Chamberlain Property Advocates wrote an article about the pros and cons of selling your home privately back in 2019 which was published on realestate.com.au. The points raised in that article still hold true
The first point that needs to be made is that every seller's situation is different. The potential benefits and costs of selling privately will depend on your particular circumstance. Doing some research on sales in your area, along with obtaining expert advice, can help you decide whether or not a private sale is a good choice for you.
There are five key benefits associated with private sales of real estate:
- Speed - a property priced realistically can often sell faster on the private market compared to an auction campaign.
- Flexibility - selling a home privately allows you more time to consider offers from prospective buyers.
- Privacy - advertising privately suits vendors who prefer to maintain a low profile during the selling process.
- Cost - private sales can be significantly cheaper than auctions, although this depends on how quickly a sale can be finalised.
- Genuine buyers - private sales generally attract buyers who know their financial position, which means you're less likely to be interacting with buyers who are not yet ready to purchase.
Potential benefits always need to be weighed against costs that may arise. When selling your home privately, consider the possibility that it could lead to costs including:
- Speed - while private sales can prove a more efficient method than auctions in some instances, they may also require more patience. For sellers who aren't in a hurry, taking the time to find the 'right buyer' may well suit their circumstances.
- Price - unlike with auctions, private sales involve setting an asking price from the outset and getting this wrong can be costly. There's the risk of selling below the potential value of the property or setting the price too high, which can lead to limited interest from the market
- Lack of urgency - while auctions require home buyers to stake their interest in a prompt and lively manner, private sales are more susceptible to procrastination from buyers who continue to seek out alternative properties
If you've decided that selling privately is a sensible choice for you, you'll be able to move on with greater focus on what needs to be done. There are quite a number of things to cover when conducting a private sale. The Selling Property by Private Sale page on the Consumer Affairs Victoria website is a great starting point. Expert advice and assistance will also help you during the various stages of the selling process.
If you are thinking about selling, talk to us about your preferences and preferred options. We offer a free, no obligation, 30 minute consult.