Costs Involved In Property Sale Other Than Wellington Realtor Commission

As the housing market of New Zealand maintains its hot streak, the debate rages over whether realtors are making easy money via commissions and whether homeowners are more competent to opt "for sale by owner" (FSBO) approach. However, a new study by the Real Estate Institute of New Zealand (REINZ) has disclosed that homeowners who enlist the Wellington Realtor services can anticipate selling their homes by an average of 15% more than those who sell privately.

Real estate commission lies somewhere around 2.5% to 3.95% of the sale value up to the initial payment of $350,000 to $400,000, then 2% to 2.5% on the price paid over that, according to Agent Finder NZ, New Zealand's realtor vetting service provider. If a realtor works for a real estate agency, the commission split is 50-50 among the agent & the agency they work for. However, the commission portion can be more for more established agents.

You shouldn't be confused between additional charges and the commission of a realtor. Many are not aware of how real estate agents work, and how they are calculated? Though their fee is pre-negotiated around a few percent of the price you paid, some agents offer you a flat-free commission service. It is equally important to understand that the commission you paid is split between 2 distinct agents: the listing one, and the buyer one.

On a simple note; property sellers pay the charges for both of them. However, if you are not paying any commission charge other than an additional cost, you are still responsible for closing the deal.

Though, apart from the commission fees, there are distinct other costs that homeowners require to factor in when selling their homes. These comprise:

Charges Home Sellers Need To Pay Other Than Paying The Commission To Their Wellington Real Estate Agent

We suggest you keep reading this; we have covered the few terms that describe the actual understanding of real estate agent commissions.

Advertising Expenses

To come in contact with suitable buyers, homeowners have to market their homes. This marketing or advertising can set them back somewhere around $600 to $10,000, subject to the marketing campaign they choose to run. A standard marketing campaign package, however, typically varies from $1,000 to $2,000. The homeowner directly pays marketing/ advertising costs to the advertiser with the invoice addressed to the seller or the realtor.

In consonance with Agent Finder NZ, some real estate agents pay the advertising cost from the commission paid on an unconditional sale. While some also present advertising expenses complementary.

Administration Fee

Wellington Realtor usually charges an administration fee of approximately $500. This is on the commission's top, depending on the selling price's percentage.

Transaction Charges

When you sell a home or any property, you are required to pay transactional costs, which are similar to the value you incurred at the time of property acquisition. This includes the stamp duty & property registration charges and is generally split among the buyer and the seller.

Full Market Valuation

A full market appraisal can lie somewhere roughly $700 and is payable right to an independently appointed registered valuer via a receipt addressed to the seller. The valuation needs to be addressed to the seller if they require it as a future reference.

Auctioneer Fee

Homeowners planning to sell their house via auction are required to pay around $800 as a fee, usually paid upfront once a listing authority has been signed. You may find a few listing companies that do not charge any auctioneer fees. A striking point worth noting is that real estate companies in New Zealand have various structures for charging commission fees & other expenses, including advertising expenses.

However, the charges are often negotiable, so sellers can negotiate the fees ahead of signing any agency agreement. Wellington real estate agents must also furnish homeowners with an accurate market appraisal, which defines the commission fees & other costs that sellers require to prepare for.

The Bottom Line!

If you always thought that homeowners only had to pay the commission to sell their home, hope this blog popped up your illusion. Homesellers are required to pay various other charges when selling their home. It's just that a realtor helps them get the best price possible for their homes.

Whatever queries you have in mind or are having difficulty with, just contact Okros Real Estate agents. The remarkable years of experience, skill, and negotiation skill makes us stand out. We hope you are getting the best solution.