Home-owners who use a real estate agent to sell their home can expect to get 10 percent more for the property than they would by selling it privately, new research shows.
Analysis of agent and private sales by the Real Estate Institute of New Zealand and OneRoof.co.nz shows there has been a huge decrease in the number of people choosing to sell their home without an agent in the last five years.
REINZ defined private sales as those not sold by a REINZ member i.e. a member of the public selling privately or a real estate agent who isn’t a REINZ member. In 2014, private sales made up 17 percent of all residential real estate sales in New Zealand. That figure dropped to 13 percent in 2017 and to just 10 percent in the year to July 2018. The REINZ data showed that the median sale price achieved through an agent sale was 10.9 percent above that achieved by a private sale. REINZ CEO Bindi Norwell said: "Although this does not take into account the state of the house or off-plan developer sales, it is still a significant difference.
"Even when commissions and fees are taken into account, the sale price shows a better return for the vendor when using an agent."
The region with the biggest gap between agent and private sale prices in the year to July 2018 was Marlborough, where the median agent sale price was $425,000 - 28 percent above that collected by private sales.
Wellington recorded the next highest premium, with the median agent sale price 20 percent higher than the median private sale price - in dollar terms almost $100,000 higher. The premium in Auckland was 6 percent for the year to July 2018, and 7 percent in Christchurch. Just two regions saw agent sales lag behind private sales: in Southland, the median private sale price was 5 percent above the median industry price, while in Taranaki the premium for private sales was 10 percent. Bayleys national residential manager Daniel Coulson says sellers are more inclined to hire agents in a less than buoyant market.
“When there is less urgency for people to purchase, would-be sellers realise the importance of having an agent who will work to secure the sale rather than waiting for the buyer to turn up,” Mr Coulson says.
Higher premiums on sales could also be behind the rising popularity for home owners to partner with agencies.Mr Coulson believes regional markets have done particularly well because many homes are sold through auction, an option typically only available to agencies. “And when you talk about marketing a property, there are certain avenues that only agents have access to whether that be online or in print,” he adds.
Ms Norwell says the negotiating process is also something that home-owners may not feel comfortable with. “Selling privately works perfectly for those who have the time, inclination, expertise, understanding of the regulations and patience to do so, however, for busy families, those without strong sales and negotiation skills or those who just don’t understand the regulatory environment, then it might be better to utilise the skills an agent has.
“Selling via an agent also enables vendors to leverage the breadth and depth of an agency’s expertise, technological capabilities and presence across a number of markets.” OneRoof.co.nz editor Owen Vaughan added: "Selling a home can be one of the most stressful and emotional things a person can do, even with an agent doing the hard part of marketing and negotiating with potential buyers."
Mr Coulson says that those who think selling privately will result in savings, because they no longer have to pay commission to an agent, fail to take into account that their buyers will be thinking the same thing.
“The seller thinks they are saving money by not having to pay commission whereas buyers immediately take off that price before they make an offer,” he says.
It takes buyers and sellers to make a market and right now commercial property in North Canterbury needs sellers.
Unlike Christchurch, which saw a surge in new office space after the 2011 earthquake, growth of commercial property in North Canterbury has been comparatively slow. This is despite large-scale residential projects that continue to swell the local population.
NAI Harcourts commercial and business consultant Malcolm Campbell says investors looking for commercial property in Rangiora, Kaiapoi and surrounding areas now clearly outnumber listings on the market.
“We’ve got people with money who want to buy a building around the $1 million to $3 million mark with a good return on investment. But we just haven’t got the stock to sell them. “So, if people are looking at selling, give us a call and we can set you up with a buyer. There are a lot of opportunities,” he says.
The merger between Harcourts International and NAI Global in 2009 has given property owners who list with NAI Harcourts access to a wider pool of investors. Malcolm says these include many in Australia who, like others in the market, are being spurred to seek out investments due to the current low interest being earned on bank deposits.
Previously known as Twiss-Keir Realty, the company has expanded in recent years to include offices in Rolleston, Hornby and Lincoln as well as those in Rangiora, Kaiapoi, Hanmer Springs, Belfast and Shirley (The Palms).
To discuss opportunities in commercial property, contact one of our eight offices on 0800 789 1011 or find us online at harcourtsfourseasons.co.nz.
With Spring well underway the local Real Estate Market is continuing to perform in a strong steady manner.
The just released REINZ figures relating to the September sales show us there were 511 residential properties sold in Christchurch City during the month of September.
The median sale price achieved was $452,500 with an average sale time of 36 days on the market.
The sales volume is up 7% on the same time last year and marginally down on the sales volumes reported for August, creating the very steady market I have been referring to for so long now.
