In New Zealand, real estate sold through an agency can fall into three primary pathways. Each method has its own features, advantages, and processes. Here's a closer look at how these sales methods work and how equiti fits into each.
1. General Agency
This is the most common sales strategy for new-build properties in New Zealand. Under a general agency agreement, vendors, group builders, or developers list their property with multiple real estate companies or agents. Many also have their own in-house sales teams working alongside external agents. Here’s how the general agency process works:
· No Exclusivity: Vendors have the freedom to list their property with as many agents as they like, which is why you might see the same property listed on different platforms or by multiple salespeople.
· Wider Reach: With more agents promoting the property, it gains broader exposure, increasing the chances of finding the right buyer.
· Competitive Edge: The competition among agents to secure a sale often leads to better outcomes for the seller.
While this approach can generate a lot of visibility, it can also create some confusion for buyers. This is where equiti steps in—we simplify the process, ensuring buyers have a clear and guided path to secure the right property.
2. Sole or Exclusive Agency
A sole or exclusive agency agreement is a more focused approach, giving one real estate agent exclusive rights to sell a property. Here’s how it works:
· Exclusive Rights: Only one agent has the authority to sell the property. Even if another agent secures the buyer, the vendor may still owe the original agent a commission.
· Time-Limited Agreement: Sole agency agreements typically last for around 90 days. If the property doesn’t sell within this period, the vendor has options—they can extend the agreement, switch agents, or cancel the agreement altogether.
· Flexibility to Cancel: If the vendor is unhappy with the agent’s performance, they can usually end the agreement with written notice, offering an "easy out" if things aren’t working as planned.
3. Partnership or Conjunctional Sale
Think of this as teamwork in action—two agents working together to sell a property. Even if equiti doesn’t directly list a property, we can still help buyers access it. Once we’re given the go-ahead, we’ll contact the listing agent to negotiate the best deal possible on behalf of the purchaser. Here’s how this type of sale works:
· Team Effort: In conjunctional sales, two agents collaborate to sell a property and split the fee. For example, one agent might have a highly motivated buyer, while the other holds the perfect listing. Together, they make the deal happen.
· Bigger Network: Buyers benefit from accessing a wider range of properties. With equiti, you can discover and purchase properties that we don’t personally list, while still relying on us to negotiate the best deal for you.
· Split Commission: The vendor pays the commission, which is split between the listing agent and the selling agent (like equiti). As a buyer, this service comes at no additional cost to you.
This method gives buyers flexibility and access to more opportunities, all while ensuring they have expert negotiators—like equiti—working on their behalf.
Why Use Equiti as A Real Estate Agent?
The reason why you want to use equiti real estate is that our services and expertise are FREE. We are motivated to get you the best deal. Whatever that might look like. Best price, better terms (short or long settlement), more inclusions, cashbacks, rental guarantees etc.
It’s simpler for all parties if we have a general listing on a property you want to purchase but, if we don’t, you can let us know what you’ve after and we can look to facilitate a partnership sale with another agent that has the property listed that you want!
So, whether it’s one or two agents selling the property, there is no cost, and no negative impact on you, the buyer. There is no downside to another agent/3rd party to be involved. The ONLY individual that may be impacted is the listing agent because they have to share the vendor commission. However, we can only help with a partnership sale, if we introduce you to the listing agent. Not, after you’ve contacted the listing agent or visited a Show Home or Open Home. Contact us as soon as.
Knowing how each type of agreement works can make your home-buying adventure smoother and more enjoyable. If in doubt, just reach out to the equiti team as your first port of call!