Nowadays the ‘sell my house privately’ route has gone from just a few lone ads here and there to a bunch of do-it-yourself real estate websites that promise to simplify the process of selling your home without the help of a real estate agent.
Buying and selling real estate is often daunting as it’s one of life’s major financial decisions; so what makes some sellers opt for the sell my house no agent option? One reason stands out above all of the rest— to save thousands of dollars in agent’s commissions.
Why Sellers May Choose a Sell My House For Free Concept
Sellers openly admit that they detest having to pay an agent which is why they are lured in by the sell my house for free concept. But is it really free?
Is the potential savings of sale by owner worth the effort and risk of doing it alone? Will you get the same outcome when selling a property privately as a professional real estate agent would?
According to Josh Callaghan, general manager of the Real Estate Institute of Queensland (REIQ)— “highly organised persons with experience in marketing, sales, and negotiating contracts may be able to obtain a favourable outcome for the private sale of their home.” The reality is that most sellers do not have the necessary skill set required to solicit the optimum price from buyers.
Sell My House Privately May Translate to Excess $$$$ Left on the Table
When the property market is hot, like it is right now, many sellers are even more tempted to go the sell my house privately route. Sure, a private seller may be lucky and achieve a reasonable price but usually, an agent will negotiate a higher price or better terms. A skilled real estate agent will use their experience to boost the sale price, handling the entire process from start to finish. Find out how the typical sale by owner process employs poor negotiation skills (due to no agent) to which usually translate into excess $$$$ left on the table
Sell Your Own Home to Save on Agent Commission But Risk Losing Much More Than You Saved
So why would you put yourself at a disadvantage by not utilising a real estate agent’s knowledge (not to mention the extensive database of potential buyers, understanding legally binding contracts of sale, access to real estate software, etc)? The answer can be found in the 2-3% agency commission payable to a licensed real estate agent. If you sell your home using a real estate agency for $500,000, you’ll pay the agent $10,000 to $25,000 to handle the transaction. There’s also the agency’s cost for advertising, which can range from a few hundred dollars to upwards of $5,000+ depending on ad-types, rates and where the ads are placed.
It’s reasonable that people want to keep that kind of savings in their pocket— after all, with that much money, you could purchase a car or take a holiday. When it comes to selling your home, though, it isn’t as simple as snapping a few images and publishing them on the internet.
Mr Callaghan explains— “There’s the administration of advertising, organising, hosting, and coordinating regular open for inspection times, and everything else that comes with selling a house.”
Sellers should consider what tactics they will use to attract prospective buyers to their open home. They also need to know how they will gather contact information for follow-up and what that contact strategy will look like on the day of the open home to ensure there are multiple buyers in the process when it comes to negotiation.
Many individuals believe that selling their home privately and promoting a property is as simple as listing it on an online portal such as Domain, but if sellers haven’t written a compelling description of the property or haven’t targeted the property correctly, they may find themselves alone on open day.
Recapping, the main advantage in selling your home without an agent is not having to shell out what sellers consider to be a hefty commission— but there are some huge risks and negatives that should seriously be considered before going down the sell my own home privately strategy.
If you’d like to discuss how Property Brokerage can save you $$$$, drop into our office at Whale Bay Marina Urangan and have a chat, or call us on (07) 4125 6692 or Brian Thompson on 0438 132 215.