Would you sell your property without a real estate agent?
We all love to save money, sometimes through DIY-ing, and so it comes as little surprise that some consider undertaking the sale of their property themselves.
But should you be considering this?
In mid-2013 a website called Agent in a Box launched and, like a number of other services available, it aims to help property sellers do just that – go it alone.
Co-founder of the site, Craig Heppell, told Property Observer that it’s not about doing agents out of a job, it’s about offering consumers an alternative. He comes to the project with 12 years in front line real estate marketing, negotiation and sales.
“There are plenty of listings to go round,” he explained.
The idea occurred to Heppell after the global financial crisis. As a traditional agent at the time, he explained that when he presented offers to vendors they were showing more interest in negotiating the commission than the price and the terms on the contract.
With this service, charges cost $399 or $699, and it includes online exposure, signage, local sales analysis, marketing tips, process advice, support and negotiation services.
“We are now operating in a ‘Save and Seek Value’ consumer driven economy, and I know, intuitively, that every potential home seller asks themselves this questions when they think about selling, “Maybe I could do it myself?” They can and online consumerism is here to stay,” he said.
Australia-wide they have had 400 properties listed – though it was a slow start with just two in the first month.
It’s clear that the popularity of the site is picking up.
Just Think Real Estate’s Edwin Almeida said that as a real estate agent there are three points that come to mind when the question about selling without agents is asked.
The first, he explained, relates to a comment made by John McGrath on 2UE, where he said that in the current market all you need is a signboard with your phone number and the words ‘For Sale’.
“The second reason I am a believer in vendors achieving the same results as ‘most’ agents, is the market conditions,” Almeida explains.
“Just about anything placed on the market is selling and I have seen this firsthand in sales across most of Sydney. At times even I have been alarmed at what people are paying just to get into the market due to supply being low, and coupled with interest rate lows as well.
“More alarming is the fact that banks have also increased their LVR ratios to 95% to facilitate people into the market.”
In addition to this, he said, is the exposure property listings get through online portals.
“For instance, private listings can be placed on one of these portals (listings by people that wish to sell their own homes). There are other portals such as those on Gumtree, these portals can be used to showcase property sales and rental listings for no charge,” he said.
However he warned that not all home owners have the required skills for real estate – particularly those without negotiation skills or marketing knowledge. The top real estate agents across Australia are usually highly skilled individuals, and it is unlikely that most untrained home owners would be able to mirror their success.
“Once again there are websites both free and pay-for-service that can assist DIY vendors,” said Almeida.
However, in a market that’s not so hot, or for those with a property that’s unique or difficult, it may be a different story.
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