PHOTO: Private Sellers Falling Short – The Data Might Surprise You
Selling your home privately might seem like a good way to save thousands in agent commission — but is it really worth the risk?
New industry data suggests… maybe not. 😬
Property research firm Cotality has crunched 10 years of sales data, and the results are eye-opening for any homeowner weighing up whether to DIY or call in the pros.
📊 What the Numbers Say: Agents Still Deliver
According to Cotality:
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✅ Over the last 10 years, 76% of agent-listed properties successfully sold
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❌ By comparison, only 65.1% of privately listed properties sold
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In 2024, the gap widened:
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65% of agent-listed homes sold
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Just 52.8% of private sales closed
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That’s a 12% drop in success rate for DIY sellers — a painful stat for anyone trying to cut corners.
🕒 Days on Market: Agents Sell Faster (Usually)
Speed matters. Agents, backed by databases, buyer lists and industry know-how, usually sell quicker.
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In 2021 (market peak):
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Agents: 24 median days on market
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Private: 40 days
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In a twist, 2024 saw private sellers just pip agents:
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Agents: 75 days
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Private: 71 days
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But that blip is rare — most years, agents consistently outperform private sellers on turnaround time.
💵 Price: Do Agents Really Get More?
It appears so.
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2024 median sale price via agents: $740,000
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Private sale median: $662,500
Even in 2023:
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Agents averaged: $735,000
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Private sales: $704,000
Of course, property type plays a role. Cheaper homes are often sold privately to save costs. But still — the price gap is real.
💬 Negotiation & Presentation: The Agent Advantage
Agents aren’t just middlemen — they manage expectations, guide pricing, and negotiate hard.
Wellington agent Mike Robbers says private sellers often start too high, then drop the price once interest dries up — but by then the listing is “cold.”
Plus, agents bring:
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📸 Professional photography
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🛋️ Home staging
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🎯 Market appraisals based on real-time data
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🤝 Buyer targeting and follow-ups
Even experienced agent Brooke Gibson, who sold privately before joining the industry, admits:
“You can easily kill the deal. Without proper negotiation skills, it’s easy to scare off genuine buyers.”
⚖️ Time, Effort & Legal Risk: Private Selling Isn’t Free
You may save on commission, but you’ll spend:
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❌ Time off work for open homes
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❌ Stress navigating legal disclosure requirements
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❌ Risk of breaching agreements if key info (like unconsented works) isn’t disclosed
REA CEO Belinda Moffat warns:
“Sellers have legal obligations. Failing to disclose known defects or issues can lead to buyers cancelling, demanding compensation, or taking court action.”
She adds:
✅ Licensed agents are legally required to act in the seller’s best interest
✅ Sellers can negotiate commission and discuss tailored marketing plans
✅ If something goes wrong, there’s a formal complaints pathway through REA
📈 Trust in Agents is Growing
According to Moffat, public confidence in licensed agents is rising:
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2021: 70% confidence
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2024: 82% confidence
Buyers and sellers alike are recognising the value and protection that comes with licensed expertise.
💡 Final Word: Private Selling May Save Cash — But at What Cost?
Cotality’s head of research, Nick Goodall, sums it up best:
“You’ve got to consider the real cost: your time, your stress, and the potential money left on the table.”
With hundreds of thousands at stake, saving $20K–$30K on commission might not be worth the risk of a failed sale, lower price, or legal issues.
SOURCE: RNZ