Selling Advice
Should You Sell? How to Make an Informed Decision
Before you list your property, take the time to consider the financial impact, the timing, and whether selling is really the best option for your situation.
To Sell or Not to Sell — Making the Right Call
Selling a property is a major financial decision. Taking the time to think it through properly can save you thousands of dollars and a lot of stress.
Whether you're thinking about downsizing, relocating, or simply cashing in, the decision to sell should be based on a clear understanding of the financial impact, the current market, and the alternatives available to you.
If you're not under pressure to sell, you have the luxury of time — and time gives you the ability to make a better decision. If you are under pressure, it's even more important to understand the numbers before you commit.
The key factors to consider are set out below. If you've already decided to sell, head straight to our 9 Pillars of a Successful Property Sale.
Key Factors to Consider Before You Sell
Understanding the current property market is essential. In a seller's market — where there are few homes for sale and prices are rising — you're more likely to achieve a good price. In a buyer's market — where there are many homes for sale and prices are flat or falling — you may need to adjust your expectations.
Research which types of homes sell best in your area. A property that ticks the most popular boxes (good school zone, off-street parking, modern kitchen) will sell faster and for more. If your property doesn't fit the current demand, consider whether it's worth waiting or making improvements first.
Selling a property and relocating costs thousands of dollars. The main costs include:
- Real estate agent commission — typically 3–4% of the sale price
- Legal fees — for the sale transaction and any purchase
- Moving costs — removal company, storage, cleaning
- Mortgage break fees — if you're on a fixed-rate mortgage
The less equity you have in your property, the greater the financial impact. If your mortgage is close to the property's value, the sale proceeds may barely cover your costs. Calculate the numbers carefully before you commit.
The timing of your sale matters. If you're selling in a buyer's market and your equity is low, you may struggle to cover your costs and repay your lender from the sale proceeds. The greater the equity you have in your home, the better equipped you are to absorb the costs of selling and still come out ahead.
If you can wait for better market conditions, it may be worth doing so — particularly if your equity position is tight.
New Zealand's bright-line test means that if you sell a property within a certain period of purchasing it, any profit may be subject to income tax. The bright-line period has changed several times in recent years, so it's important to check the current rules and understand where you stand before you sell.
If you're unsure, get advice from your accountant or tax adviser before listing. We can refer you to a suitable adviser if you don't have one.
Before you sell, consider whether there's a better solution to the problem you're trying to solve:
- Need more space? Renovating or extending your current home may be cheaper than selling and buying a larger property — especially once you factor in transaction costs
- Difficult neighbours? A tall fence or a conversation with your local council may resolve the issue without the cost and disruption of moving
- Concerned about safety? Check the crime statistics — your current neighbourhood may be safer than you think, and a new area may not be any better
- Need to free up cash? Consider refinancing, a reverse mortgage (if you're retired), or renting out part of your property before selling
Sometimes the best decision is not to sell at all.
If You've Decided to Sell
Once you've decided to sell, our 9 Pillars of a Successful Property Sale guide walks you through the entire process — from getting your property ready through to settlement day.
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