Overall the volume of sold properties is tracking at expected and anticipated levels, and as a result this type of market favours neither the buyer or the seller, but what it does do is show case the Sales consultant who isn’t working and trying a bit harder to get results for all those involved. This type of market highlights the benefits of working with the active, high profile sales consultant who relish’s a bit of a challenge.
In terms of property values, the median sales price of $452,500 while up on previous months is identical to the reported median recorded in September 2016. This is not surprising to me and is yet another strong indicator that prices and values in Christchurch have remained very flat over the last couple of years. Something we have been commenting on for a while now. This is an important point to note, for sellers who purchased in the last few years and who are now looking to resell their property for whatever reason. Capital growth has not occurred to the average property in the last couple of years unless it has had significant modifications.
Harcourts offices in Christchurch during the month of September have seen a big increase in newly listed property as the “traditional spring activity lift” kicks in.
Once again this is normal and anticipated, at this time of year (as well as hoped for).
This increased availability of stock will no doubt flow through into sales and sold properties over the next month or two, provided property owners are realistic in their expectations. There is no doubt that there are plenty of buyers available in the market place, however they are very certain of where they see value in the current environment. It is an exceptional situation now that sees buyers prepared to pay almost “anything” to secure their chosen property. Instead with this balanced market and plenty of newly listed property available, a lot of buyers will simply move on to the next property that catches their attention where they believe the owners expectations are unrealistic.
Auction numbers continue to build again across the region and attract a lot of interested parties into our Harcourts Auctions Rooms. In fact, the auction room is a great environment to see exactly what I have just referred to played out in real life. We are seeing good numbers attending our auction rooms, but sometimes for no apparent reason the Auction clearance rates are coming through erratically. We know and can see interested parties sitting in the room, who are choosing in some cases not to bid to high or in fact decide not to bid at all, but then find themselves involved in a multi offer process immediately after with other potential buyers. It is making for interesting times at the moment for all concerned.
The need for well-trained, well resourced, sales consultants who can do more than just breath, at the moment is more important than ever. Equally having access to a large number of them who all have potential buyers on their books is vital for you to achieve a good result in this current market. I’m sure you won’t be surprised to hear that your local Harcourts office provides such people. Give them a call there is a reason why the vast majority of people in Christchurch choose to work with Harcourts.
Harcourts New Zealand in conjunction with the Harcourts Foundation have been named as the exclusive real estate partner for Plunket New Zealand.
Being New Zealand’s largest and most trusted real estate brand, Harcourts offers Plunket the base and network to build and support communities at scale; which was one of the key factors in being named the exclusive partner ahead of other competitor real estate brands. In addition to the national brand partnership, through a network of 194 offices across New Zealand, there is a huge opportunity for the local Harcourts offices to work with the local Plunket centres to support their communities.
We have seen this work first hand through our national partnership with Hospice New Zealand and we have found that local connection is one of the most important ways to succeed; as Harcourts teams see the impact of their contributions first-hand. We are thrilled to be able to extend this further throughout the community.
We are honoured to be able to partner with the largest provider of free support services for the development, health and well-being of children under five in New Zealand. It will be great to see the positive impact of this partnership which will enable donations to be made to Plunket through the Harcourts Foundation.
Serving approximately 85-90% of kiwi families, it is easy to see how what we do together can achieve great outcomes for so many New Zealanders. Exciting times are ahead.
There is no doubt that Spring has come early to the Property Market in our city, with the release of the REINZ Sales figures for August.
Sales volumes have leapt up yet again from the low levels experienced in July. August showed that there were 539 Property Sales in the City in August, up by a massive 21.6% over the previous month.
At the same time, there was a small recorded lift in the Median Sale Price to $440,000.00. This lift in volume has occurred slightly earlier than normal but was expected (probably more so in actual September). The reason as I said is simply because Spring has come early. The good weather we have been experiencing and warm temperatures have brought the sellers and more buyers into the market a little earlier than expected.
Our Christchurch market remains solid and steady with prices staying consistently steady as well. The days on market have remained constant at a 37 day average for a few months now. As a consequence, writing this report can almost be repetitive.
The lift in the median sale price, I think is a reflection of more sales activity in the top and the market rather than any real price movement, as long-term results show the median sale price has for many months now consistently hovered in the $440,000 plus or minus $5000 range.
Here at Harcourts we are seeing a lot more new stock coming into the Market and as we have said many times these has always been a good base of potential buyers waiting in the wings over winter for freshly listed property to be available, and its obvious those buyers are ready to purchase well priced new listings.
Our industry will have some new legislation changes to grapple with over the coming months with the introduction of changes to the Overseas Investments Act essentially coming into play mid-October – in layman’s terms that is the ban on foreign buyers.
Then from the 1st January we will have legislation around Anti-Money Laundering that we will also need to comply with, requiring us to verify the identity of our vendor clients.
