts and credits.

mattwnz

20141 posts

Uber Geek

#2625529 22-Dec-2020 15:54

BlinkyBill:

Well, I’m shocked, shocked, to find out that an agent being paid for by the vendor,would try and get the best possible sale price, for the vendor.

Shocked.

It is the buyer that ultimately ends up paying, and the agents fee often comes out of the deposit that the buyer pays. The price a seller sells for takes into consideration the fees the agent charges. So the selling price is higher as a result. This is why when not selling through an agent, a seller is likely to expect a bit less, and buyers don't expect to pay quite so much. . No different to any sale, where the buyer is paying for the costs of the sale in the price they pay. eg If someone sells an item through geekzone vs trademe, they are often willing to accept a bit less as their aren't the fees to pay. But IMO , using an agent in some capacity is a good idea, and sometimes buyers will use a buyers agent to help them secure a property at a good price, but not very common in NZ. This is possibly more important if dealing with a private seller, and is something I am contemplating myself, as negotiation is very difficult otherwise..

mattwnz

20141 posts

Uber Geek

#2625560 22-Dec-2020 16:26

heavenlywild: Yeah, I'm pricing it high to see if the net catches any fish. If not, I'll go back to my original plan of renting it out.

I thought I would give it a punt?

There are quite few people doing this at the moment. There are some properties I have noticed that have been on the market for a year or more with high asking prices, and since covid lockdown ended they have managed to sell them. Also some agents are giving sellers some pretty high expectations, by telling potential sellers they can get some very high prices. This may in part be to try and get listings, as there are so few listings at the moment. But I have seen some of these high expectations dropped. eg A property marketed at BEO over 950k, over several months gradually dropped down to BEO over $799k, and then $699k and eventually sold. Sounded like that seller needed to sell it and couldn't wait. Still significantly more than the GV and within the e-value estimates. But it seems agents think they can get well beyond the e-values estimates. But there is little a seller can do if the agent fails to get that price, apart from not continue to use them.

ANglEAUT

2320 posts

Uber Geek

Trusted

Lifetime subscriber

#2625567 22-Dec-2020 16:37

timmmay:

Read this. Also, the reserve bank said to prepare for 5 years of housing price increases, if you don't need to sell it now I expect you'd get more for it in a few years. House prices have never gone down, they will eventually but not any time soon I expect.

The guys from Opes Partners also said Auckland was flat lately & we can expect some growth in the next few years.

Please keep this GZ community vibrant by contributing in a constructive & respectful manner.

mattwnz

20141 posts

Uber Geek

#2625571 22-Dec-2020 16:50

timmmay:

Also, the reserve bank said to prepare for 5 years of housing price increases, if you don't need to sell it now I expect you'd get more for it in a few years. House prices have never gone down, they will eventually but not any time soon I expect.

There are a lot of propaganda stories type involving houses that are drip fed into the public arena in regards to houses, which help to keep up the FOMO. The worst ones are those stories about first home buyers who managed to get onto the ladder because they sacrificed their daily avocado and lived with family to save for a deposit.

But if I was selling a house, at 2% commission, I would use and agent, and just price it higher to account for that. But I would never tell the agent what I want, it is their job to see what they can get, and then I will tell them if it is acceptable or not. But it also isn't just price, but the terms of the deal.

mattwnz

20141 posts

Uber Geek

#2625572 22-Dec-2020 16:51

ANglEAUT:

timmmay:

Read this. Also, the reserve bank said to prepare for 5 years of housing price increases, if you don't need to sell it now I expect you'd get more for it in a few years. House prices have never gone down, they will eventually but not any time soon I expect.

The guys from Opes Partners also said Auckland was flat lately & we can expect some growth in the next few years.

