When it comes to selling a home, investment property or even an estate most home sellers automatically think of calling their local real estate agent. However more often these days home sellers are seeking an impartial view or independent qualified advice – someone like us here at Vendor Marketing. Then on the other hand a very select few think about the ‘ for sale by owner ‘ option and my advice is BEWARE. Why?
Understanding the pros and cons when considering a ‘ for sale by owner ’ strategy is essential if you are thinking about handling your own home sale.
There are tips on YouTube from people endorsing do-it-yourself or for sale by owner strategies, but many of these can be sales pitches for services or software.
The most common reason somebody will choose to sell their home without a Real Estate Agent is to save the commission fee. However, smart buyers may see an opportunity to take advantage of you and your sale price by making a lower offer, trying to appropriate the ‘saved commission fee’ for themselves.
Agent’s Commission fees can vary and are negotiable. Generally, an agent’s average fee would be between $10,000 to $15,000. Overall, Real Estate agents won’t accept less than 1% of the total value of your property. Saving this money with a do-it-yourself sale may look attractive but it can end up costing you more by achieving a lower sale price, or getting mired in other issues that can arise during the sale.
Having a Real Estate agent working for you with your sale keeps more perspective on the process. You are less likely to start out with an asking price that’s simply too high. A Real Estate agent has more experience and resources to accurately set the right pricing strategy, and in association with that, factor in the current market conditions and recent comparable sales.
When low offers come in from potential buyers (which could be offensive to the owner who’s selling their own home) they need to be countered with a strategic response, which is usually better handled by a Real Estate agent. An agent is less likely to feel pressured by low offers or a looming deadline and give in by selling too low!
Unless you are a natural salesperson you may find the whole selling process a bit not only challenging but also time consuming i.e. showing the house, maintaining security, dealing with criticisms.
With a Real Estate agent there’s less emotional attachment to the home and they will be able to approach the situation with an impartial, more strategic view.
Whether it’s justified or not, buyers sometimes regard ‘ for sale by owner ’ home sellers as being in the more desperate category – as in desperate to save the commission fee. Or they may assume there might be something wrong with the home because it’s being sold by a non-professional.
The vast majority of home buyers do their research on the internet. If you are selling your home yourself, you will be exposed to a smaller pool of potential buyers, because websites listing private sales don’t have sufficient stock to generate enough awareness by attracting a wider audience.
Other marketing tools used by Real Estate agents apart from the Internet portals include metropolitan and local newspapers &/or magazines, flyers, brochures, Pointer Boards and signage i.e. a board at the front of the property. It takes know-how to use these tools efficiently, or money can be wasted and potential buyers missed. It’s no good trying to sell your home without being able to get it out there with a correctly weighted media schedule talking to the right buyers.
A usual marketing budget a real estate agent would push for would be approximately 1% of the asking price. $10,000 for example, on a property worth $1,000,000.
It’s fair to say most home sellers would prefer the transaction to be completed successfully with minimum possible disruption to their way of life. Engaging a real estate agent is usually the smoothest route to a fast, successful outcome with the best possible price.
At the end of the day people often find the skills, resources and experience of a real estate agent are worth the price you pay in commission.
Therefore if you’re thinking about a ‘ for sale by owner ’ strategy then my advice is to think again! Think about the benefit professional experience can bring, more importantly independent qualified advice – it’s the best route to a successful result!
Vendor Marketing – Melbourne’s most qualified vendor advocates, specialises in both property marketing and real estate agent selection for home sellers within Melbourne. Therefore we are independently qualified to assist you through the process of selling your home – which ultimately maximises your sale price!
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1. REAL ESTATE AGENT SELECTION
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