For sellers, hiring a real estate agent can be a challenge. Selling a property isn’t an everyday event; most Kiwis will likely come into contact with a real estate agent once every 10 or 20 years. The right one, though, can often mean the difference between a life-changing sale and a stressful ordeal.
The Real Estate Authority (REA) has provided OneRoof with some top tips for establishing and maintaining a successful working relationship with a real estate agent when you’re selling:
1. Select a real estate agent who is right for you
Step one is choosing an agent. Among your key considerations should be the agent’s level of knowledge of your suburb and their experience selling your type of property. Meet with a few different agents so you have some options. How you relate with each other personally is important. You’ll want them to listen and demonstrate they understand what’s important to you with your sale. Ask them about their recommendations for advertising and marketing your home and consider requesting testimonials or references from people whose property they’ve recently sold.
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We also recommend you look them up on REA’s public register of all licensed real estate professionals. This is a great way to check they have a current licence and see if they’ve had any formal complaints upheld against them in the last three years.
2. Do your homework
Your real estate agent is there to guide you through the sales process and can help you understand anything that’s unfamiliar or confusing.
Your agent works on your behalf, but as the seller you are the ultimate decision-maker. When you’re selling your home, do your homework on the process and what to expect so you can make informed decisions and work confidently and constructively with your agent. Selling a property involves important formal documentation and legal agreements. You will want to be familiar with agency agreements, Land Information Memoranda (LIMs), records of title, building inspection reports and other important documentation. Our consumer information website, Settled.govt.nz, is a resource from REA designed to help you understand the real estate transaction process and the steps along the way.
3. Ask your real estate agent plenty of questions
Your real estate agent is there to guide you through the sales process and can help you understand anything that’s unfamiliar or confusing.
Don’t be shy - ask for explanations, information or clarifications. Make the most of your agent’s technical expertise. When it comes to something as important as selling your property, you don’t want to encounter an issue or point of uncertainty you could have avoided if you’d only asked about it sooner.
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For example, when an agent recommends a method of sale for your property (e.g. tender, auction, by negotiation, deadline sale), you should ask them to explain the benefits and downsides of each one. After an open home, you could ask them for any feedback the got from people who came through, and whether there are any changes they’d recommend (such as to staging) before the next one.
4. Be upfront and honest about your property
Don’t be tempted to withhold information about your property from your agent because you think it might impact the sale price. If you try to hide things like a physical defect or legal issue, you risk this being discovered in a pre-purchase inspection, which can cost you the sale. If it’s discovered after the sale is complete you could be facing serious legal issues. Make sure you’re transparent with your agent to ensure they know the property as well as you do.
5. Keep good records to avoid any misunderstandings
Make sure you keep copies of all written correspondence and paperwork involved in your sale. When discussing actions your agent will take on your behalf, such as in relation to marketing or offer negotiations, it’s valuable to confirm them in writing via a follow-up email. This ensures you are all on the same page about specifics. Be sure to save your records securely. We sometimes receive complaints at REA where better written records may have enabled a more satisfactory resolution.
6. Seek legal advice
REA requires that agents ask their clients to seek legal advice before signing any contracts and to give them reasonable opportunity to do so—make sure you take that opportunity. They should give you the REA Guide to Agency Agreements and Guide to the Sale and Purchase agreement. You can also find those on REA.govt.nz. You should understand the purpose of the documents involved in the sales process, but when it comes to the particulars of your specific agreements and reports, property lawyers or conveyancers are the experts. They can review all the essential paperwork every step of the way and advise you on the details.
7. Raise any concerns promptly and professionally
If at any stage you have concerns about how your sale is being managed by your real estate agent, raise these early and professionally. All agencies are required to have internal complaints procedures available to clients and customers. If you have a serious concern or are unsatisfied with how your complaint was managed, ask to speak to the agency manager. If they are unable to resolve the matter, contact REA to find out how we may be able to help.
* The Real Estate Authority (REA) is the independent government agency that regulates the conduct of real estate professionals in New Zealand. For more independent advice and guidance on the property buying and selling process, visit our consumer website Settled.govt.nz, and for more information on the regulation of licensed real estate professionals visit REA.govt.nz.
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