Understand what you’d like to achieve

If there are time constraints to take into account, what house price are you seeking? Are you willing to compromise in order to move on quickly? 

Before starting your home selling process, understanding what you’d like to achieve with it – your needs and wants – is crucial. Keep in mind that even a quick sale involves a time commitment, so be prepared for an intense few weeks.

Work out the value of your home

With so many emotions and factors involved, putting a price on your home can be a difficult decision. Generally speaking, a property is worth what a buyer is willing to pay, but if you’re looking for an estimate, there are several ways to get one.

You can find free online property valuations on websites like TradeMe.co.nz, Homes.co.nz and OneRoof.co.nz. These are usually based on recent sales in the area and other algorithms, so you may want to take them with a grain of salt. 

For a more detailed assessment, you can enlist the help of a professional property valuer or get an appraisal from your real estate agent (if you’re using one). And don’t forget to keep up-to-date with the latest property news in your area.

Get together your support team

According to Trade Me, 6-8 per cent of vendors choose to sell privately. While you can save money on agent fees by going alone, there are also some potential downsides to consider – one of which is that your sale may take longer.

A 2019 Trade Me study found that the median sale time for a private vendor was 58 days, whereas the median sale time for agents was 28 days. The market has changed quite significantly since then, but if selling quickly is your priority, a good agent may still help you sell faster than you could do on your own. Not only do they have valuable market knowledge, but they can also do most of the heavy lifting for you.

And real estate agents aren’t the only professionals who can support you through this fast-moving process. Think of lawyers, valuers, accountants, insurance advisers and of course, mortgage advisers like us. You don’t have to go it alone – there’s expert help available.

Choose a sale method

According to settled.govt.nz, depending on how fast you’d like to sell, time-bound methods of sale like auction, tender or deadline sale may be a better option than selling by advertised price or by negotiation. A real estate agent can help you choose a sale method that’s aligned with your needs and goals, and of course, the local market.

Have your paperwork ready

Selling property is a complex legal process that entails a lot of paperwork. To ensure that your home selling journey flows as smoothly as possible, it’s a good idea to get title documents, LIM report, and other property files ready for buyers. 

Budget for the costs

Besides the real estate agent’s commission (which is usually paid from the buyer’s purchase deposit), there are several costs involved in selling a property, including any renovation and repair costs, advertising costs, property reports, lawyer’s or conveyancer’s fees, and moving costs.

Plus, make sure you check the tax implications with a tax professional. The IRD website has some information to get you started. 

Think about the finance side of things

As mortgage advisers, we can help you understand the key financial considerations of selling your house and buying a new one. Depending on your situation, you may be considering the following options:

• Taking your mortgage with you, keeping the same rate and term without paying extra costs;
• Increasing your mortgage size, if you’re upsizing or moving to a more expensive area;
• Take out a bridging loan, a short-term interest-only loan to bridge the gap between buying and selling when you’re buying a new house before selling your current home, but it’s not without risks – get in touch to learn more;
• Repay the mortgage in full: if you’re not planning to buy another property right now, you can repay your existing mortgage with the money from the sale. 

Get your home ready to sell

Lastly, it’s time to get your home ready to sell. If there are time constraints, you may not be able to do major renovations, but it’s still worth completing outstanding repairs. Some repair issues may put buyers off and slow the selling process, so it’s a good idea to fix as much as possible ahead of your open homes. If time allows, even a fresh coat of paint can go a long way in presenting your home in the best light possible.

Time to make a move? Get in touch

This is just a quick summary of some key steps to a smooth (and hopefully fast and profitable) property sale. As we’ve seen, this process can be complex and time-consuming, so seeking expert help is likely to make a significant difference all along the way.

Need quality mortgage advice? Please don’t hesitate to contact us: we’re just a quick phone call away.

*Sources: Trade Me Property, Settled.govt.nz

Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.

Link Financial Group Ltd trading as Mortgage Link and Insurance Link FSP 696731 holds a licence issued by the Financial Markets Authority to provide financial advice. Please visit https://mortgagelink.co.nz/available-disclosure/ for more information and Disclosure information.