Q&A House Matters: I’m selling my property next year and I’ve been thinking about doing it myself.  Is there any reason why I should use a real estate agent instead of selling privately?

Sent in by Dave – Army Bay

Some people choose to sell their house privately, without the help of a real estate agent. For others, the time, the skills, resources and experience of a real estate agent are worth the price they pay in commission.

The main advantage of selling your house privately is to save on the cost of a real estate agent commission as well as having more control of the sale and negotiation process by having direct contact with potential buyers.

On the other hand, real estate agents are experienced in selling houses. They know the market conditions and prices, and are experienced in handling negotiations especially when there is more than one interested buyer for your property. In the current market this is extremely important and could be the difference between tens of thousands of dollars.

Lynette Wade of Halbrook Law also adds “Real estate agents also have a legal obligation to treat the buyer fairly including not withholding or giving inaccurate information about a property. For example, under the Fair Trading Act an agent cannot make an unsubstantiated representation about a property.” These obligations can make a buyer feel much more comfortable about the buying process, and in fact some buyers will not look at private sales.

Anyone with a well-presented home and a good photographer can make a listing look good and it may generate the same number of hits and the same number of open home visits as real estate agents. It is what happens after the open homes that is the most important to securing a good sale. Having the time and motivational capability to identify prospects, nurture interest, keeping in touch and effectively getting their offer down on paper to begin negotiations.

Selling your house yourself may not be as simple as you think, and may take a lot of time and effort. You will have to give up your own time for paperwork, advertising and viewings/open homes. Not to mention dealing with nosy neighbours, time wasters and buyers who think they can purchase your property at a steal. It could also be quite emotional as you may have to deal directly with negative reactions from buyers who don’t love your property as much as what you do.

There is no hard evidence that selling privately or using a real estate agent will achieve a higher price, therefore you should weigh up the pros and cons of selling your house privately based on your situation before making a decision.

See also;

• How to select the right agent
• Risks associated with private sales
• How do I sell my property privately
• West Auckland property on Trade Me with no reserve
• Zero fees offer as real estate agents vie for customers

Got a question?  Contact Anita Dobson via email or Facebook! As seen in this week’s Real Estate Outlook.

Disclaimer: All opinions expressed by Anita Dobson in this article are solely Dobson’s opinions and not necessarily the opinions of Harcourts Tandem Realty Ltd.  You should consider seeking advice from your own financial or investment advisor.