Frequently asked questions about selling property in Wellington

The only upfront costs to sell your home are those associated with photography and advertising. We always recommend the most cost effective ways to advertise your home without compromising the sales result. Houses are generally sold on a commission basis but the service is free so you pay no commission unless your house sells. When discussing commission rates with real estate agents, you will probably come across two approaches.

1. A fixed fee regardless of sales price.

2. A commission quoted as a percentage of the successful result.

Every seller would prefer to pay a low commission rate but beware, all agents are not equal. The ability of different agents can vary as much as the results. Make sure the agent you list with has the right qualifications and experience to ensure a great result for your home.

No two properties are the same. Potential buyers will make an offer based on their knowledge of comparable sales and the emotional value they place on your home. Regardless of what the buyer wants, you have the final say.

As an owner it is very important to arm yourself with the best information available so that from the outset you can make confident and informed decisions. Choosing a real estate agent with a solid understanding of the Wellington real estate market and the experience to provide a considered market appraisal will make this part easy. The appraisal should include an estimated sales range based on comparable sales in the area and take into account the current status of the Wellington property market.

As with any product, it is to your advantage to present your home as best you can for sale. When considering where to spend money you should keep your target market in mind and what would appeal to them. For example, if you are targeting families and have the ability to stage your home with a second living space or usable outdoor space, these would be excellent places to invest a bit of time or money. If your property is more suited to a double income couple, an office will generally hold more appeal than a third bedroom. The more buyers you can appeal to, the more people will visit your home. Staging a property to ensure those people form an emotional attachment to your home, and subsequently make an offer, is the final step of the process. The more parties offering on your property, the more likely you are to achieve a result in excess of the property’s market value.

When investing any money it is important to see a positive return and some spends will be more worthwhile than others. If you are unsure about your target market or where to invest, we are happy to help. Amanda, our home staging specialist, offers great tips and hands on assistance to prepare your home for sale.

All methods of sale work. Some sales methods will work better for your property than others. Selecting the right method of sale for your home is dependent on three things;

1. The current state of the local property market. As Wellington is a city made up of public servants, consultants and educators, the government can have a large impact on the employment numbers. Confidence in these sectors is directly reflected in property demand and vice versa. Some methods, such as Auction or Tender, will be more effective in a market with high demand for property. In more balanced and slower markets it would be best to consider using methods which give buyers an indication of price. This could be in the form of a buyer enquiry level (BEO), RV if relevant, or fixed price.

2. The style of property, be it a standalone home, townhouse or apartment. For example, a standalone home will attract more interest than a two bedroom apartment. ‘No price’ marketing methods such as ‘Tender’ or ‘Auction’ will attract buyers and encourage them to place their own value on the property. This is the opposite of apartment buyers who tend to shop with price in mind purely because of the oversupply or similar properties to choose from. Marketing an apartment with no price guideline would likely limit the number of parties viewing, and subsequently offering, on the property.

3. The target market for your home. Using the right sales and advertising methods to attract your target market is essential. For example, first home buyers tend to search for property online and register to receive alerts on properties meeting their criteria. They will shy away from competitive situations such as auction and place a lot of value in having building and LIM reports provided. High value properties will attract experienced home buyers who will search via online and print media channels. These buyers are savvy and more inclined to seek their own professional advice. For the right property, methods of sale which put buyers in competition with each other such as tender and auction, can produce excellent results.

Many agents have a preference for one method over another. We, however, believe it is important to choose the sales method best suited to your home and to have a backup sales plan in place.

As no two properties are the same it is very hard to give an exact time frame for the sale of your home. The Real Estate Industry of New Zealand (REINZ) publishes statistics for ‘average days on the market’ but these do not differentiate one style of property from another so are likely to be skewed by apartment timeframes etc.

To help limit your time on the market it is important to choose the right sale method and target the right buyers for your property. Being prepared, deciding on a backup plan and knowing the best stage to implement this to maintain interest in your property is as important as the initial launch. This should be done in consultation with your real estate agent and as a result of market feedback. We provide a weekly written report which include buyers feedback post open home. Being informed during the process makes the decisions you need to make as a vendor much easier.

The price of an ice cream doesn’t change much over the course of the year but hot weather makes ice cream more appealing and this is when demand is at its highest. The same rings true for property. Demand for your property will be highest when it is at its most appealing.

Buyers are looking for properties at all times of the year so if your property is warm and gets good winter sun, why not market it at a time when there is less competition? Alternately you might have a well-established garden that flourishes in spring so this will be the best time to market your home. Whatever the season, take the time to present your house well to maximise interest and achieve the best possible price.

When you are making the decision on the best agent to represent your property, do your homework. The most influential factor in the sale of your home is the person greeting the buyers at your door. It is common practice to seek the agent with the highest profile believing they must be the best. High property volumes can be the sign of an effective agent but can also mean less direct involvement in the process. To help confirm the best agent for you.

1. Ask your family and friends who they used and what they thought of the experience. You will quickly get an honest picture of how well an agent actually performs.

2. Meet with a few agents and get a feel for their approach. Did they make the meeting about your needs and your property or all about them? What ideas did they have for the marketing of your home? Did they seem honest and likely to show enthusiasm for your property even if it were to sit on the market? Who, regardless of the commission rate, did you honestly believe was the right agent to sell your home?

3. Check client testimonials. These will generally reflect the personality and priorities of the agent. Make sure that those same priorities are a good fit for you.