Can I sell my home without a Real Estate Agent? 4 ways to sell and the Pros and Cons of each

Sell my home without a Real Estate Agent pros and cons Australia

Sell my home without a Real Estate Agent: Have you been thinking about selling your own home?

Unsure what your options really are or worried about hidden tricks and traps that will leave you out of pocket?

Have you heard you can save huge amounts in commissions compared to using a traditional Real Estate Agent, but not sure what this entails, or if this is the way you want to go?

In this article we look at 4 methods of selling your home in the modern world, and the pros and cons of each.

This includes selling through a traditional Real Estate Agent; Low Fixed Fee Commission Real Estate Services; Sell my Home without a Real Estate Agent; and No Commission Professional Services.

You will probably be amazed when you get to the end to truly understand your options, and hopefully this article will help arm you with information to decide which way best suits you.


 

#1. Sell my home through a Traditional Real Estate Agent

sell my home without a Real Estate AgentThe Traditional Real Estate game is where you enlist a Real Estate Agent to sell your home.

With easy availability to sites like realestate.com.au or domain.com.au for buyers and sellers alike, it is now easier than ever to list your own home from the comfort of your living room.

So why would anyone pay between 2.5 –  3% commission plus marketing costs to a Real Estate Agent?

After all, that’s an eye-watering amount of had earned cash that equates to about $1,000 / hour you pay to the Agent for their time.

For sure that’s something to think twice about!

Lots of people still use Real Estate Agents, even though an annual Roy Morgan survey puts them in the top 3 most hated professions in Australia every year – beaten only by advertisers and car salesman.

So WHY are people using them still?

The answer lies in the category we’ve put them in – tradition.  You know they use a process that generally works to sell your home in a given market.

While they may vary in ability, there is usually very little doubt in your mind your house is going to sell.


Real Estate Revolution

Learn moreFind out more about our Assisted Private Sale Services


The pros and cons of selling the traditional way with a Real Estate Agent

Pros

  • Tried and tested – everyone does it and as soon as the words ‘I’m thinking of selling my home’ come out of your mouth, you’re likely to be bombarded with calls and marketing material from local agents vying for the chance to sell your property on your behalf
  • As easy as possible for you – most Real Estate Agents will take as much as they can take of paperwork and drama out of your hands. You won’t have to deal with potential buyers directly and never have to enter into negotiations

Cons

  • It’s going to cost you – usually between 2.5% (cheap) to 3.0% (premium) of the sale price of your home. *Ouch!
    • This usually equates to between $12,500 – $50,000
  • You will probably sell your homebut you may not get the best price for it
    • This is because most Real Estate Agents work on a ‘volume’ model.
    • This means they make money by selling LOTS of properties.
    • Despite the appearance of a big fee, a cut will go to their Agency (e.g. Ray White, McGrath, Coronis etc), so an extra $5,000 on a sale price is only an extra $50 – $100 in their pocket – and just not worth the hassle to them. Most would rather just GET the sale rather than really push for top dollar.
    • If you’d like to explore this further, see our article on why Real Estate Agents are unlikely to achieve the highest price possible for the sale of your home
  • If you don’t sell your home, there is no refund of $1,000s in marketing fees that have been charged
  • Real Estate Agent Commission is a terrible investment with zero ROI – If you’re thinking of using a Real Estate Agent, and therefore you’re thinking of parting with between $10-$50k of your equity to do so – you’ve got to wonder – ‘What would happen if I invested that same amount into a few smart renovations on my home?’

#2. Sell my home through a Low, Fixed Fee Commission Real Estate Agent

purple bricksThere are new entrants to the market like Purple Bricks who are still Real Estate Agents, but offer their services at a much cheaper, fixed rate.

This fixed rate includes adding in marketing extras like online advertising listings and photography as part of a single ‘low fee’ commission. At the time of publishing this article these commissions are $4,500 in QLD and $5,500 in NSW.

This is an interesting alternative. It is immediately attractive because of the low fee and extra inclusions.

Here we explore more deeply the pros and cons.

The pros and cons of selling the traditional way through a Low, Fixed Fee Commission Real Estate Agent

Pros

  • Save a large sum in commission – this is a very attractive option. You will save a large sum of money on commission alone
  • Some marketing costs included – your listing + photography costs could cost around $500. While in the scheme of things this isn’t huge compared to the sale price of your home, every little bit helps!
  • As easy as possible for you –  just as above, most Real Estate Agents will take as much as they can take of paperwork and drama out of your hands. You won’t have to deal with potential buyers directly and never have to enter into negotiations.

