How to sell your house privately in New Zealand

1. Decide whether selling privately suits you

Selling privately means you take on the work an agent would normally do. That suits people who have time to run viewings, are comfortable talking about price, and are happy to pay a lawyer for the legal side. It suits less well a seller who needs a fast sale, has a complicated title, or wants someone else to handle every buyer enquiry.

Choosing to sell privately doesn't change your legal obligations. You still have to give accurate information about the property, and the Fair Trading Act 1986 applies to what you say in your listing and in conversations with buyers. The disclosure rules in the Real Estate Agents Act 2008 are aimed at licensed agents, but a private seller who misleads a buyer can still be held responsible.

2. Work out what your home is worth

Pricing is the decision that matters most. A price set too high can leave the home on the market for months, and buyers start to wonder what's wrong with it. A price set too low costs you money you won't get back. Start with recent sales of similar homes nearby, the same type, size and condition, and look at what they actually sold for, not just what they were listed at.

Council rating valuations are useful for comparison, but they aren't a market price, and they are often out of date. If you want an independent view, a registered valuer will give you a written valuation, which can also help if you need a figure for a lender or a legal matter. You can also get an appraisal on OurHouse as a starting point.

3. Gather the paperwork

Buyers, their lenders and their lawyers will all ask for documents, and having them ready makes the sale quicker and more credible. Start collecting them before you list.

• Record of title and any easements, covenants or caveats shown on it. Your lawyer can order this.
• LIM report from the council, which covers consents, drainage, hazards and other records for the property. Buyers usually order their own, but having a recent one helps. Read LIM reports explained.
• Code compliance certificates and building consents for any building work, including decks, extensions and re-roofing. Missing paperwork for past work can hold up a sale.
• Rates notices, insurance details and any services contracts, such as a water-tank or heat-pump warranty.
• Unit title documents, if the property is a unit. This includes the body corporate rules, the most recent financial statements and the long-term maintenance plan.
• A healthy homes statement if the home is rented out. Rental properties must meet the Healthy Homes Standards, and you need to be able to show it.

4. Market the property

Most private sales depend on the listing. Good photos taken in daylight, a clear floor plan, and a description that gives the facts (size, age, bedrooms, parking, section, recent work) do more than clever copy. Be accurate about defects: a buyer who finds an undisclosed problem after they buy will come back to you.

Listing options include the major property websites, social media groups for your suburb, a For Sale sign on the street, and word of mouth. Each platform charges differently, so check the current fees before you commit. Open homes give the most viewers in the shortest time, but private viewings let you control who comes through.

5. Run viewings and check buyers

Keep a record of everyone who views the property, and ask them to register before a viewing. Be careful about giving access to people who won't say who they are or how they'd fund a purchase. A buyer who can't show a finance pre-approval, or who asks you for money up front, is a warning sign.

Before you negotiate, ask any serious buyer for proof of funds or a finance pre-approval. Keep your conversations in writing where you can, and keep a note of what was said about the property.

6. Receive offers and sign the agreement

Ask for every offer in writing, and treat verbal offers as conversation only. Compare offers on more than price: the conditions attached, the settlement date, the deposit and how quickly the buyer can move. A slightly lower offer with fewer conditions is often the better deal.

Once you agree on terms, the sale and purchase agreement is signed by both parties. Use your own lawyer to prepare or check the agreement, and don't sign a form you haven't read. The deposit is usually paid to your lawyer's trust account when the agreement is signed. Check the deposit amount and when it is released, which is often at settlement.

Read auction vs private treaty to see how the sale method affects the buyer's conditions and your timing.

7. Work through conditions and settlement

A buyer's offer usually includes conditions, such as finance, a building report and a LIM report. Each has a deadline. Respond to requests quickly, because a delay can push settlement back. If a building inspection finds a problem, you can negotiate on price or repairs, or the buyer can walk away within the conditions period. See what a building inspection checks.

Once the agreement goes unconditional, your lawyer handles the transfer of the title and the payment of the balance on settlement day. Plan your move around the settlement date, and check the settlement dates tool for the tasks that fall before and after it. Keep the property insured until the buyer takes possession.

8. Costs and tax to check

Selling privately avoids agent commission, but you still pay for things an agent might have covered. Budget for the following, and compare the total with an agent's quote before you decide.

• Lawyer or conveyancer fees for the agreement, the title transfer and settlement, plus disbursements such as searches and registration fees.
• Advertising, photography and signage.
• LIM report and any valuation you order before you list.
• Break fees on your mortgage if the loan is on a fixed rate and you repay it before the end of the term.
• Tax on the sale. The bright-line test can apply if you sell a residential property within a set period after buying it, and the main home exclusion depends on how the home was used. Check both with an accountant or with Inland Revenue before you set a date.

This guide is general information, not legal, tax or financial advice. Speak to a lawyer before you sign an agreement, and to your lender and accountant about the costs and tax that apply to you.