Why Should I Hire A Real Estate Agent To Sell My Property? | Jhai Mitchell

With so many how-to art­icles instantly avail­able online, home sellers often ask me “Why should we hire a real estate agent?”  

To some, it just doesn’t seem worth it.buy_sell_business

So, I’m sure you have caught your­self think­ing “why can’t I just sell my prop­erty myself?

All I need to do is whack it on Domain and RealEstate.com.au” and might even go on say­ing “surely it’s not rocket sur­gery?” or is it?

Well some sellers do OK, how­ever many don’t.

So if you’ve ever caught your­self won­der­ing the same thing and you’re yet to be con­vinced that real estate agents are worth their com­mis­sion, please read on because this could save you over $6000.

The Pittfalls Of Selling Your House Yourself

The advert­ising is a problem.

“All I need to do is whack it on Domain and Real Estate.com.au”.

Well you’re in for a shock!sell up

31.4% of buy­ers don’t go past the second search page on prop­erty web­sites (almost the same stats for Google searches) but what if your prop­erty list­ing starts on page 3?  “Why does my prop­erty start at page3?” I hear you ask­ing? It is the old up-sell approach that news­pa­per com­pan­ies have used since 18 dic-a-ty 6.

Have you ever put a per­sonal ad in the news­pa­per? Do you remem­ber them try­ing to up-sell you by bold­ing or cre­at­ing bor­ders around your ad?

Well news­pa­per com­pan­ies have bought them out and are up to the old trick-a-rooney again.

Now just to guar­an­tee your prop­erty appears on the first page you have to pay extra.

Domain is the second largest real estate web­site in Aus­tralia.

They will charge $550 for only 28 days and that is without pic­tures. Not to men­tion what RealEstate.com.au charge you and up-sell you to be on the first page.

REA property listing not on first page

You can try local news­pa­pers.

It is cheaper but fewer people are read­ing local news­pa­pers these days.

Another option is to use social media to let your friends, fam­ily, work­mates and neigh­bours etc know.

See if any of their friends and fam­il­ies etc are look­ing to buy prop­erty in your location.

You can also try and print a few thou­sand fly­ers pro­mot­ing your prop­erty with your per­sonal details on it and put them in your entire area’s mailboxes.

A good agent will be doing all of this for you and will already have a social media following.

The Time Trap

With the eco­nomy the way it is, now likely both of the par­ents in  a house hold are employed, but if you are lucky enough to not be work­ing, are you real­ist­ic­ally going to be able to take on all the stress?

Are you going to be able to spend your time dili­gentsell_your_housely on the prop­erty in-between the kids and hav­ing a life?

Do you have a life now? You get my drift?

Let’s not for­get, what if you are try­ing to sell quickly because you have already put a deposit on your new home?

Do you have the con­fid­ence that you can sell your biggest asset quickly and get the highest pos­sible price without compromise?

Agents Know The Legislation

Assum­ing that you choose to sell your prop­erty without the aid of an agent, you will need to do a lot of research before tak­ing it on yourself.

The main thing you have to know is that a Con­tract of Sale needs to be pre­pared in advance before a prop­erty can be pro­moted for sale.

You will need to know the ins and outs of Prop­erty, Stock and Busi­ness Agents Reg­u­la­tion 2003 (NSW).

“Why?” you ask?

Well you can actu­ally be sued for simple little mistakes. E.g. you can­not, at any time, use or dis­close any con­fid­en­tial inform­a­tion obtained while selling.

This can include other peoples offers, so in turn you can­not play other buy­ers offers off each other.

You must have com­pre­hen­sion and be famil­iar with the Act and the reg­u­la­tions under the Act and the other sig­ni­fic­ant laws, such as ten­ancy laws, fair trad­ing, the Trade Prac­tices Act, anti-discrimination laws, The Pri­vacy Act and dis­close laws.

Ignor­ance is not a defense in the eyes of the law.

