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FAQ

FAQ's (Frequently Asked Questions)

General Agency

  • No person has full responsibility for the sale
  • Marketing will be limited
  • No pressure on real estate company to sell
  • New buyers will be attracted to other properties with stronger marketing
  • No communication between agencies may result in the property being undersold

 

Exclusive

  • More widespread marketing
  • Salesperson takes full responsibility
  • Buyers set out to pay less than asking price
  • No control over conditions contained in sales contract
  • Pricing limits the amount home seller will achieve
  • If priced too high buyers will offer on other properties
  • Property can become "stale" and price reductions may be necessary

Tender

  • Widespread marketing
  • Sets a specific time frame—buyers must decide
  • Ideal if property needs "investigation" by buyers
  • Prices offered remain private
  • Owners can choose which buyer to work with
  • Offers may contain buyer "conditions"
  • May encourage lower offers
  • No buyer competition as in auctions

 

Auction

  • Widespread marketing
  • Set date forces buyer to make a decision
  • Offers on the day are cash/unconditional
  • Owner sets the terms of sale (settlement date etc)
  • No price that buyers can object to and try to beat down
  • Buyer competition forces price upwards
  • Attracts buyers over a wider price range
  • Buyers decide on suitability of property rather than price
  • Company focused on achieving best price
  • Property compared to others on its features rather than asking price
  • Short intensive marketing with high impact
  • Has further marketing opportunities if not sold on day
  • Structured plan in place rather than waiting for buyer

 

What is Harcourts market share?

The Real Estate Institute of New Zealand’s rules prohibit us from publishing sales statistics compiled by them for marketing purposes. However from all sources we are able to say that Bay of Islands Realty Ltd (Harcourts Kerikeri, Kaikohe, Paihia, Russell, Coopers Beach and Kaitaia) continually achieves a major market share of property sales. While Harcourts perform exceptionally well in mid to higher valued properties, the diverse nature of the business offers home sellers in all price ranges the very best results.

 

How do we know the price range for auctions and non-priced advertisements?

No one person really knows the true market value of any particular property. Auctions allow buyers to establish what they believe is the value of a property and in doing so set the market value. If a property advertisement catches your attention we recommend you contact your personal Harcourts consultant or the listed salesperson and once they know your price range they will be able to guide you to the most suitable properties.

 

How do we target overseas buyers?

Primarily the internet is now the most popular method to attract international buyers. Harcourts have a strong presence on all major New Zealand property websites and our Luxury Portfolio Selection which has its own website and magazine for those higher end properties

 

What is the auction process?

A marketing programme is planned between the seller and the real estate salesperson and a sale date is set. 3-5 weeks of intense marketing follow with the sales team contacting any prospective buyers as well as encouraging and assisting new enquiries. During this period, the focus is on the benefits and features of the property rather than simply comparing on price. There is no fixed price for anyone to object to. The second stage is to gather together all likely buyers and focus attention entirely on the one property. This is the Auction day. At this time buyers will compete to buy the property and they will be encouraged and comforted by the fact that other buyers are bidding and willing to purchase. The bidding often goes higher than buyers were originally prepared to pay. All offers at auction must be cash and without conditions so the seller knows that any offer they choose to accept is a definite sale. The third stage is a backup plan in case the property hasn’t sold in stages 1 and 2. During this time negotiations continue with anyone who has previously shown interest and a new marketing strategy is employed to attract new buyer interest.

 

Do I need Open Homes?

Open Homes are an integral part of any marketing campaign and a popular way for buyers to check out the market. Many properties are now sold through Open Homes and particularly in the case of Auction Open Homes, buyers are prepared to make instant decisions. Even neighbours and non-buyers can assist in the marketing as they spread the word to friends and associates. If you leave out Open Homes, you may be minimising the overall success of the sale process.

 

Why don't you discount your commission?

At Harcourts we have built our business on the philosophy that the more buyers you have interested in your property, the more likely you are to achieve a successful sale, and the more likely you are to achieve a better price. Sure, you could put a sign up, run a few low cost advertisements and perhaps, given time, achieve a sale. This is the philosophy of low commission real estate companies. How will you ever know if you might have sold for a few thousand dollars more? Experts agree that the sale price of a property may vary by up to 10% depending on the marketing undertaken. Imagine a property supposedly valued at around $400,000. The eventual selling price could vary from $360,000 to $440,000 that is a massive $80,000. At Harcourts we believe it is our job to ensure that as much of the $80,000 as possible goes into your pocket. Harcourts embark on extensive marketing in the lake area and throughout New Zealand on a regular basis. We have an impressive record of achieving outstanding results where others have failed. Yes, we could reduce our fees, but some of the marketing and service we undertake would need to discontinue and we believe this would be detrimental to our overall objective and that is to get, you, the home seller, the best possible price in any market conditions. Remember the old phrase that is as relevant today as it ever was: "YOU GET WHAT YOU PAY FOR"

 

Why aren't there addresses on some advertisements?

On some, particularly those with open homes, there are usually addresses. On others there may be a variety of reasons for no address, amongst them privacy issues. Many properties cannot be appreciated properly from a curb side inspection and we prefer to ensure buyers get a full appreciation of the features of the property. Usually salespeople are available at short notice to meet a prospective buyer at a property. If this is not possible a quick phone call or email to the salesperson will reveal the location of any property. Imagine if you were selling your home. How would you feel if buyers were making a decision on your property by just looking from the roadside? Many buyers finish up buying a home that they first thought was not suitable after an outside inspection.