The simple answer is probably not. There is much more that goes into selling your property than just putting up a sign and waiting for the offers to roll in. Analysis of agent and private sales by the Real Estate Institute of New Zealand (REINZ) shows there has been a huge decrease in the number of people choosing to sell their home without an agent in the last five years. There may be a reason for that too… REINZ found that the median price for properties sold by real estate agents was 10.9 per cent higher than private sales.
While there may be perceived benefits of selling your home privately, there are some very important things to consider before taking that step.
1. Selling your house privately will avoid paying commission but your lawyers bill will likely be higher as they need to do more groundwork such as completing the Sale & Purchase Agreement on your behalf.
2. You will walk away with more money in your pocket by selling privately is a common misconception. Not using a salesperson who is experienced in pricing, marketing, negotiation and handling multiple buyer situations means you could potentially miss out on thousands of dollars. You also must remember that buyers will also believe they will make a saving by purchasing without a salesperson and may be inclined to offer a lower price.
3. The negotiating process is something that home-owners may not feel comfortable with. Those without strong sales and negotiation skills or those who just don’t understand the regulatory environment, then it might be better to utilise the skills an agent has.
4. Buyers won’t consider a private sale. Many buyers, either because they are inexperienced or they don’t feel comfortable negotiating with the owner will simply not even view a private sale.
5. Stress less, enjoy more Selling your home can be one of the most stressful and emotional things a person can do. The job of a good salesperson is to reduce this as much as possible.
6. Having property knowledge and disclosing all relevant information to the Purchaser. Real Estate agents are experienced, they know the law, and they will hold your hand through the entire process. It’s imperative that if you are selling privately that all necessary information is disclosed to the purchaser, if not the deal could fall over or you could end up in court.
7. Marketing costs will likely be higher not being able to take advantage of competitive contract prices. At Todd & Co most, if not all, of our advertising is included, with no hidden extras.
8. Utilising sales information. Salespeople have market knowledge on all of the recent sales in the market as well as competing properties. Your home hitting the market priced right can hugely impact time spent on the market as well as the end figure achieved.
9. Presentation is king. Salespeople have an in-depth knowledge they can share with you about what buyers are looking for – it’s amazing how a few tweaks to the presentation of a property can add value.
10. Always seek professional advice from your solicitor before undertaking to sell your property privately.
11. Always remain calm and unemotional. If you are selling privately it’s vital that you keep your cool, and do not take anything personally. We appreciate this can be difficult to do but it could be the make or break of a deal as well as the difference between a pleasant experience and a terrible experience for you.
Selling privately can work for those who have the time, marketing know-how, legal property knowledge, strong negotiating skills and patience to do so. If this is not you, you will be better off working with a Todd & Co Salesperson to achieve your real estate goals.
The role of a real estate agent involves more than running the listing campaign and hosting open homes, a quality real estate agent will bring with them years of experience, negotiating skills and market knowledge, all of which could mean the difference when it comes to your bottom-line, time on the market and stress levels!