Nolans HomeFront
1st Floor Treble Court, Palmerston Rd, Gisborne
Phone:- 06 867 1209
Email:- info@NolansHomeFront.co.nz

Marketing Options

These days there are a range of ways to selling your home.
 
The choice of marketing plan can depend on:
  • The type of property you have for sale
  • If you have a time limit for the sale
  • The volume of sales in your area
  • And, let’s face it, the cost of the marketing plan

Private Sale – No Agent

It is becoming popular to sell your home yourself without the aid of an agent.

Some people have been very successful with this approach but be warned - it can be hard work and requires commitment and determination.

Try: (list of websites with ideas and information)

There are a number of “no frills” agencies offering assistance to the Vendor marketer which have sprung up in response to the size of some Real Estate commissions. The cost of the fee payable is dependent on the package agreed and reflects the amount of involvement by the sales person. It is a flat fee and no commission as a percentage of the sale price is payable.

Try: (list of websites for no frills agencies)

You do have to spend money to make money as the saying goes. We recommend you do some research and work out a budget before you start.
 
 

Exclusive Agency

This is an agreement with one Real Estate firm only to market and sell your home.

The contracts are often for three months. You cannot give anyone else an agency to sell your house or even sell the house yourself during the period of an exclusive agency.

An exclusive agency means that a commission is payable to the Real Estate firm even if someone walks in off the street without an introduction from the agent, loves the house and you discuss and agree on a price. You may have done all the work but the agent is still entitled to a commission.

It is important that an exclusive agency is formally ended in writing to avoid any disputes about commission payments on the sale of your home.

Check what the agency agreement entitles you to. Often advertising costs can be extra.

An agent is always happy to meet with you to discuss the marketing of your home. In Gisborne we have the following firms:
 
 

General Agency

This is simply an agreement with a Real Estate firm to market and sell your home. You can list your home with as many different real estate firms as you may wish.

The main difference between a general agency and an exclusive agency is that the agent must be involved in the process of the sale of your home to be entitled to a commission on the sale. This may simply involve an introduction to a potential buyer (perhaps through an Open Home) or a close involvement in the negotiation process.

If someone walks in off the street and you negotiate the sale yourself then no commission is payable.

The land agents may try to convince you that an exclusive agency is better but houses on a general listing sell too.

Check what the agency agreement entitles you to. Often advertising costs can be extra.

An agent is always happy to meet with you to discuss the marketing of your home. In Gisborne we have the following firms:
 
 

Auction

A house to sale by auction does not have a sale price listed. The plan is to let the market decide the property’s worth.

An Auction is useful if you have a property in a desirable area or with desirable features. A house by the sea or with sea view is very popular at the moment and can command impressive prices at auction. If you have two (or more) people interested in your house the bidding can be very lively – and lucrative!

This is a more expensive option. In addition to the sale commission payable the vendor must pay an auctioneer’s fee and the advertising associated with the auction. The advertising is usually intense with lots of print advertisements and several Open Homes. This is designed to generate interest in the property.

On Auction Day

Before the Auction the agent and auctioneer will discuss a reserve price for your home. This is the minimum price that you would be prepared to sell your home.

Once bidding reaches the reserve price the house is on the market and can be sold. If the bidding does not reach the reserve price the property is passed in and is unsold.

Up until the reserve price is reached the auctioneer may give a “vendor bid” which they will announce as such. This is designed to generate interest and particularly if there is only one bidder from the floor.

Sometimes negotiations following an auction can result in a sale. The vendor may agree to reduce the price or accept a conditional offer.

Only cash buyers can bid at auctions as once a house is sold at auction it is an unconditional sale. There can be no conditions as to finance or further inspection of the property.

Once the auction is concluded the purchaser must immediately provide a deposit of 10% of the purchase price.
 
 

Tender

A tender is similar to an auction in that it is a silent auction. The other bidders do not know who else is bidding or how much they have bid for the house.

Like an auction you are not setting a price for your home

An advantage of a tender is that bids are confidential. They can also be conditional – on finance, on the sale of the purchaser’s own house, a Land Information Memorandum or other reports on the property. You are not limiting yourself to cash buyers with unconditional offers.

All the tenders are placed in a sealed box until the expiry of the tender. The agent will bring the box to you to open together and consider the offers. You can accept any offer or none of them. Sometimes further negotiation is undertaken to complete the deal.