House Sale by Owner

Liluvsydney on 12/06/2017 - 13:16
Last edited 26/06/2017 - 10:46

I want to sell my home. I have interviewed some local agents but I am interested in selling it by owner.

After doing some research online in other forums like whirlpool I have found some buyers prefer to purchase agents listed properties. I would be able to save agents fees if I sell it myself. I have also read that agents can get negotiate a higher price which can mean more amount in my pocket after their fees. If people prefer dealing with agents then I would stand to lose money despite more efforts.

Most of the agents I saw were crooks however I have shortlisted two who I can trust.

IMO in Sydney region there is more demand than regional areas. As a result listing as owner using available sites like fsbo I can get people to view my home. As long as I know the market value based on previous sales in my area I should be able to make this sale.

I plan to get a solicitor to handle all the paperwork. I think solicitors/conveyancers are very important for peace of mind about legal work & settlement. Apart from this I will also get professional photos & floor plan in listing.

I would like to hear from others opinions to make decision about this.

Please feel free to leave comments. Thanks in advance

Update: I have gone ahead with an agent, they are charging 1.6% that includes marketing fees. No sale no fees. Thanks everyone for chipping in with their opinion.

Poll Options

  • 51
    Sell it myself
  • 92
    Use an trusted agent
Home & Garden

Comments

  • cuteduck on 12/06/2017 - 13:42
    +8

    How about https://www.purplebricks.com.au/
    I havent use it before

    You are unable to list it on realestate.com.au or domain.com.au
    unless you use RE agent or online agent

    • iluvsydney on 12/06/2017 - 13:46
      +5

      Purplebricks charge their fees upfront. They are very motivated to get a listing however if house fails to sell in that case they will walk away with their fees of 5500 dollars.

      Some websites act as agent allowing to list your property online like this https://www.forsalebyowner.com.au/

      • ATD on 12/06/2017 - 14:22
        +4

        Can't say I've been impressed from what I've seen come with PB. Seems to be a very automated non-personal process with errors that is tied in with lawlab. I say that from acting for a buyer and not as a seller myself. Your view about buyers being weary of people selling their own home is true - this will be mainly for people not familiar with the process and being scared of it - especially deposits. I don't know why that is because if the parties get solicitors to act for them, then they will ensure everything is in order. Also I suspect they may feel more comfortable negotiating through a third party than the seller directly. I had a client who tried to sell their house for 12+ months and that was their experience. Took the agent 8 months to sell it and at a $50k price drop. A $50k price drop has little consequence for a RE's commission.

        If you are after top dollar for your property - agent is best bet as long as you push the agent to squeeze every cent out of the buyer rather than looking for a quick sale. I'm also not a believer of exclusive agency. If you aren't in a hurry to sell and want to have a go, then do so. Bear in mind that a buyer will compare your sale price to other properties and if in the same price range, most will expect you to drop the price because you aren't paying RE commission. If the property is overpriced, you aren't going to sell it either way.

        • iluvsydney on 12/06/2017 - 15:30

          Thanks @ATD. Purple bricks is not for me, I would either do it myself or go for a commission based agent.

          In general I would be happy to lower price a bit if selling myself. That would make my house better buy compared to others in the area.
          That said I think most buyers would buy a house if they like the layout & location. Couple of thousand dollars less or more do not change decision. of course the house should be in their budget.

        • Trying2SaveABuck on 14/06/2017 - 19:42

          @iluvsydney:

          Go to an agent say im only willing to pay 5-6k + advertising i want at least this amount or better take it or leave it.

          Say if you get 20k over the reserve you will give them a personal 1k tip in cash to keep em motivated

          Trust me this is the best way

        • striker5950 on 15/06/2017 - 20:40

          @iluvsydney: just keep in mind that big name agents can be sqeezed too, tip them against each other. you can easily lower their comm to 1.5%

      • striker5950 on 15/06/2017 - 20:37

        what do you mean if it does not sell? they cahrge auction fee yes, but same as any other agent, they charge the auctioner fee if it sells or not, than if it does not, just have it listed, and keep it listed till it sells by them

    • paulojr on 15/06/2017 - 21:59

      technically you can on domain but your charged so much you'd be stupid to do so. Someone I know did it recently. Cost them 4 times what an agent pays and no hits as domain gets a faction of the traffic of other sites like RE.

  • Savas on 12/06/2017 - 13:49
    +3

    You are right, exactly what we did. My mum used Your Hot Property, they were awesome.

