Private Sales 23 Per Cent of the Property Market

14 June, 2006
CORRECTION, FOR IMMEDIATE RELEASE

A press release issued by HomeSell yesterday announced 23 per cent of real estate sales in New Zealand are being made without a real estate agent. HomeSell confirms QV was not the source of this figure.

HomeSell managing director Kirsty Gillespie says the information was taken from a media article published last weekend which compared the total number of real estate sales stated by REINZ, with the total number of property sales quoted by QV, and concluded the difference of 23 per cent as being private sales.

QV says it is difficult to quantify the exact number of private sales each year as the information is not recorded at the time of a sale and the total property sales quoted by QV includes not only residential but also farms, commercial, industrial, rural lifestyle and house-and-income properties.

Ms Gillespie was interviewed on Saturday and estimated the number of private sales to be close to 15 per cent having almost doubled from eight per cent in 2001.

For immediate release
Tuesday, 13 June 2006

Private Sales Now 23 Per Cent of the Property Market

Recent QV figures show 23 per cent of real estate sales in New Zealand are being made without a real estate agent, saving home owners an average of about $15 000 in real estate agent fees.

Kirsty Gillespie, Managing Director of HomeSell - the country’s largest and longest running private sale property company - puts this growth down to three factors; more affordable advertising, seller success and New Zealanders’ increased access to the internet.

“The internet has meant that real estate agents are no longer the gatekeepers of information,” says Gillespie.

“Buyers don’t want to waste their time looking at properties that are unsuitable or be bothered pursuing agents who are cagey about stating the price.

“The HomeSell website is easy to use with lots of photographs allowing buyers to research a lot of criteria that are important to them on line. This means that potential buyers are well informed and motivated before they even step foot in the door,” she said.

Gillespie agrees with Howard Morley from the Real Estate Institute that achieving a successful private sale is more than just a good website.

“We also offer affordable colour advertising in regional HomeSell papers, full colour street signs, open home signs, flags and brochures. This means that buyers have a number of ways of finding out a home is for sale. The advertising has consistent proven success, and with most packages costing an average of $1000, this seems to be the main reason home sellers are now choosing to sell privately.”

While real estate agencies charge up front marketing costs and take a commission on the sale, HomeSell does not charge a commission.

“When I started with HomeSell in 2002, private sales made up less than 10% of the total market. I set my goal on doubling that in the next three years so I’m very pleased but not surprised to see the high proportion of private property sales” says Gillespie.

“If a seller presents their home as well as they can and is asking a fair price then with our help they are very likely to achieve a successful private sale.

Just think what you would do with $20 000 saved in real estate commissions.”

ENDS

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