Others experiences with selling property without an agent.

[Ace in the Hole]

What I don't understand is that if the place is worth 330k and would be sold before the for sale sign was put up, how do you know you could not extract another 10, 15 or possibly 20k out of the market using some creative techniques?
you're quite adamant its not worth 340k.
Isn't it worth what the market is willing to pay?

What's your plan on getting the maximum sales price?

 

[Jen_PFR]

We've sold two single bedroom properties ourselves, with minimal hassle. I will say however that you need to be able to take a really hard-nosed look at the property itself, and value it accurately in the context of the market - we were ruthless with our pricing. So many people (whether they use an agent or not) delude themselves as to the value of their property. Correct pricing is vital.

 

[Big Will]

Myself personally I would prefer to deal with an agent rather then a for sale by owner.

Both come with + & - but to me the agent would know what needs to happen and can make a vendor see what true value the property is. I tried once looking at a property with a for sale by owner and the guy saw an article that houses on train line is worth $700k+ and even sent me the article. Only problem was he was about another 7 stations down the line and the median price was around $450-$500k which is where his property was. Needless to say I moved on and it was still on the market 6 months later, it has now been 5 years and I wonder what it sold for (but I cant remember the address lol)

 

[beachside]

Consider this, an agent has to disclose what they know about the property when asked. You know everything.

True about agent, but it would be a private sale by owner and REA laws not applicable (correct me if I am wrong), just like selling cars (a dealer has to give warranty - subject to price/kms, and private seller does not). Buyer has to do their own due diligence - get strata reports, possibly building inspection, make inquiries with other residents, neighbours etc.

But I get what you mean, an agent can only answer what they know, an owner knows a lot more and either answers honestly or otherwise. If wanting to hide any issues - use an agent and not tell them anything so they go do a Shultz.

 

[beachside]

Myself personally I would prefer to deal with an agent rather then a for sale by owner.

Both come with + & - but to me the agent would know what needs to happen and can make a vendor see what true value the property is. I tried once looking at a property with a for sale by owner and the guy saw an article that houses on train line is worth $700k+ and even sent me the article. Only problem was he was about another 7 stations down the line and the median price was around $450-$500k which is where his property was. Needless to say I moved on and it was still on the market 6 months later, it has now been 5 years and I wonder what it sold for (but I cant remember the address lol)

Yep, I imagine some owners would have NFI and be a PIA to deal with.

I actually looked at a unit a few weeks back which was for sale through ForSaleByOwner - brochure was cheap looking on thin A4 paper. Write up on brochure and RE.com listing was reasonable, if not a bit exaggerated like many agents, I assume Asian lady showing property was owner or friend, semi neat attire like a casual agent, did not try and sell or point out anything, just let people wander through like many agents do, but did take name and number like an agent. Photos were good, plus unit floor plan. Unit was empty, no appeal, needed a cosmetic if not full reno (bath and kitchen with 10 yo+ reno), possibly been a rental and just selling as vacated. Sold in 2 weeks, don't know how much but seemed appropriately priced.

 

[hpresident]

I am going to be going down the route of selling it myself next year. Using for sale by owners or get a builder to post a house and land package ( I am selling two blocks of subdivided land).

I think it is a good idea to sell it yourself aside from cost saving:
a. I get to interact with potential buyers giving me way more feel of the local market, something that perhaps other methods cannot provide.
b. potential cost saving for future property sales, let's say i lose out 20k this time by selling it myself (because i sucked), but I am only 25 and if i plan selling IPs 10 times in my life I could save up to 200+k.
c. I think I can do a similar job, now this may seem cocky, but I haven't met one agent in my area that have convinced me yet. Plus a lot of agent tend to low ball the vendor so that it is a easier sale for them.
d. I rather spend the money on advertising. Say the agent takes 20k commission, now I could do a lot with 20k, radio ads, news paper ads ect. With 20k of ad budget, I think i can get more exposure.