  • xssive on 12/06/2017 - 14:55

    Where is the property based?

    • iluvsydney on 12/06/2017 - 15:15

      based in blacktown region. How does that matter?

      • MakkhiChoos on 12/06/2017 - 15:59
        +9

        Maybe a potential buyer.
        If you ever get to sell your house on OzBargain, please share that with us.

        • Hamlet on 16/06/2017 - 17:08

          Nah, forget it. Gotta top eBay's 15% if OP's to sell it on here.

      • xssive on 12/06/2017 - 20:17
        +8

        It's matters!

        If it was a cbd based unit there could be interest from overseas investors which an owner wouldn't have access to.

        Also agents have their own databases for people looking to buy in the area and you could potentially sell off market..

        • striker5950 on 15/06/2017 - 20:42
          +1

          that is usually the sales tactics used by agents to lure the customer to sell with them, they all pretty much list them on real estate and domain, the 2 biggest sites, all that database bullsh!t is talk to make you think they have access to something that is beneficial if you choose to go with them and you might sell it for more..

        • xssive on 15/06/2017 - 21:48

          @striker5950:

          You obviously have no idea what you are talking about.
          Last three properties we sold were off market, All the buyers had missed out on other properties in the area and were still looking for something to buy.

    • xssive on 12/06/2017 - 20:14
      +2

      Preach!

      Some people always bad mouthing REA without thinking some of us may be agents.

    • MrBear on 13/06/2017 - 09:40

      Maybe they all had the name "Hillary"…

    • Oofy Doofy on 13/06/2017 - 14:35
      +14

      'Crooks' because at the end of the day they can make over 1k an hour just to do what your property would have done anyway… Sold to somebody who wanted to buy it.

      Ask yourself, is a RE agent worth that much coin? Highly unlikely.

      I do believe there is value in auctioneering though, without the need for an agent.

      I'm not plugging Purple Bricks, but they also provide this service. I wouldn't use them though, I'd be trying to do it as cost effectively​ as possible.

    • Ghogger on 14/06/2017 - 07:25
      +21

      They deal in commission. Their pay checks have gone up substantially with the price of housing while they aren't doing any more work than before. None of the major agencies want to be conpoetitive on commission because they know that competition will erode their profits, almost organised like a cartel/oligopoly.

      The house selling business needs a real shake up like the taxi business.

      Bring on the revolution!

      • gromit on 14/06/2017 - 12:28

        commission percentages have actually come down a lot and most agents will happily negotiate the rate, especially if you aren't going to be a difficult sale.

    • BargainCowboy on 15/06/2017 - 12:40
      +3

      What formal education does a REA need? Yea, exactly.

  • resubaehtgnolhcs on 12/06/2017 - 15:55
    +8

    I sold an investment apartment in Sydney about a decade ago through a Chinese real estate (who was not local to me), who listed it in a Chinese newspaper and online on Chinese websites at no charge for the advertising (as it was free for them to list in the paper and online, and they did the photography for free as well), with commissions that was half of what the local agents quoted me. The local agents also told me that I would never get the asking price i was looking for, showing me similar properties that had sold in the area. The Chinese real estate assured me that they could sell it for my asking price, and they did so in 4 weeks!

    • iluvsydney on 12/06/2017 - 17:37

      I have same story with local agents. Their estimates are lower than agents from other areas. If I went to buy a similar house I would not be able to buy a completely finished house. Mine is finished is new kitchen & bathroom. They are estimating prices of unrenovated home.

      Can you share details of the agent you used? I know it is quite a lot of time. But if they are still in business I will love to speak to them.

    • Gunther on 12/06/2017 - 21:28
      -6

      Goodbye Australia property market to China. Bad luck first home buyers!

      • MrBear on 13/06/2017 - 09:43
        +19

        If it was you selling, would you sell to a Chinese buyer for, say $100K more, rather than selling it to an Aussie first home buyer?

        Thought not.

        • Gunther on 13/06/2017 - 12:30
          -5

          No intent of racism, just not favoring foreign investment causing Australian housing prices to rise significantly.

          Put yourself in an Australia buyers shoes, competing with that foreign investor paying $100k more just because they can and have liquid cash.

        • outlander on 13/06/2017 - 12:41
          +1

          You can say that about anything.

          If it was you selling, would you sell to a drug dealer for, say $100K more, rather than selling it to an Aussie first home buyer?

          Thought not.

          See?

