Auckland Apartment Sales - Who Gets More Real Estate Agent or Agency?
Apartment Specialists Podcast No: 13
In this podcast, I'll be discussing the reasons why most apartment owners lose thousands of dollars when they sell their apartment. Find out how you can avoid this situation and get the value you deserve. Learn all the essential strategies for any Auckland apartment sales.
TRANSCRIPTION: Andrew Murray, Apartment Specialists, Number Ten from the reasons why apartment owners lose thousands of dollars when selling their Auckland apartment. Is it the agent or the agency (Who Gets the Highest Price for Your Auckland Apartment)? Now, as an agent myself, I clearly know the answer to this one. I wanted to find out what apartment owners think. So I rang about 20 owners and talked to them about their apartments - all that kinds of things - and their plans for the future. And to each one, I asked them one question: In dealing with or when selling your apartment, what's the most important? Is it the agent or is it the agency? And every single one said the agent. Which is interesting because there's so much branding, so much advertising out there, for what? An agency. Yet every owner I spoke to said, it's the agent that is most important.
And there's quite a few reasons for that. Because, if you know the statistics, the same agents more often get the highest prices. Yes, an agent can be lucky here and there, but it seems to repeat itself. Also, if you look at the average wage of a real-estate agent being under $35-40,000 a year - realistically - I'd say it's more like 50 or 60, but those are official statistics - that means probably about 5 to 10% of all the agents are selling all the properties. It actually says again that's why - or it says it quite simply that the agent is more important than the agency when looking to get the the most value for your apartment.
So, that's really important. So how do you find out if an agent is the best to represent you, or which one it is? It's not "are they the top agent" because the top agent in this industry is judged by how much commission they're bring in, not by the prices they get. In the housing market it's very difficult to tell, because houses aren't comparable. You can have houses in the same street, but how are you supposed to know the values, because they're different. This one's got a porch, this one doesn't. This one's got a pool, etc, etc. But in an apartment complex - you've got so many different apartments in CBD, over 18,000 apartments - they're very comparable. So you can quite easily tell who is getting the highest prices.
So when you're dealing with your Auckland Apartment agent, you want to ask them, can I see your last sales and how they make in the building that you sold them in? And that will give you a very clear indication of how good that agent is. And how focused they are in getting the best result for the vendor or commission in their pocket.
That is probably the final one, but the biggest and the simplest and the most unnoticed in this type of industry. I'll say it again, the best agents are judged in this market by how much commission they bring in, not by the prices they get. So you as an owner really need to be aware of that when choosing your agent, and ask for evidence showing that it's the values they achieve, and that's the most important to you. I hope that helps and I hope these ten mistakes have been really, really helpful. I know we got a lot of good feedback for them, and a lot of people are listening, so thanks a lot. Cheers!