Times have changed, and it’s for the better. Technology now enables us to do business remotely, and selling property privately is no different.

 

The birth of the internet has made complex financial transactions more accessible to the everyday person than ever before. Think about companies like Gumtree or Carsales.com.au. A decade ago we wouldn’t have even dreamed of being able to sell our own vehicles directly to buyers without the help of a car salesman. Well folks, the real estate industry is making the same transition.

 

Technology now enables us to advertise, sell and buy property directly to each other, allowing us to cut out the middleman. By cutting out the middle man, you’re empowered to take control of selling your biggest asset, plus you’ll save thousands in agent commissions along the way.

 

While investing in real estate is all about accumulating properties, there may come a time for them to be sold. People tend to sell investment properties either to realise Capital Gains or to liquidate their assets. In doing so, there’s the prospect of not only losing a chunk (25%) of your profits in Capital Gains Tax but also forking out up to 3% plus GST in commissions to a real estate agent.

 

If you think 3% in agent commissions doesn’t sound like much, allow us to put it into perspective for you. Let’s say your property is worth $600,000. If you decide to sell your property through a real estate agent, you’d automatically kiss up to $20,000 of your profits goodbye (depending on which state you live in). [1]

If you’re new to the concept of private real estate (also known as ‘For Sale by Owner’), this method of selling property is not a new phenomenon. In fact in the US, Europe and Canada, between 10-44% of all property sales are done privately. Until recently, selling property privately in Australia was perceived as a maverick, juvenile way of selling a home.

 

Luckily, times have changed for the better! It’s now possible to sell your own home like a true professional. Your marketing campaign has the ability to be just as professional as any traditional agent, but the best part is you’ll pay a fraction of the cost. Private real estate companies like us at buyMyplace provide you with all the marketing tools and support you need to sell your property yourself.  The costs you’ll incur to sell privately will vary anywhere between $695 – $2,495 depending on the level of help you need.  And how much help you need is your decision to make.

 

Trust us when we say we’ve heard every fallacy under the sun when it comes to private real estate. But don’t let those myths stop you from selling your investment properties yourself. Even if you’re selling a property located in a different state than where you live, selling privately is still possible.

 

To help ease your mind, let’s explore the different fallacies around selling property privately versus using an agent.

 

 

The Legals

Contrary to popular belief, agents are not responsible for the legal aspect of selling your property. Sure, they’re familiar with the process but all they do is refer you to their preferred conveyancing or soliciting partner firms.

With a quick Google search, you can select your preferred legal professional. Both buyers and sellers should take care in appointing their own conveyancer or solicitor because they will be responsible for providing Contracts of Sale and all other warranties and documents as required.

 

 

Marketing and Advertising

Nobody knows your property better than you. You know every nook and cranny, every unique feature, and every detail about your property. You’re best placed to advise on specific information like how easy it is to maintain the garden, the property’s rental yield, or even how much the monthly hydro bill is on average. Whether you’re targeting residential home buyers or investors, you’ll be able to answer all their questions. After all, you bought it yourself in the first place.

Rumour has it you can’t advertise on Australia’s top real estate websites like Realestate.com.au or Domain.com.au without a real estate agent. The truth is, you need access to a real estate license to place a property listing on those websites. But when you sell through a private real estate company like us, we upload your property listing to the top real estate website on your behalf using our registered agent status.

Selling your property yourself doesn’t mean you need to sacrifice the quality of your property’s advertisement. Despite what agents may say, selling through a private real estate company like us gives you access to the same quality marketing opportunities as real estate agents. Everything from priority ad placements to professional photography and ‘For Sale’ boards are at your disposal. You could even sell by auction if you wanted to!

 

 

Property Inspections and Negotiations

Agents will tell you buyers don’t like dealing directly with property owners, but anecdotal research [2] shows otherwise. It was found that buyers thought property owners were more genuine and honest. Buyers also said the negotiating process was more time-efficient when dealing directly with owners because there was no need for an agent to relay messages back and forth.

We understand the idea of negotiating your property’s sale price can seem quite daunting. But when you think about it, negotiations are simply conversations between two parties where the goal is to reach an agreement.  If you can’t shake the nerves, there is no need to stress. You always have the option to enlist the help of a professional negotiator for a small additional fee.

 

buyMyplace research shows that on average, people spend less than 14 hours selling their property privately. Of all the properties sold through buyMyplace, 70% sold within 90 days of listing on the market. Of that 70%, nearly half sold within the first 30 days of being on the market. [3]

 

Ultimately, if you’re an investor then you’re buying and selling property to make money – whether it’s rental yield or capital gain. Regardless of the sale value of your home, when you crunch the numbers and add Capital Gains tax (CGT) plus real estate agent commissions and marketing fees, it makes financial sense to consider selling your property yourself to save thousands in agent commissions. With support from a reputable commission-free real estate company to help you achieve the sale price you want, there’s really no need to use an agent again.

 

If you have any questions or want to speak with someone about your particular circumstances to see if selling privately is the right path for you, give us a call on 1300 289 697. We’re always happy to help.

 

[1] Source: CoreLogic – based on a home value of $600,000
[2] Source: buyMyplace Customer Feedback
[3] Source: CoreLogic

 

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