Private sales of homes have always been around, we have all heard stories of owners who have supposedly sold their own home and avoided paying an agent commission. The big question is – have they really saved money, or have they actually cost themselves money as well as the time and hassle involved?
When selling what is most likely your biggest asset you want to be sure you get the very best price, and this is exactly what a full service agent is trained to do and they have the tools for the job.
Some of the factors that help him do his job are:
1. He works with property and people every day, he knows the market, what is in demand and what is not.
2. He has access to the latest accurate sales data, he knows what other properties actually sold for, this is often very different from what they were advertised for or what the owner may tell you he sold it for in order to save his pride.
3. He has access to this magazine and its sister website, the leader in the Illawarra as well as realestate.com, the largest property internet site in the country, both of which do not accept private ads. This alone dramatically cuts down a private sellers’ ability to connect with a potential purchaser who will probably never know their house was for sale.
4. He is a trained negotiator, he can be the middle man that gives you advice and time to think so you get the best deal, it is very hard to do face to face with a buyer who may well be more skilled at negotiating than yourself.
5. An agent keeps a data base of qualified clients that he can tap into immediately, people who he knows are genuinely looking for homes, not just ‘tyre-kickers’.
6. He looks after the sale once it is negotiated through until settlement. There are often 2, 3 or more issues that come up after a sale is made that need to be resolved and may require further negotiation.
The peace of mind that these factors bring to people who engage a full service agent can be compared to the pitfalls a private seller will face:
1. Firstly it is pricing the property correctly. Sure people can check the internet and compare it against what you think are similar properties, but they have not been inside those homes to be able to properly compare them to their own. They also don’t know what they actually sold for, unlike an agent who has the data. Overpricing can be just as damaging to a potential sale as underpricing.
2. Their avenues of advertising are limited and expensive, they don’t get access to the major internet sites, the dominant publication and will potentially miss their “dream buyer” because they never knew their home was for sale.
3. The time it takes to show prospective purchasers through, they often want to come through while you may be at work which may be inconvenient for you or on the weekends when you have other plans.
4. If buyers know you are selling privately usually the first thing they want to do is reduce their offer by the amount of the commission because they know you are saving it, they want the benefit of the saving you are supposedly making.
Think of it like this, if you had to go to court would you represent yourself or get a good solicitor? Even solicitors rarely represent themselves, they know the value of good advice from a third party. They have a saying, “a solicitor who represents themselves has a fool for a client”. The same goes for selling property, a good agent will usually negotiate enough extra to cover their fee plus save you all the hassle.
Why would you put yourself through it and usually cost yourself money as well. Get a professional and have them earn their fee.
.JPG)
