What are the advantages of for sale by owner in Australia?

Picking for sale by owner is an important financial decision. By doing so, you save thousands of dollars on the transaction and you save on commissions because you don’t pay any agent for their services. So, two birds are killed with one stone. 

Let’s take a look at some factors I learned when I was planning to sell my home privately:

1. Speed

The sale is much faster. If you put your property at auction, you will receive a response from other people offering, contrasting to the non-private sale that engages the agent. Sometimes, agencies spend weeks selling your house and in negotiations. In the end, you will not have the full sum of money as you have to pay for this service.

1. Flexibility

For sale by owner is more flexible solution that allows sellers to take their time. You don’t need to sell your property under pressure because you have time to choose from among the potential buyers. Plus, if you are a buyer looking to first rent your own house, landowners can extend the settlement period. Since this is not an auction, it is hard to determine a date for selling the home though.

1. Cost

Again, for sale by owner turns out to be much cheaper than auctions because there’s no need to pay for an auction. On the other hand, if you are the buyer and opted to rent your own house previously, further marketing expenses may occur then.

1. Genuine buyers

Buyers also prefer this mode because they are the only ones to know their financial limits. In this regard, they can go into negotiations with the homeowner and agree to a price. There are many more private sale options I had to leverage when I chose to sell my home privately. 

What are the costs of this selling mode?

Although it sounds nice and less tricky, the private sale comes with some risks. It is true that there are factors that can make you indecisive even after you put your home for sale on your own. This is what happened to me when I had the idea to sell my own home.

Making a private sale has its disadvantages. Below are some of them:

1. Speed

You will not sell your house in a couple of days every time you sell something, in this case, your property. Believe it or not, houses tend to be one of the hardest items to sell because of their high price and other factors. The sale then can take two days after you posted online or even a year. Not only is it a matter of finding the person willing to pay the price, but it may also take time to commence the negotiation process. When I was in the middle of the process to sell my own home, I went through it.

To be clearer, houses get hard to sell because of the following factors:

• Location: where is your house? Is it close to the train station at least or you need to practically travel to get to the major city?
• Condition: is it well-taken care? Is it ensured? Does it have something that needs repairing but you don’t have money to do it? This can also delay the sale.
• Size: the major part of purchasers prefers large houses, but this is not the case all the time. Remember that your home is listed among many others and buyers also take their time to select it. When I decided to sell my own house, I had to refurbish it.
• Price: try to set a price according to the area you live in. Certainly, you can receive calls from people looking to move away, but it is better to focus on the local market first. Studying the market can also take time especially if it’s a big place. Set the price according to the above points: location (your house must be preferably close to malls or drugstores), condition (what is the condition of walls, flooring…pool?), size (is your neighborhood a residential area? – Studying the market to set the price is the first step, actually. When I was seeking to sell my own house, I just avoided overprizing.

1. Lack of urgency

When I was looking to sell my own property, I was very careful and did not fall into despair. If you feel unsure about the purchasing method to follow, consult with one of the friends with previous experience buying houses. Sellers generally tend to put purchasers between the devil and the deep blue sea because they force them to stick to a selling method. Pick the selling method that doesn’t jeopardize your finances. Don’t hesitate to speak with real estate agents if you are unclear about the price and actual value.

Either way, by the time I was trying to sell my own property, I took my time. If you need to make it quickly, call a trusted friend. Real estate is always willing to help, though.