More buyers return to the property market as the new year begins! Is this summer the best time for homeowners to sell?

We have recently heard from several sources that, with the Christmas and New Year holidays barely over, many buyers have already started house hunting. Agents say there are plenty of listings to choose from, and large numbers of buyers, particularly first-home buyers, have flocked to their open homes. To their surprise, they are much busier than they were before the holidays in November last year. Buyers are currently very sensitive to price. In Auckland, entry-level properties priced at around $800,000 are more likely to attract their attention.

 

So, as a homeowner, are you planning to sell a property this summer? In this article, we explain how property transactions work in New Zealand, the different ways to sell and how to market a property effectively.

 

 

How property transactions work in New Zealand

 

In New Zealand, the vast majority of sellers use a real estate agency, with only a small minority selling privately. The law requires all real estate agencies and salespeople to be licensed under the Real Estate Agents Act 2008 and to conduct transactions under the supervision of the government regulator, the Real Estate Agents Authority. The government has also issued a code of conduct to ensure practitioners uphold professional ethics. During a sale, the salesperson markets the property and negotiates with buyers on the seller's behalf. The seller is responsible for paying a commission calculated as a percentage of the sale price.

 

How to choose the right real estate agent

 

The salesperson will market the property and negotiate with buyers on the homeowner's behalf, so choosing the right person is an important part of selling. An agent can also take much of the burden off the seller throughout the transaction. This includes providing a market appraisal before the sale, advertising the property to attract potential buyers, handling enquiries, arranging open homes, negotiating the price with buyers, arranging settlement and offering professional advice throughout. So how can homeowners find the agent who best suits their needs? Here are four suggestions:

 

Tip 1

Shop around

Try talking to different salespeople. Ask about their particular skills, current market conditions and how they would market your home. Every salesperson should have the professional knowledge to explain clearly which method of sale would best suit your property.

Tip 2

Check the agent's sales record and reputation

How can you assess an agent's ability to sell? Look at measures such as their sales performance over the past 12 months and the average time they take to sell a property. Asking friends or using other channels to find out about their reputation is another good way to learn more.

Tip 3

Understand how long properties currently take to sell

It is also essential to research the average time it takes to sell a similar property in your area so you know what to expect. If you need to buy another home as well as sell, planning the timing of both transactions becomes even more important.

 

 

How should you choose a method of sale?

 

The main methods of selling property in New Zealand are auction, negotiation, tender and sale with an asking price.

 

Auctions suit properties in strong demand and are more likely to achieve a high price when the market is buoyant.

 

For a sale by negotiation, the property is advertised with a stated price, a price range or a price by negotiation, inviting buyers to make offers. This method allows buyers and sellers to negotiate the price.

 

A tender creates a greater sense of urgency. Setting a tender deadline can increase urgency and competition among buyers, ultimately securing a higher sale price for the seller. It is a confidential sale process in which buyers must submit an offer for the property within a specified timeframe. Some properties are particularly suited to sale by tender. For example, a trust-owned property may require consultation with several parties before it is sold, or a property may require buyers to carry out due diligence before making an offer. A tender imposes no price limit.

 

Selling with an asking price suits some properties that have been on the market for a while, where the owners understand the market and can set a reasonable price.

 

Why is an auction the best way to sell?

 

Around 60% of property transactions in Auckland are currently completed through auctions. So what benefits can an auction offer homeowners? An auction is a direct and effective way to sell a property, maximising competition among buyers to help the seller achieve the best price available in the market. Here are some reasons to choose an auction:

 

1. It can help sellers sell quickly. The entire process can take as little as four weeks. 

2. Buyers attending an auction are ready to purchase. If the sale is unconditional, there are no complicated conditions or delays. 

3. It can create urgency and competition among buyers, ultimately achieving a high sale price. 

4. An auction has no price limit. Before the auction begins, sellers are free to consider offers received ahead of the auction date. 

5. The seller remains in control of the auction, setting both the reserve price and the settlement date.

 

Summer is traditionally the peak season for property sales. So what should homeowners prepare before selling?

 

Property documents: When selling a property, all relevant documents need to be ready for buyers to use when applying for a mortgage and arranging insurance. The buyer's lawyer will also need to read documents such as the LIM report carefully to understand the property's circumstances.

 

The property's condition: Sellers need to consider in advance whether the property is in good condition, where repairs are needed and whether some renovation would add value.

 

Pay attention to summer details such as the garden and swimming pool: Many sellers focus only on the value of the house and land while overlooking the home itself, particularly visible features that can be improved without spending much. Tidying the garden and swimming pool is essential. Pruning trees and clearing rubbish can also help lift the sale price. For buyers, the first impression at an open home is very important.

 

 

For today's topic, we also interviewed several experienced property advisers from Barfoot & Thompson for their exclusive insights into selling a home in summer.

 

Annie Yong Mewburn 

Greenhithe Branch

 

Linda Teng

Milford Branch

 

Q: Is summer the best time to sell a home?

 

Annie Yong Mewburn：In my view, summer is a good time to sell. Without bad weather, homes look more appealing in this season.

 

Linda Teng：Generally speaking, summer should be the best season to sell a home in New Zealand. Better weather makes potential buyers more enthusiastic about viewing properties. Psychologically, buyers tend to have a more positive attitude, and good weather and sunshine make it easier for them to find a home they like. By contrast, when the rainy autumn and winter seasons arrive, people are reluctant to go out and open homes tend to be quieter.

 

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Q：Should you renovate before selling?

 

Annie Yong Mewburn：Today's high interest rates make it difficult for buyers to obtain mortgages, and many will have used up their available cash after purchasing. This means renovating before selling makes a property more attractive and appeals to more buyers.

 

Linda Teng：Some simple improvements before selling are essential. For example, if the deck has faded, a fresh coat of paint can make it look new again. Sometimes it is worth considering changing the colours inside too. Once the owners move out, they can also consider hiring furniture to give the home a lived-in feel. For homes I have sold, for example, I have used staging companies to provide stylish beds and sofas, which can add considerable appeal. If the property has been rented out for a long time, a more comprehensive refresh becomes even more necessary.

 

Q：Can you sell a home while tenants are still living there?

 

Annie Yong Mewburn：A tenanted property can still be sold, but the seller needs to discuss this with the tenants and encourage them to keep the home tidy. This can effectively reduce lost rental income while the property is on the market.

 

Linda Teng：You can sell a tenanted home. Many properties I have sold have had tenants. However, sellers need to be aware that, following the introduction of the new tenancy law, the seller, buyer and tenants need to agree on the settlement date. The law requires settlement of a tenanted property to take place more than 90 days after the sale and purchase agreement becomes unconditional. Owners also need to communicate with tenants in advance of open homes. Both properties I am currently handling are tenanted. In fact, as long as communication is good, tenants are generally very cooperative.

 

Q：What other tips do you have for homeowners selling in summer?

 

Annie Yong Mewburn：Tidy and clean the house, clean the carpets, replace lights, remove as many belongings as possible and use less furniture to make the home look more spacious.

 

Linda Teng：My advice to homeowners planning to sell this year is that New Zealand house prices were adjusting throughout last year, and with the new year only just beginning, we do not yet have the latest feedback on market prices. Homeowners who want to sell quickly therefore need to meet the market. If they still have very high price expectations, selling will be more difficult. They also need to discuss their circumstances with their agent and develop the most suitable advertising and sales strategy, considering whether to sell by auction, negotiation or tender.