Private Real Estate Sales
Moving houses is a big task. Not only do you have to organise the purchase of your next residence, but you have to sell your current house; and you have to get the timing right. All in all, it is a recipe for stress. But there is something that will make the experience all the better. FSBO, or ‘For Sale By Owner’ is the act of selling your house without hiring a professional real estate agent. These agents can cost you nearly $15,000, and they are using your ‘for sale’ sign as advertisement for their company – at your expense! If you want to keep this money in your pocket, and gain some valuable experience, why not choose a private real estate sale?
What is it? How does it work?
Research shows that professional real estate agents spend an average of ten hours on your listing, and yet charge you nearly $15,000. With the majority of their professional methods able to be done just as effectively by private parties, there is no use wasting your hard-earned money. After some quick research online or meeting with a consultant, you will know what contracts to complete, and can organise to get your property valued. Then you can decide on your listing price or price range, and upload it to applicable websites. If you want to get your listing onto websites with high traffic, this will cost you a bit of money, however there are also much cheaper – and even some free – ones that are specifically for buying and selling privately. With little effort you can erect a ‘for sale’ sign on your lawn, and get ready to field the calls from interested parties. You can include personal touches to your walk-throughs, and before long, you should find yourself back with a conveyancer or at your bank, organising to sign the final papers.
Benefits…for the buyer too
There are many benefits to selling your home privately.
1. No agents, means no commissions, and big savings. Not only will you get more of your sale price, but you will not have your prospective buyers limited by a listing price that is inflated to compensate for the agent’s commission.
2. A private real estate sale is good for both parties. For buyers, they will benefit financially, as they will not have to pay the inflated prices. They will also be able to learn more intimate details of the house, straight from the mouth of those who have lived there.
3. As you can see, selling your home without hiring a professional agent means you can use creative selling techniques. Allow for flexible viewing times. Prepare brochures full of helpful information. Upload plenty of photographs, and set your listing apart by including a video virtual tour.
Is it legal?
From any state and territory in Australia, you are well within your rights to sell your home in a private sale, but each has different criteria that must be met. If you reside in New South Wales, Northern Territory, Tasmania, Queensland, and the ACT, you will not find any services to help you. There are some websites such as the Real Estate Institute of Queensland (REIQ), the ACT Office of Regulatory Services (ORS), and NSW Fair Trading, that list a number of tips, but all still require the private seller to complete the process themselves. You are legally allowed to fill-out and file your own legal documents (with the exception of South Australia and the ACT who require the vendor’s statement and a draft contract to be done by a legal practitioner), advertise, and interact with prospective buyers, all by yourself.
Every year, throughout Australia, more and more people are turning from professional real estate agents, and endeavouring to save money and gain some valuable experience by selling and buying through private sales. So don’t let your hard-earned money go into someone else’s pocket. The next time you need to sell or buy a house, remember to try a private real estate sale.