Hi All,
I tried searching for old posts on this topic but didn't manage to find anything.
We've got an IP in Rotorua which we'd like to sell. We've had an agent go through and give an appraisal of $115K-$125K. The agent said this about their fee structure:
Our performance based fee only payable upon a successful sale would be , $500 plus 4% to $350,000 plus 12.5% GST.
Based on a sale of say $120,000 the fee would be $5,962.50. this includes GST.is this pretty much the going rate in NZ??? i have no idea so just wanted to get some feedback to make sure it is about the average??
Any feedback would be much appreciated!
Cheers,
Kim Anand
"Money Can't Buy you Happiness but it Does Bring you a More Pleasant Form of Misery"
WOW!!!
I really don't know Kim, but that really sounds excessive. How many agents have you tried for an appraisal? Is there anything payable if they don't sell?
Hi Kim,
4% is standard across new zealand subject to what you can negotiate and different thresholds for the reduction to 2%. Remember that you get what you pay for. There are a couple of firms doing 1 and 2% and people are getting mixed result. In that price range you could probably sell on trade me for $99 to a young couple of first time investor – I did not know there were any properties in rotorua left in that price range. It should sell in about 10 minutes. Almost every property that we have offered on in 07 has been a mutli offer – some of these markets are the hottest in Australasia for capital growth so get a few different opinions and even get a valuation done – if you are a remote seller it could be the best $400 you ever spend.
cheers
Hey Xenia,
Nah nothing if they don't sell…..we pay about 2% + gst here in Adelaide so i thought 4% was a bit rough!
I'll have to get another agent to come through i think!Cheers,
Kim
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