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David Hardman
08-11-2007, 12:57 PM
I'm thinking about selling my Takapuna/Devonport house.

What are other's experiences of selling houses via TradeMe?

Do you get close to what the agent estimate?

How do you price the property?

Does it take longer to sell?

Is TradeMe more suited to low priced housing?

What are the typical TradeMe costs?

What are the savings over using an agent?

What are agents currently charging to sell a 600k house?

Tips and tricks?

duncan macgregor
08-11-2007, 03:47 PM
DAVID, I am well experianced in what you are trying to do. First thing to do is get a registered valuer to value the property. Next is have copies of the code of compliance cert,plus all the documentatation in order, so that the buyer has no need to waste time searching. When everything is in order go to your lawyer get him to give you an agreement form filled up with what chattels there are etc he will advise you on that but leave the price off you wont know that until the deal is negotiated. Take a few photographs of the house to list in trademe, and fill all the details and price. Look at the other adverts to give you an idea. Trademe costs $50 or something like that and your add stays in until its sold. i think they have a success fee but thats not very high. When you have people round dont rush about like a used car salesman, let them wander about to discuss it to each other with you staying in the background. The most important thing to remember for vendor and buyer is, that you only sign an agreement form in the lawyers office. Most people are happy to buy or sell at valuation the valuer will cost about $450. The MREINZ fees are about 4% for the first $200,000 then 2% for the remainder. Get rid of the clutter women like a nice clean kitchen and bathroom men like garages and sheds. Macdunk

STRAT
08-11-2007, 11:25 PM
I bought rental property last year that was being sold on Trade me. The only down side I can see from a vendors point of view is that purchasers who are not confident in their own ability to make a wise purchase will stay away in fear they have no protection or recourse.

STRAT
08-11-2007, 11:29 PM
women like a nice clean kitchen and bathroom men like garages and sheds. MacdunkLOL Duncan. While I am as fond of a good shed as much as the next older bloke I suspect the under 30's generation of kiwis wouldnt even know what to do with one.:D:D:D

minimoke
09-11-2007, 07:02 AM
Well done David – go for it!. I haven’t used Trade me but definitely will next time we sell – but I’d also be running a few wee ads in the local newspaper

An alternative to the valuer is checking out your local Realtor / Harcourts magazines and see what houses are being listed at and go to local Open Homes. Ask the selling agent what the owners want for the place and assess the relative value for your self. You could also get three Real Estate agents around and get them to give you an estimation - they often stick things in letter boxes offering this “service”. Don’t take any figure as real, just use them as part of forming a view.

When we sell we also prepare a printed “brochure” to go with the other things Duncan has mentioned – highlighting all the neat things about the house. You do have to be careful about what you say though – don’t risk mis-representing anything. The purchase decision is made in the first five minutes – leave the “buyer with something in writing to remind them of why they have to make a really high offer. Otherwise they’ll forget the “extra’s which you need them to remember to keep your price high.

We have also always included a clause in the Agreement “subject to Solicitor approval” so our Solicitor gets the final say and gives us time to back out if needed.

Once you decide to list your place try to make an emotional shift from it being your ”home” to it being a “house”.

Agents will ping you their fee ($7,000 with the Jones, 4%+ for some, 1% for others) but they will also encourage you to sign up to a targeted marketing campaign using their extensive skills blah blah at added cost. They may even suggest you have such a unique property that you need to go to auction for extra fees / marketing as well.

Don’t feel you have to do “Open Homes” viewing by appointment is fine but hide your valuables.

Remember that every dollar you now spend on the place you need to get back – only spend if it will enhance the chance of a sale.

Don’t feel inclined to accept the first offer quickly – though it is said that the first offer is the best. One house on my watch list has just sold through Harcourts. Within six hours of listing an offer came in subject to LIM and was 2% over list price and was accepted. 3 hours later a back up offer came in for 3% over list and unconditional. And the vendors paid 4% for this deal to happen!
Good luck – do it!

dartMonkey
09-11-2007, 09:54 AM
“subject to Solicitor approval” clauses aren't what they are cracked up to be and don't necessarily give you an out - even though people think they do.
As Dunk says "The most important thing to remember for vendor and buyer is, that you only sign an agreement form in the lawyers office."

kura
09-11-2007, 01:00 PM
I sold an Akld property on Trade Me a year ago (saving approx $20,000 in agents fees) yes listing fee of approx $100, plus $500 for valuation fee. (Also got LIM report, but forget what that cost) It was advertised for approx 6 weeks, and sold in upper range of valuation estimate.

Didnt have any problems, my only complaint was the number of "time wasting" enquiries from real estate agents who wanted me to sign up with them. Hey if I wanted to sell through an agent, do you really think I would go to all the trouble of listing on Trade Me first ?

