While the price of residential real estate rising slowly in Australia, it is nothing compared to what it was back in 2010. According to Global Property Guide, there was a yearly rise of 4.14% in the 4th quarter in 2016. With prices steadily increasing, real estate has become more of a seller’s market.
People above the age of 50, who are planning their retirement, are the ones who are taking full advantage of this change in the market. Their plan: to take the FSBO (for sale by owner) route and save money on a real estate agent’s fee.
Taking the DIY Route
FSBO is not just about saving on the commission. It’s also about how much you can commit yourself to the process. A real estate agent takes care of everything from conducting meetings to open houses, private viewings, negotiations, preparing contracts and much more. By taking the DIY route, all these responsibilities fall on you. However, the plus side is that this personal touch saves you a small fortune.
The reason why people over 50 are opting for this route is that they want their and their family’s future to be secure. Selling a house involves several fees that need to be paid for procedures such as appraisal, home inspection, etc. Following are a few benefits of selling your house privately on places such as https://www.buymyplace.com.au/sell-my-house-privately/:
1. No Cuts in the Final Sale Price
If both parties are using a real estate agent, the commission is split two ways. Typically, a commission is 6% of the final sale price. For example: if the house was sold at $500,000, then a commission of $30,000 must be paid to the agent. In the FSBO route, you can use this money to make any repairs on the next home you buy.
2. Complete Control over the Process
When a real estate agent is involved in the process of selling your house, it’s possible that he might not be able to market the house to its full potential due to his other clients. On the other hand, selling it on your own gives you control over the listing, pricing and advertising of the house. All you need is a lawyer for legal protection and other than that; everything can be done pretty easily.
3. Fast Sale
One of the biggest problems that buyers encounter is the lack of communication with seller. Often messages get lost due to the middle man, which is the reason behind the outrageous low ball offers and counteroffers. By selling on your own, you can enter directly into negotiations with the buyer and draw up a contract within a week.
4. Lack of Pressure
An estate agent is usually just concerned with his commission. In order to get his hands on the money, he might pressure you into accepting the deal by making you believe that it is an ideal offer. But when you sell privately, you can meet the buyer and get to know him on a personal level. This will build trust both ways and the buyer will be open to further negotiations.
Selling privately can become a tedious process if you don’t have a plan. Since you are taking care of the entire process on your own, it is important to research on it before approaching a buyer.