The question of whether or not you need a real estate agent to sell your house boils down to choices. Everything is a question of pros and cons. It is an equation that influences every decision we make in all facets of our lives. Selling a house is no exception. You must assess the advantages and disadvantages. Having said that, all decisions should be based on a person’s knowledge. Information is essential for achieving the right result. We want to help you make the best decision when choosing whether or not you want a real estate agent to sell your home. Obviously, the first reason someone considers selling privately is to save money that would otherwise go to the agent in the form of fees and commissions. But how much money will you really save, and what limitations will you impose on yourself if you go down this road?

What is a no agent property or private selling?

No law exists saying you must engage a real estate agent to sell your home. You can just about do it all by yourself. This is known as a “no-agent” property or “private-selling.” The premise is self-explanatory. Many people believe it takes a brave person to go it alone. And, admittedly, it is uncommon to sell without an agent. For a start, everything that an agent does, you must do yourself. In other words, you take upon your shoulders the entire task of selling the house and all that it entails.

What does private selling entail?

As a private seller, your first priority is to attract a buyer for your home. Given so, you must find a way to reach the market and pique the interest of buyers. This involves advertising the property. However, as a private seller, you are not permitted to advertise a property unless you have a contract of sale in hand. A solicitor or conveyancer will be needed to help you draft a contract of sale. After that, you must decide on a price. The worry here is that the property may be undervalued, so it is important to get the right valuation for your property. The location, as well as the kind of the property, will be important considerations. When a buyer does come along, having a solid degree of self-confidence will be essential during negotiations. Thereafter, all being well, you will exchange contracts and reach a settlement.

Advertising your house is as simple as placing a “For Sale” sign in your front yard. But you can also list your property on sites such as realestate.com and domain.com. While they charge no commission, you will pay a fee for using their service. However, it is nothing near the cost of a real estate agent’s commission and advertising fees. It is up to you to provide tantalising copy for your listing and high-quality pictures to accompany it. The pictures must do your house justice. Don’t go overboard with the effects, though. Agents can gloss over images of houses. Buyers often complain that the house they visit does not resemble that which was pictured. Similarly, the humble For Sale sign has its merits. Experts reckon the average buyer moves between 5 and 15 km from their current home. Subsequently, plenty of buyers may be already looking in your area!

Philip’s story

In 2021, ABC Radio Brisbane explored this very topic. They interviewed a proud private seller named Philip. He told the national broadcaster: “I have an aversion to paying someone else for something I can do.”

Philip read various books on the subject and had the pluck to try it for himself. According to The ABC, he reduced it to three steps: advertising online, showing potential buyers around the property, and negotiating a price.

“I received constant emails and phone calls, and for the next two weeks I was booking people every half hour to come and see the place,” he chortled.

Philip got lucky and was chuffed. He saved a swag on agent’s fees and commissions and got to revel in his sense of independence. He had every right to.

Regardless, not everyone is made of the same stuff as Philip. Real estate analyst Terry Ryder has published four books. He told the ABC, “I think probably the biggest single reason that most people appoint an agent is that they are probably a bit intimidated or fearful of the negotiating process.”

“They don’t know how to negotiate or aren’t comfortable doing that,” he added.

While he acknowledged that the major attraction of going it alone is to save on a real estate agent’s fees, that area of scrimping is offset by the need for sound legal advice. He advised that people should be prepared to spend a decent sum of money on getting good legal advice to make sure they’ve got that aspect well covered.

Another interviewee offered the perspective of the agents. Antonia Mercorella represents the Real Estate Institute of Queensland. She believed that reducing the role of the real estate agent in such terms oversimplifies things.

“An agent has a fiduciary obligation,” she said. “It’s the same level of obligation that’s imposed on a doctor-patient relationship, a solicitor-client relationship, and it’s come of the highest levels of responsibilities that the law imposes.”

Ms Mercorella said that the agent is actually legally obliged to get the client the best results possible and avoid any potential conflicts of interest. Likewise, she reminded the listeners of the expertise the real estate agent brings is overlooked in this scenario.

Philip sold his home himself and saved as much as $17,000 by doing so. By concentrating his efforts solely on the project, he avoided the multiple interests that plague real estate salespeople. For instance, they must allocate a set period of around eight weeks to a campaign before the seller loses confidence. Yet, their inspection time is limited since they are handling more than one client. Nevertheless, what is not mentioned is how Philip had the available time to achieve all of the above. Had he retired? For most of us, time is not in great supply. Our jobs can be demanding. We have children, families, and care for elderly relatives. Sometimes we have sick family members to look after. Moreover, we don’t know what skills and experience Philip had to utilize. He might’ve spent his life in sales. Negotiation is a skill and an art.

Remember that many firms are sprouting up online as a result of No Agent sales. They charge a nominal fee in exchange for allowing individual vendors to advertise. After all, this is the spirit of free enterprise. They write blogs extolling the merits of private selling and emphasise those that appeal to the individual who wants to keep as much of the sale earnings as possible. Yet, they downplay the other side of the argument. For instance, they fail to remind browsers that it is in the best interests of the real estate agent to achieve the greatest financial outcome for their client. To accomplish this, they will aggressively pursue their commission. Similarly, the real estate agent has the contacts, the knowledge, and the experience of the wider market. Besides, negotiation is their business. They also have exposure to the largest pool of buyers.

Once again, everything comes down to benefits and downsides. To put it simply, the biggest advantage is that you save money on commissions and fees. This, however, assumes that the real estate agent will not get a higher-than-expected price in order to maximise their compensation. If this is the case, the higher sale price compensates for the expense. That price might not have been reached if it hadn’t been for the real estate agent’s efforts. The disadvantages are best summarised in the outcome. You may never know whether you got the greatest possible price for your house. You never went to an agent, and you may not have negotiated to your greatest advantage. The rest is labour, and in the end, if you sold privately, you investigated both a pro and a con. The fact that you did everything yourself was a plus, but it was also a disadvantage.

Conclusion

To sell your home, you do not need to hire a real estate agent. You can accomplish it on your own. However, selling privately is dependent on your ability. We are not all salespeople, and we are not all terrific marketers. Perhaps a better question is, “Should I hire a real estate agent to sell my house?” A real estate agent bears the load of the commercial transaction as well as the responsibilities of preparing a home for sale. They take care of the details and are duty-bound to attract the best buyer for your property. In the end, it is about peace of mind. If you are like the majority who cannot spare the time but are concerned about finding the right agent, this is where Perfect Agent comes in. We will handle everything for you for free.