Be warned that agents have a "marketing spiel" warning you that if the property is on Trade Me for too long it will go "stale" and be really difficult to sell !
Another good one is "I have a cash buyer right now, if only you will list with us"
(But I suppose everyone has to make a living somehow )

duncan macgregor
09-11-2007, 01:26 PM
KURA, That is no problem. You can write conditions into their listing contract.
1, No signs.
2, reserve the right to a private sale.
3, no advertizing by them as their price will be your price plus their fees.
4, That is the advantage of having a registered valuer value the place the buyer and the vendor both know thats the value and thats the price no need to barter.
5, Only give them one month no more if they really do have someone in mind they would have them round before that.
Always remember the real estate agent wants a sale at any cost including your cost if necessary. The most important thing is to write the agreement out in your lawyers office first. After the sale is negotiated the buyer signs in his lawyers office and the vendor takes it to his lawyers office to sign. Great care must be taken if a property is GST registered. It is either GST included as with a normal sale or plus GST if any if its a farm or on going business. Lots of costly mistakes in that area thats why you only sign in front of your lawyer. Macdunk

JBmurc
09-11-2007, 05:11 PM
Have just sold my 7 sections down south on TRADE ME got over 10% more than the agents top prices and over double the valuators price -would buy and sell again on trade me has by far the biggest numbers viewing

JBmurc
13-11-2007, 06:52 AM
I have to agree with you SS Valueators work is realatively simple they will always keep to the basic rules of last sales similar to what there valuering with my sections because the last sale was myself 14monthes earlyer at 15k per site the best both valuers would do would be 18-20k per site I sold for 42k ea even through only 5mins drive your'd pay well over 100k ,and truth is the limited total numbers of sections meant the developers would pay up for cheaper areas.
Still I'd rather trust a valuerator than an Agent when it comes to price.
As for G.V.....................

minimoke
13-11-2007, 07:00 AM
The tip with Rating Valuations is to keep them as low as possible if you want to keep your rates bill low. It took me a few but successful goes to keep the council off my land during renovations so I was very pleased to get the new RV with only a 46% increase. OTOH hand, if you are borrowing against your land it may be worth getting a Valuer in so that his “higher” value can be used for loan rations. I’ve only used a valuer twice and found that the valuation came out at exactly what I was offering the property - but this was after telling the valuer what I was doing. Too much of a coincidence for me so haven’t used them since.

Dr_Who
10-12-2007, 11:05 AM
Is it only me or do you guys get pissed off all the "Price by negotiations" and "Auctions" without any price indication? I dont have time to waste and would love to see a price on the property!!!!!

David Hardman
10-12-2007, 11:38 AM
Is it only me or do you guys get pissed off all the "Price by negotiations" and "Auctions" without any price indication? I dont have time to waste and would love to see a price on the property!!!!!

I intend to sell my property via TradeMe in Feb.

Will put a firm but fair price on the property. No haggling. Pay the price, buy the house.

patsy
10-12-2007, 12:22 PM
The tip with Rating Valuations is to keep them as low as possible if you want to keep your rates bill low. It took me a few but successful goes to keep the council off my land during renovations so I was very pleased to get the new RV with only a 46% increase. OTOH hand, if you are borrowing against your land it may be worth getting a Valuer in so that his “higher” value can be used for loan rations. I’ve only used a valuer twice and found that the valuation came out at exactly what I was offering the property - but this was after telling the valuer what I was doing. Too much of a coincidence for me so haven’t used them since.


You'd be surprised at how many, many people ask council to *increase* their GV. Not because they want to use it as a sales ploy but purely as self-indulgence.

Dr_Who
10-12-2007, 12:30 PM
You'd be surprised at how many, many people ask council to *increase* their GV. Not because they want to use it as a sales ploy but purely as self-indulgence.


That is just silly, cos you end up paying more rates... LOL

patsy
10-12-2007, 12:37 PM
That is just silly, cos you end up paying more rates... LOL

Yup.... just as my tagline shows.

PS: By the way, I've recently seen the queue of applications to increase GV - I couldn't believe my eyes!

Dr_Who
10-12-2007, 01:31 PM
I intend to sell my property via TradeMe in Feb.

Will put a firm but fair price on the property. No haggling. Pay the price, buy the house.

Why Feb?

Can you post details of the house? I am always looking around. I am pretty much cashed up right now.

David Hardman
10-12-2007, 02:54 PM
Why Feb?

Can you post details of the house? I am always looking around. I am pretty much cashed up right now.

Feb - Cos i'll be selling privately (via Trademe). My father will be handling the sale as I'm based in Sydney. Feb is the first time he'll have the time available.

House - 3 bedroom (dbl size) brick and tile house. Lake Road, Takapuna/Devonport (Directly opposite Takapuna Grammar.) Garage and workshop underneath house.

Its the front house on subdivided block but still set well off the road . Reasonable land size (not sure the exact dimensions)

Has been rented out for the last 7 years but very solid and clean. I've had fantastic long term tenants.

