First published on Smart Property Investor Seriously – we get it. We get...
Agents, Fixed Fee, and Private Sale: What’s The Difference?
What will selling your property cost? It depends. The first thing it depends on is obvious: the value of your property. And the second thing is about to become obvious: how you go about selling it.
If you’re asking, “What do you mean, how?” then I’ve got news for you. The traditional way of selling through a real estate agent is still popular, but here’s the thing: it’s expensive. Agents charge a commission based on the sale price of the house, and it’s a decent chunk – no matter what your place is worth – which is why alternative methods like Fixed Fee Real Estate and private sale solutions are elbowing their way in. And about time.
So what’s the difference between them all? More details in a bit, but basically Fixed Fee Real Estate mimics traditional agents, except at a fixed price, so if the real estate gods smile down upon you and your house fetches more than you expected, you won’t have to pay extra commission. Private sale solutions (in case you haven’t worked it out yet, that’s us) give you flexibility. You can choose from a range of sales campaigns, depending on your budget, and what you can and can’t do.
And that’s it for the overview. Let’s get down to what you really want to know.
OK, so maybe you know what it costs to sell with an agent. But do you know what the other sales methods cost? If you don’t, it’s time to learn, my friend. Because knowing what you’re up for is the best way to make the choice that’s right for you.
The costs of ‘Fixed Fee’ and ‘Private Sale’ are lower than for the real estate agents, but still – most vendors will go traditional anyway, and we get it. The concept of fixed fee and private sale is relatively new and kind of foreign to many Australians, and there is still a place for agents, particularly if you’re time-poor and can’t commit to selling privately. (Plus, agents believe in the motivating power of that sweet commission to get you top dollar for your place.)
But if you have the time and are keen, you can save big bucks selling privately. Private sale options like buyMyplace give you flexibility for your budget, and you decide how much professional help you get.
Once upon a time, only traditional real estate agents could advertise on the big real estate websites. Now, Fixed Fee and private sale real estate services can promote your property on Realestate.com.au, Domain.com.au, and more – including overseas, if that’s your bag. And by the way? Most buyers search for houses online, so having a strong online presence is 100% not negotiable.
Remember that real estate agents will usually charge for marketing on top of commission fees. Because they plan and execute the entire marketing campaign, it might be worth it for you if you’ve got the money and don’t have the time.
But if you want more control over the marketing campaign, fixed fee and private sale solutions give it to you, with choices and heaps more flexibility, so you get exactly the marketing collateral you want. And we don’t mean to boast, but at buyMyplace we offer the most flexibility and pricing and campaign options of anyone out there. (Disclaimer, we actually do mean to boast. We have good reason to, right?)
Control & Transparency
If you’re still weighing up whether to go trad or go private, let’s have a look at the level of control and transparency for each method. Remember: the more you know about each experience, the more likely you’ll be to make the right choice for you.
So you get it, right? Sales conducted by a traditional agent will pretty much be controlled by that agent. There is no obligation for you to be involved in the marketing campaign, inspections, and final settlement process, and this is great you don’t want to be.
But if you do want to be involved, fixed price and private sale solutions give you the control and transparency you’re after.
Wrapping It Up
The thing for you to know is this: no one way of selling property is better than another. At the end of the day it’s up to what you want and need, and the kind of property you’re selling.
If you’re uncomfortable with online platforms, and want someone to manage the entire sale from go to whoa, a traditional real estate agent could be exactly what you need.
If you want to save some bucks but still want expert support and knowledge, Fixed Price is another option.
And if you want to save heaps of money and are itching for some fun and DYI, private selling is made just for you, with as little or as much support as you need. Interested? Register for a call back to find out more.