I can only stress if you are in any part of the Christchurch Real Estate Market you need to be working with the best professionally trained and most current Real Estate Company to ensure there are no legislation issues, regardless of whether you are a buyer or seller.
I also know that that Company is Harcourts – Give us a call!
We know Christchurch, We know our Market and We Sell most of it! Its our job to look after you and help you get the sale you want.
Jim Davis - Harcourts South Island Regional Manager
While listings in the city are low even after accounting for the winter doldrums, surrounding areas are picking up the slack with activity spurred on by lower prices, lifestyle options and roading upgrades that are set to further improve prospects for commuting.
Rising alongside these markets is a Harcourts franchise that has grown from its Rangiora roots to double in size over the past three years.
Now, Harcourts Four Seasons is adding an eighth office, in Lincoln, and from this month will have 100 salespeople in a sweeping territory that runs from Hanmer Springs to Rakaia.
The company was set up as Twiss-Keir Realty in the mid-1980s but earlier this year moved to new branding with the takeover of the Harcourts Four Seasons offices in Hornby and Rolleston.
Co-owner James Twiss says about 40 per cent of business is still in Christchurch, where they have three branches, but the energy and growth prospects of the market are a step beyond the urban fringe.
The area around Woodend is looking like “the next Rolleston” and it will be interesting to see if the local council supports industrial expansion alongside subdivisions Ravenswood and Pegasus, he says.
Lincoln is also seeing strong growth and last month’s announcement Canterbury and Lincoln universities might merge is the latest sign of closer economic ties between the city and satellite town.
However, it’s the new motorway networks that is underpinning much of the residential expansion at the moment, Twiss says.
“We noticed it almost straight away when we joined with Hornby and Rolleston from Rangiora. There was a really strong crossover of buyers who were looking both north and south of the city.”
The realisation buyers were after a lifestyle more than a particular location was like discovering a new market, Twiss says, one where traditional notions of distance were being collapsed by highways like the Western Corridor, which skirts the city from Belfast to Hornby. Further motorway upgrades are on the way for Rolleston and the north of the city, which will see a third major passageway open with the Cranford St bypass.
Twiss says Rolleston is further along the growth path, leaving some of the best capital gains potentially in the area north of Kaiapoi.
Harcourts Four Seasons is well-positioned for an overview of the market, being the only real estate firm covering all areas around the city. Its model of close internal networking, wherein any sales agent can show and sell any home listed with the group, also works to its advantage in the geographically diverse yet connected market.
“People who list with us get huge exposure,” Twiss says. “We’re now really looking forward to bringing some more competition to the Lincoln market.”
Six salespeople will initially be based at the Lincoln branch, including some who have always lived in the town but until now have worked from other offices.
“We’ve got a big brand with a proven record, and now we’ve got the whole Canterbury-Christchurch area covered. We’re the only ones doing that,” Twiss says.
Call the Harcourts Four Seasons Team on 0800 789 1011 or visit harcourtsfourseasons.co.nz.
Twiss Keir Realty bought fellow Harcourts franchise Four Seasons last November, incorporating offices in Rolleston, Hornby and Lincoln (opening soon) into a long-running operation that now has eight branches reaching as far north as Hanmer Springs.
We are the largest property management company in North Canterbury with personalised service from local Property Managers who know and live in the markets they work in. We have six property managers plus three support staff - so you can be assured there is always somebody on hand taking care of your business.
With so many changes to legislation surrounding rental properties at present you need a team of dedicated and experienced Property Managers to navigate these changes and ensure you are not at risk of breaching tenancy law.
Harcourts.co.nz has more traffic than any other real estate company, therefore we have more eyeballs on vacant properties,
giving you the best chance to rent your property.
We specialise in sorting out difficult managements so if you have problem tenant or a property that is not renting come and see us and we will straighten up what needs to happen to rent it out.
Let us keep a really close eye on your investment. Talk to one of our friendly and experienced team today on 0800 789 1011 or 027 202 4472. Better Local Property Management.
... even as listings dipped in the city, indicating the “untapped potential” of surrounding areas is starting to be realised, one of the region’s top realtors says.
James Twiss, co-owner of Harcourts Four Seasons, oversees eight offices spanning the area from Hanmer Springs to Lincoln.
About 40 per cent of the company’s business is in Christchurch, and Twiss says while listings there are about eight per cent down on this time last year, activity outside the city has shown no sign of the usual seasonal slowdown.
The area encompassing Kaiapoi, Woodend, Ravenswood and Pegasus is now looking like “the next Rolleston” and offers a lot of potential for people getting in early, he says.
“There’s a lot of value there that I don’t think people have properly understood yet. Historically, if you were picking residential property in North Canterbury you would be looking at Kaiapoi and Rangiora but that’s widened a lot.
