If you’re thinking of selling your house, here’s a proposition we reckon you should consider…
Instead of simply offering up a LIM, why not provide more of the diligence information that prospective buyers need to make a purchase decision?
By this, we mean providing a floor plan and building inspection that buyers can review (and take to their bank if need be) to grease the wheels on the offer process. This approach is already in play in other markets, such as the UK, and we think it’s a much better way to sell real estate. Here’s why:
1. It demonstrates good faith: By providing quality information that clearly indicates the structural integrity of the property, you show buyers that you’re willing to work with them in good faith to make the sale happen. Of course, the buyer could still do their own diligence on the property if they saw fit to.
2. It simplifies the offer process: Having to spend time and money on a building report is a major obstacle to prospective buyers. If you can provide a report that assures buyers your home is sound, they’ll be much more likely to present an offer quickly.
3. It means fewer disruptions to your life during the marketing campaign: Let’s face it – selling your home is disruptive! If you can eliminate the need to have multiple building inspectors crawling all over your property while you’re on the market, so much the better.
4. It gives you a competitive advantage: In the current market, offering a building report will make it more attractive for buyers to transact with you than with the vendors of a similar home that doesn’t come with a report.
5. It’s easier for your real estate agent to spot keen buyers: We often meet people at open homes who have already downloaded the property’s information – we know these are serious buyers and we prioritise them accordingly.
6. You can push for leaner real estate commission fees: By removing one of the biggest obstacles in the offer-making process, you’ll reduce the real estate agent’s workload… So you could probably have a go at arguing their real estate commission fees should be reduced too.
So, what would it cost to provide the extra info? For most properties, the cost involved in providing a LIM, floor-plan and building report would be around $1,000 (bear in mind, you’re already paying for the LIM portion of that figure). In total, that’s less than 0.2% of the average sale price for a home in Auckland… Not a bad investment if it helps sell your home more quickly and easily!
Of course, paying for the additional information may be too great a financial burden for some sellers. In this case, as a compromise, you could pay the upfront cost of the building inspection and potential buyers could then pay a nominal fee – say $50 – to access the report.
On the whole, we think this approach would bring a greater level of transparency and disclosure into the market and create greater efficiencies in the sale process. Whether you’re buying or selling, that’s got to be a good thing!
About The Property Market
The Property Market is a full service real estate agency built to deliver a better experience for buyers and sellers. Think real estate, only reinvented.
– Our Ponsonby real estate agents operate within a 20 minute radius of Freemans Bay.
– Our real estate agent commission rates are innovative and competitive.
– Our focus on customer service is second-to-none.
– We offer a range of clever online marketing solutions, including a mobile-friendly, personalised website for your property.