DIY vendor: How to sell without an agent

Oct 22, 2018

DIY vendor: How to sell without an agent

In the high-speed internet era, it is increasingly tempting for vendors to sell their properties agent-free in order to save thousands of dollars in fees and commissions.

That’s because rapid advances in technology, such as the advent of social media platforms, have made it much easier for home owners to sell without the need to use a real estate agent.

However, despite the allure of selling without an agent, there remain risks to be aware of.

Selling privately – what are the advantages?

The big benefit of taking the agent out of the equation is saving money.

According to consumer group Choice1, agents charge a commission rate of up to five per cent of the sale price, meaning on a median Sydney dwelling of $815,0002 you could stand to save more than $40,000.

This cost saving can result in you being able to make more profit from the sale or deciding to list the property at a lower price than competitors, thereby gaining an advantage in the market.

Selling privately also means no intermediary between seller and buyer. This can save time because it means no need to work around an agent’s schedule, wait for phone calls and proceed at their pace.

Additionally, social platforms like Facebook and Twitter have made it easier for sellers to reach buyers without an agent, making private selling much easier from a marketing perspective.

Selling privately – what are the risks?

While the allure of selling without an agent is growing, there remain challenges, including the necessity to get a solid valuation before going to market.

Getting a proper valuation will mean you can set a realistic asking price. This puts you in a strong negotiating position as many people do not have a correct idea of the real value of their home.

Another key to going it alone is confidence. Private selling is best suited to vendors who have robust negotiation skills and are property savvy.

Representing something of a middle-ground, a growing number of sellers are exploring low-cost real estate agents like Purplebricks that offer reduced commission rates charged by their agents.

Private selling – do your homework

For those seriously considering taking their sale private, Fair Trading NSW advises prudence.

After preparing a contract of sale with a lawyer, the agency urges vendors to “have your property valued, decide the purchase price, advertise the house, exchange contracts, then settle”.

“If you decide to sell your property without an agent, you should thoroughly research what you need to do at every stage of the sale process,” it says.

 

Sources

  1. (2018). What’s your home really worth? Retrieved from: https://www.choice.com.au/money/property/selling/articles/guide-to-selling-your-property
  2. com.au. (2018). Slowing conditions are only part of the story. Retrieved from: https://www.realestate.com.au/australian-property-market/property-report-july-2018/

 

 

 

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