“What’s happening is all the transport links are opening up, and the council is focusing a lot of its growth attention into that corner.”
Twiss says commercial investment and jobs would likely follow the population, which would in turn help drive capital gains for the area's current homeowners.
Commuting into Christchurch for work will also become more attractive as transport options continue to improve, he says.
In a little over a year, there are due to be three major routes into Christchurch, with the Cranford St bypass joining passages along Johns Rd and Main North Rd.
“When you’re talking about growth, it means the jobs don’t need to be on your doorstep,” Twiss says.
Harcourts Four Seasons is well-positioned for a wide overview of the market. Having expanded last November to incorporate offices in Hornby and Rolleston, the team formerly known as Twiss-Keir Realty gained a territory that sweeps from its North Canterbury base, around and through Christchurch, out to Lincoln and Rolleston.
They soon noticed many buyers were looking for homes both north and south of the city. “Its eerie how similar it is. It’s like we’re discovering a new market,” Twiss said in May.
He says it now appears the Woodend region is following a similar trajectory to Rolleston – for several years the country's fastest growing town.
Lincoln is also performing well, he says, noting that value for money is a big part of the equation.
In Christchurch, meanwhile, lower-than-usual listings over winter don’t necessarily mean a slump, Twiss cautions.
Rather, the high number of appraisals being done by Harcourts Four Seasons suggests owners are gearing up a for spring listing. This is despite advantages to listing in winter.
“There’s always more competition in spring but the number of buyers is usually the same,” Twiss says.
For people looking to buy, he advises contacting with a salesperson because there are usually properties available that aren’t being actively marketed.
* Harcourts Four Seasons has offices in Rangiora, Kaiapoi, Hanmer Springs, Belfast, The Palms, Hornby, Rolleston and Lincoln (opening soon), as well as a dedicated property management division.
The expansion of North Canterbury’s top real estate firm southwest of Christchurch is fast closing the divide between two of the region’s most prized lifestyle areas. Twiss Keir Realty bought fellow Harcourts franchise Four Seasons last November, incorporating offices in Rolleston and Hornby into a long-running operation that now has seven branches reaching as far north as Hanmer Springs.
It is the largest and busiest real estate team in Canterbury, with 92 salespeople, 40 office support staff and 12 in a property management division.
Harcourts Four Seasons co-owner James Twiss says the expansion was designed to help the business better weather periodic slow downs in the market, with the Harcourts model providing strength in numbers by letting salespeople show or sell any property listed with the company. This emphasis on networking gives sellers the greatest possible reach and lets home buyers access a vast market through a single point of contact.
However, Twiss says it quickly became apparent that connecting North Canterbury with the fast-growing Selwyn District had a value greater than the sum of its parts. In both markets, people were essentially looking for the same thing, he says; modern, spacious homes in safe communities within easy commuting distance of town. People looking in Rolleston were often looking north of Christchurch, too.
“It’s eerie how similar it is. It’s like we’re discovering a new market where we’re able to transfer buyers and sellers across the city. With our structure of offices, we’ve got both sides covered. We’re the only company doing that.”
Twiss says the success of this crossover was made possible “almost overnight” by the Western Corridor motorway, which takes people from Belfast to Hornby and beyond on high-speed roads that are collapsing traditional notions of distance. “There is really good value in North Canterbury and people are realising that. Prices haven’t spiralled out of control, so you might be saving $100,000,” he says.
Harcourts has 470 real estate agents working cooperatively across Canterbury, and Twiss says while this network helps, the emphasis on
family and “good people” is equally important at Harcourts Four Seasons.
Twiss’s father, Geoffrey Twiss, founded the business in the mid-1980s and co-owner Greg Roberts also has numerous family members on the team.
Harcourts Four Seasons has offices in Rangiora, Kaiapoi, Hanmer Springs, Belfast, The Palms, Hornby, Rolleston and a new branch opening soon in Lincoln. Contact information: 0800 789 1011 or harcourtsfourseasons.co.nz.
Good Night Sleep Tight Charitable Trust’s mission is “ensuring that all children in the greater Christchurch area go to bed warm by supplying children in need with winter bedding and sleepwear.”
Harcourts Twiss-Keir Realty Ltd is proud to support Good Night Sleep Tight with a donation through the Harcourts Foundation, which will go towards purchashing 400 new packs that include pyjamas, singlets, slippers, dressing gowns, sheets, duvets, hats and gloves.
No matter what the cause, the Harcourts Foundation provides support to hundreds of organisations, enriching the lives of thousands of people in our communities.
The Harcourts Foundation has been around since 2008, so this year we are celebrating being 10 years-old.
Licensed Business Owner of Harcourts Twiss-Keir Realty
Licensed Business Owner of Harcourts Twiss-Keir Realty