Real Estate Sales Experience

I’d be cau­tious with doing your own nego­ti­ations. I know if I was a buyer deal­ing with a private seller, I would expect at least 10% off the mar­ket value right off the bat.

agent houseSome­body who’s gone out­side the frame­work of things will look like a huge tar­get for someone try­ing to score a cheap deal because of ama­teur mar­ket­ing and neg­a­tion.

This is what buyer agents do all day long (it’s what they get paid for).

Buy­ers want a sound, safe buy­ing exper­i­ence, not Joe Blow talk­ing up his home while you wander through alone with the seller defend­ing why his home is the best in the world. Buy­ers like to feel secure.

That’s why they are buy­ing a home in the first place.

In a seller’s mar­ket, where buy­ers are crawl­ing over them­selves to out­bid each other, this may be okay, but in a buyer’s mar­ket, you can’t afford to frighten away the people try­ing to work within the framework.

Think about this…

If online and print media advert­ising costs around $8000 (for six months wait­ing for a good buyer) + $2000 to $3000 for pre­par­a­tion of con­tracts of sale, con­vey­an­cing and set­tle­ment + whatever the cost you put on your own time, the real estate agent’s com­mis­sion is start­ing to look pretty good.

Also don’t for­get, if you don’t sell your prop­erty, real estate agents don’t cost you a thing. They are free!



Want more of this type of information?


Jhai Mitchell

About

Jhai is the Internet Marketing Business Development Manager for Elders Toongabbie and Kings Langley. He has been consistently quoted in the Sydney Morning Herald and Real Estate Business online. Visit his blog at www.realestatesevenhillsnews.com.au


'Why Should I Hire A Real Estate Agent To Sell My Property? | Jhai Mitchell' have 5 comments

  1. March 16, 2014 @ 10:25 am andrew

    Hi there,
    I’m afraid you’re full of it just like any typical agent trying to scare someone into listing their home with you. If the vendor knows what price he wants & how much it’s really worth then stuff the agent no matter how much somebody like you tries to scare them with your bullshit. You must target the nuff nuffs. If the purchaser likes the house then he/she will negotiate with whoever is selling it. People should use agents for property management but even then it’s hard to find a good one. 95% of aussies still use agents whereas 68% of europeans do, in USA i think it’s lower & that figure is always decreasing, this trend will eventually happen here. Thanks.

    Reply

    • March 16, 2014 @ 10:36 am Michael Yardney

      Andrew

      Sorry I disagree with you. I’ve seen good agents use smart negotiating techniques to get 5 or 10% more for their vendors. And this is not necessarily taking advantage of the buyer.

      Just like the seller wants the most for his house, the buyer is going to try and get away with paying the least. Often they have thousands left in their budget and some would pay that little more to secure the property they have fallen in love with. That is if someone knew how top draw it out of them

      Reply

  2. March 24, 2014 @ 8:56 pm shapna

    Real Estate agents are must for buying or selling properties. They will definitely help us to analyze the needs and makes our work easy by giving proper guidance on a property, land or a home.

    Reply

  3. March 22, 2015 @ 1:37 pm andrew.s.

    This smells like it was written by a real estate salesperson to try & scare you & make you think you need them. Of course you can sell your own home successfully without an agent provided you realistically know what your house is worth. In today’s property climate, if you start getting offers for your property after the first few days of listing, around where your asking price is, then you’ve listed it too cheap or if you don’t see any interest after a couple of weeks then you’re overpriced. Even if you like to auction your house you can advertise/market it for a month then hire an auctioneer on the day for around $250. To sell your property yourself successfully you MUST KNOW WHAT YOUR PROPERTY IS WORTH.

    Reply

    • March 22, 2015 @ 3:04 pm Michael Yardney

      Andrew, you are correct – this was written by a real estate agent, but I chose to publish it because I tend to agree with the information.
      I believe most vendors are too emotionally attached to be able to negotiate the sale of their own home.

      Reply


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