        • MrBear on 14/06/2017 - 10:57
          +3

          @Gunther: I wasn't implying you were racist, I was just saying that people will say foreign investment is bad, but when it comes down to it when it is them selling, they will take the most money they can get.

          That is: greed > ideals (more often than not)

        • centrelink on 14/06/2017 - 11:14
          -8

          @outlander:

          Oh man you can't get more straw-man than that.

          Just like saying being a pedophile shouldn't be considered a sexual defect because being homosexual is also not a sexual defect anymore

        • outlander on 14/06/2017 - 11:56
          +1

          @centrelink:

          Yes it is, I see you're smart enough to realize that. The point is people will prioritize themselves over the welfare of the group, especially if it's a group they're no longer part of. It's one instance where emotions trump logical reasoning

        • Krizy on 14/06/2017 - 14:12
          +1

          @outlander: I was confused by this exchange. It doesn't seem like straw-man, more like proof by exaggeration or something.

        • outlander on 14/06/2017 - 14:28

          @Krizy:
          Yeah that's probably a more accurate way to describe it. My grasp on the English language is tenuous at best, I'll be the first to admit that. Was that the only part you found confusing?

        • centrelink on 14/06/2017 - 18:10
          -3

          @outlander:

          TOUCHE

        • El Cap on 15/06/2017 - 12:58

          @Krizy: I think it is a false comparison: there is no point in comparing a foreign buyer to a drug dealer.

        • Krizy on 20/06/2017 - 00:17

          @outlander: Bit late for me to reply but yeah, just that. Now I'm reading it with fresh eyes I think it was a straw-man, but being made out of proof-by-exaggeration instead of straw, it was a proof-by-exaggeration-man.

  • tsunamisurfer on 12/06/2017 - 16:13
    +28

    I have sold 2 properties by myself and saved at least 30k in commissions.

    Firstly do your own research, but that can include bringing in many real estate agents and having them appraise (for free) your property and giving you a valuation. Now these people can be prone to overstating their valuations but getting a few of these and doing your own market research you should be able to gauge what is the market price for your property size / location. This is the most important, going in without any research is a mistake.

    We wrote our own text, took our own photos and posted on Gumtree….yes Gumtree. After a while we decided on an alternative strategy, there are agents who are willing to list your property for you without a commission. The deal is :

    • You pay them a flat fee (first time years ago it was $440, now %550).
    • They list your property which includes access to websites that are only available through agents like REIWA (WA), property.com.au etc.
    • The contact details are to the agent, but any messages are forwarded to your phone. Any calls are forwarded to your phone.
    • You do the inspections, you do the negotiations.
    • You do the O ad A.

    It was so easy and we saved so much money and we got what we wanted.

    We got the forms from the Real Estate Institute.

    Our Settlement Agent took care of all the checks, transfers and legalities.

    Yes, you will get dreamers, lowballers, tyre-kickers, people that exist with or without an agent, its just that your agent would normally filter them out.

    If you do your research you won't get ripped off and the Settlement Agent handles the transfers of title and monies so its not like you will sign over the Title for the buyer to lodge paypal dispute or a cheque to bounce. Its all done above board.

    At the end of this process I am truly shocked at how much people are willing to pay for this simple service.

    Our second property was sold on the second or third enquirer, took about 2 hours of meeting, negotiation and paperwork time. Overall we would have done about 5 hours of work for all the things listed above.

    For 5 hours work I saved about 19k.

    If you can handle the negotiations and I know its not for everyone, do it yourself. Save money.

    • Oofy Doofy on 12/06/2017 - 18:28
      +1

      Good info. Thank you for giving some insight into private property sales.

    • ihbh on 14/06/2017 - 08:39
      +1

      This is very informative, can you please give us a rough estimate of the costs of the various stages/parties you had to use. E.g. the flat fee, the listing fee on the websites, the settlement agent, etc.

      What was the commission (%) by the agents at the two times?

      • tsunamisurfer on 15/06/2017 - 00:02
        +1

        The flat fee is the listing fee and it was $550. The Settlement Fee was about $600. The O&A form was about $2 each and the terms and conditions papers were about $5 a set.

        The commission was supposed to be about 2%.

    • Ahan on 14/06/2017 - 18:08
      +2

      I am an insolvency accountant with fair a bit of experience with property sale and a property investor.

      I believe if the agents are good, the commissions they charge worth every penny.

      This is because they understand buyers mentality and possess great sale techniques.A good agent has ways to achieve a price that exceeds your expectation.

