For Sale by Owner is known by a lot of different names - FSBO or “Fizz Bow” as the Americans have dubbed it, Commission-free selling, Agent Free Real Estate Sale and DIY Real Estate. No matter what you call it, it all amounts to the same thing - selling your home directly to buyers without the use of a real estate agent.
There are many benefits to selling this way, with one of the main advantages being the tremendous savings you will hold onto by not having to apportion up to 3 percent of your sale price to an agent in commissions. It could equal tens of thousands of dollars more in your pocket, depending on how much you sell your home for. Money that you could use towards the stamp duty or renovations on your next property, or even some breathing room to reduce your listing price if you are selling urgently.
DIY house sales are not a new fad and account for as much as 25 percent of all home sales in some European countries, but there are still myths about the complexity and the need for a licensed real estate agent to sell for you. Below are the top seven myths we hear all the time:
1. You must be a licensed real estate agent to sell a property - False.
Just as you don’t need to be a car dealer to sell your car, there are no special qualifications necessary to sell your own home. In fact, you know your home better than any agent, so you are arguably the most qualified to sell it. If you don’t feel confident to write your ad, you can still sell through buyMyplace. We have professionals to help with copy-writing, photography, and For Sale signage, and we can even place your ad for you.
2. Buyers hate it when sellers are hanging around an open for inspection and prefer talking via a third party agent - False.
In fact, our anecdotal evidence, from successful sellers and their buyers, says quite the opposite. Buyers love asking questions to sellers directly, as they get an honest and quick answer. The same goes for sales negotiations where the process can be managed more directly and often more quickly rather than waiting for an agent to contact a seller and waiting again for a second-hand answer. Again, buyMyplace offers professional negotiators if you feel nervous about managing the pointy end of your sale.
3. You need an agent if you want to auction your house - False.
buyMyplace can arrange an auctioneer for you to add to your campaign, which is often much better value than using an agent’s auctioneer.
4. You need a real estate agent to manage the legal side, including contracts - False.
The legal aspect of property sales is handled by conveyancers or lawyers. buyMyplace has an online conveyancing business - myplaceconveyancing.com.au which can help you arrange sales contracts and undertake the appropriate searches and manage deposit money, exchange and settlement. You do need to have a contract prepared before you list your property though.
5. Without an agent, you can’t get a listing on the top property websites - True.
Some of the major property portals will only accept listings from licensed real estate agents, but fortunately, we have a real estate license! At buyMyplace, we use our Agent status to ensure you have access to all the same listings on sites like realestate.com.au, domain.com.au and many others. We can even arrange priority listings and everything you might expect from an agent.
6. You get a higher price when you sell with an agent - False.
Agents try to say they have the skills to negotiate the best sales price, and our internal comparisons have shown that our sellers are achieving and often exceeding local sales prices and time on the market - plus YOU get the benefit of the additional funds you would have otherwise had to pass on as a commission.
7. You really are going it alone, and it’s a lot to take on board - True and False.
You may choose to have very little support from the team at buyMyplace, and buy the bare minimum campaign package to include a signboard and listings on the top sites, but many of our sellers choose higher levels of support according to their comfort and confidence. We can offer you everything an agent can, and even have a fixed price full-service option for those sellers who still want an agent to do the selling, but who don’t want to pay the huge commissions. We also have partner companies to help you with building and pest inspections, legals, moving, interest-free finance for minor renovations, and a mortgage broker for your next move.