Private homeowners are increasingly turning to the DIY route when it comes to selling their own homes. Many websites have reported FSBO listings nearly doubling between 2012 and 2014. In states seeing the majority of the property boom, like Perth, growth in the FSBO sector has reached decade high peaks of over 30%.
The proliferation of websites that offer information on property prices and comparable prices in neighbouring areas has armed the FSBO with an easier way to price and market their homes. The addition of social aspects and ease of posting photos and description of homes online means sellers have an unprecedented level of exposure than they ever have in the past.
In most Australian states the attraction to sell your own home comes from the money you reap from saving on the real estate agent fees, which can typically run anywhere from 2% to 3%. This means in WA where the average sales commission charged by real estate agents is 2.42% a home owner with a $500,000 property will be paying the agent $12,250 in fees. Some will also ask for an upfront “marketing fee” typically around $3,000. So, more than $15,000 could be saved for a FSBO.
There will of course be costs incurred by a FSBO, namely their time but also additional marketing of their own, like signage and advertising. However, attribute $2,000 to this cause and they are still saving over $13,000 and that could easily take 2 years off your mortgage!
Add to this saving the fact that a lot of agents will also talk the seller down on their price before they ever try talking the buyer up and you’ll probably sell your house for less when using an agent. All the agent wants is their commission, a piece of the pie really. If a quick sale is easier by reducing the price, then that will be their motivation to be able to move on and sell more properties.
If you do choose to sell using a real estate agent then be sure to check what you should expect here https://www.commerce.wa.gov.au/consumer-protection/using-real-estate-agent or find more information about for sale by owner options from Direct Move.