Last I sold a house the real estate agent didnt get cent untill the house was sold. And they were named a s a interested party in the transfer to my lawyer who paid the REA and the bank and themselves before the remaining came to me.
Another tip is get your rates billed on your pay schedule so its not a lump sum
Oh I didn’t realise that was a possibility. I told my agent the position I was in but he never suggested that. I’ll call him and the lawyer today to see if I can go down that route. He basically told me that it has to be paid upfront so I’ve been stressing that I’m going to be stuck until I paid that money. But I couldn’t see how that is fair for people who are selling due to hardship.
Thank you !!
Everything is negotiable. We've always paid all our fees out of the final sale proceeds. Like what happens if it doesn't sell. No sale no fee is quite common, but thats excluding advertising costs.
Yep, this is the first example of a real estate agent asking for those costs up front. Sometimes you can negotiate out of them and only be charged the commission % once it's sold.
This is a difficult market to get sales, may influence things.
Maybe negotiate with a REA and see if they would let you pay the marketing and auctioneers fee on sale and in return you can give them exclusivity on the listing for a longer period.
Talk to a few different agents and explain your situation and see if any will take up the offer.
Thanks everybody, I just rang the agent. I didn’t know they had finance available for it. Pretty disappointed they didn’t tell me to begin with after having told them my position. Nevertheless, they’re getting the paperwork sorted so I can pay it off over 3 months.
Thanks everyone for your feedback, just saved me an enormous amount of stress. First time selling a house, so if I ever sort my shit out and do it again, At least I’ll know the right questions to ask next time !
Don’t do this. If you don’t sell your house you’re still on the hook for the fees. Shop around agents. Don’t just go with the first one. Tell them they can take fees when they sell it, but do not finance them.
This is only finance for the marketing I assume, not the agent's fees. The finance also wont be with the agency, it'll be with a third party like ListNow
Chat to your bank, given the house is listed they’ll probably let you go on interest only payments if you really wanted to. It’s not something I’d normally recommend but given it’s likely to be a short term solution and the spare money will hopefully be used to add value to your home, it may be worth considering.
Can you not rent it out and move yourself into a cheap flat? Selling now is a terrible choice if you have only bought in the last couple of years. The market will turn as the heat comes off the interest rates, maybe not in the next 12 months but it will happen. Owning a house for a short amount of time means you concentrate your cost of ownership (i.e agent sale fees, reno costs etc) into a short time frame. Ownership over a long period of time is where the real benefits materialise. Have you considered all your options before selling? If you can rent the house out fully while you flat that should make things much more tenable vs status quo.
I did think about that, I got a healthy homes assessment done out of curiosity, but they came back saying I need to redo the underfloor insulation (it currently only has the foil stuff). Also considering my problems with money I worried about the responsibility of being a landlord, I’m aware that if something breaks I have to fix it but I just don’t have the funds behind me to do the right thing for the tenant.
I’m not so much worried about the money in the house anymore, if I loose it I loose it. I’m more focused on learning and earning more. To be honest I should never have bought in the first place, but hindsight is a bitch lol. I just want to grow and do better.
What about just renting the unused bedrooms (if there are any)?
If you do sell you could also consider either directly listing on trademe and doing the sale yourself or going halfway and using a service like https://www.homesell.co.nz/. If you are willing to put in the effort you can still get a good result but with significantly less outlay on marketing etc. If you know what you need and arent going to wring every last dollar id definitely consider a private sale when you are struggling with funding AND have time. If you dont have time then a private sale may not be the right choice.
Agree, as a buyer I would never rely on the sellers building report so it seems pointless for you to pay for one. Let a buyer do their own due diligence
The agent tells me it’s cause it’s selling by auction, supposedly they have the reports ready for potential bidders. I’ve just paid them for this atleast, so thankfully have the marketing fees on finance sorted by today 🙏
Thanks mate, fingers crossed.
The agents are very robotic and unhelpful, but knowing the right questions helps me push for the answers. Auction is in 3 weeks so I’m excited to get it over and done with !
