mentioned at the beginning
that by selling your house yourself you are likely
to sell it quicker and get more money for it. If it
isn’t already patently clear why this is so,
let me explain. Let’s say that you want to get
$320,000 in your hand for the sale of your house.
To sell it through an agency you would need to put
it on the market for about $338,000 to test the market
and allow for a bit of negotiation.
If the agency were to come along with an offer of
$330,000, you wouldn’t want to accept it because
their commission (in New Zealand) would likely be
over fourteen thousand dollars (including GST) and
you wouldn’t get more than $316,000 in your
hand; whereas you would happily accept an offer of
$321,000 selling it privately. I have known of many
an offer falling through simply because there was
a couple of thousand dollars difference between what
the vendor was prepared to accept and the maximum
the prospective purchaser was prepared, or could afford,
stands to reason, that the cheaper a house
is, the quicker it is likely to sell because it falls
within the affordable range of more people. But unless
you are desperate to sell, don’t be suckered
in to selling your property below its market value
just because you don't have to pay a real estate commission.
The fact that the other person is buying it privately
doesn’t mean that he, or she, is doing you a
favour. You are the one who has put the time and money
into selling it, not the buyer. If a real estate salesperson
would be entitled to a commission for selling your
property, why shouldn’t you be entitled to one
for selling it yourself?
addition to your advertising costs, which
should only be a few hundred dollars, you will have
to pay your solicitor. But you would also have to
pay this bill as an extra if you employed an agency
to sell on your behalf.
hope by now that I’ve convinced you
that selling your own house is at least worth a try.
Unless there is a great urgency to sell, one should
at least try to sell privately for a couple of months.
It won’t be a waste of time, even if you don’t
sell it. At least you will have tested the market
and got some feedback on its true value. But don’t
make the silly mistake of trying to get $350,000 for
a house that is only worth $325,000 and then put it
in the hands of an agency for twenty to twenty-five
thousand less than you tried to get privately. Believe
me, I’ve known people that have done this. They
reach too high in the beginning, get frustrated because
the property doesn’t sell and then take any
offer that comes along from an agency just so that
they can get the property off their hands.