Selling a Property Without an Agent

These days it might seem like the Australian property market is so red hot that homes practically sell themselves! But, should you consider selling your home without an agent? Could you do it all yourself and still get a great result, or is it just not worth the risk?

Selling your house without a real estate agent may sound terrifying, but many vendors are tempted by the potential financial savings that can be made by doing most of the work yourself. With so many buyers out there ready to snap up your house, you might be tempted to try selling it without a real estate agent. But is it worth the risk? If you are thinking of selling a property without an agent, here are some things that you need to know.

You could save thousands of dollars on commission fees

Real estate agents earn their fee by charging a percentage of your property’s sale price. The more money they make you in the sale, the more commission they will earn (which is why they work so hard to get you the best price!). An agent’s fees are usually around 2-3% of your sale price. On a property that sells for $500,000, you’ll end up paying the $10,000 – $25,000. Imagine keeping that money in your pocket by doing the work of the agent yourself!

Without an agent, you will miss out on industry expertise and guidance

Real estate agents do more than take nice pictures and put them up on the internet. They also help to organise the administration side of selling, including the preparation of sale documents and the section 32. Amongst many other things, your real estate agent will coordinate advertising and host and facilitate open inspection times.

An agent has experience and training – it’s their job. To take on that work, you’ll need to think about things such as:

• Organising the legal documents;
• Writing a compelling description of your home to entice buyers;
• Arranging photography and advertising;
• Managing gathering buyers’ contact details and following up with them; and
• Deciding on a negotiation strategy when it comes time to sell.

It’s a big ask for a novice. While you can do it, it’s worth considering that you could potentially lose the savings you make on agent’s fees if you undervalue your home and sell for less than market value.

How to sell your home without a real estate agent

Selling your own home is not for everyone. If you don’t consider yourself to be highly organised and confident with an eye for numbers, it might not be the best path for you to take. On the other hand – if executed correctly – selling your property without an agent could save you tens of thousands of dollars in commission fees. Just remember to value your property correctly, research the process thoroughly and always hire a skilled property conveyancer to take care of the legal documents for you.

Here are some of the steps involved in selling your own home:

Prepare the property for sale

You’ll likely take this step anyway, regardless of whether you use an agent or not. You might do things like repair any cosmetic damage, deep clean curtains, carpets and wet areas like bathrooms and laundry, and repaint any rooms that could do with a lift.

Decide on the property’s value

Thoroughly research your area for recent sale prices. You’ll need to assess properties similar to yours and look out for things such as:

• Land area;
• Number and size of rooms;
• Street location;
• Age and quality of the home;
• Quality of fixtures and fittings; and
• Additional features such as garages and swimming pools.

This is an area that might be worth spending money on by hiring a professional property valuer to ensure you’re aiming at the right price point.

Listing your property for sale

When your home is ready to go, you’ll need to list it as ‘for sale’. While you could just make a sign and stick it in the front yard, you are unlikely to find buyers that way. Your best solution is to list it on online property sales websites to reach as many potential buyers as possible.

Organise inspections

Buyers will want to come and look at your property, so you need to organise and facilitate open home inspections.

Negotiate with potential buyers

Once the offers start rolling in, you’ll need to prepare a strategy for negotiating, especially if you have several bidders. Make sure you have a firm minimum price and stick to it, so you don’t end up selling for less than your property is worth.

Hire a property conveyancer to finalise the contract

This is another area that needs some investment. Selling a home is a legal undertaking and one that could end up costing you significantly if you make mistakes. A property conveyancer will draw up the contract and ensure laws are being met when settling the property and exchanging titles

For more information about Jim’s Property Conveyancing Melbourne and Property Conveyancing Brisbane. Or for expert advice on property conveyancing services in Australia, please contact our friendly and experienced staff on 13 15 46.