Selling your property is usually a great way to get some bulk income, but the costs involved can sometimes be stifling. Getting professional representation is usually the greatest source of these costs, but there are others, such as conveyancing costs, staging costs, etc.
Selling your property yourself is the only route to saving costs when selling your property, and this article is going to explain how.
Selling Your Property Yourself
As we have stated earlier, the only way to save some money while selling your property is to sell it yourself. Doing this will mean you won’t pay a penny to any professional, but it’ll cost you in effort. At the very least, be prepared for a time consuming exercise.
Since you won’t be getting an agent, and knowing the potential for making errors with such a complicated financial and legal process, it would be best to think of yourself as your own agent. Doing this will help you maintain a critical look to all aspects of the deal and help reduce the chances of making errors with the sale.
Things to Note
1. Discounted House Prices
Since you won’t be using an agent, the price of your property will appear discounted, as prices of homes usually cover the agent’s fees.
2. Time of Sale
Another thing to note is the time of the year you are selling. Selling during slow sales periods, such as the winter months, will be more difficult than during other periods of the year.
3. Adequate Research
You’re your agent now, remember? This means you have to do your due diligence and check around for prices of properties in your vicinity. You should also have an idea of what prices properties similar to yours are going for, taking into consideration the area it is situated.
This is the other cost that agents would usually collect from you, alongside their agent’s fees. As you’re your own agent, you have to ensure your advert for the sale is placed on a lot of channels of advertisement. This would help you get a wider reach and consequently more bids for your property.
You have to ensure your property’s visuals are very good, as buyers will be making decisions on whether to buy or not based upon how the property looks when they come for a check.
Doing this yourself will save you lots of money in staging fees, etc.
The Costs to Eliminate
If you’re going to sell your property yourself, then knowing what costs to cut will be hugely beneficial for you. The following costs are the most important to cut.
1. Agent’s Fees
Agent’s fees are usually built into the cost of the property, and this can represent a sizable chunk of the price of your property. In Australia, real estate agent fees differ from location to location.
For example, in New South Wales, the rate for the real estate agent fees nsw is about 2.1%. This means if your property has a sale value of $40000, you’d be paying about $840 in agent fees alone. That is if it’s a fixed agreement. If it’s not, you’re liable to pay more if the property sells for more than the agreed threshold.
Choosing to sell your property yourself will help you avoid the agent fees, and is a great way of saving costs.
2. Mortgage Discharge Fees
This is another cost that can be easily avoided. Though you’d pay this if you use an agent or not, but you can negotiate with your existing lender, such that you won’t have to pay the exit fee, but can channel that into refinancing and saving yourself lots of money.
3. Conveyancing Fees
In the sale of a property, there will be a transfer of legal ownership from the seller to the buyer, and fees will be paid to the professionals who help with this.
Selling your home yourself would mean you wouldn’t pay any one, but you’d have to get a do-it-yourself conveyancing kit for about $100.
Saving whilst selling your property is very possible, as we have explained, and doing a lot of the work yourself will be paid off by the thousands you’d save.