HIDDEN & ACTUAL COSTS OF SELLING A HOUSE
By Trish Willis | Member of Property Institute of NZ (IPAC)
Understanding all the costs of selling a house or other property type and having an accurate property appraisal can put you in the best position for an optimum sale price.
Important things you should know about are:
- real estate fees and commission
- advertising and marketing
- choosing a suitable real estate agent
- avoiding going to market twice
Our website visitors often say, "I wish we'd found you last time I sold a house."
HOW MUCH DOES IT COST TO SELL A HOUSE? REAL ESTATE COMMISSION & FEES
To find out more about real estate commission and fees, the following links have comprehensive information and advice:
- Negotiating real estate commission and fees
- How to pay the lowest real estate commission and fees
- Marketing, advertising and costs additional to fees
How to Get An Accurate Real Estate Appraisal
If you're in the initial stages of thinking about selling your house or wanting to know where to get started, getting an accurate appraisal is a crucial stage of the process that will determine the fate of your sale. An inaccurate property appraisal is one of the potential hidden costs of selling a house.
Proper due diligence requires numerous decisions - but it can be hard to find all the necessary information on which to base sound decisions.
Firstly, you should find out about real estate appraisers and appraisals BEFORE you approach any real estate agents, otherwise you won't know what to look for in assessing any recommended sales price.
The recommended sale price is what is used for marketing your property for sale. You need to establish an accurate sale price or you risk your house sitting unsold for months.
If you would like free advice specific to you and your property, get in touch or call 0800 789 532.
Selling an Auckland property? Rezoning of properties for development may mean your house is worth more than you realise. The difference in offers received could differ in the hundreds of thousands but it's important to find the right agent with the right expertise.
Hidden cost of not choosing a suitable agent
For over a decade, Kiwi home sellers have sought our advice about their problems getting their house sold. Had they been better informed at the outset, they could have avoided the resulting additional expenses.
These problems are often caused by choosing an unsuitable real estate agent. Another reason is having an unrealistic, over-inflated perception of your home's value.
Be mindful home buyers are searching for properties comparatively, comparing your property to others in value for money - so they will know if yours is over-priced.
The cost of not selling first time round
Consequences of going to market with an inaccurate property appraisal and the wrong real estate agent include:
- Having to find a real estate agent who is better than the last one
- An additional period of paid advertising and marketing at your expense
- The possibility of paying double commission if you don't sign the clauses provided
- Additional interest paid on a mortgage on the property if you have one
- Increased legal expenses
- The emotional cost of more people trudging through your home...
- You may have to re-rent the property again to new tenants
- Price reduced marketing and looking 'desperate to sell' can attract buyers in lower price brackets
- You are more likely to accept a less than desirable sale price
- Above all, it is disheartening. You've made a decision to sell and you 'can't move on'
CHOOSING A SUITABLE REAL ESTATE AGENT
The fees incurred when selling a house including real estate advertising costs can end up doubled if the property fails to sell the first time on the market. Not selling first time around can easily be avoided with the right advice up front, especially when it comes to choosing a real estate agent.
If you are unhappy with your real estate agent, find out how to change real estate agent or agencies.
If you have a question, get in touch.
The cost of selling a house can be much higher if it doesn't sell the first time.
The Impact Of Day One Live Online
Getting the best sale price second time around is harder to achieve because the early buyers have come and gone. Getting new interest in your home is more difficult.
The impact of Day One on the market is vividly demonstrated in this graph. It shows what can go wrong and illustrates why due diligence at the beginning is so valuable.
The flow-on effect financially and emotionally of selling second time around can take its toll. That is why Wise Up NZ's ethos is 'do it once but do it right'.
Make sure you download Agent Finder NZ's Sell Smarter Kit which provides the formula for selling at the best price, first time around.
Wondering how to take the first step and avoid the pitfalls? This one-page flowchart is an easy to follow guide to the real estate process in five clear steps.
Find out more about minimising costs and maximising sale price
Wise Up NZ Awarded Most Reputable Property Advice Hub NZ 2021
Page updated April 11, 2022 by Trish Willis | Member of Property Institute of NZ (IPAC)
You might also like:
- How to price your home accurately for sale
- Real estate commission and fees exposed for sellers
- Interview questions to ask real estate agents
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