Selling your property is one of the most significant financial decisions you’ll ever make and it’s important to manage it properly to get the best possible result.
Not so long ago, the only real way to sell a home successfully was to choose a professional real estate agent and let them do the hard work for you.
Yes, they took a commission that often added up to tens of thousands, depending on the sale price of your property, but it meant that marketing and actually showing it off at open inspections was handled by someone with more expertise – and a solid database of potential buyers.
In today’s online world, though, the way we reach out to connect with potential buyers has changed and the democracy of the internet puts marketing opportunities in the hands of average vendors – just like you. With that evolution continuing to have an impact on the traditional real estate world, the real estate industry is at the beginning of a genuine shake-up, which has seen a number of DIY-style companies spring up in recent years.
From Purple Bricks to forsalebyowner.com.au – and the variations in between that include diysalesandleasing.com.au and buymyplace.com.au – there are now other ways to sell and buy properties, without handing over a large chunk of your sale price to a real estate agent.
But to figure out if selling your property without a traditional real estate agent is the right move for you, here are some important points to think about:
With the right choice of a quality and experienced real estate agent working with you, you have the power to tap into their database of potential buyers in the area.
Professional agents know the market and are used to buying and selling properties each week, so they know a lot about setting the right price and attracting buyers who might submit offers that go beyond that.
Stress-free open inspections
Engaging a real estate agent means that you can leave the labour-intensive work of being present at open inspections to them and their team, while you are working, enjoying time with family or dealing with other aspects of your planned sale.
Experienced agents are also great negotiators – and that could mean the difference of thousands – or even hundreds of thousands of dollars – to your sale price.
Using an agent does protect you in many ways, as their experience ensures they can help you to set a realistic price range that helps you get that sought-after top value for your property.
Support For Best Sales Techniques
Unless you are sure about the best possible sale method for your property, using a real estate agent can help you hone in on the right option to suit the style of your home and the market conditions at the time. From private treaty, to auction, or expressions of interest – selecting the sales method for your home can help attract the right buyers and can have a very real impact on the eventual sale price.
Preparing a contract of sale and working through the paperwork that is needed to sell a property can be stressful and time-consuming. If your hourly rate in your own job or business is a handsome one, it’s worth balancing the value of your time with the value a professional real estate agent can deliver when they work for you to sell your home.
Remember – Real estate commissions can leave a dent in your sales price but to be realistic about the value they can bring, ask yourself some hard questions about whether you feel capable of tackling every aspect of the agent’s usual workload before deciding to save money on agent fees when selling.
Selling Your Home The DIY Way
With a range of DIY-style selling options available to today’s savvy vendors, it’s important to do your own personal due diligence and read online referrals and reviews for the companies building a local reputation in your area.
At the end of the day, a good sale needs lots of potential buyers and the emotional push that genuine competition inspires.
Before signing a contract to DIY sell your home, look at sales records and compare them to sales from traditional agents selling similar properties. Then ask question about their marketing packages to try to compare apples with apples.
If you have a lot of social media connections to push the DIY marketing along, it could be a viable option that could see you get the sale price you hope for.
No agent’s commissions can mean huge savings – especially if your property is in the higher end of the spectrum. But do be clear about your commitment to take prospective buyers through for open inspections – and still be sure to present your home in the most stunning way possible to ensure potential buyers that do come through stay interested.
And remember, you need to know details about the property such as land and room sizes, location and accessibility to schools and amenities, any council approvals, comparisons with other properties on the market in your area. Also, try to establish a connection with the buyers, find out what they are looking for in a property and point out how your property can help fill that need.
A quick check of the Purple Bricks website tells you all you need to understand about their pricing model for selling properties. It’s not a DIY model – the people working for you to sell your property are real estate agents who manage the process for you – but they specialise in transparency and fixed fees. Want to take your home to auction? That will be $5870, including GST. Think private treaty suits your property better? The flat fee is $4500, including GST. There is more specific info about prices in different states and territories across Australia but the variations are minor and the model is appealing to a growing number of Australian vendors (and buyers) who believe that flat fee pricing for real estate sales leads to a more accessible real estate market.
To find out if this model is right for you, visit www.purplebricks.com.au for more information.
Preparing your home for sale is a big step and one that leads you towards a new chapter of your life. If you’re upsizing, downsizing, relocating or taking a fresh look at your investment property portfolio, talking to experienced mortgage brokers can help you understand what finance and refinancing options are available to you.
To find out more about the home loan you might need for your next property move, talk to our team at Lending Specialists today on 03 8805 1800.
If you’re planning to put your property on the market, it’s important to know what the associated costs are – to help you make the best possible decisions about sales strategies and marketing budgets.
Of course, fees can vary depending on your agent, other deliverers of professional services (such as conveyancers and solicitors) and your finance broker. So, to help you have a basic understanding of what selling your home may cost you, take a look at these ballpark figures.
To keep the number-crunching simple, we’re using the example of an ‘average’ occupied home – selling for $500,000 and cost estimates at the lower-end of the scale.
On a property selling for $500,000, understanding these typical costs can help you set your budget.
Although there are some ways to trim that budget, it is definitely a case of proceeding with caution.
When it comes to choosing an agent who deserves that handsome commission, we recommend talking to friends and family who have sold recently and consider their experiences about their chosen real estate agents. Make sure you look for one who can show you fantastic recent sales results and answer the important questions you have about how they plan to sell your property. Sometimes the commission can be negotiated down, but can this can backfire as it may leave the agent disgruntled and less enthusiastic about getting you that great sales result.
Marketing expenses can often be trimmed so be sure to talk to your agent about why they want the specific marketing strategy they are proposing – and how it will work for your property. Often, expensive marketing campaigns – especially print campaigns in local papers – are more about marketing their own real estate business rather than selling your home. So be careful.
In today’s increasingly digital world, an overwhelming percentage of home-buyers begin their house hunting online, and, unless the words and images they find there are compelling, they won’t even bother coming to see the house in person. Make sure your agent explains their digital marketing strategy – and that you are impressed by it. It really is the foundation for a successful property sale.
Solicitor and conveyancing fees can vary, depending on who you ask, but when it comes to the legalities of looking after one of your most valuable assets, it’s important to know it is being handled by experienced professionals – and that might mean paying more.
How much you allocate to pre-sale repairs and tidying is up to you, ultimately, but a good real estate agent should be able to give you some general ideas and advice on how to present your property in the best light. Over-spending on any major renovation work is never recommended but presenting a property that is clean and tidy is always the right choice. If that means your budget goes on getting rid of weeds, garden rubbish and dead trees, as well as professional cleaning and carpet steam-cleaning inside and maybe some touch-up painting, it is well worth it to help attract the right buyers. The only exception is if your house is aimed at the ‘knock down and rebuild’ market.
A relationship with a trusted professional mortgage broker is always a positive thing for anyone with a mortgage. Knowing what fees you might incur in relation to moving on from your mortgage thanks to a house sale is important and they can help you do a proper assessment of your home-selling budget. And with that sorted, happily, hopefully you can plan your next property loan as you prepare to move on to even greener pastures.
For advice about what selling your home means for your mortgage – and how to prepare for your next finance application – talk to our Lending Specialists today on 03 8805 1800.