    • bl1027 on 15/06/2017 - 08:31
      +1

      Really good info.

      I, too, sold 2 properties myself in Sydney. Both sold within 3 weeks and for above market value. I listed my property on www.forsalebyowner.com.au. Flat fee of around $500 and your listing goes onto realestate.com.au and domain.com.au. All enquiries get forwarded to you.

      A particular thing re NSW is that you must have a draft Contract of Sale BEFORE inspection. Get your solicitor to draft one for you ASAP.

      Also, make sure your solicitor operates a trust account. This is a must. A real estate agent usually holds the deposit, on trust, for you but as you won't have one your solicitor will need to hold it. I can't emphasise this enough.

      Also, research! Look at sold prices in your area and don't get too emotional about things that YOU think are valuable but no one else cares about. This is how you arrive at a fair market price.

      PM me if you've got any questions. It's great to see someone else selling their own house. It's really simple once you understand the process.

    • OZzZe on 15/06/2017 - 11:19

      thanks very helpful

  • Oofy Doofy on 12/06/2017 - 18:26

    Just don't pay more than 2% commission. Good luck mate.

    • iluvsydney on 13/06/2017 - 09:36
      +1

      Some agents have claimed that they charge 2.5% but without any negotiation from me they dropped it to 2%. I agree 2% in Sydney prices is a lot of money for this job.

      • Oofy Doofy on 13/06/2017 - 10:58
        +5

        At Sydney prices I'd be asking them to accept 1%

      • garetz on 14/06/2017 - 06:37
        +2

        You wouldnt be too smart to accept a 2% fee, in a sellers market, you can get the agent to significantly drop their rate, as it doesnt require much work to sell your place. In a buyers market, that is inverse.

  • holdenmg on 12/06/2017 - 19:40
    +1

    Had a look at the listings on Domain:
    https://www.domain.com.au/real-estate-agencies/forsalebyowne…

    Average Days on Market are:

    173

    Compare this to Average Days on Market for Blacktown for all Listings:
    https://www.domain.com.au/blacktown-nsw-2148-2013598092

    44

    • iluvsydney on 13/06/2017 - 09:40
      +1

      Thanks for your info

      • holdenmg on 13/06/2017 - 09:59
        +1

        No worries.

    • JimB on 15/06/2017 - 14:03
      +1

      I don't think you can draw a conclusion just on the average days to market.

      Some FSOB sellers may be testing the waters, i.e. market price is $500k. I'm don't need to sell but if someone offers me $550k, I'll sell. It costs me very little $ to put my property on the market, if I sell, I sell, if I don't, I don't.

      You could also say the agents are keen to sell at any price (no sale, no commission).

  • Foxtail on 13/06/2017 - 08:57
    +6

    I've sold a few of mine over past few years using FISBO, cheap as chips @ $79! and gets you on the big sites like realestate.com.au and best of all no commission!. Also found the owner Rick and the on forwarding mail centre very efficient too.

    http://fisbo.com.au

    Had property neat as a pin and uncluttered
    Made up some sandwich sign boards, had open home 10am to noon on Sat/Sun
    (so as not to clash with other opens and buyers found it so convenient)
    Loaded up online clear images and text with house features, public transport, schools, shopping nearby etc.
    Provided lookers with A4 colour brochure with big picture of main feature
    A form with their details and conveyancer for later if proceeding
    All priced right and sold quickly
    Our solicitor did contract

    Was a piece of cake and saved an absolute bundle.

    Passed this info onto friends and they had same result as myself, have another selling a 1.5M $ house on Gold Coast in Sept about to do the same.

    I am not associated with FISBO.

    • The Wololo Wombat on 13/06/2017 - 14:12
      +2

      $79?

      That's insanely good.

      I personally would never use an agent, instead, I'd get a trial subscription to RP data (or similar), get a feel for the area based on previous sales and not accept anything less than what it's worth. I'd also get a building and pest done before I sell to see what might come up so I don't get taken for a ride.

  • Foxtail on 13/06/2017 - 15:27
    +3

    The $79 was to get on realestate.com.au, I asked a mate (an agent) what the selling fees were, as last time it was around 2%, he said its gone up to 3.25% I could not believe my ears, that is when I turned to selling myself and it was just so easy, all but one sold for full price, the other was just shy of 10 grand under., but hey cant win em all and my pockets had all that extra dosh.

