Some real estate agents are so sneaky you can’t help but smell something’s fishy. Have you ever visited an open house and felt agents are circling around you like a shiver of sharks? Yes, a school of sharks is also called a shiver. You might also feel tingling goose bumps when an agent throws you the pitch and the hard sell. Do you really need an agent’s service, or can you sell a house privately in Australia?
It turns out selling your house on your own is easy, and you don’t even need a traditional agent’s hired help! So, what’s the fuss about real estate agents claiming they’re authorities in the housing market? Well, industry habits are hard to break. What was considered mere convenience is now promoted as necessity.
Selling a House Privately: Let’s Debunk the Myth
Traditional real estate agents like to spin the yarn you shouldn’t sell a house privately (implying you should stick to the tired old practice of hiring them instead).
Let’s set things straight off the bat: selling your house privately doesn’t mean you’re not represented. But, instead of hiring agents who cut deep into your earnings, you’re represented by online agents. There’s a big difference between these two, and you can measure it in terms of thousands of dollars.
Your first instinct in selling or buying a house is to check online listings, and who wouldn’t? The internet is the one-stop shop for almost anything nowadays. A simple search will pull up listings in your area. From the online results, you’ll have easy access to information previously exclusive to traditional real estate agents.
These real estate listing sites publish information from traditional and online real estate agents. And who can tell which is which!
The Bottom Line
Okay, say you want to sell a house privately. You’re looking for someone to represent you. Here’s the bottom line: online real estate agents charge a fixed amount for their service. A nominal fixed amount at that!
Traditional real estate agents, on the other hand, charge commissions. That’s a distinction that saves you money after the sale.
An online agent’s fee isn’t adjusted based on the value of your property. On the other hand, traditional agents favour homes valued in the millions of dollars. For these high-street brokers, each sale comes with a fat commission to boot.
Here’s the shocker: as is in other states, agent fees are not regulated in New South Wales! This means agents play hardball every chance they get. There’s also no state-based industry, guidelines, or regulations. This is why it’s better to sell a house privately instead of trusting hustlers.
Now, we’re not saying traditional agents are hustlers…but we’re not saying otherwise either! Let’s just say they don’t have the same interests you do when it comes to selling YOUR OWN property.
Breakdown of Commissions Costs in Australia
Within Victoria, commissions range between 1.6% to 2.5%, and it’s as high as 2.5% to 3% beyond the metropolitan area, excluding Goods and Services Tax.
That’s a $13,750 (2.5%) commission on property valued at $500,000, excluding GST.
Here’s a short list of estimates in other areas:
- New South Wales: 2% to 2.5% (metropolitan), 2.5% to 3.5% (bordering areas)
- Australian Capital Territory: average 2.5% (metropolitan), 2.5% to 4% (bordering areas)
- Tasmania: $5523, +3.99% for every dollar in excess of $100,000 (tiered)
- Queensland: maximum of 5% for first $18,000, 2.5% thereafter (tiered)
- South Australia: 2% to 3%
- Western Australia: 3% to 3.25%
- Northern Territory: 2.5% to 4%
Do the math and see how you fare. It’s funny how agents sugar-coat these figures. It isn’t even bittersweet; it just leaves you with a metallic, bile aftertaste.
It gets worse. Traditional real estate agents also charge fees for advertising and marketing. These extra costs are separate from commissions. It almost feels like the service is rigged for the agents’ profit.
You can negotiate for a lower price all you want but, in the end, the agent will have his cut, and you won’t like it.
Your Best Option: Zero Commission
That’s why you SHOULD sell a house privately and get an online real estate agent to represent you. Here at Zero Commission, we charge $299 for the service of listing and marketing your property online, regardless of your property’s market value. It’s that simple.
We won’t leave you hanging. We won’t favour clients with more lavish houses than yours. You’re at even odds with the competition, with commissions out of the picture. We publish your listing on the top real estate sites in the country. Not only that, your listing stays posted until your house is sold.
There’s this real estate agent pitching to homebuyers on challenging sale: Now here’s a home with three or four bedrooms, depending on your sense humour.
That’s how far they’re willing to go to get that commission.
Now, who wouldn’t want to sell a house privately and keep thousands of dollars in their pocket? It’s time you call the shots and earn your keep. Vist our site here and sign up to sell your house privately today!
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