They cost more but real estate agents give clients a performance edge
Selling privately might save vendors up to $30,000 in commission, but research from property data firm Cotality (formerly CoreLogic) suggests using a real estate agent still offers a performance edge — especially in today’s price-sensitive market.
“The sales success rate is higher for agent sales – by an average of 11.5% over the 10-year period,” said Nick Goodall (pictured), Cotality head of research.
Over the past decade, 76% of agent-listed properties sold, compared to 65.1% of private listings. In 2023, that gap widened: 65% of agent listings sold, versus 52.8% of private ones.
Recent REINZ data adds weight to these findings, with longer selling times, increased buyer caution, and uneven regional performance suggesting agents may help vendors better navigate today’s complex market conditions.
Speed and targeting matter in a softening market
Goodall said agents can reach motivated buyers faster and more effectively.
“Real estate salespeople often have an understanding of which buyers might be in the market for a particular property and could target them more effectively than a private seller might.”
“The typical days on market for agent sales is also most often shorter. In 2021 – the market peak – the median days on market for agent sales was 24, while it was 40 for private sales. Interestingly last year was the one year to buck that trend, with agent sales taking a median of 75 days, compared to 71 days for private.”
Agent sales often achieve higher prices
Cotality data shows a notable price gap between agent-led and private sales — but Goodall cautioned this could partly reflect property mix.
“Vendors may be more likely to sell their property privately when it’s a lower value property, whereas owners of more expensive property might be more likely to use an agent,” he said.
That said, the difference remains clear: the median price of agent-sold properties in 2023 was $740,000, compared to $662,500 for private sales. In 2022, the figures were $735,000 vs $704,000.
“The figure for this year is almost $100,000 so I’d say that would justify it if it was like-for-like properties. But the year before was closer so you might be sort of borderline there,” Goodall said.
While a $750,000 sale might incur around $23,978 in commission, Goodall said vendors should also weigh their own time and effort.
“Having to take time off work or the opportunity cost... might bring the calculation a little bit closer as well.”
Agent experience adds negotiation strength
Real estate agent Brooke Gibson said she once sold privately but now sees the value in having a trained negotiator involved, 1News reported.
“You could actually easily kill the deal,” Gibson said. “If someone comes up to you... and they go ‘how much do you want?’ and you say $1 million and he thinks it’s worth $700,000... he’s going to be like ‘nah not interested.’”
Wellington agent Mike Robbers added that agents also tend to price homes more accurately from the start and present them better.
“Private sellers often start out with a very high price... then reduce it over time when there’s no interest, but by then the listing has gone ‘cold’,” Robbers told 1News. “Agents tend to use their market knowledge to get the pricing strategy right from the outset.”
He noted that buyers may expect a discount in a private deal since the seller isn’t paying commission.
Legal protection and professional standards
Real Estate Authority CEO Belinda Moffat said while private sales can work, real estate agents offer legal protection, pricing tools, and disclosure guidance.
“Licensed real estate professionals are trained and experienced... and are legally required to seek the best outcome for their client,” Moffat said.
She said agents must provide a current market appraisal (CMA) and proposed marketing plan and help vendors meet legal disclosure obligations around defects or unconsented work.
“If a seller knowingly fails to disclose relevant information... the sale could fall over or the buyer could seek compensation and take court action,” Moffat said.
The REA leader said confidence in the real estate industry rose from 70% in 2021 to 82% in 2023, and that commission can be negotiated.
Vendor expectations still adjusting
Goodall noted that many sellers are still anchored to market-peak pricing.
“Some people are still hung up on the prices being paid at the peak of the market and are finding it hard to adjust their expectations.”
He said the market remains listing-heavy, so price flexibility is key.
“If you’re willing to be very, very flexible on that price then it’s probably not that difficult to get a sale... but it’s all about your expectation, what you want to do, if you’re buying in the same market, if you’re moving elsewhere...”