I am sure there are agents out there that are way more competent than me. But I haven't found one yet. anyway my 2cents

ps all legals will be handled by my solicitor.

 

[Brits]

I am going to be going down the route of selling it myself next year. Using for sale by owners or get a builder to post a house and land package ( I am selling two blocks of subdivided land).

I think it is a good idea to sell it yourself aside from cost saving:
a. I get to interact with potential buyers giving me way more feel of the local market, something that perhaps other methods cannot provide.
b. potential cost saving for future property sales, let's say i lose out 20k this time by selling it myself (because i sucked), but I am only 25 and if i plan selling IPs 10 times in my life I could save up to 200+k.
c. I think I can do a similar job, now this may seem cocky, but I haven't met one agent in my area that have convinced me yet. Plus a lot of agent tend to low ball the vendor so that it is a easier sale for them.
d. I rather spend the money on advertising. Say the agent takes 20k commission, now I could do a lot with 20k, radio ads, news paper ads ect. With 20k of ad budget, I think i can get more exposure.

I am sure there are agents out there that are way more competent than me. But I haven't found one yet. anyway my 2cents

ps all legals will be handled by my solicitor.

I really don't see why people think that you won't get the best price selling yourself. You need to know what your place is worth and don't take any less. And this idea that an agent can get more than it's actually worth is nonsense. There is a price for every property. Few are in such high demand that they achieve more than what they're worth. If a place is overpriced the potential buyers just move on to another one.
What you say of agents has been true in my experience. I would not trust any of them to work for me. I have bought a number of places and I know the agent has become more of an agent working on my behalf working the vendors down to believe their place is worth less and less until they finally accept my offer. For each one I would definitely have paid more but the agents all wanted a quick sale and to get these places off their books. I saved about 10 grand on each one.
Generally I really believe people hate dealing with agents. Never knowing what is bulls@#t and what is not.
I have no illusions about what my place is worth and that is the price. Easy.

 

[Brits]

And of course you don't do the legals yourself. By the way an agent doesn't either. After you've signed all they do is hand you the keys. Think I can manage that.

 

[Big Will]

Just share your experience once completed thanks Brit.

Best of luck

 

[Brits]

Just share your experience once completed thanks Brit.

Best of luck

Of course I will. I'm very excited about it.

 

[lwright]

I just sold my rural place privately. It's very hard to say how the result compares to other properties as my place was very unique but I will say the company that did my realestate.com ad (propertynow.com.au) was extremely helpful in showing me how to do everything & gave some great advice. I ran a few open houses which were pretty well attended.

 

[Brits]

I just sold my rural place privately. It's very hard to say how the result compares to other properties as my place was very unique but I will say the company that did my realestate.com ad (propertynow.com.au) was extremely helpful in showing me how to do everything & gave some great advice. I ran a few open houses which were pretty well attended.

So Iwright how long did it take you to sell and what were your final costs in selling? How did the potential buyers respond to you selling privately? Were they wary or relieved? Love to hear more of your experience.
Brits

 

[beachside]

I think it would be comparing apples with pumpkins comparing rural with city or large town. Country folk are a different breed , probably had a cuppa and fruit cake with the people dropping in.

A property near me sold recently through "Realprivate". Sign looked like a normal agent sign, not the kindergarten sign with ForeSaleByOwner spelled in different coloured letters. Unless you knew what RealPrivate was you would not immediately realise it was for sale by owner. Had a quick look at their website, might be worth considering.

 

[Brits]

I think it would be comparing apples with pumpkins comparing rural with city or large town. Country folk are a different breed , probably had a cuppa and fruit cake with the people dropping in.

A property near me sold recently through "Realprivate". Sign looked like a normal agent sign, not the kindergarten sign with ForeSaleByOwner spelled in different coloured letters. Unless you knew what RealPrivate was you would not immediately realise it was for sale by owner. Had a quick look at their website, might be worth considering.