Cons

  • You will probably sell your homebut it is even more unlikely than the traditional Real Estate Model that you will get the best price for it. 
    • This is because as above, these Real Estate Agents will be sharing some of the $4,500 or $5,500 with Purple Bricks or other similar providers. Even if they’re not, they have zero incentive for selling your home for even $1 more than any offers that may come in; because they are not remunerated for it.
      • They are only remunerated by selling your home at any price.
      • To make what they would otherwise make under the traditional Real Estate model, they would have to sell 4-5 houses per every single house they would otherwise sell.
  • You are probably not going to get a lot of personal attention with this model – cheap and cheerful is the branding and price so premium prices, service & attention aren’t really in line with that model.

Real Estate Revolution

Learn moreFind out more about our Assisted Private Sale Services


#3. Sell my home without a Real Estate Agent

sell home without a real estate agentSelling your home without a Real Estate Agent is also called selling privately, or a Private Sale.  This is where you do all the work yourself including presentation,  pricing, listing, and negotiations.

With the availability of information, and access to online sites like RealEstate.com.au and Domain.com.au, it is now easier than ever to sell your own home.

The pros and cons of selling your own home privately

Pros

  • Save a large sum in commission – this is a very attractive option. You will save a large sum of money on commission by selling your own home

Cons

  • You will probably sell your homebut you may not get the best price for it
    • This is because even though you are highly incentivised to sell your home for the best price, there’s 3 reasons you may find it difficult:
      • firstly, with no-one to advise you on presenting appropriately, and how to best speak to your target market, your efforts may not return you the best bang for your buck;
      • secondly, you won’t necessarily have access to market data the same way the industry does to make sure you have a independent understanding of what range is ‘good’ and ‘great’ based on actual data;
      • thirdly you will need to do your own negotiations. While you may be experienced at this and do a great job, most people aren’t and end up accepting less than what they really wanted for the property. Astute buyers are onto this which exacerbates the whole situation
  • You will have to do all the work – not only what you do under the other models (clearing your home and presenting it), but also making sure you appropriately list it online to attract your target buyers, manage inspections and also manage negotiations with potential buyers.

4. Sell my home with an Assisted Private Sale™ method

No-Commission-Wynn-Vale-Adelaide-Happy-young-family-Sold-propertyThe Assisted Private Sale™ method is where a company like Revolutionary Real Estate will mentor you and help execute the harder parts of selling your own home privately.

This is also sometimes referred to as ‘No Commission Real Estate Agent Services‘.

It’s a great alternative to going all-out on your own and selling without an Agent, because they are the experts guiding you through the process with a personalised, professional service.

The pros and cons of selling your own home with an Assisted Private Sale™ method

Pros

  • Save a large sum in commission – as with a low fixed fee commission offer, this is a very attractive option. You will save a large sum of money on commission by selling your own home. You still pay these sorts of providers a fee for professional services they are providing you, but this is tens of thousands lower than what you would otherwise pay
  • Access to independent research – You will not only have access to independent sales data, but professional analysis of this to help you better understand the market you’re selling in. This, in turn, helps you set a price bracket for which you’d be happy to sell your home within
  • Learn from the experts – You will have expert guidance through the process and 24-7 availability to help with anything that comes up. Revolutionary Real Estate are completely transparent and give you tailored advice on exactly what you need to do to sell your home for top dollar. See here for more about the process to get top dollar for your home that they follow and what you get each step of the way.
  • Have someone who knows what they’re doing execute the harder parts for you – This is like having a Real Estate Agent, but not paying the eye-watering commissions for the service. The Assisted Private Sale™ method also includes sorting your advertising listing, sales board, inspections and negotiations
  • Only pay if you sell for a price in a pre-agreed range you’re happy with. That is excellent – see more about the Revolutionary Real Estate Price Guarantee and how this works
  • Make more money by selling for top dollar – Because you have access to expert advice including presentation, styling, negotiations and more, you are in with the best chance to beat your neighbours sale price and be left grinning ear-to-ear… all the way to the bank

Cons

  • You have to put in a bit more work 
    • We think, to pocket an extra $50k, it’s worth a little bit of extra effort.  But not everyone has the time or resources to do so. So we totally understand.

If you think we would be a good fit to work together with Revolutionary Real Estate to pocket up to $50k extra on the sale of your home, give us a call anytime on 1300 798 292.


No commission real estate services happy family sold home top dollarHopefully this gives you a comprehensive guide to “Can I sell my home without a Real Estate Agent”?

For more related information see more of our advice and service information here:


Real Estate Revolution

Learn moreFind out more about our Assisted Private Sale Services

Call us on 1300 798 292 to join the #RealEstateRevolution


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