    I was told do not accept any money as deposit, so once they advised all their details and who was doing the conveyancing I just sent the info to my solicitor the contract was done, came back a day later with deposit paid the rest is history.

    I didn't bother with pest & building inspections as the properties were in top nick and buyer would be getting them anyway so I'd soon find out if any probs, valuation used local sales info and what was selling around me and put top dollar on them all, one thing I did do was add a floor plan to the advert and flyer and lookers liked it.

    In fact buyers had no worries at all dealing direct with my wife and I as the sellers. My agent mate said if you can deal with people then remember "no one knows your house like you do". Mind you many (probably most) owners are not comfortable in selling themselves - so they agent up, fair enough.

    • Mad Max on 13/06/2017 - 17:45

      Did the solicitor charge you more than if it had just been a normal conveyance job from a real estate contract? Like preparing the contract or accepting the buyer's deposit?

    • ihbh on 14/06/2017 - 08:35

      3.25%

      1. It depends on the value of the property. E.g. you couldn't get that rate in a million years in Sydney's Eastern and Northern suburbs.

      2. It doesn't make sense that it's increased from 2% to 3.25% with property prices increasing so much. More likely decrease.

      3. When you sell the property by yourself, I hope you're going to negotiate with the buyer. Did you consider negotiating with the agents, rather than accept their first offer, or interview a few rather than go on hearsay?

      • Foxtail on 14/06/2017 - 10:36

        In Qld it was 5% of 1st $18K then 2% for the rest, the Qld Govt removed this and the agents charge what they can get, where I am in FNQ 3% plus is the norm. The best agent offer I had ever here was 2%, property I was selling $540K.

        Solicitor charged us no more than normal, fees for selling is low anyway. solicitor used standard QLD RE contract, accepted deposit, put in his trust account.

        and the Billy..
        Had no problem selling, buyers actually liked the idea dealing with us the owners. The last one we renovated it went for $30K more than any others ever sold in the 194 Villa unit complex, we had buyers coming out of the woodwork, sold 2nd open, 1st contract fell over (finance) so chose another.

        I'll say it again selling yourself is not for all, but hey at $79 maybe give it a try.

  • TheBilly on 13/06/2017 - 21:23
    +5

    I've purchased a few investment properties recently, have no experience selling, so take this as you may. In my opinion, I would only purchase as private sale in 1 of 3 scenarios.

    1.If I was getting a really good deal and the house was not going to market
    2.the property had very good development potential, once again not going to market
    3. Or the property was very unique and I am unlikely to find another in the short term.

    Otherwise I wouldnt bother dealing with an owner, Agents if they are the right one are professionals at what they do, and to be honest, Owners have too much sentimental attached value, why would one buy off an owner direct if there is no real benefit.

    Also one thing to note, you say that you will drop the price a little as you are saving on agent fees, however those savings are a drop in the water for a motivated buyer, which is what you want.

    • cloudy on 14/06/2017 - 15:45

      I'll give you a good reason why you should be attracted by a property with no agent. Agents by their very job, is supposed to try to get the highest price for the vendor. They will market to their extensive list of clients, they have all the marketing tools behind them. Naturally this all leads to more competition.

      A private seller might be more emotional, but they have less potential buyers going to them, and hence less likely to get the same amount of interest, and to me, as a buyer, is GOLD.

      I would rather buy off a owner seller than a agent any day of the week.

      • donga100 on 14/06/2017 - 20:38
        +8

        Agents by their very job, is supposed to try to get the highest price for the vendor.

        No, an agents job is to sell as much property as they can in as little time as possible. One way of doing this is by convincing sellers to accept whatever offers they can. From an agents perspective it is better to earn 2.5% of 900k ($22,500) if it only takes a week to sell than earn 2.5% of $1m ($25,000) by being patient over 6 months and dealing with countless enquiries, open homes, inspections, failed contracts, etc.

        • JimmyF on 14/06/2017 - 22:18

          THIS!!!

          People think the agent is trying to get the highest price due to the commission dollars, but they just want it sold. The bulk of their income comes from the sale. In your example getting an extra 100k for the seller only equals 2.5k increase for them.

          So do a months work and sell a house for $900k and pocket $22.5k or do 2-6 months work and pocket $25k.

          It's a no brainer which one they'll take!

      • JimB on 15/06/2017 - 13:57

        'I would rather buy off a owner seller than a agent any day of the week.'

        Ditto.

        No beating around the bush.

