Over the years I have been a real estate consultant, I have watched with interest the growth in DIY or owner-seller websites. These are businesses that provide a property vendor with marketing materials and access to all important listing websites like realestate.com.au and Domain.com.au. Many people think they have the ability to sell their own property and think they can save on the real estate commission which can be anywhere from 2.5 to 5% but usually 3.3%.
The internet is a disrupter and has forced many industries to restructure and real estate is not immune. This process is called “disintermediation” and is where the middle man in a sales or distribution chain is eliminated and the buyer can access the supplier direct. In my experience, I have seen home owners be both winners and losers when they decide to go it alone.
Mainly, you need stamina to stay the distance if your property takes a while to sell. You also have to do the necessary research and list at a realistic price. Too many sellers are starry eyed and think their fabulous, quirky, unique home is going to find someone who will fall in love with it and pay overvalue. Yes, it does occassionally happen but its like winning the lottery. I also know of sales way below the money and the owners have missed out on some serious cash by not knowing the market.
Some people have sold expensive properties only using Facebook or Gumtree. They have taken their own pictures, made a simple website, put it out through social media and have done alright. Recently, I was negotiating on a property but it was complicated because a similar house close buy had recently sold at much higher than market value. The seller sold it DIY vendor.
Owner-seller websites are popular as it gives a seller access to powerhouse listing services like realestate.com.au. The vast majority of properties are searched through this site and only registered agents with a subscription can list on it. I have seen many owner-seller sites come and go over the years, not all of them last and they all give different deals. Most cost under $1000 for the basic service and compared to using an agent who would charge around $15,000 for a $500,000 sale, that is quite a saving.
The one that has been around the longest and with the most market share is For Sale By Owner. One model that is developing is to list with an owner seller site but still employ the services of a Buyers Agent/ Vendor’s Advocate like myself as a consultant and to provide the necessary research. If you want more information from the For Sale By Owner website go here or contact me for more information.