The fact is that experts don't know, and they don't know what government policies the government may come out with. ALthough they have already promised no new taxes, so that means they could be a lame duck goverenmtn for the next 3 years. Some of the banks experts predicted a 15% drop this year, but that didn't happen. Conditions changed and conditions will continue to change. But if unemployment rises, and people can't afford their mortgage payments, then that could have an effect . THis could already be starting to happen

https://www.nzherald.co.nz/business/shaky-foundations-more-kiwis-missing-mortgage-payments-as-demand-for-credit-soars/74X6WZZWQ7HUJ7UIMTIMJCLUOA/

As Mary Holm has previously said, prices just simply can't continue to keep rising like they have been and be so out of proportion with the rise in wages. ANZ have said the same thing. So has the Prime Minister. It could be a very different market in the next year or two. But at the moment it does seem like a good time to sell, even if it is close to Christmas, because I suspect there will be a lot of people out looking this time of year. But noone knows what the future holds, and there can't be regrets about selling now, vs in a year or two, especially if that money could generate more benefits now.

CokemonZ

1051 posts

Uber Geek

#2625579 22-Dec-2020 17:14

I sold a house privately about 4 - 5 years ago.

Some really basic advice:

1: Don't sell quick - that's in the agents advantage - take the money now for less work. The vendor can wait to get the right buyer and the right price.

For example in my first 2 weeks I got offers 50k below what I sold it for 8 weeks later. A 50k price bump to an agent is $1k for 6 weeks more work - think they'll bother? Nope - but you will.

2: You don't have to negotiate on terms. As there is no real estate agent pressuring you, you set the terms. Decide what's important to you, time or money. Once you know, then you can negotiate based on what you actually want - either more money or a quicker close. For example get a reputable builders report and give it away, and let people get their own, but don't let it delay the sale or be a negotiating point as you don't need to. Even, up front state all offers with subject to finance will be rejected, and get your own valuation and allow easy access for third party valuers to make sure it's not necessary.

3: Just be real. Tell people straight up what you expect, what the property is like. Most people don't buy houses often so don't really want to negotiate either. If you have an investor on your hands they will qualify in or out super quick. So own your outcome, tell people straight up and stick to it. It makes your life so much easier. Even if as you say you are not sure what it's worth decide on a number that you will sell for. When you get it - sell, and never regret. Otherwise you can dither and waste your time, and maybe worse some poor first home buyer that will miss out on 3 other homes because you dance them around for a month.

So yeah - essentially, decide what you want and go for it. But you're not a real estate agent and your priorities are different. remember that.

Equinox IT

Cloud spending continues to surge globally, but most organisations haven’t made the changes necessary to maximise the value and cost-efficiency benefits of their cloud investments. Download the whitepaper From Overspend to Advantage now.

Fred99

13684 posts

Uber Geek

#2625581 22-Dec-2020 17:20

mattwnz:

As Mary Holm has previously said, prices just simply can't continue to keep rising like they have been and be so out of proportion with the rise in wages. ANZ have said the same thing.

The same things have been said for 30 years now.

BlinkyBill

1443 posts

Uber Geek
Inactive user

#2625587 22-Dec-2020 17:50

mattwnz:

BlinkyBill:

Well, I’m shocked, shocked, to find out that an agent being paid for by the vendor,would try and get the best possible sale price, for the vendor.

Shocked.

It is the buyer that ultimately ends up paying, and the agents fee often comes out of the deposit that the buyer pays. The price a seller sells for takes into consideration the fees the agent charges. So the selling price is higher as a result. This is why when not selling through an agent, a seller is likely to expect a bit less, and buyers don't expect to pay quite so much. . No different to any sale, where the buyer is paying for the costs of the sale in the price they pay. eg If someone sells an item through geekzone vs trademe, they are often willing to accept a bit less as their aren't the fees to pay. But IMO , using an agent in some capacity is a good idea, and sometimes buyers will use a buyers agent to help them secure a property at a good price, but not very common in NZ. This is possibly more important if dealing with a private seller, and is something I am contemplating myself, as negotiation is very difficult otherwise..

The agent fee is an irrelevant consideration to the buyer and the vendor when settling on a final price. In a private sale it’s a negotiating tactic at best, but has no relevance to the actual settlement price.

And especially this is true with the market the way it is - a sellers market.

heavenlywild

5059 posts

Uber Geek

Trusted

#2625588 22-Dec-2020 17:57

^Correct. A sellers' market.