        Rather than take days to negotiate it can be done much quicker. Plus you can tell if they are bluffing. It's a win/win in my books.

        Selling my own property? unless it's a block of land, I would prefer (and have) used an agent.

        If properties in your area are getting record prices or more than asking price, I would use an agent.

        If the properties in your area are getting advertised price, then there's no risk (opportunity cost) to sell it yourself.

      • TheBilly on 15/06/2017 - 15:43

        Your assuming an owner seller is willing to sell it cheap. A real estate agent is there to set the owner straight as much as they are there to get a good price. They serve their purpose and serve it well.

        There is no real benefit buying a property off an owner seller if it is listed on the market just because of the amount of exposure, we are talking about Sydney in 2017 - exposure doesnt dictate the price, quality or opportunity does.

        Off market sales like I said above are different.

  • snajper on 14/06/2017 - 08:16

    Having sold and purchased a property recently all i can say is pay for good agent and it will pay off. Good agent will tell you how to re-arrange your furniture, fix this, fix that to get a good sale…

    • Foxtail on 14/06/2017 - 10:43

      Our homes are modern need no help at all. In 5 decades of buying and selling never received advise from any agent about furniture or anything else, the word is if you have too much furniture "declutter", its simple enough.

      Go have a good look at some of the house pictures some present on re.com.au bloody awful, many dark and dingy and even with toilet seat lids up, I mean really.

  • FiDad on 14/06/2017 - 09:58

    I actually bought my only property from owner direct although it was advertised in realestate.com otherwise i would not have found it and Idid manage to negotiate price a bit down as owner was selling it directly

  • sghetti on 14/06/2017 - 11:36
    +1

    Agents know the tricks of the trade. Handing out offer forms to everyone, finding the interested buyers and pointing out the fact everyone has taken offer sheets, making it seem like there's a lot of competition. All sorts of tricks to force buyers into increasing their offers.

    They have all of the tools at their disposal, photographers for the realestate ads, updating floorplans, signage out the front etc.

    We went through an agent for our sale in SA and got an extra 11k over our top asking price. We were priced in the right market for investors and first home buyers though. There were a lot of offers and a few before the first open, so we had a lot of wriggle room up our sleeves.

    • Gunther on 14/06/2017 - 11:44
      +2

      Nah, none of this appears to have any real value. Especially not $20,000+ worth

      • sghetti on 14/06/2017 - 12:11
        +1

        All depends on how much time you're willing to invest. We had a small child and were also looking for our second home while selling our current one.

        To have someone do all of the footwork for us was more than worth it. It was difficult enough keeping the house perfectly clean at all times for the various private inspections we were asked for, let alone having to deal with the inspections ourselves, signing contracts etc.

        What I mentioned is by no means a comprehensive list of what agents do for a property sale.

  • cyrax83 on 14/06/2017 - 11:57

    Don't bother trying to do it yourself. Too much time, and hassle, and you don't know the market
    I would try negotiate the agent fees though.

  • Shame on 14/06/2017 - 13:12

    Most of the agents I saw were crooks however I have shortlisted two who I can trust.

    You want your real estate agent to be a crook so they can rip off the buyer!

  • BS-19 on 14/06/2017 - 13:31
    +1

    'The buyer would pay that anyway without the agent' is true, but not. The buyer also wants to pay the lowest price. The REA will draw the most out of an auction scenario possible. E.g. I had an REA auction off my property in Melbourne two years ago. The bidding completely stopped at $580k… the auctioneer came inside and asked what I wanted to do.. I stood firm as I wanted $600k minimum. He went back out, gave even more energy into it and suddenly it was off again. Selling for $640k.
    In the end I paid the agent about $12-$15k in fees. Worth the investment in my opinion.

    • lainey13 on 14/06/2017 - 16:51

      Auction is completely different

  • [Deactivated] on 14/06/2017 - 13:53
    +1

    I just sold my house in Sydney.

    I chose a local agent who had sold the house to me in 2008.

    It does make a HUGE difference between using someone who just wants to get the house moving (he still gets commission) and someone who does his best to get the best price for the vendor.

    Just like everything in sales and marketing, presentation and negotiation skills are critical, for great results and the $45k commission and marketting paid was well covered by the $200k+ increase in final price over initial appraisal of $1.8m.

    Another house near my street was sold $500k lower than mine 4 weeks prior, despite having similar land size and building conditions.

    Hope this helps.

