By popular demand, the ‘For Sale By Owner vs Real Estate Agent’ article is now in one easy to read post.
The private real estate market is expanding rather rapidly so the question is raised of whether it’s a better option to sell your own home (For Sale By Owner) or choose a real estate agent. You will save thousands of dollars in commission by selling privately but the savings will require time and effort. So you have decided to sell, lets look at the strategies to ensure you obtain the best return.
1. Prepare the Contract of Sale:
Contact a reputable solicitor to organise a written contract for the sale of your home. This allows for a smooth transition from vendor to purchaser if this is done prior to advertising your private sale. Regardless of whether you sell your own home or you use the services of a traditional real estate agent, the cost for this conveyancing will be incurred.
2. Show your property some tender loving care:
Take a look at your property and place yourself in the buyers shoes. Ask yourself ‘what would stop me from buying this property?’
Here are a few things you can do to speed up the sale process.
- Tidy up the garden. Mow the lawns and weed any garden beds. Remove any rubbish and debris that may be lying around the house exterior.
- Complete any minor repairs that potential buyers may see. For example, dripping taps and peeling paint.
- Clean the house from top to bottom. Clean the places you normally would not pay a high level of attention.
- Remove any clutter.
3. Begin the advertising: Where do I start?
The first option to advertise your property is by organising some basic signage, newspaper advertisements or flyers to ensure your property is noticed by the public. It’s a cost effective means of promoting the sale of your home.
However, that can all be a bit too difficult and rather time consuming. Another recommended method is to find a suitable For Sale By Owner Real Estate website to list your property. There are many different websites on offer so ensure you find one that matches your requirements. NoAgentSales.com.au offers several easy listing options to connect your property with potential buyers.
Check the website out here: www.NoAgentSales.com.au
4. Preparing for an open house: How do I prepare?
You have completed that big clean up so ensure you maintain your home from the first inspection right through to the settlement.
As we all know, a traditional real estate agent would host the prospective buyer while you and your family are not around. Unfortunately, you don’t have this luxury so you must be the host and answer any of the buyers questions. There is another benefit in that you will be able to give the prospective buyer a history of the property and explain the features and building materials which a traditional real estate agent would be unable to provide.
We have all been in a store/shop when the sales person would not leave us alone. Consider your past experiences and think how you would want to be treated if you where inspecting a home. Give the prospective buyer space to discuss their thoughts without you listening in or adding your opinions. Be available to answer their queries by telling them where you will be waiting after their tour but resist the temptation to guide them through every area. Also remember that buying a home is a major decision financially so naturally the prospective buyer is going to need time to think about the property. Consider having building plans, pest inspections, termite reports and other relevant information at hand.
5. Negotiation phase:
During the negotiation phase you want to achieve an outcome that benefits both the buyer and the vendor. Before you commence this process know what price range is considered market value and what price you are willing to accept. Ensure you establish these details prior to any inspections occurring.
When a potential buyer presents an offer to you don’t feel you must accept. The buyer will have naturally chosen a lower figure to achieve a better price from their point of view. Your option would be to provide a counter offer and continue this process until both parties are satisfied. If the potential buyer doesn’t know want to negotiate you can state you are not willing to sell for that price. If the buyer is keen to buy your property, her or she will return. You know what your property is worth so don’t settle for a price that you are not satisfied with.
6. Settlement:
Once you have determined all of the factors associated with the sale of your property you can approach your solicitor of choice. If you do not have a solicitor, simply ask around or go to one in your area who specialises in real estate sales, or conveyancing, as it is known in the legal profession. As part of a premium listing on NoAgentSales.com.au we provides you with a Particulars of Parties and Property document which you can fill in once you have determined all of the factors associated with the sale of your property. Once completed, you can take the document to your solicitor of choice and they will prepare a Contract of Sale. They will define any terms of which you may be unsure as well as determining the settlement date, cooling off period, deposit amount and any additional chattels to be sold with the property.
Lastly, some buyers may require a building or termite inspection as part of the Contract of Sale of the property. This is a standard procedure and be accommodating during this phase as you would do the same thing if you were buying.
If you follow these 6 steps your chances of selling your own home are greatly increased and the process won’t leave you wishing you never tried to save thousands.
Have you bought or sold a property privately? How was the process for you? Did you have any problems?