If you are considering selling your home privately it is important to keep the following facts in mind before you make your decision.
Advantages Of Using An Estate Agent
An estate agent works for you FOR FREE - real estate agents only get paid if they are successful in selling your home.
This sale would probably be your first poke at marketing a property yourself. There may be some important details that you are not aware of that may cause some trouble. Estate agents do it every day - There are very few surprises.
Buyers That Want To Buy Privately
The kinds of buyers you will attract are somewhat different from the buyers that approach estate agents. Bargain hunters and property investors keep a close eye on properties that are privately marketed. These private buyers target privately marketed properties for a reason: They want to save the agent's commission for themselves - the WHOLE commission!
The Numbers Are Against Private Sellers
Statistics show that only 14% of all sellers try a private sale, of these sellers 95% eventually en up selling with the help of an agent.
Why Is This?
The reasons for the bleak statistical chance of a successful sale can mostly be attributed to inexperience, lack of relevant knowledge, inconvenience and high cost. Yes, HIGH COST!
You Will Need To Negotiate
Private sellers most often have little or no skill or experience in negotiation. An experienced buyer would sweep the floor with them in any negotiation on price or terms of the sale.
You Will Need To Market
Private sellers usually have little or no skill or experience in marketing. The chances of attracting a lot of the right kind of buyers with an inadequate marketing campaign are very slim.
You Will Need Financial and Legal Advice
Private sellers usually have little or no knowledge of the financial or legal implications around the sale of a house. Answer the following two questions to yourself:
- How will I ensure that my buyer's finance is approved?
Accepting an offer which lapses weeks later when the buyer's bond is not approved could waste lots of your valuable time and money. Now be honest - Are you rude enough to ask someone about their finances?
- How will I ensure that my interests are best protected in a sales agreement?
Drawing up a contract of sale is easy! Drawing up a GOOD contract that protects your interests and getting expert advice on the common law aspects of the sale may cost thousands in legal fees.
You Will Need Support
Private sellers have no support network as far as the sale is concerned. Estate agents network regularly with other agents, bond originators, bank officials and attorneys.
You Will Need Information
A novice to property transactions usually has no access to property statistics. This may lead to fixing a wrong price for your property. The consequences are numerous and unpleasant.
You Will Need To Qualified Buyers
Agents usually have access to an existing buyer base, private sellers don't. These existing buyers have been qualified by the agent and are serious about buying your home. This is the reason why an agent may sell your property within a few hours of listing it for sale.
The buyers that a private seller will encounter have not been qualified as far as finance, credit rating and motivation is concerned. Private sellers actually throw their doors open to any stranger off the street!
You Will Need To Boost Security
In South Africa such access by strangers to simply walk into your home could be disastrous!
You Will Need An Understanding Family
Private sellers ironically give up all their privacy. Callers will expect to view your home at all hours, and you will let them, thinking that this one might be the one to make an offer. Your free time and freedom to do what you like will disappear in a flash, because the right buyer might show up as soon as you leave for the mall, tee up for golf or walk into the movie theater!
You Will Need To Advertise
Advertising will cost you a pretty penny, because unlike estate agents, you receive no advertising discount from your local newspapers.
You'll Probably Still Try Selling Privately!
After reading this, I beg you, CHOOSE THE EASY WAY!
If you are still doggedly determined to do-it-yourself at least have a look at our helpful hints for private sellers and be sure to educate yourself. Contact the transferring attorney you plan to use and tell them of your plans. They might be able to smoothe over some of the legal obstacles and mysteries for you.
