Real Estate Agents Vs For Sale By Owner
NZ Real Estate Agents act on behalf of both the buyers and the sellers of New Zealand Real Estate and this is one of the fundamental challenges with the services that Real Estate Agents offer. It begs the question, how can a Real Estate Agent act for the best interests of both buyer and seller?
I have a section for sale and so I contract a Real Estate Agent to sell it for me. In turn, this same Real Estate Agent is approached by another individual who is looking to buy a section. I am looking to my Agent to sell my real estate at the best possible price and by the same token, the other party is looking to the Agent to acquire the section at the best possible price.
This clearly presents a problem of independence, as how can the Real Estate Agent act for the best interests of both parties? One could argue that it is only the Agent’s best interest that is being served, as the Agent is the person who will get a commission on sale, irrespective of whether the buyer’s or seller’s price is met.
This is one of the reasons that many people are becoming disillusioned with the services of Real Estate Agents and do not feel like there is a mutual trust and/or respect between all parties.
So, what is the alternative? Well, an alternative is to simply cut out the middle man – sell real estate YOURSELF. You do not need a Real Estate Agent to sell a house. I’ll say it again, you do not need a Real Estate Agent to sell your house.
Understanding this is the key to saving yourself a lot of money in Real Estate Commission – many people do not understand this or do not trust that you can do it yourself, and believe that there must be some catch or that it’s not going to be a simple process. Granted, it’s easier to just phone up an Agent and let them run with it, but at the end of the process if they do sell your property you may be left thinking, what exactly did they do for me that was that great that I couldn’t have done myself and was it worth the whopping commission?
If you sold a house for $250,000 using the services of a Real Estate Agent then you would pay approximately $10,000 in commission – this is not a small sum.
You can achieve a sale yourself for a fraction of this cost if you are willing to put in the effort. Spend the money wisely on advertising.
- Purchase a large For Sale sign and put it in a very prominent position outside the property
- List the house for sale online at sellahouse.co.nz
- Run frequent open homes
- Take a look around the area at what other people are asking for their houses, to give you an idea of what your house may be worth (or you could go to www.qv.co.nz where you can purchase a property report for your house which will give you an indication of its value amongst other bits of useful info)
So, if you want to Sell Real Estate, there are advantages and disadvantages of using a Real Estate Agent (or Broker, or Realtor as they are sometimes referred as) and there are pros and cons of doing it yourself.
Overall, more work is involved in doing it yourself, but if you are willing to put in the effort then you could end up saving yourself some money and therefore giving yourself more money to buy your next property with.