Real estate agents v private sales: what are the pros and cons?
There are good reasons to use a professional, say Raine and Horne Murraylands’ Michael Cox and Casey DeMichele.
This sponsored story is brought to you by Raine and Horne Murraylands.
Let’s be honest: selling a home will make you a lot of money, but it can also cost you a lot along the way.
One of the biggest costs you’ll face during any sale process is the commission your real estate agent will take out of the sale price.
Given that demand for homes in the Murraylands remains incredibly strong at the moment, it can be tempting to think about doing it yourself, can’t it?
After all, this is the 21st century – why not sell your property online, like you would a second-hand car?
Let’s look at some of the common arguments in favour of that approach, and ask Raine and Horne Murraylands’ Michael Cox and Casey DeMichele what they think.
I want to save money
If you sell a house yourself, you won’t have to pay a real estate agent, right?
That is true, but a savvy agent is likely to secure a higher sale price for your property, Casey says.
In one recent local example, she says, a private vendor sold a property for about $50,000 less than the price Raine and Horne had estimated for it.
“While you think that you might be saving on agent’s fees, you’re actually costing yourself a lot of money without the market knowledge that we have,” she says.
“The fees are minimal compared to the result that you can get with an agent who knows what they’re doing.”
My house is going to sell anyway, so why bother with all that marketing?
In this economy, if it has four walls and a roof, yes, it’ll sell.
But again: there’s a difference between selling and getting the best possible price.
“It’s not just selling a property, it’s how to price and market a property to get the best result,” Michael says.
For example, a real estate agency will hire a photographer to capture your property looking its best.
First impressions count, so if your photos are less appealing, some potential buyers may lose interest.
That, in turn, reduces the number of people willing to bid on your property, and reduces the price you’re likely to get.
This can also be said for many other marketing tools such as social media, real estate websites, office frontage, databases and access to interstate investors.
I want a stress-free experience
You might prefer not to deal with a real estate agency – fair enough.
You might like to settle a sale with a handshake and a few words on a bit of paper.
But how confident do you feel about drafting a legally binding contract for the sale of something worth hundreds of thousands of dollars?
What clauses will you need to include?
These are things you’ll have to get right, or hire a lawyer to get right for you – or, once again, you could just have a real estate agent do it for you.
Think about the logistics, too: will you be available to show your property at a time that suits any potential buyer?
Can you weed out the time-wasters from the genuine prospects?
Are you willing to sit on an offer with hopes of getting a better one?
“It can all be very overwhelming,” Casey says.
“If you don’t have someone to do that for you, if you’re doing it all yourself, that can be a whole other level of stress.
“Our job is to take out as much stress as possible at a stressful time.”
I know my house better than any real estate agent
Nobody will ever know your home like you do – except, perhaps, the next family who lives there for as long as you have.
But likewise, says Michael, nobody is more attached to your home than you.
How will you feel when a buyer comes in and tells you all the things they want to change about the paint colours or fittings you picked out so lovingly?
The reverse is true, too: an agent knows all the other homes in the market better than you do, and can figure out how yours should be priced and who your ideal buyer might be.
House prices are climbing every month – almost 12 per cent over the past year, at last count – so you can cost yourself a lot of money if your valuation is even a couple of months out of date.
Keep in mind, too, that you should price your property based on the actual sale prices being achieved for similar properties in your community, which may be tens of thousands of dollars higher than what you’ve seen advertised.
Real estate agents have access to more of that recent sale data than is publicly available.
I just want a straightforward, honest transaction
We’d love to think that every potential buyer is an honest sort with the best intentions.
But unfortunately, in real estate, it doesn’t always work that way.
In fact, Michael warns, the lure of a private sale can sometimes attract a certain type of buyer.
“Any semi-educated purchasers, if they get a whiff that someone is selling privately … they are like seagulls to a chip, because they feel like they can take advantage of you and that there’s a bargain to be had,” he says.
“You’re seen as an easy target.”
I want to support a local
Here there’s no contest.
Most of the commission a real estate agent takes from the sale of your property will go into his or her pocket, and he or she is usually a local just like you.
That money will be spent in the local community, at local shops or with local small businesses.
Where would you like your dollars to end up?
- More information: Visit www.raineandhorne.com.au/murraylands, call 8532 3833 or drop into Raine and Horne Murraylands’ office at 4 Seventh Street, Murray Bridge.
Advertising to more than 20,000 highly engaged locals can do wonders for your business. Call Jane Intini on 0418 835 768 or email jane@murraybridge.news.
Peri Strathearn
