pleccy2000

In NZ, when selling your house, how much money does the Real Estate agency take? For example if a house sells for $650,000 – how much money does the vendor actually get after all expenses etc?

Cheers

Addictedtosushi

Too much they are robbing thieving b******s. Don't listen to the bull that they give you typical quote "I work hard for my money".

I also work hard for my money but their fees are daylight robbery!!

Horrible Horrible people!!

MrsFychan

Wellington Real Estate Fees, Agents Fees, Real Estate Commission

The amounts charged by agents in the Wellington region are not set by law. The "official" line is "Commissions can vary from one agent to another, so you may want to compare them. You can also negotiate on the amount or rate of commission to be paid".

Our research shows that real estate fees / agents fees / real estate commission in the Wellington region are generally in the vicinity of 3.5% of the first $400,000 and then 2% thereafter. A base fee of $500 is charged regardless of the sale price. GST is also charged on the above percentages and fees*.


taken from http://www.realestatefees.co.nz/index.php?c=2

that was back in 2008 so might well be way out of date

pippalonghorn

Wow. I think we're all in the wrong jobs!

MrsFychan

this might be more up to date but covers Auckland but should give you a ball park figure

Selling Price
$200,00 $9,518
$300,000 $14,042
$400,000 $17,485
$500,000 $20,424
$750,000 $26,767
$1,000,000 $33,122
$1,500,000 $45,833
$2,000,000 $58,544
$3,000,000 $83,966

taken from http://www.barfoot.co.nz/Residential...ion-Rates.aspx

britsinnz

We recently sold our house ourselves, thus saving approx.$28,000, and it felt wonderful. I couldn't believe that the agent's charges don't include photography and marketing, so we took a chance. One thing I found out is that the Dom Post publish a property guide (In Welly it's on Saturdays) and you can pay to have an editorial, either half page or full page. They will come and write a piece on the area you live, the house itself and take photos and stick you on the front page of the property guide, and it is less than the appallingly high rates an agent wanted to charge us for marketing. It is still expensive but worth it. We were about to do it when a buyer turned up, so didn't need to. We will always sell our house ourselves from now on, it is easy to get open house signs and flags online.

chocolate cake

Well done, can't believe more people don't do that, the fees here seem horrendous, and it's difficult to see what the they do for their money with so many properties going to auction.

TommyLuck

It's a fair assumption and one I made myself.

I'm not an estate agent, but have bought. As recently as last week.

Whilst things are going to auction, it's worth remembering that it's a sellers market because of the LACK of housing available, which is a large reason for auctions.

So estate agents have less property to sell, so overall they're no better off in the current market as they would be in a buyers market with more houses going at lower values. They would argue they might be worse off ... Still earning a reasonable penny, one would think.


If you wanted to become an estate agent and earn the mythical mega buck there's nothing stoping you, just be prepared for some strange hours (weekend open homes) as well as stupid amounts of paper work and buyers haggling over $5k on a property worth hundreds of times that.

I've come to realise its a pretty shit job.

They should also be commended for being as transparent as they are about their commission structure (at Barfoot).

Right, enough of the love in!!

lardyl

yeah when you see the individual agent's names splashed over signs, flags, flyers, etc then you know that they have got us for mugs.......

TommyLuck

And faces ...

lardyl

you pay more for that......
can't be too hard on em as a couple of my mates are in that business......

TommyLuck

You make a good point.

They are people after all, just earning some coin than the rest of us.

Frankly, I wouldn't be tempted by what (I assume) they earn to do what they do.

We think they're morons, imagine what some of their clients much are like


Speaking from recent experience;

The place we bought went to auction and got to a price of $20k less than what we bought it for.

We were interested but found other things to look at, so didn't partake in the auction.

Things fell through for us, and so we revisited this place and to our surprise it was still on the market. The vendors didn't want to take the price it go to at auction and negotiations were held between two potential buyers and the vendor.

We bought the place at the vendors asking price, the other bidders haggling over $5k for per 3 weeks.

Incidentally, a similar property sold for $55k more than we bought for literally across the street, so we THINK we've got a reasonable deal. Time will tell.

The relief in the agents voice when we offered the asking price was palpable after dealing with the bidders who were moving at a glacial pace, by all accounts.

pleccy2000

Thanks! I think I would sell a house myself. Everyone I know just looks on Trademe for the new listings daily then go to the open home if they are interested in a viewing. I don't really understand why I would choose a real estate agent if were selling a house. The internet has made slightly less necessary?

Curious... how much does the Real Estate company get and how much does the agent get?

Let's take the example above
$750,000 $26,767

of the 26,767, who gets more the company eg Leaders or the indvidual agent?

moonie2011

Sort of the same subject, does anyone know a rough price for solicitors etc when buying a house, thanks

MrsFychan

we had a fixed fee with our solicitor and we enlisted her on one property and in the end bought another. she told us that it did not matter how many properties we went through the price was the same. we got her through mortgage broker and would highly recommend her. I'll dig out the costs and let you know