Can you sell your home yourself in Australia?
Want to avoid going through a real estate agent? It’s absolutely possible to sell your own home in Australia. Homes that change hands this way are often referred to as ‘for sale by owner’ (FSBO). There are a number of reasons this might be appealing–major ones being you could save on real estate fees and have more control over the sale.
That said, you will not be able to complete the entire process on your own. Modern property settlements happen electronically via Property Exchange Australia (PEXA), so you will likely need to hire a professional with access to this system to complete your final settlement. Having a solicitor check the contracts before you sign them can also help to avoid any nasty (and expensive) surprises.
You will also be limited in where and how you can advertise your property for sale, as some major platforms won’t accept FSBO listings.
Depending on where you live, there may also be certain state-specific rules and regulations that relate to selling your own home.
How much can I save by selling my own home?
Real estate agents in Australia typically charge a commission for selling your home. Commissions are not regulated, but according to OpenAgent, it’s standard to charge between 1% and 3.6% of the sale price. If you were to sell a hypothetical home for $800,000, you might therefore expect the commission to be between $8,000 and $28,800.
Depending on the agent’s sales package, you could also expect to pay for the marketing of your home, which can include brochures, social media posts, signage, professional photography, online real estate listings, and newspaper and magazine advertisements. Such marketing tools could cost several thousand dollars.
How easy is it to sell your own home?
If you’re willing and able to do the legwork–completing necessary admin tasks, cleaning up and styling your home for sale, and researching trends in your city and suburb to get an idea of a fair price–you could potentially save thousands of dollars in real estate commission fees.
However, agents likely have more experience selling homes and negotiating prices than you do, and can guide you through the often-unfamiliar process of selling a house—this kind of assistance wouldn’t be available if you sell your home yourself.
The overwhelming majority of homes are sold through a real estate agent. Industry site Whichrealestateagent.com.au estimates that real estate agents generally handle 90% to 95% of all residential property sales in Australia.
What do real estate agents do in Australia?
A real estate agent is the gatekeeper between potential buyers and the seller (vendor). They help people rent out or sell their property, which could include:
- Providing market research to the vendor
- Marketing the property
- Hosting ‘open homes’ or inspections
- Negotiating with potential buyers
- Supplying the contract and recording conditions on it
- Auctioning the property, or hiring an auctioneer
- Handling some of the settlement activities, such as taking and holding the deposit and giving the keys to the buyer
Real estate agents need a licence to operate in Australia and registration typically involves completing relevant training and a period of work experience. The agent is obligated to work for the vendor and represent their best interests, according to the Australian Competition and Consumer Commission (ACCC).
If you do decide to engage an agent, the ACCC recommends getting opinions about the value of your property from different agents and requesting a written schedule of potential fees, before signing any agreements.
How to sell your own home without an agent
If you plan on going it alone and selling your property without an agent, you’ll potentially be taking on some big responsibilities. There are some important considerations you’ll need to keep in mind, including:
Managing the legal side of your home sale
When you sell your own home, you won’t have the benefit of a real estate agent’s expertise to guide you around administrative aspects of the sale. In NSW for instance, a property cannot be advertised for sale unless a contract of sale is already drawn up. You may also be required to provide additional paperwork depending on your state or territory. In Victoria, sellers must give buyers a ‘Section 32 (or Vendor’s) Statement’.
There may be notable value in teaming with an experienced conveyancer or solicitor who can guide you on the paperwork and other formalities that are part of the home selling process.
Setting a price for your home
Establishing a realistic price can involve looking at your home objectively, and that’s not always easy. Ask too little and you could end up short-changing yourself, possibly by tens of thousands of dollars. Set the sales price too high, and you could deter buyers from viewing your home.
To set a suitable price you could engage a property valuer to provide a professional valuation, or be prepared to do plenty of research on what similar properties are selling for in your area.
Finding the time to get the job done
If you’re thinking about selling your own home, you also need to consider how much time you can devote to doing the necessary admin work, hosting open homes (if needed), and negotiating with buyers. You’ll also need to think about how your home is presented and whether you need professional photography or videography to show it off.
Ideally, you need to be able to respond promptly to buyer enquiries and show interested parties through your home, potentially during business hours and on weekends. It can be a good idea to consider whether your job (and lifestyle) offers the flexibility to drop everything and take calls or meet with buyers at short notice particularly during workdays. If that’s not the case, you may need to set clear inspection and contact times—something that may not suit every potential buyer.
How much does it cost to sell your own home?
The cost of selling your home privately varies depending on how you decide to do it. For example, if you decide to use free marketing methods, such as word-of-mouth, social media, or a homemade sign, it could cost next to nothing. However, generally speaking, it’s easier to sell a property when more people are aware of it. This could mean spending money on paid advertising or other marketing methods.
A number of services are available to help homeowners market their property, without the help of a real estate agent. One advantage of using one of these services is that your property can be advertised on major real estate websites. Various companies offer these services, which are commonly priced at around $1,000 to $3,500. Like with most major purchases, it’s important to compare services offered and read the fine print so you know what is (and isn’t) included with each package.