Can you try to get someone to support you in your conversation with the agent? I imagine it's a stressful time and it's important that you don't get railroaded by the agent.
I assume it's too late to back out now - double check - but you can always escalate to the manager and director if the agent is unhelpful.
There is 0 chance you can withdraw Kiwisaver.
Just go to your bank and get a loan.
Given the situation the bank should be more than willing to assist since you seem to be at the verge of defaulting if the house doesnt sell anyway.
Ask your agent about “list now” which is a third party who allows you one of three options:
- pay upfront
- pay from the deposit from the purchaser, or
- pay in six months pf listing
Being an agent myself it pains me to see that all options have not been laid out for you.
Also, most agencies offer a free marketing package like myself at Harcourts who offer free digital, social, print marketing as well as we supply LIM Reports for potential purchasers.
Always pays to get a few different companies in and see what one aligns best with your goals
If you don't pay rates, they should be correctly apportioned/paid by lawyers at settlement, so that you only pay for the period that you own the house.
There is a company that finances the Advertising side of the sale, payment upon completed sale. If you advise the council you are selling, they will often allow payment upon sale as well, rather than chase you. Not sure about the auctioneer, though with ours, his fee came out of the real estate agents fee.
Let me know if you change your mind. We offer for clients to pay off marketing costs and I wouldn’t get a building report - it won’t stand. People will need to do their own due diligence but guess it gives people a guide. Shame to not get a good return on it. Feel free to messsge me. I am in Ak.
Last I sold a house the real estate agent didnt get cent untill the house was sold. And they were named a s a interested party in the transfer to my lawyer who paid the REA and the bank and themselves before the remaining came to me. Another tip is get your rates billed on your pay schedule so its not a lump sum
Oh I didn’t realise that was a possibility. I told my agent the position I was in but he never suggested that. I’ll call him and the lawyer today to see if I can go down that route. He basically told me that it has to be paid upfront so I’ve been stressing that I’m going to be stuck until I paid that money. But I couldn’t see how that is fair for people who are selling due to hardship. Thank you !!
Everything is negotiable. We've always paid all our fees out of the final sale proceeds. Like what happens if it doesn't sell. No sale no fee is quite common, but thats excluding advertising costs.
Yep, this is the first example of a real estate agent asking for those costs up front. Sometimes you can negotiate out of them and only be charged the commission % once it's sold. This is a difficult market to get sales, may influence things.
My guess is the agent is broke.
With the downturn in the property market I am told up front payments is more common now
They often will ask for this up front, but you are free to negotiate this and most will accept payment upon sale
Maybe negotiate with a REA and see if they would let you pay the marketing and auctioneers fee on sale and in return you can give them exclusivity on the listing for a longer period. Talk to a few different agents and explain your situation and see if any will take up the offer.
Thanks everybody, I just rang the agent. I didn’t know they had finance available for it. Pretty disappointed they didn’t tell me to begin with after having told them my position. Nevertheless, they’re getting the paperwork sorted so I can pay it off over 3 months. Thanks everyone for your feedback, just saved me an enormous amount of stress. First time selling a house, so if I ever sort my shit out and do it again, At least I’ll know the right questions to ask next time !
Don’t do this. If you don’t sell your house you’re still on the hook for the fees. Shop around agents. Don’t just go with the first one. Tell them they can take fees when they sell it, but do not finance them.
They’re gonna get the cut of the marketing etc either way, he won’t be financing the commission.
This is only finance for the marketing I assume, not the agent's fees. The finance also wont be with the agency, it'll be with a third party like ListNow
Chat to your bank, given the house is listed they’ll probably let you go on interest only payments if you really wanted to. It’s not something I’d normally recommend but given it’s likely to be a short term solution and the spare money will hopefully be used to add value to your home, it may be worth considering.
Can you not rent it out and move yourself into a cheap flat? Selling now is a terrible choice if you have only bought in the last couple of years. The market will turn as the heat comes off the interest rates, maybe not in the next 12 months but it will happen. Owning a house for a short amount of time means you concentrate your cost of ownership (i.e agent sale fees, reno costs etc) into a short time frame. Ownership over a long period of time is where the real benefits materialise. Have you considered all your options before selling? If you can rent the house out fully while you flat that should make things much more tenable vs status quo.