Spent 30k on it 2 years ago. New kitchen, interiors repainted, floors sanded, Alarm installed, exterior windows repaired/painted. Spent 5k a few months ago redoing sewer pipes (at councils request - ugh!).

Price - Despite saying I'm going to put a price on the house and stick to it I'm not 100% what this price will be. I'll get a few agents in first to give me a guide and then list it on Trademe... I expect somewhere between $580 and $600k.

Wolfman
13-12-2007, 12:32 PM
David Hardman said ...

<I'll get a few agents in first to give me a guide and then list it on Trademe>

What a guy ! Will you be paying the agents for their professional opinions or just giving them the hint that there maybe a listing in it sometime in the future ?

Dr_Who
13-12-2007, 01:06 PM
I ve been told by a few friends that houses are selling below CV in Auckland, even in the good areas. Can others please confirm.

Joe King
19-12-2007, 12:06 PM
Hi David, FYI...


I'm thinking about selling my Takapuna/Devonport house.

What are other's experiences of selling houses via TradeMe?
:) I have sold 4 properties on Trademe...no problems at all

Do you get close to what the agent estimate?
:) I get 3 agents from 3 different RE Companies to give a "market appraisel"and use an average of the 3 for an asking price guide. Most agents are happy to do this and there is no charge. You do not have to BS that there could be a listing for them. I have always got at least the price asked for.

How do you price the property?
:) Ref. above

Does it take longer to sell?
:) Depends on property. All investors that I know of including myself scan trademe regularly for suitable properties. All RE agents that I know of list properties on Trademe. My average advertise to settle time was about 2 months.

Is TradeMe more suited to low priced housing?
:) Personally I would say no. Most agents have a data base of "pet" investors looking for quick sale low priced properties. When I was in buy mode I had 3 agents from different Companies looking for suitable properties, and bought several within minutes of being listed. Similarly I have sold properties within hours of listing and have no problem paying agents for access to their contacts.

What are the typical TradeMe costs?
:) There is a basic fee and a priority listing fee of about $150. I always paid the extra to get priority over similar listings.

What are the savings over using an agent?
:) Agents fees are usually about 4% rule of thumb. They will do all the leg work and prepare all the necessary paper work. For anyone inexperienced in buying/selling Real Estate I would suggest using a good agent. They are in the market place, bound by integrity laws, and usually know whats going on. Sometimes a few bucks saved in agents fees could lead to real problems should a dispute arise down the track.

What are agents currently charging to sell a 600k house?

Tips and tricks?

Minimoke:
"We have also always included a clause in the Agreement “subject to Solicitor approval” so our Solicitor gets the final say and gives us time to back out if needed".
:) Solicitors can only approve form and title. This is NOT! an "out" clause and has caused many a too careful buyer to be gazumped.

"Agents will ping you their fee ($7,000 with the Jones, 4%+ for some, 1% for others) but they will also encourage you to sign up to a targeted marketing campaign using their extensive skills blah blah at added cost. They may even suggest you have such a unique property that you need to go to auction for extra fees / marketing as well."
:) There are occasions where it is difficult to price a particular property, in which case it might be best to let the market decide. IMO a well advertised and promoted auction might be the way to go. I recently sold such a property in Rotorua 30% more than expected via auction and have no problems paying commissions.

Dr Who:
"......I dont have time to waste and would love to see a price on the property!!!!!"
:) Most experienced property investors have a pretty good idea of what a property is worth... to them. If you are interested put a realistic offer on paper.

Hope this helps
Cheers
JK

ari
20-12-2007, 07:04 PM
Been attempting to sell on Trademe for the past 176 days (over 3000 hits). Currently have agent as well and apart from small price adjustment say that it is priced 'right'..well in the ideal world !
Only option I have now is to dump agent and reduce price by commission approx. $20k and push on with private marketing. Not desparate at this stage, but would rather be earning interest!

p2r
20-12-2007, 08:46 PM
I listed on trademe for $4 000 less than the valuation on 20 Nov. 8 days later had 2 cash buyers and all settled last week. I might have been a bit cheap Selling it $7 000 less than the valuation but that would be the real estate fee and the speed was the main thing.
Got about 800 hits in a couple of weeks and a steady couple of enquiries a day. Did better than with an agent I reckon but the place was tidy and I met the market with a reasonable price. Most of the people with money seemed to be over 50 ... not as many young families as I thought there would be. Fortunately my wife is a people person so managed all the tours and negotiations OK.
Much nicer dealing with people face to face.
Very nice getting the money in the bank.

ari
21-12-2007, 09:20 PM
Really depends whose valauation u accept. If I were to reduce price by $4000 under QV valuation (2005) I would be selling for $64,000 under build cost (trade cost) of 2 years ago!
Don't need to sell at this stage, so have some time.