Kiwis who used an agent could get on average 15% more than those who sold their home privately
Homeowners who used a real estate agent to sell their home could receive on average 15% more premium than those who sold privately, which is the highest level of premium that New Zealand has seen in 18 years, according to the Real Estate Institute of New Zealand (REINZ).
According to the REINZ’s analysis of private sales compared to those using an agent, the premium has slowly increased over the last few years from 8% in 2015, lifting to 11% in 2016 and 12% in 2017. It dropped to 5% in 2018 but increased again to 6% in 2019. Now, it has risen to 15% in 2020, highlighting the value an agent can bring to the process of selling a property.
“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?’ This analysis shows that, overall, the answer is ‘yes’ – although the premium does vary depending on where you are in the country,” said REINZ chief executive Bindi Norwell.
“While 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’ and believe that people should have a choice when it comes to choosing how they want to sell their property – and indeed some do.”
REINZ’s study also noted a continuous decrease in the percentage of people choosing to sell their property privately – with private sales making up 23% of all sales in 2014, 20% in 2017, 20% in 2018, and down to 14% in 2020.
“Selling privately works perfectly for those who have the time, inclination, expertise, and patience to do so. However, for example, if 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,” Norwell said.
“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.”