Marketing your home online: Where to go and how to do it

Taking the bit between your teeth and setting out to sell your home online is a gutsy effort in a market awash with real estate agents, but it is increasingly being preferred by those on the move.  

And the reasons are understandable: it takes the estate agent out of the equation and, without having to pay hefty commissions, is far cheaper with much less rigmarole.  

But selling your home online yourself doesn’t have to mean you are on your own: a range of ‘For sale by owner’ companies are here to help with advice, photography, 'for sale' boards, flyers, colour e-brochures and even online valuations.  

Vendors can feel that they are in charge but with backup. They are not beholden to others’ ways of doing things. There are fewer forms to sign, no need to fit your life around an agent's timetable, and fewer stickybeaks who saw the open-for-inspection board out front and just popped in.  

Come to think of it, you don't even have an open-for-inspection board. But you do have a for sale sign on the fence - one that looks as appealing as a professionally sign-written board can be. Research has shown that most property buyers live within 5 kilometres so a professional board is essential if you want to catch them driving past.  

Basic sales packages at buyMyplace.com.au – which claims to be the largest ‘For sale by owner’ company – cost $270, the ‘professional’ package is $350, and the ‘premium’ package is around $600. They come with various levels of hardware, support and expertise. The firm – which is a fully licensed estate agent - can offer advertising online through the big advertising sites, such as Realestate.com.au and Domain.com.au to reach the most potential buyers.  

The level of newspaper advertising – both local and city - is up to you, with no limits on how much you can spend. Maybe buy more advertising with the money you'll be saving on the agent's commission?  

Other services offered include home decluttering, minor repairs, conveyancing and valuations, as well as auctioneers and other professionals who can be called upon to handle property inspections. These can be ordered on the website.  

Behind all this, of course, is social media’s ability to reach potential buyers and show them what's on offer in the comfort of their home or office. You simply list your property online, detailing its key selling points, the floorplan, and a map of surrounding streets, and upload photos. Those on the lookout for a similar property - on location, price, number of bedrooms and landsize - will receive a prompt in their inbox when the listing is complete. Simple, isn't it.  

A huge proportion of today's buyers - even those looking through an agent - check out online offerings as part of their search strategy. So, it's not like yours will be in some private, out-of-the-way spot where no one will see it - or even be looking for it.  

And the success rate of this well run window of opportunity is a comforting thought for a solo seller who hasn’t got the expertise of a professional realtor on side.  

buyMyplace.com.au and a host of other specialist for-sale-by-owner portals, such as Sellmyhouse.com.au, Gumtree, Realestateguide.com.au, and Realestateyourway.com.au are often the first ports of call for prospective buyers who can scan the web and have properties that suit their preferences sent to their inboxes daily.  

While established real estate agents have the advantage of being able to showcase properties in their shop windows, and can market them to an established list of contacts, the surge in online listings is testament to the fact that buyers look online as much as anywhere.  

Online seller buyMyplace.com.au claims vendors – especially in Victoria - are ditching real estate agents and selling their homes themselves in record numbers. And in many cases they're selling faster – ''within hours'' for some properties, they claim.  

Senior manager Stephenie Pulis-Cassar said that, nationally, private sales online entries increased by 23% from February 25 to November 25 this year. "According to Realestate.com.au there are currently over 3000 properties being sold privately and these obviously don’t include the many thousands more vendors who list with Domain.com.au, Gumtree, Trading Post and/or buyMyplace.com.au," she said.  

The company’s statistics show that 30% of clients so far in 2013 had sold their properties in under 30 days. "Our general current average selling time is 90 days which is similar to that of a traditional real estate agency agreement," Pulis-Cassar said. "This clearly outlines the similarities between the buyMyplace selling process and the traditional estate agents. It is further proof that there really isn’t any disadvantage in selling property privately."  

It is not a difficult process, either, she said, and it doesn't cost anywhere near as much as the alternative. "Our clients spend an average of 12.5 hours selling their property - with many taking less than 10 hours in total.  Given that the average overall selling time is 90 days - or around three months - our vendors are spending, on average, an hour per week selling," she said.  

"Given these statistics, why would you pay an agent $15,000 (at 2% commission on a $750,000 house) for 12 hours' work?"  

With figures such as these, savings on estate agents' fees are a major drawcard for private online vendors. "Our data shows that buyMyplace has saved clients more than $5 million in commissions this year alone which is not hard to work out when the average commission charged by an estate agent is around 2%-2.5%.  

''And this is our company alone, therefore, the savings by all vendors per year would be well and truly in excess of $6 million per year. On top of this, with buyMyplace, vendors also save more on advertising compared to using a traditional agent.  

''The figures don’t come close to the real dollar value saved or the extra monies earned, as we have worked out that 58% of properties sold through buyMyplace sold for more than what they were valued at by real estate agents.  

''To us, this figure speaks volumes. Either 50% of agents aren’t qualified to give a property estimate or there are some ulterior motives when it comes to giving a valuation.''  