  • [Deactivated] on 14/06/2017 - 14:13
    +1

    having said that, ask yourself how often have you sold items (via forum, facebook, gumtree and ebay) where you had to deal with offers (low ball offers) and negotiate for a price?

    if you are comfortable doing the above and have performed reasonably well (achieve your asking price) then selling a house DIY may be possible.

  • XoiThit on 14/06/2017 - 14:26
    +1

    I'd sell my house myself. In fact I will in the next few weeks.

    Try https://www.forsaleorrentbyowner.com.au . They have the lowest fee.

  • Foxtail on 14/06/2017 - 15:37

    Of course the agent will advise you can negotiate fees ..

    https://www.localagentfinder.com.au/blog/real-estate-agent-c…

    lowest uh" https://www.forsaleorrentbyowner.com.au/

    really.. http://fisbo.com.au/

  • Aceboy884 on 14/06/2017 - 17:32
    +1

    Sold our own property

    Pay for professional photography $300
    Advertise on domain and realestate $1000
    Solicitor $1100
    Pay for storage and put away junk so your house looks bigger
    Set fixed open house every week

    All of the above cost are usually in addition to the commission

    So you will save at least $10k in fees

    Just make sure you keep a cool head when negotiating and try not to take it personal

    Took us a month to sell but we sold it at the exact price we asked for

  • jpee on 14/06/2017 - 17:42

    If it was my choice
    I would sell it myself,
    Pros
    Negotiate directly with buyer. Price isn't always everything as terms can be valuable also. Ie settlement times , release of deposit.
    Saving on agent commission and "marketing cost"
    If you wanted to you could run your own auction campaign ( I personally would go with private treaty )
    No middle man.

    Cons
    More work for you. - open homes (would set times each Saturday) , talking to perspective buyers.

    • jpee on 14/06/2017 - 17:43

      Yes make sure you get good photos - First impressions are everything

      • JimmyF on 14/06/2017 - 18:33
        +1

        Agree, Photos make or break a place. Pay the money for pro shots.

        Not sure its worth the money? Look at some airbnb listings, you'll see lots of shocking photos that just don't 'sell' the place.

  • JimmyF on 14/06/2017 - 18:32
    +2

    I have also read that agents can get negotiate a higher price

    Agents just want it to sell at ANY price. They make the bulk of their money from the sale. Yes they're on commission, but squeezing an extra $40k out for the sale, might only equal a few hundred in thier pockets. So do they take the offer on the table now and cash in or hold out and do many more hours work selling the house for a extra few hundred?

    I think you know the answer.

    • iluvsydney on 15/06/2017 - 16:23
      +1

      Totally agree to it. Whatever they claim this is fundamental economics. Selling two houses at 500k is better than trying to get 600k for one vendor in same time. Odds are against vendors

      • JimmyF on 15/06/2017 - 16:50

        Yep! Once you wake up that an agent doesn't work for either the seller or the buyer, but themselves. You'll do a lot better in the process.

        They'll talk the seller down to accept an offer on the table and/or talk the buyer up to get an offer accepted. That up talking isn't for the seller, but for themselves to get a sale!

  • Foxtail on 15/06/2017 - 08:07
    +1

    Our opens were 2 hours and buyers thought it was excellent to have so much time available to view within those hours, most agents here open after 1pm so ours were 10am till noon and they could have lunch before viewing others.

    We had no problems taking photos with small digital camera, opened curtains and blinds to let light in and took all rooms and external areas at different angles and kept dunny seat down:). We chose best part of the properties for first pic (usually our renovated kitchen) and had floor plan.

    Really to it was a walk in the park, sold for top prices in the area compared to others and rather enjoyed the interaction with buyers as they did with us and all for $79! via FISBO.

  • GregMonarch on 15/06/2017 - 10:49
    +1

    Haven't read the comments, but don't make the mistake most people selling themselves do: "I'll save $20,000 in agent fees, not only will I sell at full value, but I'll overprice it at the inflated price the real estate agents do." ie. They tell you they can get more to get the listing, knowing you'll get weary and drop the price later. So their valuations are always inflated/unrealistic. Also, you're going to save money - let the buyer save some too: When properties are priced correctly, they sell in two weeks or less. So get a decent quantity surveyor to value the property, you're saving $20,000 from no agent, so give the buyer $5,000 - $10,000 off too. I've lost count of the number private-sale properties I've seen so overpriced that no-one would even consider them. Then 6 months later - after multiple price drops - buyers have a made a mental note that property is: a) overpriced - don't look again, or, b) price has dropped but hasn't sold - what does everyone else know that I don't - I better not buy it either.

