How Freenzi Real Estate Auctions benefits your building or development business
Do you have completed properties or land you would like to take to the market? Would like to add some impetus to the marketing of these properties?
The Freenzi Real Estate Auction method saves you thousands of dollars by not charging sellers the traditional sales commission. In fact, we charge NO COMMISSION. This must improve your returns as a builder or developer!
You only pay for the marketing, and the cost of obtaining property reports if required for new builds.
The Freenzi Way has active auction consultants who market your properties to auction, to either Property Seekers or Preferential Buyers/Investors. The successful bidder pays a small success fee to Freenzi, which does not form part of the sales price. Go to Wanting to buy to find out more information on the buyer process or call us directly.
The Directors have a wealth of experience in the building, development, and property industry and understand your needs. Avoid adding real estate commission to the top of the income tax and GST on your profit?.
When you combine Income tax and GST on profits, then add to this standard sales commission, your profit margin could be reduced by over 50% (33% Income tax +15% GST + sales commission). Keep more of your investment dollars in your pocket.
- $170,000 - Land
- $270,000 - House
- $20,000 - Landscaping
- $460,000 - Total Costs
- $540,000 - Sales price
- $80,000 - Taxable profit
Net funds after paying income tax, GST, and standard real estate commission
- $26,400 - Income tax at 33% ($80,000 x 33%)
- $12,000 - Government GST on the profit ($80,000 x 15%)
- $22,080 - *Standard commission if using a real estate agent ($400,000 x 4% + $140,000 x 2% + $400 admin fee +GST on total)
- $60,480 - Total taxes and commission
* Some real estate agencies charge 1%, but most are closer to 4%
There would be $2880 of GST on the real estate commission charges, on top of the GST on the development profit.
These extra costs could leave less than $20,000 in the hand. This does not include interest payments on any funds raised. The builder would need lower costs, and a higher selling price to make this project worth while.
- Freenzi does not charge the builder or developer at all. The successful bidder pays a success fee on acceptance of their bid. This fee does not form part of the purchase price. The Freenzi way is helping sellers and buyers get a better deal.
- Freenzi sets an auction date and marketing period of four weeks. If the property does not receive a satisfactory bid, it simply rolls over to a new auction date. Rateable values are advertised, or guide prices can be utilized. This gives the buyers an indication of where an acceptable bid would need to be for your business.
- All properties would need to be marketed to auction and sold through the online bidding process on the property listing.
- Freenzi can market uncompleted properties as well, as long as we set an auction date. As stated, if for any reason the property does not sell at auction, we then launch another four week auction promotional campaign and set another auction date. This gives you more time to complete each project and remember, new people, enter the market on a regular basis.
- If for any reason a buyer of an unfinished property wanted to make specification changes before the work was completed, they would need to bid on the property as per the original specification, then once purchased at auction, the new owner would deal directly with you over any variations.
- Our consultants will undertake on-site property viewings and give you regular feedback. Only registered buyers can view your properties and they must provide proof of ID.
Does forming a marketing and auction relationship with Freenzi interest you? Depending on the number of listings you have, you will work with one or more of our auction consultants.
Why not make contact today, by completing the Contact form, or contact us directly.
Fill out the form on the Contact us page, or phone the directors on 03 312 0497, or 0800 No Fees (0800 66 3337)