What are the pitfalls of selling your house privately?
If you are looking to sell your house yourself, read this first.
A property for sale by owner means the property is being sold by the owner and not through a real estate agent. Some people find this attractive as they don’t have to pay a middleman (the real estate agent) to sell their property, preferring to do all the negotiations themselves and saving thousands of dollars on agent fees. They may also like total control of the sales process from start to finish and make their own decisions throughout.
But is it a worthwhile thing to do? While initially, you’ll save on the agent fees, there are some pitfalls, particularly for inexperienced or even time-poor sellers.
We look at what you need to be aware of when venturing on your own to sell your property.
1. There are legal requirements you need to know
Selling your home has many legal requirements that you need to be aware of, and there is documentation that you need to prepare to complete the contract of sale. Understanding the legal jargon involved in a property sale can be daunting and take some time to learn, not to mention if you don’t get something right, you’ll risk jeopardising the sale and can run into legal trouble.
A real estate agent is qualified to sell your home legally and can even advise you of the correct process to follow when selling your home.
2. Being a skilled negotiator is a must
Agents are skilled negotiators. They have years of experience in the market and know what a property can sell for. They understand buyer concerns and learn how to overcome them, and they know strategies for pricing your property based on in-depth market knowledge. They know how to liaise with buyers and close deals. And it’s not just buyers they can negotiate with, but legal personnel, buyers’ agents, inspectors, appraisers, developers, brokers, and lenders.
Therefore, if you are looking to go down the path of selling your own home, though you may save thousands of dollars on commission, you will never know how much more the agent will have achieved for you if they had sold your house for you. A good agent is worth their weight in gold.
Statistics show that homes privately sold by their owners sell for less than agent-assisted property sales.[1] And while it’s possible to do market research yourself based on the online websites that give property value estimates, an agent has real-time access to the market. They talk to many potential buyers, buyers’ agents, and sellers and thoroughly understand the market demand for properties like yours.
3. You need to dedicate a lot of time to selling a home
Selling your own home will eat up a lot of your time. If you are not experienced in conveyancing or selling a home, you will need to research how to sell a house, conduct market research, book inspections, and speak to every interested party. You will also need time styling your home and making it presentable.
Unless you’re a real estate agent, selling a home is very involved and time-consuming. If like most people, you have work and family commitments, you will not be able to commit the necessary effort and energy for such a massive undertaking as selling your own home. Also, the cost of advertising your property and preparing marketing materials can be substantial.
Real estate agents are available at odd hours to field calls from interested buyers, and their vast network means that they can take calls and have a database of buyers in the area and connections in the industry that gives them access to a larger pool of potential buyers to whom they can advertise your home.
They also have connections to photographers, videographers, stylists, builders, printers, and writers, services you’ll have to source yourself and for which you may not even know if you’re being charged a fair price.
4. You can’t be too invested
Selling your home can be a highly stressful and emotional time. Most sellers who sell their homes tend to overvalue the price of their property based on emotional connection. An overpriced property will turn off potential buyers. On the other hand, a real estate agent is impartial and not as emotionally invested in the home as you are. That means they can give you the correct pricing strategy and negotiate the best deal for you with a clear head without getting dragged down by criticisms and emotions.
We are also often too attached to the décor in our homes, and as much as we think we’re interior designers in the making, chances are, our design choices will turn a buyer off. An agent is unbiased and knows what will make the best first impression on a buyer. They can give valuable, professional opinions on the presentability of your home and give you easy improvement tips to make your home appeal to as many people as possible.
In conclusion
Selling property is a complex process. It involves a combination of skill, expertise, connections, and a huge time commitment. For the average person, this is simply a considerable risk to take on without years of experience and industry knowledge.
When selling your house, you want to ensure you get the best deal possible. After all, a home is most people’s single greatest asset. It’s therefore essential to entrust your home sale to people with years of industry experience and who have built up enough connections and market knowledge to sell your home at the best possible price.
While it can be nice to have control of every aspect of the sale, RPN Global Sales will always take your feedback and suggestions throughout the sale process. You’ll have access to our skilled agents who will work with you to achieve the right strategy for selling your home so you get the results you want. No more trying to figure out legal requirements, market trends, or fielding calls at inconvenient times. We do the hard work, and you reap the rewards!
Call us on 0450 914 535 , and let’s talk about how we can get you the best price for your property.
[1] Source: Quick Real Estate Statistics, https://www.nar.realtor/research-and-statistics/quick-real-estate-statistics. While these statistics are based in the US, there are no recorded Australian statistics on sales by owner as they only make up 1% of all real estate sales in Australia.