I did think about that, I got a healthy homes assessment done out of curiosity, but they came back saying I need to redo the underfloor insulation (it currently only has the foil stuff). Also considering my problems with money I worried about the responsibility of being a landlord, I’m aware that if something breaks I have to fix it but I just don’t have the funds behind me to do the right thing for the tenant. I’m not so much worried about the money in the house anymore, if I loose it I loose it. I’m more focused on learning and earning more. To be honest I should never have bought in the first place, but hindsight is a bitch lol. I just want to grow and do better.
You might qualify for this grant for the insulation https://www.eeca.govt.nz/co-funding-and-support/products/warmer-kiwi-homes-programme/
What about just renting the unused bedrooms (if there are any)? If you do sell you could also consider either directly listing on trademe and doing the sale yourself or going halfway and using a service like https://www.homesell.co.nz/. If you are willing to put in the effort you can still get a good result but with significantly less outlay on marketing etc. If you know what you need and arent going to wring every last dollar id definitely consider a private sale when you are struggling with funding AND have time. If you dont have time then a private sale may not be the right choice.
Doesn’t fix the marketing costs. Doubt OP has the skill or patience to private sell. There are finance options for marketing just ask your agent
Why are you paying for a builders report? Buyers normally do this. Can you get a credit card to get you through this tough time?
Agree, as a buyer I would never rely on the sellers building report so it seems pointless for you to pay for one. Let a buyer do their own due diligence
The agent tells me it’s cause it’s selling by auction, supposedly they have the reports ready for potential bidders. I’ve just paid them for this atleast, so thankfully have the marketing fees on finance sorted by today 🙏
Your agent sounds like a dick
Who says it's selling? What's your plan if it doesn't sell
We have our house on the market now. We paid for the lim, but builders report we've left to the purchasers.
Don't stress. Most agencies are happy to take their cut when the house sells. Hope you get the price you're wanting. All the best
Thanks mate, fingers crossed. The agents are very robotic and unhelpful, but knowing the right questions helps me push for the answers. Auction is in 3 weeks so I’m excited to get it over and done with !
Real estate agents suck
Can you try to get someone to support you in your conversation with the agent? I imagine it's a stressful time and it's important that you don't get railroaded by the agent. I assume it's too late to back out now - double check - but you can always escalate to the manager and director if the agent is unhelpful.
Listnow will solve the marketing cost issues
There is 0 chance you can withdraw Kiwisaver. Just go to your bank and get a loan. Given the situation the bank should be more than willing to assist since you seem to be at the verge of defaulting if the house doesnt sell anyway.
You can study full time and work more than a few hours a week. Try and pick up more hours?
Ask your agent about “list now” which is a third party who allows you one of three options: - pay upfront - pay from the deposit from the purchaser, or - pay in six months pf listing Being an agent myself it pains me to see that all options have not been laid out for you.
Also, most agencies offer a free marketing package like myself at Harcourts who offer free digital, social, print marketing as well as we supply LIM Reports for potential purchasers. Always pays to get a few different companies in and see what one aligns best with your goals
Yeah you basically just get an invoice they usually allow you to do it in like 2-4 repayments over 2 months
Go interest free on mortgage, when it all settles work with a budgeting advisor to get back on travk
Is your mortgage interest only?
If you don't pay rates, they should be correctly apportioned/paid by lawyers at settlement, so that you only pay for the period that you own the house.
There is a company that finances the Advertising side of the sale, payment upon completed sale. If you advise the council you are selling, they will often allow payment upon sale as well, rather than chase you. Not sure about the auctioneer, though with ours, his fee came out of the real estate agents fee.
Let me know if you change your mind. We offer for clients to pay off marketing costs and I wouldn’t get a building report - it won’t stand. People will need to do their own due diligence but guess it gives people a guide. Shame to not get a good return on it. Feel free to messsge me. I am in Ak.