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Source: Fair Go -
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Reporter: Libby Middlebrook
We bought our Auckland flat near the top of the market a few years back - probably for a bit too much money.
We were keen to move on, but selling through an agent would almost certainly kill any chance we've got of making a capital gain.
So last month, we decided to give it a whirl ourselves.
So how do you go about a private sale?
To outfox the agents, the first thing you must have is a fair idea
of your property's current market value.
Don't be shy. Become the nosey neighbour you've always longed to be.
Start visiting open homes in your area, and find out later what the house sold for. You can also get sales info on-line through websites like QV, Zoodle and Terranet, but you do have to pay for it.
Another good option is paying a valuer to come and assess your property - worth the investment, if you're confused about your property's worth.
It's also a really good idea to call a lawyer in the early stages, and tell them what you're up to. They'll give you a bunch of advice on how to get started.
Finding Buyers
Large scale print advertising can cost a bomb, so we simply listed our house on Trademe.
It costs a few hundred bucks, and it's worth then paying a bit extra so your house comes up first in searches for your suburb. More people will see it that way.
We decided to be upfront with buyers, and list with an asking price. If you're keen to sell, make sure it's realistic!
Don't scrimp on the photos. If you can, find or pay someone who's got a camera with a wide angle lens. Everything looks bigger and better that way.
It's also worth knocking up a professional looking street sign. You can buy them easily on-line.
We ordered ours from http://www.private-sale-signs.co.nz.
There are also plenty of companies around, like HomeSell, to support you in a private sale.
For a fee ranging from a couple of hundred dollars, to a few thousand dollars, they can provide guidance, advertising and marketing plans for your property, for a fraction of the cost of real estate fees.
Open Homes
All the same old rules apply for open homes.
We spent hours clearing away clutter - very tedious! - but the place should look like a show home.
Hold your open homes over a short period of time to maximise foot traffic, and take everyone's name and number as they walk in the door.
Give them a little bit of space when they're looking around your house. If they're keen, they'll come to you with questions.
It also helps to have a LIM report available, along with a take-home information pack for buyers, with everything there is to know about your property. (including rates, cv, insulation, unique features, heating, recent renovation work)
Make sure you don't tell fibs about the condition of your property, or lie about developments in the surrounding area that could affect the property's value down the track. If you do, you could wind up in trouble.
Sealing the deal
This is the bit that set our hearts racing.
But we knew exactly what we wanted to achieve on price - we thought it was fair and that gave us a lot of confidence. Once you've found a buyer and agreed verbally on price, there are a few ways of moving forward. You can either fill out the sale and purchase agreements yourself. You'll need to do two - one for each party.
Now, they're a standard form - and the Auckland District Law Society contract is the best one to use. To get started, you'll need your certificate of title, the offer and any conditions, plus initials next to every entry.
That's the way we decided to do it, but it was pretty nerve racking.
If you have a buyer who wants to add any conditions you're not sure about, whatever you do, don't sign anything until your lawyer's seen the contract. Or even better, ask the buyer to have their lawyer draw up an offer, and get it forwarded to your solicitor. They can act as your real estate agent.
Look, we were really lucky, and sold our house in five days for our asking price - and that saved us $20,000 in real estate fees.
Selling privately isn't for everyone, but in the end it only
cost us around $1800 to sell up, including advertising and legal
costs. A pinch on real estate fees. If you are under no time
pressure to sell, why not give it a go? What have you got to
lose?