Pulis-Cassar estimated that 52% of people who sell their home privately sell within one month, 72% sell for more than quoted by an agent, and 100% end up with more cash in their pockets. She said 80% save more than $10,000, 40% save more than $14,000 and 100% ''would sell a property themselves again''.

''On the flip side most buyers prefer to deal directly with the owner. You only have to read the hundreds of testimonials written directly from our vendors. They speak for themselves. They enjoy the fact they don’t have to chase an agent who often doesn’t call them back and they feel they receive more genuine feedback and immediate responses to their queries.''

Tips on selling your home online on next page. Please click below.

Tips on selling your home online

1) Establish a sale price

Most people get a good idea of what houses in their areas sell for by attending auctions and reading ads in their local paper, or by studying professional online sales data, such as RP Data's myrp.com.au.  

Pointedly, some private online sellers caution potential vendors against speaking with a real estate agent when determining a property’s price. "Agents are trained to ‘close the deal’ and ‘secure the listing’ by telling you what you want to hear," says Pulis-Cassar of buyMyplace. "If you want a personal approach use a professional valuer."  

2) Prepare your home so it looks its best

Clean and tidy up inside and manicure the garden - potentially adding thousands to the price. Take into account which photographs you have taken and make sure these areas are addressed first. They will appear online well before the first open for inspection.

Here are a few simple ideas:

- Cut the lawns and trim the edges

- Cover flower beds with mulch (saves water as well)

- Give the fence a coat of paint

- Sweep up around the house before your first open

- Remove everything from bench-tops

- Vacuum and dust lightly

- Fill the fireplace with logs and a plant

- Open the curtains to bring in as much light in as possible  

3) Select the services you need

If you have too much to do, most online sellers can arrange service providers. buyMyplace claims to be a one-stop shop, with all the services you need in one central location

- Full customer support available

- Photographers

- For sale boards

- Interior designers

- Lawyers

- Landscapers

- Conveyancers

- Valuers

- Furniture hire

- Builder  

4) Prepare your contract (and section 32)

In Victoria you should have a contract of sale (or at least a Section 32) available for prospective buyers when they request it. Check all your contractual requirements with your solicitor or conveyancer. When a prospective buyer wants to put in an offer on your property you can use a “letter of intention” to assist in the sale process. It is not a legally binding contract, however, it does add some professionalism to the whole process. Check with your solicitor or conveyancer for something similar.  

5) Photography

The photographs of your property are one of the most important elements of your marketing campaign. Most people look at the photos first so they must be good. Keep in mind that your home photographs may also appear on your for sale board. Some online sellers can provide a professional photographer as part of its package or you can organise your own photographs. It's your choice, because you are in control. Vendors taking their own photos and advertising their property are charged $270 by buyMyplace. Professional photography costs $349.  

6) Create brochures

Brochures are an inexpensive way to communicate to your neighborhood that your property is for sale. With the majority of property sales originating from surrounding suburbs this is an effective tool for marketing your property and a great way to get fit.

- Convert your advertisement into a printable PDF brochure

- Print as many brochures you need to distribute in your local area

- For professional brochures ask your online seller's customer service person and have them arranged.  

7) Open for inspections

These are a great way to meet potential buyers face to face. Most agents spend around 15 minutes at a property which is convenient for them, but not so convenient for the buyers who are rushing around to see as many properties as possible. Give yourself the best chance possible by opening for a reasonable period, say an hour. Perhaps have open for inspections by appointment only. This forces the potential buyers to call you and flag their interest.  Either way, once you get to speak to a buyer face to face your chances of a sale increase dramatically.  

8) Negotiations

Price negotiations can seem a little scary, however the process is simple. Here are some tips than can help you negotiate the right terms and price.

- Talk less, listen more – You’ll find the more you listen, the more you will find out about your buyer. Maybe the buyer has been looking for a long time? Perhaps they really like the view from your front window? These are triggers for you to really start selling.

- Only accept written offers – You may have a pesky prospective buyer wanting to grill you about your price at the inspection. Politely say you are happy to accept written offers, and move on. an offer isn’t a legal offer until it’s on paper.

- Think – In all the excitement, you may say something rash, or not completely consider all your options. Give yourself time to reflect and ponder the offer. Don’t be afraid to say “let me think and get back to you”.

Always be prepared to walk away – Haven’t got the price you want? Are you willing to wait? Don’t hesitate to walk away.  

9) Deposit and settlement

When you accept an offer you should get at least 10% deposit to be held in your solicitor's or conveyancer's bank account. Consult with your buyer to set a settlement day and remember that, before you sell, the buyer is entitled to a property inspection to ensure all is as it was the day you sold the property.  

10) Celebrate

The final step in any sales process is celebrating your success. The good thing about selling your own house is  that you have also saved thousands in fees and commissions. What will you do with the savings? New car, new furniture, holiday?

staylor@propertyobserver.com.au