One of the first things owners often do when selling their property is factoring in their costs involved with selling. The main thing most people consider are – fees and Real Estate Commission.
Usually, when hiring a real estate agent their fees cover the cost of Advertising the property + their service fee (Real Estate commission)
The average Real Estate commission in Australia varies depending on which state or area you live in. Metro vs. regional areas – the lowest is about 1.6% and the highest can be about 4% (or higher).
Across the country the average charge is around 2% to 3% of the sale price of your home, or from $12,500 to $15,000 when selling a $500,000 house. Some agents charge the GST component 'ON TOP' of their commission, so there can be an additional 10% on top of their overall fees. ($1,250 - $1,500 on top)
The Marketing costs usually are on top of this, and can also vary a lot – from around $500 - $5,000. (depending on the amount of advertising you choose)
How to Sell without paying Real Estate Commission?
Selling your Home without agents in Australia is legal, incredibly easy, & it will save you thousands of dollars in Real Estate Agents commission & expensive advertising fees.
On average, most of our customers save between $12,500 up to $25,0000+ in Real Estate Commission, plus an additional $500 to $4,000 in advertising expenses.
In today's digital age, almost all buyers are online & come from websites like realestate.com.au or Domain.com.au. Selling your own Home is easier than most people think, it's as simple as taking a few photographs, writing a property description & waiting for the buyers to ring! - lets quickly walk you through the process below:
So what are the main benefits to Selling your own Home without Paying Real Estate Commission?
You save thousands in commission and expensive advertising fees (average saving is $17,000).
You pay no commission on the sale of your home – ever.
The owner stays in control, and don’t sign any lock in contracts.
You deal direct with the buyers. There is no Agent or middleman.
Buyers will generally prefer to deal directly with you, the home owner.
You can sell quickly without working to the agent’s schedule.
You make all the decisions – you're not restricted to what the agent demands.
As theres no agent costs, you can potentially save tens of thousands of dollars.
You can hold your own Open Homes & viewings whenever you like, for as long as you like.
A step-by-step guide to How to Selling your Home without paying Real Estate Commission:
Step 1: Decide on an asking price
This is something thats usually done between the Real Estate agent & the Home owner, however it’s perfectly fine (and easy) for you to set your own asking price. The key here is to do your research; go to the 'SOLD' section of realestate.com.au & see what similar properties are selling for in your area. This is exactly what Real Estate agents do when they are determining an appropriate list price for your home. There's often a disparity between a vendor’s asking price and what a property actually sells for, so the Sold section is without a doubt the best place to get your comparable sales from. You can visit the SOLD section of realestate.com.au by clicking this link & inserting your property suburb.
Step 2: Give your home a tidy-up
If you’re selling your Home privately then your time is money! By having your house tidied & ready to go (perhaps with a fresh lick of paint here and there), you’ll be making your house much more sellable… and a quick sale means no more having to spend your time showing people around! - If you do decide to paint, only use neutral colour schemes, that light-coloured shade of green and purple that you love soo much, probably isn't going to appeal to the general population. Here's a link to the Bunnings website to help you pick out a nice theme sell your home.
Step 3: Start advertising your Home
According to research, most buyers are likely to move between 5 and 15Km's away from their current homes. This means that if you’re selling your privately, the most likely buyers are going to be someone in your area!
The great thing about todays day and age, is that MOST buyers are looking online! - So its absolutely crucial to have your property listed on websites like realestate.com.au or domain.com.au. This is where the overwhelming majority of Real Estate agents get their buyers from. Our 'For Sale By Home Owner' service also offers a number of other advertising options such as Photo signs, Open Home signs, Open Home flags & Facebook marketing.
Step 4: Arrange viewings
It is usually the job of the Real Estate agent to organize inspections & viewings, however this is incredible simple to do. Whenever a buyer calls or emails you, simply arrange a day and time that they buyer can come & have a look at the house. Most buyers appreciate you letting them look around the house on their own, as a lot of buyers feel uncomfortable with the owner or agent standing over their shoulder (eagerly awaiting to see if they want to buy the home).
It's best to just greet them at the door, briefly explain where the bedrooms and living areas are, and let them walk around at their own pace. Most inspections only take around 10 to 15 minutes.
A lot of buyers aren't ready to make a decision right on the spot, so when they are done looking, make sure they have a property brochure (which you can print Free from our website) with your contact details on there. Ask them to get in touch if they would like to make an offer, or you can get their contact details and give a follow up call the next day. It's literally that simple.
Step 5: Negotiate a price
The most important part here is to decide how much you are willing to accept beforehand, and focus on not going below that figure.
Don’t worry too much if you have to turn down an offer; it’s really quite common, and so long as you do so in a friendly and cordial way then you will still be leaving the door open just in case the buyer decides to come back later with a revised offer.
Step 6: Accepting an offer
This will usually be done verbally in the first instance, but be sure to ask the buyer to send written confirmation via email or post. This won’t be legally binding (nothing is until the exchange of contracts) but the bigger the paper trail the better. Most of our 'Sale By Home Owner' customers get the buyer to fill out or letter of offer form which can downloaded Free from our website.
Technology, smart phones and the internet makes selling incredibly easy to Sell your Home without Paying Real Estate Commission
The birth of the internet has made selling EVERYTHING easier and more profitable. The internet has enabled people to connect with one another in a way like never before. Once a Real Estate agent was essential for selling, but now its as simple as creating an ad & getting your home listed on Australia's leading websites (realestate.com.au & Domain.com.au)
Selling your home privately online is no different to selling cars, motorbikes, household items etc.. it's just a matter of getting some nice photos, writing a brief property description & waiting for buyers to get in contact with you.
Sell My Home now, or Sell My Home later?
The buyer Demand for property in Australia has undergone substantial growth and continues. Properties are sold by owners in less than one or two days, especially in larger cities – without using real estate agents. More and more people are preferring to deal directly with vendors. If you are buying or selling, consider doing it yourself – and potentially save tens of thousands of dollars
Watch our 'How to List your Home' Tutorial Video below:
What is Real Estate Commission in Australia?
We are a licensed Real Estate agency. Only licensed real estate agents can place property listings on realestate.com.au. Aside from being a customer, we are not otherwise affiliated with realestate.com.au
Tags: Real Estate Commission, Real Estate commission Australia, Real estate commission calculator, Sell Home online, List your home online, For Sale By owner, FSBO, Sell home online, sell home online, private sale real estate
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