The new REAA 2008 came into full effect today.
All real estate agents (including companies licensed as agents) must be licensed under this Act. It requires agents to ensure certain information is displayed on all advertisements, including the agent’s name and the fact that they are licensed under the Act.
When agents list property on Trade Me, the words “Licensed Agent (REAA 2008)” will be included beneath the agent’s company name.
Some other facts you should know about real estate advertising under the new Act:
When you appoint a real estate agent to help sell your property, the agent (or salesperson(s) who work for the agent) will generally give you a number of advertising and marketing options. These are usually presented in the form of a written marketing plan or plans, with an associated budget.
Do you have to pay for advertising?
You do not have to pay for advertising if you do not want to.
Agents generally undertake a certain amount of advertising and marketing as part of their service to you. Before you commit to paying extra advertising and marketing costs, ask the agent or salesperson what marketing and advertising they will provide without charge.
Your agent or salesperson may suggest that your property would benefit from advertising and marketing over and above any “free” exposure. They may suggest local or regional newspaper advertisements, or the placement of larger or full-page advertisements in specialist property publications.
You should not agree to pay for any additional advertising without first receiving a written proposal, and an itemised breakdown of the costs involved.
You also need to consider whether the cost of advertising will provide you with any additional benefit. Will this additional advertising bring you a higher price or a faster sale?
What sort of advertising could you expect to get free of charge?
The sorts of things usually included, without additional charge as part of their service (although these may vary) are:
- Putting details of your property on the agency’s website.
- Putting details of your property on other real estate websites (eg Trade Me Property).
- Advertising your property in specialist real estate publications.
- Displaying a photo or photos and property details in the agency’s office.
- Possibly providing a “for sale” sign outside your property.
When does advertising have to be paid for?
Unlike commission, which is only paid towards the end of a sales process, advertising expenses generally have to be paid upfront, and they have to be paid whether or not your property sells.
Do you still have to pay for advertising even your property does not sell?
Yes you do. If you have agreed to pay for advertising you still have to pay for this even if your property does not sell.
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