DIY Sell your home Vs Real Estate Agent

So, you have decided to sell your home

now you must weigh up the options of how you will facilitate a successful outcome.

DIY (Do it Yourself) or engaging the services of a Real Estate Agent.

First and foremost, you need to fully understand the risks and therefore complete lots of homework and preparation to ensure you are equipped with all the tools and information required to make your final decision.

DIY (Do it yourself)

Selling privately could potentially save you thousands of dollars in commission fees thus allowing you to be more flexible with your asking price or negotiations. Of course, a real estate agent might argue that they could achieve a higher price but if you have done good due diligence you should feel comfortable going it alone.

It has to be mentioned that if you are looking for a relatively quick sale then one of the most important things is that the housing market is “bullish”, demand is greater than supply, to accomplish the desired result.

Going to auction or a tender sale is often more complicated so most probably these proposals are better handled by a real estate agent.

Setting a Price

After checking recent sales in your area and making valid comparisons you need to decide on the minimum amount you will be prepared to accept. With that $ number in mind, you can choose from varying marketing tactics. Ie: Offers over $ considered which implies that you will not accept any less amount but who knows what the higher offer may be or you may add another $10 or $20K onto your minimum amount knowing that potential buyers may like to negotiate and this allows you to appear to lower your apparent expectation and accept a lower amount inferring that they have “won” the process!

Remember to include any capital gains taxes or stamp duty that may apply in your country in your sale price calculations, we are lucky enough in New Zealand to not have any taxes on the sale of family homes and only some capital gains in certain instances on investment properties.

Marketing

You will carry the full cost of any advertising that you undertake, therefore you do need to be marketing savvy. If you don’t feel confident in that area it may well be better to employ the services of a professional writer & photographer to prepare your advert as this is an integral component of your potential success.

You will also require a professional sign writer to create a good-sized road sign, with a fantastic main photo and important details of open home dates and times etc, don’t forget to include a reference of your online advertisement.

Online marketing is imperative to get out to as many potential buyers as possible, it is worthwhile opting for “Feature Adverts” which are normally more expensive but amazingly effective. Another cheap and easy marketing tool is a double-sided pamphlet featuring more photos & additional legal information which can be left beside your roadside sign for potential purchasers to take home and look over in more detail or you could do a local pamphlet mail drop as it is a known fact that people like to purchase within their immediate demographic, particularly for investment properties.

Open Home Viewings

Once you have arranged all your marketing material you will also have decided on your open home dates and times, it is best to only advertise your next open home to encourage immediate interest which is always highest in the first 3-4 weeks. While you can’t always dictate weather for an open home try to choose a time that if the sun is shining it best enhances your home and also fits in with other local viewing so that potential buyers will put you on their list while they are out and about.

You must present your home in the best possible way as first impressions will always be what counts so dress your home as close as possible to the photos that appear in your marketing, no dirty dishes, unmade beds, or wet towels on the floor!!

Mow the lawns, put some fresh flowers around, some sellers swear by the odours of home cooking or freshly brewed coffee as creating a homely atmosphere that draws the purchaser into imagining they are already living there. The other advantage of DIY is that you can be more flexible on arranging second viewings with genuinely interested parties while the iron is still hot, so to speak.

Personal Effect

DIY selling gives you a distinct advantage of dealing directly with your buyers which in turn allows more control over the sale and negotiation process, you have inside knowledge that is needed to excite potential purchasers and can respond to all their queries regarding the neighbours, location, and reputation of local schools, public transport, sunniest spot in the house etc. It is prudent to disclose all relevant information and have all the latest council and valuation reports on hand for buyers to peruse.

Closing the Deal

Most probably the hardest part of selling privately is negotiating a price without letting your heart rule your head, if in doubt you may elect to bring an impartial third party into the fray at this point to conclude negotiations on your behalf. Once a price and terms have been agreed then you can pass the final legalities over to your solicitor to ensure everyone is protected. A word of caution, be careful if you have previously had an agency agreement then sell privately as they may still be able to claim commission fees for the sale if they introduced the buyer initially.

 

Real Estate Agency

If you decide that you lack the confidence, time, or just prefer someone else to look after the very important task of selling your beloved home then this is where the Real Estate Agent comes to the forefront. There are certainly lots of advantages of this option and while you are still liable for the pristine presentation of your home for viewings and scheduled open homes once that’s done you can walk out the door and leave everything in the hands of your agent.

Initial Discussions

It is important that you choose an agent who, firstly is someone you feel comfortable with and trust implicitly, and secondly, is experienced with a great track record of achieving consistently favourable sales and is a fully licensed operator. Prior to signing any agreements the agent should have some recent sales history and other relevant information for you to discuss, they should be able to suggest an achievable selling price and timeframe, this is also the time to negotiate the commission payable and also if they are agreeable to a marketing subsidy and agreement on the full advertising costs if possible. Real estate agents tend to prefer an exclusive listing for at least three months if they are agreeing to share some of the marketing costs, this can work in your favour as they will give your listing preferential treatment to ensure a sale and consequently their commission! This is also the opportunity to discuss the type of sale that may best suit your needs, ie Auction, Tender etc as agents are fully conversant with the processes required for these avenues.

Marketing

An agency will have an extensive buyer base, not only through their own company outreaches and the clients or input of their work colleagues but also their professional marketing expertise. They have greater website and media advertising advantages at very cost-effective margins. In the event that a sale is not achieved be prepared to honour all marketing fees upfront, this may not apply to all agencies but get clarification early.

Open Homes or Private Viewings

Your real estate agent will generally give you advice about the best times and days to hold open homes or if it is your preference you may decide on private viewings only. Normally these private viewings are held for the more exclusive, higher-priced homes but if you are wanting to get the biggest bang for your marketing buck then open homes are a far more productive concept to get lots of interested potential purchasers through your home. The advantage of an open home is that you know exactly when you have to prepare and dress your home ready for viewers, lots of them hopefully in one scoop! Obviously, if you are selling your home, whether privately or with an agent you will always have to keep it looking generally neat and tidy just in case there are short notice second viewings.

Closing the Deal

Your agent is working for you therefore they should always be trying to negotiate and achieve the best possible price on your behalf. They are impartial and should not allow emotional reaction to the benefit of the purchasers, this is an area where they do have an advantage over a private sale if perhaps you find it impossible to be a bit hard-nosed! They will also ensure all legalities have been adhered to prior to sending any formal sale and purchase agreements to your solicitor for finalisation.

Good Luck with the sale of your home, it can be very nerve-wracking but equally extremely exciting at the same time. Perhaps the one other piece of advice we can give is to try not to get stressed and don’t sweat the small stuff! …..I know, sometimes easier said than done!….

Please note that this advice is gained from our experience of selling homes in New Zealand so please ensure that you carry out due diligence for sale and legal requirements within the country or region you live in.