Should you sell your own house?
A small number of people choose to try selling private houses themselves and save on agent fees. If you’re thinking “I want to sell my own home”, you’re not alone. This is known as For Sale By Owner (FSBO). There are pros and cons to taking this path, so make sure you know what you’re getting into before you decide.
Read our blog post on how to sell my property to understand the process, the pros and cons of FSBO, as well as tips on choosing the right real estate agent for you.
How can I sell my own house?
If you do decide to sell a property without a real estate agent, you’ll need to:
- Choose a sale price
- Put together a marketing campaign
- Prepare and/or style your property for inspection
- Hold open inspections
- Negotiate the price confidently and without emotion
- Pay a solicitor to draft a contract of sale
- Receive the deposit and hold it somewhere safe until settlement
There are several online sites which help sellers to market and sell their properties without an agent, or you can go it alone.
PROS OF SELLING YOUR HOUSE YOURSELF
1. Flexibility
If you’re not in a rush to sell, a private sale might suit you. You can take your time considering offers, extend the settlement period and select the buyer you prefer. With nobody’s schedule but your own in the mix, it can be a far more relaxed process.
2. Save on real estate agent fees
This is the obvious reason why people choose to go it alone. By selling your property without an agent, you’ll save the 2% or so that you would otherwise pay in commission.
You will still incur marketing expenses, of course, and you won’t get the discounts on ad spend that publications give agencies who buy in bulk. But if you’re on a strict budget, these can be kept to a minimum, although you will sacrifice reach.
3. Faster decision making
Without an agent involved, you can make decisions quickly. If a buyer is ready to make an offer, you don’t need to wait for the agent to communicate and negotiate. This can potentially speed up the overall sales process, especially if you’re selling to someone you know.
4. Transparency and Trust
Some buyers may prefer dealing directly with the owner rather than an agent, as they may trust you more and get honest answers about the property’s history and features.
CONS OF SELLING YOUR HOME YOURSELF
1. Time
Be prepared to spend some serious time selling your property. You’ll need to make time for potential buyers to look at the home either via open inspection or by appointment. You’ll be returning phone calls and responding to enquiries yourself. And once you find a buyer who’s willing to put in an offer, you’ll need to do the back-and-forth negotiations.
You’ll also have your Saturdays and potentially Sundays tied up doing open homes.
2. Lower sale prices
Buyers know that a private sale means the seller is paying no commission, and they’ll often try and negotiate a lower price based on that. You might find that the savings pass to the buyer, not you.
Not only that, but you have to get the pricing right to start with. If you don’t know the market well, it can be easy to miss the mark. Too low and you’ll walk away with less in your pocket. Too high and you won’t get any offers. If the property sits on the open market for too long, the listing becomes ‘stale’ and is seen as less desirable by potential buyers. If you reduce the price, you’ll look desperate and make yourself vulnerable to buyers looking for a bargain. Many sellers have found themselves selling for less in the long run because they priced the property wrongly to start with.
3. Slower sales
A private sale process usually takes longer than it would if you used an agent. That’s partly due to logistics: because you’re not a professional real estate agent you’ll probably be slower in returning phone calls and less able to host multiple inspections. You also don’t have a database full of potential buyers. A strong database is an agent’s most effective tool for selling quickly — this is how ‘off market’ sales are made prior to any advertising.
A private sale also tells the buyer that there’s no urgency. They’re more likely to take their time deciding whether to put in an offer and the negotiation process can become quite drawn out.
4. No access to marketing networks
Real estate agents have established networks for advertising, marketing, and attracting potential buyers, including lists of prospective buyers. Without this, your home may not get the professional visibility needed to attract serious buyers or may not attract the right buyers.
Why is it not more common to sell your own property?
While it's not required by law to use a real estate agent when selling your own house, most people choose to do so because of the time, expertise, and negotiation skills needed for the process.
Although people can sell their property on their own with the right guidance, it is still highly recommended to hire a conveyancing solicitor to handle the contracts and financial transactions, ensuring everything is legally sound.
Some sellers have successfully managed to sell their homes themselves, particularly in a strong market, creating their own marketing materials and distributing flyers. However, selling a property involves much more than just listing it. From staging the home and organising inspections to handling buyer negotiations, selling your house privately is a process that requires significant time and effort. Not everyone has the ability or desire to manage these tasks, especially when it comes to negotiating with potential buyers.
One of the key advantages of using a real estate agent is their expertise in handling negotiations. They often secure a higher sale price due to their professional detachment and experience. Agents also do much of the "heavy lifting", from organising staging and photography to preparing marketing materials and scheduling open homes. Many sellers find that paying for these services ultimately leads to a more efficient sale. Additionally, if a seller lives overseas, selling without an agent is not a realistic option.
Choosing a real estate agent
When you’re choosing a real estate agent for selling private houses, cost should not be the only factor you consider. But how do you know if you’re going to get your money’s worth?
Look at individual results
You want someone who will negotiate smartly and get you the highest possible price. For that, you need to see what they’ve achieved for similar properties. Ask the agent to show you some of their recent sales and compare them against other properties in the area.
Get personal recommendations
Ask friends and family for their recommendations, but be discerning. The best agent to sell my home is one who fits your needs, and not everyone is the same.
Stay local
A local agent will know the market better and be able to champion the location for you. They’ll also be better able to assess the value of your property.
Check their work
Go to an open inspection that they’re hosting. Attend an auction. How do they treat interested buyers? Are they friendly, punctual and knowledgeable?
Discuss strategy
A great agent should be able to suggest a marketing campaign that’s tailored specifically to your property. Ask them who they see as the buying demographic, what the buyer behaviours are and how they plan to target them. This will sift out the one-size-fits-all agents from those who will customise their approach to you.
Get an appraisal
Any agent you’re considering will be happy to give you a free appraisal of your property. Don’t just pick the one that tells you they can get the highest price, though. Ask them why they think your property is worth what they say it is and how they will achieve that.
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