Selling

Agents vs Private Sale

Ultimate Selling Guide

An agent is a licensed and trained individual who aids in the process of selling a property. Some consider whether or not an agent’s presence is beneficial. So they opt to sell their property on their own. This is often known as “For Sale By Owner”. Selling your property direct may seem like a more cost-effective solution. But there are several important considerations to make before deciding on the best alternative to sell your property.

Pros

Agent
For Sale By Owner (Private Sale)
Marketing Experience & tools – Real estate agencies have years of experience in marketing property. By leveraging this experience and key marketing tools (i.e. video) you will potentially generate more interest and a higher sale price for the property. Commission Fees – Will save on commission fees charged by the agent. This may or may not result in more money in your pocket once the transaction is complete.
Potential Buyers – An agency has a number of potential buyers on their database as a result of recent inquiries for other properties. This provides an instant list of potential buyers for your property. Negotiation and Sales Process – You have full control of the process, providing you with direct contact with buyers. This face to face approach eliminates an intermediary and allows you to establish a more personal relationship between a buyer and yourself.
Value of Property – An agent will provide an expert opinion of what the property is worth. This is based on their experience and knowledge of past sales to ensure your property is priced at market rate. Agent Contracts – You will not be bound to an agent and his terms of selling, should you no longer be satisfied with the service you received.
Negotiation and Sales Process – Real estate agencies are educated in all areas of the sales process and hence can help to secure a higher price for your property. They are trained to spot potential buyers vs. browsers and focus their attention on those ready to commit to a purchase. They are also highly trained in the area of negotiation to ensure you receive the best possible price for your property. Marketing – You can market the property as you like and using the channels of your choice. Whilst you do have a choice of marketing methods when working with an agent you will not feel compelled to promote your property via channels you don’t feel are necessary.
Coordination of the Sale – An agent will coordinate the entire process, from marketing the property, through to conducting open for inspections and handling paperwork and documentation upon an agreement of sale. This will save you time and will alleviate the stress of selling your home direct.
Marketing Channels – As some of the major real estate sites do not allow consumers to advertise direct, you will gain maximum exposure for your property by using an agent.

Cons

Agent
For Sale By Owner (Private Sale)
Property Pricing – On occasion consumers are subject to dealing with agents who are working for the buyer rather than the seller. In this instance you may not receive the best price for your property. It is therefore important to make sure you choose the right agent to sell your property. For more information on choosing an agent, please refer to “Choosing an Agent” Agent Rates and Commission – Although you may save on commission, it does not always net a better result. Whilst utilizing an agent may cost more it will most likely result in a higher sale price for the property and more money in your pocket.
Contract – Once you have signed an agreement, the agent has authority to represent the sale of your property for a period of time. Should you be dissatisfied with their service you will be bound to the terms of the agreement for the period specified in the contract. Industry Knowledge & Time – Selling your home as a “For Sale By Owner” is a difficult process as you will not be aware of industry legislation, documentation and procedures. This will require a significant amount of your personal time to be invested in the process of selling your home.
Marketing– You will not have access to all of the tools and websites needed to effectively market your property. Agents have access to websites that are not available to the “For Sale By Owner” market. Agents also have access to video tools, photographers and other listing tools which resent the property in the best light.
Determining an effective sales price – Without all the tools on hand, you may under-price or overprice the property.

NEXT: Choosing An Agent