Buy house, get $20k gift
A real estate company is offering $20,000 to potential home-buyers, but the incentive comes with a warning.
Trinity Network has put a house on the market with a $20,000 sweetener that benefits not only the buyer but also the vendor, director Ben Dellabarca says.
It was one of a few different ways the company was trying to help people get on the property ladder, and to assist sellers in what he called the current “slow market”.
“Part of [our market research] was well, what can we do, especially in a slow market, to make their property more attractive to purchasers,” Dellabarca said.
“We thought if we could save some money on the commission side because we’re more efficient, if they want to they can take all those saving themselves or pass them onto the purchaser as an incentive.”
Dellabarca said the buyer would receive the $20,000 cash on a successful settlement of 27 Lili Chen Way in Ma¯ ngere Bridge, Auckland.
At the time of the offer being accepted, the buyer would receive a “Cash Rebate Certificate” that they could present to their lender, whereby the owner of the property agrees that Trinity Network, which has offices in Auckland, Waikato and Bay of Plenty, can pass on part of the commission to the buyer.
Real Estate Authority chief executive Kevin Lampen-Smith said potential buyers should not let deal-sweeteners blind them to doing their homework about a property.
“If you’re looking to buy, make sure you find out as much as you can about the property and don’t be dazzled by enticements.”
When asked how he was able to offer a deal that seemed too good to be true, Dellabarca said not only was it legitimate but it was made through efficiencies thanks to new technology.
“Basically because technology is getting better and better, as an agency we are able to save our clients a lot of money in commission because we can be a lot more efficient in how we operate.” While the buyer could do with the money what they liked, he expected most to put it towards some of the costs of buying a home, lawyers’ fees, or putting it on their new mortgage.
Real Estate Institute New Zealand chief executive Bindi Norwell said agents often innovated to stand out from competitors, but this was the first monetary incentive she had heard of. “What is so positive about this, is the benefits are offered to the buyer as well as the vendor.” Rather than a “slow market”, Norwell said REINZ data showed it was “pretty positive”, with house sale periods static compared to last year. In November last year the average house took 34 days to sell, while this November it was 35. In Auckland last November it took 37 days, while this year it was 36.
“From our statistics the market is pretty positive at the moment, in terms of volume, but it just depends where you are looking.
“This kind of tactic might work better for areas that are new, or not so popular.”