In our previous blog post, we covered some of the procedural matters that need to be addressed when listing a property for sale. In particular, our article focused on what we considered to be a necessary part of the dialogue between agent and vendor. This is, of course, a two-way process with the agent finding out as much information about the property as possible and the vendor having the sales process and selling options spelt out to them. This is also a time when vendors must be given a clear understanding of their responsibilities with regard to any warranties they make relating to the state of repair and integrity of the property they are selling.
The listing agent’s responsibilities are many and varied; we will touch on the items that we consider to be the minimum standards expected of a competent agent operating under NZ real estate legislation. The agent:
- Must get to know the property intimately so they are in a position to make accurate, confident representations to potential buyers. This knowledge is gained through discussion with the homeowners and by personal inspection of the property.
- Must carry out a thorough assessment of the property and read sales data pertaining to recent past sales of similar properties in a similar location. From this exercise, the listing agent can then prepare a Comparative Market Analysis (CMA) for the vendor and provide them with an estimate of the likely selling price range. This is probably the most important function in the sales process as setting the price range at the correct level is vital. Aim too high and the property is likely to languish on the market. Conversely, price the property too low and the vendor may undersell.
- Should recommend to the homeowner that they give a price indication to buyers e.g. buyer enquiry welcome from $500,000. Advertisements without a price indicator frustrate potential buyers and can turn them off.
- Needs to prepare advertisements. These may be for the print media e.g. Tommy’s Lifestyle Magazine, or for various website advertising options. Those most commonly used by Tommy’s are tommys.co.nz, Trade Me, RealENZ and NZ Realtors. These offer a comprehensive coverage at minimal cost. Advertisements should show off the property to best advantage, but not contain exaggerated information or puffery.
- Should arrange for professional photography. Care is necessary to ensure that any camera work is carried out in good weather conditions and when the sun is in its optimum position.
- Must obtain a Certificate of Title and perhaps a Land Information Memorandum (LIM) report.
- Will discuss security with the homeowners. This applies to both the property and to its contents.
- Should discuss the presentation of the property. First impressions are important after all!
- Will provide and explain copies of documentation the sellers will need to read and understand during the sales process. Firstly the listing documentation, and then the standard Agreement for Sale and Purchase.
- Should contact potential buyers from their database. All Tommy’s agents have a database of buyers they are dealing with, these are often buyers who have been following the market and are waiting for the right house to become available.
- Must provide the homeowners with a copy of the Real Estate Authority’s Agency Agreement Guide and supporting material, and refer them to the REA website for further general information about selling a home.
Additionally, your Tommy’s agent will arrange for a group inspection by all the selling agents attached to their office. This ensures that they each have an appreciation of what the property offers to a potential buyer and enables them to individually represent the property in the best possible manner.
Team work is vital in giving our vendor client’s maximum exposure for their property thereby gaining the best possible sale price. After all, that is our prime objective.
If you are thinking of selling your property or simply wanting to know more about the process of selling one. Talk to our experienced agents and get a FREE market appraisal from us.