Proppy
The smarter way of buying and selling real estate

Comparing pears with apples. The difference between traditional real estate agencies and Proppy.

So you’re looking to sell? Good idea, summer is a great time to sell - things generally look a whole lot lighter and brighter in summer. But the big question is - who do you list your house with?

You should look for three things when researching agents.  Rapport of the agent, marketing nous, and most importantly FEES or in our profession, commissions. So, let’s look at each of these.

  • Rapport.  You want an agent that you can relate to, that understands you and your needs. Beware, if they drive a flash car and turn up in a swanky suit that doesn’t necessarily mean they have good rapport! At Proppy, we proud ourselves on hiring agents who have empathy and respect. They will give you as much or as little help as you need.  
     
  • Marketing. You need an agent who understands the best channels to market your property. Right now, online advertising is the most effective means of promoting your property. Print advertising is still done and can be effective, but most buyers are searching for their new property online. As an online real estate agency, we live and breathe digital marketing and consider ourselves experts in social media. We encourage all our vendors to promote their property on TradeMe, Realestate.co.nz and Hougarden. We target your property’s marketing at the people we know will be looking. Furthermore, we are successfully building the Proppy brand through our own outdoor and TV advertising, giving you confidence that you are partnering with an agency that understands the importance of marketing.
     
  • Commission: Now, it is a commission conversation that will probably be the determinant of who you choose as your agent. At the moment, there are a vast number of agents charging anywhere between 2.95% - 4.0%. With a slight flattening of the market, agents are hungry and some will drop to 2.0-2.5% but they won’t normally go below that number due to the franchise and overhead costs that kick in and directly impact their pocket. At Proppy, we have a flat rate of 1.5% which is the lowest in the market. We can afford to offer this as we don’t have the large overheads that the big industry players have. Our smart online platform has meant we have been able to strip out these costs. It is worth quickly mentioning fixed prices – some agents might offer you a fixed price of say $12,500-$13,500 to sell your house.  On a property worth $700,000 that actually works out to be 1.80% - 1.90%, plus there are often further fees in the fine print like auctioneer and admin fees, which can add up, so be careful when considering this fee structure. At Proppy, what you see is what you get - 1.5% flat commission on the sale price. And because our agents have a skinny commission percentage they work really hard to drive the best price for you!

Something I often get asked about is the DIY/private sale real estate models like Trademe or Homesell - where no agent is involved. This is a real option when selling your home but there are some things to be aware of. Firstly, you are not protected by the real estate law – so if things turn pear-shaped you can be in a whole lot of trouble. Secondly the marketing often looks second-rate and unprofessional, meaning your property might not look very credible. Finally, negotiation is often done in backyards with amateurs with contracts with fishhooks, which can take up a lot of time, and cause a lot of anxiety and stress. Sure, you might save on commission, and for confident sellers it might work. But if you are at all nervous about the process or time is not on your side, you should talk to a professional.

We hate seeing people pay large commissions when we know there is a better way.  Don’t get fooled by the antiquated industry model out there. Have a no-obligation chat with us about the smarter way to buy and sell property. Give my team a call, or message us through our chat channel – or just get on and list your property directly through our website it can be done in your own time all by yourself (with our usual amazing support behind the scenes).

*Note all fees are exclusive of GST

Cheers,

Tyson