When you sell your house, it’s only natural that you want to get the highest return on your investment before you close the deal. You’re not alone. Many modern homeowners across New Zealand are choosing to sell their house on a no-commission basis.
Fortunately, technology and new business models are making this possible in the real estate landscape. Working with a real estate agent or a broker is no longer a do or die decision. Nowadays, you alone can sell your own home, avoiding massive costs.
Why sell my home on a no commission basis?
If you have ever owned a home, you’re familiar with the traditional real estate transaction: in exchange for the help of a real estate agent, you agree to pay marketing costs and commission. The agent will then place advertisements on a variety of marketing platforms to try and find buyers. Finding buyers is the aspect of the selling process that costs agents the greatest amount of their time, money and effort. Consider the agents endeavours to find buyers for one property; large print media adverts, real estate signage, online advertising etc. Once the buyer is located the agent prepares the paperwork, conducts the negotiations, and passes the documents on to your lawyer for completion of the transaction.
The commission fee varies but typically, the standard fee on the New Zealand average home price of $600,000 will be around 3% plus gst, or approximately $21,000. When you’re trying to get the biggest return on investment, watching $21,000 fly out of your pocket is less than desirable. Even if the agent or broker does a fantastic job selling your home, it’s still a hard pill to swallow.
It leads you to think, “Maybe I could have done what they did — possibly even better!”
Love that train of thought and the idea of cutting costs? Head over to the next section.
How to save money when selling my house?
Homeowners who are thinking of selling a house with no commission should keep in mind that good communication makes for a good transaction. Keep in touch with your interested buyers, it’s a big decision, work with them and keep it relaxed. Yes, selling your house privately will help you get the most money at the negotiation stage, but it’s also important to keep your stress to a minimum.
Here’s a primer on how to save money when selling your house.
Set a fair market price from the start
Setting a realistic price for a home from the get-go is probably the most crucial step in the sales process, regardless of whether you sell a house on your own or with an agent. If you price your property too high, chances are you’ll turn off potential buyers from even looking at your listing.
To gain an accurate sense of your home’s market value, hire a registered valuer. Their services cost anywhere from about $750, which is worth it considering they have expert knowledge on the local real estate market and how your property compares with the ones recently sold in your area. Buyers feel confident when vendors present them with registered valuations that support their asking price, and this makes the negotiation phase very easy. The cost of a valuer is a small price in comparison to the cost of a real estate agent.
Prepare your home to be marketed
When you sell a home with no commission, that means you’ll have to get it in tip-top shape yourself for listing photos and viewings. Here are some tips for getting your home market-ready:
- Declutter – We all have emotional attachment to our homes and personal belongings but once you decide to sell it, it’s no longer a home but a product on the market. Get rid of the clutter and junk so that potential buyers can already envision the property with their own furnishings.
- Deep-clean – If you have the budget for it, consider hiring a cleaning crew to conduct a deep clean. House cleaning rates go anywhere from $29 an hour to $150 for a six-hour clean. Yes, you’ll have to pay for it out of your pocket but those sparkling counters and clean tiles can gain you a competitive advantage over properties with dust on the cabinets.
- Hire a professional photographer – Showcasing professional photos of your property online is vital to draw buyers in. High-impact imagery will provide additional engagement and emotional impact, which translates to quicker sales and less time on the market. Real estate photography services vary in price depending on the size of your home, but expect to spend anything from $300 upward.
Sell your property online
Selling a house with no commission, real estate or broker used to be tricky in the past. Sellers had to rely on newspaper ads or street signage. Those traditional forms of advertising were typically a shotgun approach because you weren’t sure they’d catch a buyer’s eye.
However, thanks to emerging disruptive companies and new types of property listing platforms, you can now easily sell property online. All you need to do is sign up on a real estate app or property listing website, post your home, and wait for interested buyers to contact you. There’s often a one-off fee but with no commission, real estate or broker to pay – you’ll save yourself tens of thousands of dollars that you can apply to another purchase or towards a big goal.
Yelsa: The Revolutionary Real Estate App
How to save money when selling your house? The answer is simple: sign up with Yelsa today.
Yelsa is the new way to buy and sell property online, easily and discreetly without expensive marketing campaigns, commissions, or ‘free for all’ open homes. It will connect you with ideal Buyers of your property in New Zealand, helping you connect with them and streamline the entire property sales process. Best of all, it’s more affordable for both Buyers and Sellers alike. Join the revolution today. Download the Yelsa app now.