A recent study by the Real Estate Institute of New Zealand found that home-owners who use a real estate agent to sell their home got an average of 15 percent more on their sale price than they would have by selling privately.
REINZ chief executive Bindi Norwell says that is the highest premium they’ve seen in almost two decades. Just five years ago, the agent premium was 8 percent she says.
The figures highlight the value an agent can bring to the process of selling the property, Norwell says.
“One of the questions we get asked time and time again is ‘will I get more for my house through an agent rather than if I sell it myself?’.
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“This analysis shows that overall, the answer is yes – although the premium does vary depending on where you are in the country," Norwell says.
REINZ chief executive Bindi Norwell says that selling your house using an agent earns a 15 percent premium on price. Photo / Supplied
“Whilst REINZ is the industry body for real estate agents around the country and could therefore be accused of being biased towards agents, as an organisation we have never argued for a ‘closed shop’.
“We believe that people should have choice when it comes to choosing how they want to sell their property – and indeed some do.”
The research also highlighted a drop in the proportion of people choosing to sell their property privately.
Over the years, that share has fluctuated, with private sales making up 23 per cent of all sales in 2014 and 20 per cent in 2017 and 2018. This year private sales were down to 14 percent of all sales.
“Selling privately works perfectly for those who have the time, inclination, expertise and patience to do so.
“However, if, for example, you’re a busy family where both parents work full time, then it might be better to utilise the skills and expertise of an agent,” says Norwell.
The majority of people who sell privately use the price by negotiation method, suggesting that the selling by auction could be another reason for the premium.
“Our advice to those who are considering selling privately is to gain an independent valuation, don't sign anything that hasn't been approved by your legal adviser and don't be afraid to walk away if you feel uncomfortable with the process – it's your house and your call,” concludes Norwell.
In addition to achieving a price premium, Norwell points out that a licenced real estate agent provides marketing expertise, negotiation skills, a wide range of contacts and experience in sales.
