5 Myths on Selling Real Estate
Everyone is an expert these days on selling property and certainly real estate becomes a popular topic of conversation when prices rise, as they currently are.
For every valued opinion, however, there are still traps an inexperienced seller can fall into and some of our favourite myths are:
- The agent that tries to get a listing by saying they have, “Lots of Asian buyers who will be interested in your property.”
Yes, they may well have Asian buyers, along with Australian, New Zealand and Scottish, but this is a selling technique to make you think that their ‘Asian buyers’ are going to bump your sale price up when in fact this only happens in a very small percentage of sales.
- “1.5% – 2% is a fair commission to charge a vendor.”
As property prices have risen over the past 5 years, sales commissions have remained the same. In some areas, property prices have nearly doubled over the past 5 years and yes, that means agents fees have too. Has your salary increased by 100% in recent years?
- “Magazine advertising will attract the passive buyer.”
Magazine advertising is an expensive direct cost that you pay, for a real estate agent to sell your property on your behalf. Recent studies have shown that over 80% of sales happen through internet advertising. Buyers are a lot savvier these days and anyone, even passive buyers, are looking at the internet for houses currently on the market. Some agencies even have direct interests in these magazines and the fact you are paying for this is money in their pocket before a sale has even taken place.
- “A local agent is better.”
Certainly, a local agent may live in a nearby suburb and definitely, pre internet days, a local agent would have had a better understanding of the local market. However, again with information on suburbs and previous / current sales being freely available, a local agent is not such a factor. Especially if part of the fees they are charging you go to the Franchise Company they work under and their expensive shop front.
- “Always go to auction.”
Auctions are the golden goose for real estate agents. They create a sense of urgency not just with buyers but also vendors. Auctions actually do not necessarily attract higher sale prices and if you are not comfortable with them there are other, less stressful, methods of selling your property. In-house auctions can always be arranged during a private sale campaign when you know that you have more than one serious buyer. All auction campaigns rely on multiple bidders and the pressure on the vendor rises on auction day if their reserve price is not going to be met or nobody bids.
In order to sell property in a timely and stress free manner you require a reliable, trustworthy agent who charges a fair fee for service, professional photos of your proprty, an eye catching ad on the major property sales websites and a reasonable price expectation.
Open Places sells all property in Melbourne at 1% sales commission. Full service, proven experience and no expensive advertising campaigns.
Contact 1300 880 243 to talk to one of our representatives.