Why Selling Privately Is for Savvy Investors

The online sales market has changed our lives in myriad ways. A decade ago, long before carsales.com.au, we wouldn’t have imagined being able to sell our own vehicles directly to buyers without the help of a car salesman. 

New online platforms enable us to buy, advertise and sell property directly to each other as a community. By cutting out the middleman, we are empowered to take control of selling our most important assets. Plus, we have the opportunity to earn thousands of dollars in savings that would have otherwise been spent in commissions.

The real estate industry has also made the same transition and empowering sellers in the private sales process, by creating a direct line of communication between buyer and seller.

This can be particularly advantageous for those who own investment properties. These kinds of holdings are typically sold to realise capital gains or to liquidate assets.

Upon selling an investment property, a portion of the profits are taken in Capital Gains Tax (15-20 per cent) and, if sold traditionally via an agent, in commission rates of 2-3 per cent. At first glance, 2-3 per cent doesn’t sound like much, but if your property is worth $700,000, it amounts to approximately $20,000 in commission. [1]

Selling privately provides a smart alternative to the traditional method of selling real estate. With online platforms like Buymyplace, you have access to the same professional advertising tools as agents. On top of earning thousands of dollars in savings when selling privately, you decide how your campaign will proceed. Owning the process of selling your most valuable asset empowers you to make strategic decisions as you see fit.

Despite the obvious advantages of private sales, many myths abound about the process.  Let’s address some of the most common: 

Marketing and advertising myths 

Many assume it isn’t possible to list a property on Australia’s major real estate websites, such as Realestate.com.au or Domain.com.au, without a real estate agent acting on their behalf.

The truth is, you don’t specifically need an agent, but you do need access to a real estate license to place a listing on those websites. When selling your property privately via online platforms like Buymyplace, we use our registered agent licence to list your property on your behalf.

Selling your property privately doesn’t mean you need to sacrifice the quality of your property’s advertisement either, as we give you access to the same quality marketing resources as real estate agents enjoy. Everything from Upgraded Listings in online search results to professional photography and ‘For Sale’ sign boards are available for you. We can even provide you with an auction service if that’s what you think is the best way to sell your property.

Legal matters 

Contrary to popular belief, traditional agents aren’t responsible for the legal aspect of selling your property. Of course, they’re familiar with the process, however all legal paperwork is handled by a conveyancer or solicitor. 

To help our sellers rest easy, Buymyplace has partnered with national conveyancing experts lawlab to offer two distinct conveyancing packages that will guide sellers through the legal requirements of a property exchange: the preparation of a Contract for Sale before listing, and settlement services to enact the transfer of property once a buyer is found. 

Open for inspections and negotiations 

Some people are under the misconception that buyers don’t like dealing directly with property owners. However, our 2018 Customer Feedback Survey found most buyers thought property owners were more honest and insightful. [2] The truth is, no one knows your property better than you. You’re best placed to communicate the specifics of your property such as how easy it is to maintain the garden, the property’s rental yield, or monthly electricity costs. Whether you’re targeting residential home buyers or other investors to buy your property, you’re well equipped to answer all their questions. 

The same survey found buyers thought the negotiating process was more efficient because there was no middleman delaying responses. Our customers reported that, on average, they spent 14 hours selling their properties privately. It was also reported that 70 per cent of properties sold within 90 days of listing on the market. Of that 70 per cent, nearly half sold within the first 30 days of being on the market. [3] 

Being a savvy investor is ultimately about the dollar signs. Although paying Capital Gains Tax is unavoidable, you can avoid paying costly commissions by taking the reins when selling your biggest asset. 

Interested in finding out more? Chat with our Private Property Specialists by giving us a call on 1300 003 726. We’re always happy to help.

[1] Source: CoreLogic – based on a home value of $700,000

[2] Source: Buymyplace 2018 Customer Feedback Survey

[3] Source: CoreLogic