Buying and selling real estate can be a tricky and daunting process at the best of times. While many people look at agent commissions and the marketing initiatives associated with selling a home as a prohibitive cost, the trend established in recent years of transacting without an agent carries with it inherent risks that can cost you big time.
If you’re imaging all the money you will save and are thinking about going it alone, here are some considerations you should be aware of before disengaging with an agent, which could end up costing you significantly more in the long run.
THE AMOUNT OF WORK & TIME INVOLVED
If you decide to manage your own property transactions, you should be aware of all the elements that go into the sales and marketing mix and how long they take to put together in a cohesive manner.
- Firstly, there’s the process of gaining a reliable valuation that you agree with and are happy to receive. Trying to value your property yourself is fraught with traps that could cost you much more than the commission you would pay an agent.
- Firstly, there’s the process of gaining a reliable valuation that you agree with and are happy to receive. Trying to value your property yourself is fraught with traps that could cost you much more than the commission you would pay an agent.
- Next, there is listing your property and, unless you are using homes.com.au, there is always a cost involved.
- Staging your property ahead of open houses is a huge amount of work, and the chances are you don’t have the eye for detail that property stylists have – not to mention the knowledge of trends, ways to style and access to staging furniture and accessories that assist in selling your property.
- Then, when you find a buyer, there is the negotiation process, which is eminently stressful if you’re not a pro.
- Finally, if you agree to a sale, there are the multitude of contracts and paperwork that are at best confusing and at worst an all consuming nightmare when there are non-compliance issues with legislation.
LACK OF A RELIABLE NETWORK
A large part of what agents do is work on cultivating relationships. The first thing people seeking to buy property do is look online, the second is contacting an agent who specialises in the area they wish to buy in.
Because of this, agents often have numerous contacts that could well be interested in your property, and if you’re attempting to sell yourself you could be missing out on countless potential buyers.
In addition to a network of buyers, agents also have access to a network of reliable, affordable professionals who they engage regularly for things like cleaning, maintenance, repairs and marketing. The chances are, sourcing these services on your own is going to cost a lot more than you’d pay if an agent organised them.
ATTRACTING A LOWER SELLING PRICE
Probably one of the biggest drawbacks to selling your home privately is that you are unlikely to be able to get the same price that an agent would. In fact, stats from the US indicate that private sales, on average, achieve a 5.5% lower sale price. So, for example, where an agent might get $1.2million, a private sale would attract $1.134million ($66,000 less).
Compare those figures to selling with an agent. In Australia, agent commissions average 2.4%. That means on the same $1.2million property, you are only down $28,800.
Agents are also able to able to drive prices by playing interested buyers off against each other – not a tactic most people will be able to pull off on their own.
FINAL WORD
With the market becoming more and more competitive, shopping around for an agent with a lower commission rate could put you much further ahead than if you decide to scale the mountain on your own.
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Amazing agent! . Luke is extremely professional and knowledgeable. He takes his work very seriously. We knew we were in good hands and could trust and rely upon him throughout the process to achieve a wonderful outcome for us selling our loved family property. We cannot recommend Luke enough!!
Luke is humble, kind and a skilled negotiator. We have found him to be a standout human in an industry that's not highly regarded. It can be difficult to know who to trust - we can trust Luke and Murdoch Property - he's not flashy & genuinely cares.
Highly recommended. Luke's approach to selling is friendly yet very professional, consistent, prompt and thorough in his communication. He made the process so much easier than we imagined and provided much needed support and advice that helped achieve the sale. His Newcastle market knowledge was outstanding and communicated in an easy to understand manner. Back office support from Diana was also greatly appreciated. I highly recommend Luke and his team to anyone seeking to sell their home.
Calm, Professional and Trustworthy from Start to Finish. Selling our property was a significant decision, and I am so grateful I had Luke Murdoch guiding me through the process. What I appreciated most about Luke was his calm and steady nature. No matter what was happening, he remained approachable, level-headed, and reassuring. He took the time to explain things clearly, answered my questions honestly, and never made me feel like I was a bother. Luke is incredibly knowledgeable, but what sets him apart is the way he combines that knowledge with genuine care for his clients. He was always accessible, kept me informed throughout the sale, and regularly went above and beyond what I expected from a real estate agent. Selling a home can be stressful, but Luke's professionalism, patience, and even temperament made the whole experience feel much easier. He's not only an excellent agent but also an all-round good guy who genuinely wants the best outcome for the people he works with. I wouldn't hesitate to recommend Luke to anyone looking to sell their property.
Luke was fantastic throughout the entire process of purchasing our home. His communication was excellent from start to finish, always keeping us informed and happy to answer any questions we had. He was honest, professional, and genuinely easy to deal with, which made the whole experience much less stressful. What stood out most was his integrity and straightforward approach. We always felt like we were getting honest advice, and he went above and beyond to ensure everything ran smoothly. I would highly recommend Luke to anyone looking to buy or sell a property. A great real estate agent and an all-round good bloke.
“5 STARS” are just not enough …! We hadn’t sold or purchased a property in over 25 years - so the prospect of selling was daunting. From the start however, Luke made the process extremely streamline - explained the process, and what to expect. Luke has a very fine tuned selling process which saw our investment property - photographed, on the website and open houses within 2 weeks we had ample offers to make a decision after this short period - which was based On Luke following up all offers ensuring they had finance etc approved. We had a tenant who had just moved out of this property - and Luke was extremely patient and informative of his processing the sale of our property to the tenant. this ensured a very smooth transition to selling the property vacant.
Can’t recommend Luke enough his manner and professionalism filled me with confidence.. he made it a stress free sale
An easy experience from start to finish . Luke is straight forward, professional and a great communicator. His knowledge of the Newcastle market is extensive and good to to have when you are making big decisions. I bought and sold simultaneously with Luke and the process was smooth and hassle-free.