Was thinking about using ForSaleByOwner but as you say the multicoloured sign looks so childish. PropertyNow has a good ring to it and maybe even RealPrivate.
And even city people can like the cuppa and cake way of dealing with things. Actually that is just what I'll do - make a lovely cake and coffee for my potential buyers. What fun!

 

[Beau Lyon]

I'm an agent, I'm not going to rant on about how I can get s better price than when selling privately, but all I can say is that when one of my owners insists on coming to the open house with me, I prefer they don't speak to buyers, as they make all the rookie mistakes that real estate agents make on their fist day on the job.
You could do your own conveyancing too ( there are do-it-yourself kits available), but you would only fo that if you were desperately strapped for cash, not because you thought you would do a better job thsn the solicitor.

 

[MRO]

I tried to sell my first place privately. I was young (25) which probably didnt help but i found the potential purchasers were hesitant to deal directly with the owner (me) and the unfamiliar arrangement did not assist the sale. I have experienced this from both sides as a buyer and seller.

If you are about to contract to purchase for a couple of hundred thousand the perceived confidence you and the other party get from the agent assists the transaction.

 

[T.G]

I've done it before and it's worked but there's lots of traps. I have found that in lower priced areas people dont care if there's an agent or not but in higher priced areas they do.

 

[beachside]

Hi Beau.

I'm an agent, I'm not going to rant on about how I can get s better price than when selling privately

Why do you assume this - blanket statement / in every case. Why do you feel that an owner will never be able to speak more confidently, passionately, knowledgeable about their property after living in for years/decades compared to an gent who may have driven past a few times and sold a few houses in the area? Don't get me wrong, I'm not saying all owners or even a quarter would do a better job.

when one of my owners insists on coming to the open house with me, I prefer they don't speak to buyers, as they make all the rookie mistakes that real estate agents make on their fist day on the job.

I'm sure there are many mistakes that could be made and I have thought of a few of these while considering how I would do it - and thought about a better way to do it. It would be a learning experience as I have been interested in R/E for many years, enjoyed doing COR. If I ever acted on my interest it would be with one under the belt without someone holding my hand in an agency. I would even be interested in doing some basic introductory sales agent course to learn the basic techniques (I'm sure there are things I have not thought of, and would be very interesting) and mistakes a rooky should not make . Perhaps you could suggest one for the purpose, or an excellent book.

What do you consider the rookie mistakes that real estate agents make on their fist day on the job, whether slap the forehead doh! moments or just not realised.

BTW, I would also appreciate your views on my earlier post #19, paragraph 3 & 4 re tactics on considering offers, jumping too soon before possibly all interested buyers have a chance to become aware of property being on market.

Conveyancing - I would not consider doing myself, but someone with an interest in this area might.

thanks

 

[balwoges]

You say you're place is worth $330k, and begrudge an agent $6-7k for the sale? Based on comments above, if you drop $5k you will be ahead

Consider this, an agent has to disclose what they know about the property when asked. You know everything.

There are plenty of websites which will give you access to the realestate advertising portals so these may be worth investigating as some websites don't take casual listings.

Sensible advice, I intend to sell my properties myself, however I was a licensed REA for many years so have some experience in marketing and negotiating. Will use a solicitor for my business premises and a conveyancer for selling and buying a house.

 

[beachside]

Sensible advice, I intend to sell my properties myself, however I was a licensed REA for many years so have some experience in marketing and negotiating.

That would effectively be using an agent as far as skills but without buyers realising you were an agent. A wolf in sheep's clothing . Why wouldn't you. The only potential neg for you (as some people say) is that some buyers prefer to deal with an agent than an owner ....but that is just people's perception and possibly based on some gooses trying to sell their home with unrealistic expectations or indecisive as to whether they really want to sell or not.

Your thoughts in relation to the second part of my last post would be welcome based on your REA experience.