Ali and Doug have a vision to provide a fairer, more transparent way, to market and auction properties throughout New Zealand. We saw the need to dramatically reduce the cost of selling or buying a property. We said, "There must be a better way". There is. We now offer the Freenzi Way.
Experienced in property matters
Over the last 40 years we have at different times, been involved in the construction and property industries. This has included:
- Residential construction.
- Villa restorations.
- Residential developments and small subdivisions.
- Building and Property Consultants.
- The tertiary training and tutoring of architectural and interior design students.
- Pre-purchase property inspections.
- Interior design.
- South Island Sales Manager for a key International Building supplier. Attained the top international achievement, of the highest annual sales increase within a country sub-region throughout more than 30 active countries.
- Representing key clients in an architectural marketing and education role, to architectural firms throughout the South Island.
- Construction project management for a major building company.
- Registered Financial Advisor (RFA) for mortgage finance, and Registered Auctioneers (RA)
During this time, we the directors have experienced both buying and selling properties. We relied on the efforts of other people to bring about the desired outcome. In many cases, this function was undertaken by people with less experience and understanding than ourselves of overall property matters.
We began to question, who these middle people were actually working for? On top of that in our view, there was the inevitable outcome of the high cost to achieve any sale compared to the effort.
We acknowledge, there are many genuinely sincere sales people within the real estate industry. In our opinion, it is the high commission fees charged we want to address. These fees, take funds away from a seller’s equity for their next purchase.
*Today it could cost close to 5% of the sale price to auction a home of around $400,000 through a real estate agency. That is $19,435.00 (4% of sale price, + $400.00 Admin fee, + $500.00 auctioneer's fee, + GST). There are some real estate firms in the market that have a lower % commission. This can range from 1% to 4%. Many are closer to the 4%
New Zealand already has a tax on the property sales of every home. It is the GST charged on the standard real estate commissions when a property is sold.
The commission charge of $19,435.00 shown above, includes $2,535.00 of GST. Yes, it could cost a seller that much in government tax alone to sell their $400,000 home, through a traditional real estate auction sales method, even though their property is privately owned. Go to the Sell page to see the selling cost comparisons, between licensed real estate agencies and Freenzi Real Estate Auctions.
Equity loss as a result of paying the real estate agency commission
Imagine a seller has 20% equity in a $400,000 property. That is $80,000 equity to start with. The seller then finds they need to sell. Even if they sell for the full $400,000, after they have paid around $20,000 in commission and GST, they could lose 25% of their equity. The seller would end up with only $60,000 in their hand for their next purchase. Can you see the Freenzi Director’s concerns and the need for the Freenzi way?
Alternative Selling options
Over the years we have thought about an alternative solution, that leaves more money in the seller’s or vendor’s hands. After undertaking much research of the real estate Industry, and the relevant legislation in New Zealand and overseas, we began formulating a solution that is fairer for all. A solution that offers more accountability, and transparency to both sellers and buyers.
The result is the Freenzi Real Estate Auction strategy, which is called the Freenzi Way. Whether a seller or a buyer, you can benefit. We would love to help you on your property journey.
Our service is totally free of any commission or consultant's fees to the seller. Now that may cause some to get into a freenzi (frenzy)!!
Professionalism in business is defined by what you do for a client, not what you say you will do
Freenzi Real Estate Auctions' approach is to build a relationship of trust, with both sellers and buyers, that goes beyond any property transaction. In our view, a best outcome does not have to to have a high price tag.
Please consider Freenzi with your next property transaction.
Ali and Doug Allington