Will private house sales save you money, or cause you more stress…?
With businesses like Purple Bricks and Sell My Home popping up, many people are now considering selling without an agent. Upon first glance, it seems like a good option because you don’t have to pay anyone commission, which is usually 2.50-3.00% in Queensland, saving you a potential $20,000 on the average home. Here, the emphasis is on the word “seems”. The reality is that a good agent will be able to get you more than an extra 2-3% on the price of your property, meaning that you still end up with more money in the end.
Real Estate Expert Ton Panos has said that a good agent can get you up to 10% more than the list price, which means you’re still 7 or 7.5% better off when you use an agent.
Other statistics show that the typical For Sale By Owner (FSBO) home sells for much less than an agent-assisted sale. In America, the typical FSBO home sold for $185,000, compared to $240,000 for agent-assisted home sales.
So should you sell your home, which is, in most people’s cases, your single largest asset, without the help of a professional agent? Here are 6 factors you should consider if you’ve thought about selling without an agent.
Agents have the experience and expertise to get top dollar from the sale of your property. There isn’t really any substitute for the number of years the best agents have put into becoming successful salespeople, not to mention the training they have done (and paid for) to become an agent in the first place. Many agents, such as Anthony Oddo at Red & Co, have also studied marketing, which gives an extra advantage in marketing your property to the right buyer. There’s actually a bit more involved in marketing strategy than vendors realise, so we can’t emphasise enough how important it is not to underestimate the power of effective and targeted marketing.
Better negotiation skills
Negotiation isn’t exactly a skill that you can read a book about and pick up straight away (unfortunately). It takes a lot of time to be able to read people and employ negotiation skills in your dealings with clients. Agents often spend years refining these skills, so if you decide to sell your home yourself, it’s likely you won’t be able to negotiate a price as high as a professional real estate agent would.
Unless you’re an agent, you actually can’t list your home on realestate.com.au or Domain. With 86% of buyers starting their search online, it’s incredibly important to be on popular listing websites to maximise exposure to a prospective buyer pool. Not only can agents market on these websites but they will send direct marketing materials to their database of buyers about your property.
Realistic price setting
One problem that owners selling their own properties encounter is that they often have unrealistic expectations about their home, particularly if they have been living in it and get emotionally attached. Also, because agents live and breathe property, they know exactly what’s going on in the market and can use tools such as RP Data to conduct a comparative market analysis and set a price that reflect the real value of your property using market data.
If you are running your own open for inspections and a buyer walks into your kitchen and makes a negative comment, are you going to be offended? Yes, you probably are. You’re then probably not likely to want to sell your home to this buyer, which is a problem if that buyer is going to make an offer.
Agents are able to remove emotion from the equation, meaning they focus on getting you the best offers and the best price, not getting distracted about whether that couple liked the kitchen blinds. They’re also able to spot things about the property that owners would miss or not think about. For example, a room that might need to be repainted to be a more neutral colour or that painting on the wall that you love but a buyer might not.
Not only can agents tell you which repairs and maintenance will give you the most bang for your buck, but they often know the best people for the job too. Many agencies, like Red & Co, provide property management as well as sales. This means they have access to better deals on maintenance services because they have hundreds of properties to service and are providing tradespeople with a lot of business.
Most people don’t quite understand how much work goes into selling a property and what agents actually do to make it happen. To put it simply, most (if not all) private vendors selling don’t have the marketing resources or know-how to sell their home for as much as an agent can. The real key is knowing how to choose a good real estate agent.
If you have any questions about selling your home or if you want to know what your property is worth, call Anthony Oddo on 0430 028 254 or email [email protected].