2022 and 2023 - the year of re-evaluating our housing needs.
Many of us are re-evaluating our lives and needs after the last two years. Many are looking to relocate or downsize. Part of that process is considering how and with who you will sell and buy in 2022.
Unfortunately, we think that a real estate agent is the only one who can sell a home or that we need to negotiate directly with them to buy a home. In both cases, this is WRONG.
So what are our choices, the benefits and pitfalls of buying and selling your home?
How do you find the right advice and service for you?
If you are thinking about moving, you are probably considering asking your relatives and mates for estate agent recommendations. But, on the other hand, perhaps you've already hired one.
But, do you need one? Have you considered the pros and cons of hiring an estate agent versus selling online with one of the newer services?
Using an online service is more feasible than you think.
A small number of services make online selling options very real, providing a range of smarter selling solutions. These services have spent time observing the problems you face with real estate agents.
So, if you're considering buying and or selling or know someone who is and you're intrigued by how online services work - read on.
Consider all of your options before signing thousands of dollars away to a real estate agent to maximise your financial result. Also, consider what buyer support services are available to maximise your outcome.
Let's take a more detailed look at what a real estate agent does:
Fact or Fiction - Agents disclose everything you need to know
Fiction - Don't fall into thinking an estate agent will disclose all you need to know about the property you are considering purchasing. It is YOUR responsibility.
I was recently looking to buy a block of land in a regional setting. In writing, I asked the estate agent if there was "anything I needed to know about the land that was not in the contract."
His reply in writing was you couldn't build a four-bedroom home, but a smaller house would be possible. However, after speaking directly to the council and the water authority, I discovered that both authorities had already rejected a planning permit submitted by the current owner.
Both advised it would be very difficult to secure a permit to build even a two-bedroom home due to its proximity to a major watercourse.
Someone bought this block for a premium price and will be very disappointed with the journey ahead.
If you doubt your ability and knowledge, contract a Buyers Advocate to do the research and negotiation on your behalf. Buyer Advocates such as Enterprise Property Agents are independent property experts and are not directly benefitting from the purchase.
Fact or Fiction - Agents provide a valuation of a property
Real estate agents are not qualified to formally evaluate your property; they can only offer an estimation based on past sales. And many real estate agents (not all) are guilty of bumping up the value of a property to win the contract of sale. But, conversely, agents are guilty of providing low estimations to ensure a home sells quickly in some areas.
However, we can all quickly find out what houses are selling for in our local area. Again, this is because the online tools are there and are easily accessed.
Google any house recently sold in your area, and the price and the details will come up.
In the current climate selling prices are a moving feast, but with a bit of research and reviewing your local market, a solid estimate of what your home should achieve is possible.
Fact or Fiction - Agents connect home sellers with home buyers
It can be true that some real estate agents do keep a database of clients they contact about your property, but these buyers are already extremely accessible online. A recent real estate agent industry survey has found that 20% don't use, and 27% of agents fail to use an effective buyer database system.
Additionally, buyer databases are outdated daily as buyers secure properties. Unfortunately, most agencies don't update their databases regularly.
So, where are most of the buyers? They are on the main real estate websites daily and weekly if they are actively looking. They reach out directly from any ad they see straight to the adverting agent, and that could just as easily be you.
Fact or Fiction - Agents co-ordinate open houses and viewings
Open houses and viewings are an important part of selling a home. But unfortunately, agents generally have to stick to set viewing times to fit all the other selling properties. And often, buyers are unable to make those time slots.
When you sell a home using an online strategy, you have complete control and flexibility to book viewings and schedule open houses at your and your buyers' convenience. This way, you can make sure they get to see your property at a time to suit both parties.
Companies like Next Address encourage homeowners to conduct inspections. They believe you know your property better than anyone and have the insight to give buyers a picture of what it's like to live in it. Their philosophy is 'You are the most knowledgeable person to show people through your home and are 100% invested in a successful outcome.
Fact or Fiction - Agents negotiate a sale price
Some real estate agents are extremely skilful at negotiations; this is true. However, with little formal training or qualifications, many are not. Most real estate sales agents have been in the industry for less than 2.75 years.
Buyers and sellers often find the process of negotiating daunting. One service Hello Haus is a property negotiation service working exclusively for home buyers and investors, making property transactions more transparent.
Online services also often have internal negotiation systems where buyers can make an offer through portals. The seller and any other buyers can see any offers.
Smarter online services use Offer to Purchase documents and online auction services. These services ensure transparency and accountability. There are also free articles available to guide you on how to make offers. This one on homes.com.au is a perfect resource.
Fact or Fiction - Agents prepare and submit the relevant real estate documents and paperwork
Fiction. There are two legal documents needed to complete a sale in Victoria and one in most other States:
- A Vendor's Statement (Victoria) - is often named differently in different States.
- Contract of Sale
These documents are prepared by a solicitor or conveyancer and not a real estate agent. Therefore, it is vital to choose an experienced provider as this is an important legal process.
What will it be for you, a traditional real estate agent or a smarter online service?
It's about carefully considering all the information to choose the right avenue for your situation.
- How much control do you want to have?
- Can you navigate the online world easily?
- What's your previous experience with agents?
- How important are low costs to you?
When you sell your home online, your savings could range from $15,000 to $50,000.
When you have accurate, professional information at your fingertips, you can and will make the right decisions. In addition, companies such as Hello Haus and Next Address offer smarter service-based real estate alternatives.
Next Address - Simple Smarter Selling
Julie O'Donohue
CEO - Next Address
