Myths of Selling Privately
Who knows your home better than you? Exactly! So, who better for the job?
‘For Sale by Owner’ has many different names in the property world – FSBO or “Fizz Bow”, as the Americans have dubbed it, commission-free selling, agent-free real estate sales, and D.I.Y. (do-it-yourself) real estate. No matter what you call it, it amounts to the same thing: selling your property directly to buyers without the use of a real estate agent.
There are many benefits to selling this way, not the least of which is the tremendous savings you’ll enjoy by not having to fork out up to 3.25% of your sale price to an agent for commissions. Let’s take a brief moment to reflect on how significant that is…
Let’s say your property is worth $600,000 and you’re trying to decide whether to use an agent to sell your property or to do it yourself. You’ve done some research and found that your local agent charges 3.25% in commissions and marketing fees. In doing some quick calculations you discover that selling your property with an agent means you’ll be kissing $20,000 goodbye.
If you sell it yourself instead, $20,000 stays in your pocket. Think of all the things you could do with $20,000! We think that’s money better spent on the important things like stamp duty, renovations on your next home, breathing room to reduce your listing price if you’re selling urgently, or (most importantly) that well-overdue cruise to the Mediterranean you’ve been dreaming about for the last decade. Wouldn’t you agree?
Private real estate is not a new fad. In fact, it accounts for as much as 25% of all home sales in some European countries. Unfortunately, myths about the complexity of selling privately and the need for real estate agents still exist.
So, call us the MythBusters! Here are the top seven myths you need to know about before you decide how to sell your property.
1. You must be a licensed real estate agent to sell a property – False
Technology has completely revolutionised the real estate industry. Much like you don’t need to be a car salesman to sell your car anymore, you don’t need to be a real estate agent to sell your home. Private real estate companies like buyMyplace offer online marketing campaigns that enable you to sell your property yourself. If you don’t feel confident creating your own property listing, we have marketing campaigns that include professional services, such as professional real estate photography, professional copywriting, and For-Sale boards.
2. Buyers hate when property owners are present at Open for Inspections – False
In fact, anecdotal evidence from our successful vendors and their buyers states quite the opposite. Buyers love asking questions to sellers directly because they know they’re getting a direct, honest answer. The same goes for negotiating the sale price, buyers generally enjoy negotiating directly with the owner, which speeds up the process instead of waiting for an agent to go back and forth a thousand times before an agreement is reached. Plus, you can always seek assistance from one of buyMyplace’s professional negotiators if you feel nervous about managing that aspect of your sale.
3. You need an agent if you want to sell your property by auction – False
If you decide to sell your property without an agent, private real estate companies like buyMyplace can arrange a professional auctioneer for a fixed price, which is far better value for money.
4. You need a real estate agent to manage the legal aspect of selling property – False
The legal part of selling property is always handled by legal professionals like conveyancers or lawyers. Even if you sell your property using an agent, they’ll simply refer you to one of their preferred suppliers.
Just as technology has revolutionised the real estate industry, its now possible to handle the legal side of selling property through online conveyancing businesses.
*Psst! Insider’s tip: you’ll need to have a contract prepared before you list your property for sale.
5. You can’t get a listing on the top property websites without an agent – True
Most major property portals will only accept listings from licensed real estate agents. However, by listing with a private real estate company like buyMyplace, we use our Agent Status to ensure you have access to all the same real estate portals that agents do, including Realestate.com.au and Domain.com.au. We can even arrange upgrade listings to give your property priority ranking in search results, in addition to all the other bells and whistles you might expect from an agent.
6. You get more money when you sell with an agent – False
Agents claim they’re best equipped to negotiate the best sale price for property. However, our internal comparative analysis shows that our vendors achieve and often exceed expected market sale prices. Not only that, but most of those vendors also exceeded average ‘time on market’. Oh, and let’s not forget they’ve pocketed thousands of dollars that would have otherwise been paid out in agent commissions. Cha-ching!
7. You really are going it alone, and it’s a lot to take on board – True and False
Sometimes people decide to sell property (blocks of land) completely on their own using websites like Gumtree. If you choose to sell that way, you are definitely going it alone.
However, you also have the option of selling through private real estate companies like buyMyplace who can help you through it all. You can choose from a range of marketing campaigns that will give you either little or full support. For example, our Basic Campaign simply includes a ‘For Sale’ signboard and online property listings on the top real estate portals. However, most of our customers opt for our top two campaigns for professionally executed property listings. We can offer you everything an agent can for a fraction of the price.
Now that you’re demystified, how do you feel? Still have questions? We have answers.