Selling a home without the help of a real estate agent is not a new venture, but using online marketplaces like Gumtree or BuyMyPlace.com.au as a cost effective way to showcase your home to prospective buyers is on the rise.
While thousands of dollars can be saved on agent fees, experts have warned there are plenty of pitfalls to watch out for, particular for the seller.
Property valuer and TAFE Illawarra teacher Murray Bergmeier said vendor’s were essentially paying an agent to work for them and any good agent would be trying to negotiate the best possible price.
He said buyers usually came out on top in a private selling scenario as often the property would be undervalued while there were more risks for the seller.
“Most buyers want to go through an agent and not deal privately, because they want the comfort,” said Mr Bergmeier.
“Agents are essentially a third party when a buyer goes through a home. If you deal directly with the actual owner it’s difficult to talk about issues with the property and bring up negative factors, such as something needs to be painted or you don’t like the curtains, because [the vendor] takes it personally.”
He noted dangers such as opening your home to strangers and not understanding the process as well as an educated agent could become problematic.
Current listings on the free site Gumtree.com.au include a variety of apartments and houses from Wollongong, Figtree, North Wollongong, Port Kembla, Dapto, Lake Heights and Warrawong - all for under $570,000.
Real Estate Institute NSW president John Cunningham agreed those looking to buy into the great Australian dream were more likely to score the better deal, but the transaction could still bring headaches.
“To put yourself as a seller in face with a buyer, it’s quite an emotional decision making process fraught with danger … you’re dealing with someone’s biggest asset and their home,” he said.
“I’ve rarely seen a private seller have a successful campaign due to the fact they get upset, buyers are rude, they think they’re getting ripped off and they take it all personally.”
Mr Cunningham also warned private sellers weren’t bound to disclose material fact so buyers had to entirely rely on their own inquiries into the physical state of a house.
“You could be opening a Pandora’s Box,” he said. “[The vendor] may not understand what zoning means or implications of the traffic department ... or other elements an agent would understand.”
Private sales can still save a vendor some extra cash while helping a homebuyer pick up a bargain, but proceed with caution.
Pitfalls
- Property undervalued
- Highly emotional and complex process
- Lack of negotiating skills
- Lack of legal knowledge