    Oh - and if you change your mind and list it with an agent… NEVER let an agent talk you into an auction. I won't go into the various reasons why, but it's the biggest con! Again, quantity surveyor, and that's the price unless they find something he missed that devalues his estimate.

    • holdenmg on 15/06/2017 - 11:17

      Exactly, you don't get a second chance to make a first impression.

  • Foxtail on 15/06/2017 - 11:14

    Excellent info that, yes get it properly valued before going to market. In our case we had a very good idea to their worth and did not over price and sold all within 2 weeks. I agree I've always been wary of auctions and feeling the pressure to sell and if not the costs.

  • foolsgold on 15/06/2017 - 12:13

    I work in the property industry, not in realestate or anything that close but for a lot of property developers. I think you take for granted the amount of variables that can go wrong on such a large investment that its not worth taking the risk to manage it your self.

    I know that this is not entirely related to your situation but i've seen the most seemingly simple property transactions have expensive or trivial issues which I never thought would arise.

    From owners paying unnecessary taxes, unpaid land taxes that weren't picked up by conveyancers, home owner/builder warranties, buyers not handing over deposits, buyers not being able to settle after an auction for months.

    One screw up could cost you way more than the cost of paying an agent, and the use of an agent could also far exceed the fees in a price being able to obtain.

    Most clients I work with negotiate and play agents against each other, their percentage that they charge, advertising, photography, etc are all negotiable based on the market you are in. Your better to be a tough negotiator, or even use a cheaper agent from a surrounding area than doing it your self.

    • iluvsydney on 15/06/2017 - 16:20

      Conveyancers have indemnity insurance if they screw up. I know some good conveyancers so paper work will not be a problem.

    • cloudy on 15/06/2017 - 16:27
      +1

      You mentioned a couple of examples, one where as you said the conveyancers job, so agent means nothing in that situation, and the issue with deposit, is worrying but from what the age said the other day, buyer not paying deposit and walking away from property is a problem a agent apparently won't help you with. And worse, if it happens the agent still is entitled to his commission and u haven't got a buyer. I'll find to find the article to link it. But in those situations it seems a agent is either not helpful, or worse to have one.

  • hhbb555 on 15/06/2017 - 14:35
    +2

    Around my area I saw someone has been trying to sell a house himself since (probably) Nov 2016 and it hasn't been sold until now. Yes the price asked is a bit on a higher side, however I saw more ridiculously priced home got sold during the same period in a similar area.

    As for my self, I have sold my unit (on the top floor without any lift) through an agent which I got the price that I want within 6 days after the online ads was published.
    So i would recommend you to find a good agent to sell your house.

  • jam scone on 15/06/2017 - 14:45
    +1

    I've sold 2 properties through a company in St Kilda. Both sales were simple. No messing around, offer was made via email (after inspections), negotiated some small things, all done. Paid a solicitor to perform the conveyancing.

    I did get a sense that some buyer's were put off by the 'sale by owner' situation though. I'm sure some of them found it confronting and were reluctant to make offers because it's so direct.

    I got a great sense of achievement when both properties settled though. I would definitely recommend selling it yourself.

    • iluvsydney on 15/06/2017 - 16:17

      Thanks mate. I have heard a lot of positive experiences that it deserves a try. If I can't do it, agents are always there.

  • [Deactivated] on 15/06/2017 - 14:53

    There is no point negotiating a crappy agent down to 2%, it's wasted money and you may as well do it yourself.

    This what you should do: Find a hotshot agent with a big car loan and offer them 5% to hit a minimum fixed, high but plausible, sale price that has the extra 3% cost factored in. This way you get the best price and you are effectively paying no more over a crappy agent.

    • iluvsydney on 15/06/2017 - 16:16
      +1

      As cheesy as this sounds, I own the equity of the house. Agents should be fairly paid but 5% in Sydney market is alot of money. People scramble to save 10% deposit. I would never part with such significant portion of equity to any agent.

      • [Deactivated] on 15/06/2017 - 16:44
        +1

        Mate it's simple. If you think an agent will yield a sale price % increase greater than the % cost then use an agent. If you can't comprehend that or think otherwise for some unrelated reason then do whatever the hell you want.

        • poboy on 16/06/2017 - 13:02

          Isn't that called specifying a reserve?

Login or Join to leave a comment
Login Join