I've noticed even in the past few days new listings are popping up. Usually at this time of year you wouldn't expect to see any or many at all.

I'm guessing many agents believe they can get sales done even during the Xmas and NY break.

Buying a Tesla? Use my Tesla referral link and we both get discounts and credits.

mattwnz

20141 posts

Uber Geek

#2625593 22-Dec-2020 18:13

heavenlywild: ^Correct. A sellers' market.

I've noticed even in the past few days new listings are popping up. Usually at this time of year you wouldn't expect to see any or many at all.

I'm guessing many agents believe they can get sales done even during the Xmas and NY break.

Many people have deferred selling their house post covid , so there is a bit of a catchup occurring, so at some point there could be a bit of a glut on the market. Also I suspect with the new changes with rentals, more rentals could be coming on the market, which may not be as attractive at these sorts of prices, especially if CGs can't going to be as good in the future. Then we have airbnbs that may have relied on international tourists, which some people maybe waiting to put on the market if they are having to pay the mortgage on them with no returns apart from CGs..

I was discussing with an agent a house that was on the market this week, and they were saying that they he had had multiple offers from investors, but there weren't close to the amount that the vendor wanted, and obviously the price they pay is based on the return they can get and how much they can borrow for it to make sense. They said that buyers wanting to live in it would be prepared to pay more, even though the buy now price he mentioned was more than 100k more than the e values. That maybe the case that owner occupiers maybe prepared to pay more, but people also have to think that in the future they may need to rent it out if circumstances change. But the price the vendor was wanting was way too high IMO, when I put it into my spreadsheet of other houses in the area that have sold within the last year. The sqm rate excluding land value was close to $6000/sqm, and it was just a cheaply built 10 year old low spec house that needed work, when surrounding properties, including house new ones were around $3000 /sqm. It has been on the market twice in the last year, and this time on the market it has been on for a couple of months. I suspect they are doing a speculative sale, just hoping that there is someone out there who will pay it.

SATTV

1648 posts

Uber Geek

ID Verified

#2625688 23-Dec-2020 07:25

Two weeks ago a for sale sign went up over the road, for sale - price by negotiation.

Was on the internet the following day.

Went to the open home on Saturday and it was busy, tiny place, 2 Bedrooms, they said 135m2 including the carport and I think that was stretching it. Unit built in 1966 and is tidy but needs modernising as it has not been touch since then, not even a shower, only a bath.

Tuesday last week there was a sold sign.

Wednesday last week sign gone.

Market is hot, I would love to know what she got, I will find out in a month or two when the data becomes public but I am expecting high $700k to low $800k

This would be a good unit to do up an flip or have as a rental.

The market is so hot at the moment things are selling very quick, for the money, I would go Auction and start the process now to get maximum exposure. You will need to pay for an Auctioneer ( possibly ), A good Auctioneer will squeeze extra thousands out of buyers.

I dont know the rules about selling a house by Auction privately but you should consult your solicitor beforehand as you will need to use their trust account for deposits, they may know an Auctioneer that can sell the house that is not part of an agency.

John

I know enough to be dangerous

heavenlywild

5059 posts

Uber Geek

Trusted

#2625712 23-Dec-2020 08:55

Hi John, where was this property for some context?

Edit:

And CV?

Buying a Tesla? Use my Tesla referral link and we both get discounts and credits.

SATTV

1648 posts

Uber Geek

ID Verified

#2625727 23-Dec-2020 09:42

heavenlywild: Hi John, where was this property for some context?

Edit:

And CV?

DM Sent - FYI this has been an owner occupier for 40+ years so the sales history will be to a trust or something like that.

I know enough to be dangerous

sonyxperiageek

2958 posts

Uber Geek

Trusted

#2625845 23-Dec-2020 11:31

I have been looking up homes for sale in my area this month, just to gauge what the house prices are going for around this area. Saved a couple of houses earlier this month, and I'm already getting notifications on nearly all of my saved houses as being sold! It's crazy man!

I don't think house sales will be flat at all, this December/January period!

Sony

1 | 2 | 3