Selling Privately: Explained • 

Real Estate Agents, Fixed Fee Real Estate, and Selling Property Privately: What is the Difference?

What is the cost of selling a property? Real estate commission, agent fees, marketing fees all come into play, but how much it costs depends on how you choose to sell your property

And you do have a choice!  There are a few ways to sell your property, all with varying costs of selling a house or other property type.  Let’s review what these are:

Traditional method of selling real estate, via a real estate agent:  

  • You engage a real estate agent to help you sell your property.  
  • How much do real estate agents charge On average, real estate agent commissiopercentage is typically between 2-3% of your property value, plus marketing expenses.
  • Marketing expenses are paid on top of real estate agent commission and average between $5,000 and $10,000.

Selling property privately (also known as private real estate sales, for sale by owner, no agent property)

  • You pay an upfront fee to list your property privately on the major real estate websites, meaning you can minimise the costs of selling a house. 
  • You also  get access to the same quality photographers, for sale sign boards, brochures and copywriters as  a real estate agent..
  • You keep 100% of the sale proceeds once you’ve sold – you don’t need to make any further payments.
  • Selling privately means selling without an agent, so you manage the process of selling your own home, ensuring a transparent process.

Fixed fee real estate agents (also known as capped fee real estate): 

  • You engage a real estate agent to help you sell your property, however the real estate agent commission you pay is a fixed amount, rather than based on a percentage of your sale price.
  • fixed fee arrangement can be a less expensive way to sell your property compared to a traditional real estate agent, meaning you could pay less in real estate agents fees, depending on the value of your home.

No sale no fee estate agents 

  • You engage a real estate agent to help you sell your property. Under no sale no fee, real estate agent commissions and marketing costs are only paid in the event the agent finds a buyer for your property.
  • In the event they  do not find a buyer, you pay no costs.  This is a way of mitigating the downside risk of paying agent fees when selling a house in the event your home doesn’t sell.

So what exactly does it mean to sell your property privately and how does it compare to these other methods with respect to cost, quality, effort and everything else?  We’ve summarised a handy comparison below:

Comparison of the different methods of selling your home or land 

buymyplace

Real estate agents

Fixed fee

No sale, no fee

Real estate commission fees

None.  When you sell with buymyplace, its commission free.

Typically, between 2-3% on average in Australia.

Any commissions paid are all part of the fixed fee arrangement.

Fixed fee applies regardless of whether your property sells.

Paid only if your house is sold. 

Marketing costs

Our campaigns range from $695 to $2,595, with our most popular campaign at $1,695.

Your costs will depend on how much marketing exposure and professional services you need to achieve your goals.

On average, between $5,000-$10,000.

You pay this regardless of whether your property sells.

Any commissions paid are all part of the fixed fee arrangement.

Fixed fee applies regardless of whether your property sells.

Paid only if your house is sold.

Conveyancing costs

Arranged by you.  Costs are in addition to your campaign.

You can purchase a Sale Listing Package through buymyplace, see here

 for more details.

You deal with all conveyancing matters with your legal representative.

Arranged by you.  Your agent may be able to give you a referral.

You deal with all conveyancing matters with your legal representative.

Arranged by you.  Your agent may be able to give you a referral.

You deal with all conveyancing matters with your legal representative.

Arranged by you.  Your agent may be able to give you a referral.

You deal with all conveyancing matters with your legal representative.

Listing on major real estate websites

Your property is listed on all major real estate sites, including realestate.com.au and Domain.

Your property is typically listed on all major real estate sites, including realestate.com.au and Domain.

You should check with your agent if using this method.

Your property is listed on all major real estate sites, including realestate.com.au and Domain.

You should check with your agent if using this method.

Your property is listed on all major real estate sites, including realestate.com.au and Domain.

You should check with your agent if using this method.

Signboards, brochures, photography and copywriting

Quality materials produced by the same professionals a real estate agent uses.

Quality materials produced by professionals.

Quality materials produced by professionals.

Quality materials produced by professionals.

Auctions

Experienced auctioneer can conduct your auction for an additional fee.

Experienced auctioneer can conduct your auction for an additional fee.

Experienced auctioneer can conduct your auction for an additional fee.

Experienced auctioneer can conduct your auction for an additional fee.

Negotiation with buyers

Completed by you, the person who knows their selling price and property the best!  Most of our customers report enjoying this process.

If you need help with this step, we can connect you with our in-house real estate experts who have years of negotiating experience. 

Completed by the agent on your behalf.

Completed by the agent on your behalf.

Completed by the agent on your behalf.

Open for inspections / open homes

Your host your own open homes, at times that suit you and for as long as suits you.

You meet your buyers and answer their questions directly.

Hosted by the agent on your behalf, typically twice per week for a 30-minute window.

These inspection times may or may not suit your schedule.  

Hosted by the agent on your behalf, typically twice per week for a 30-minute window.

These inspection times may or may not suit your schedule.  

Hosted by the agent on your behalf, typically twice per week for a 30-minute window.

These inspection times may or may not suit your schedule.  

Time limits / contract tenure 

None.  When you list your property for private sale with buymyplace, you list until sold.  That’s our guarantee. 

Typically, 3 months, but check with your agent if using this method.

Typically, 3 months, but check with your agent if using this method.

Typically, 3 months, but check with your agent if using this method.

Transparency

100% transparency.  You meet the buyers coming into your home and have direct conversations with them, so you know what’s being said.

You also answer buyer’s questions – who better to answer questions about your property than you?

As your agent is acting on your behalf, the agent provides this information to you.  Level of transparency depends on the agent.

As your agent is acting on your behalf, the agent provides this information to you.  Level of transparency depends on the agent.

As your agent is acting on your behalf, the agent provides this information to you.  Level of transparency depends on the agent.

Control

100% control over your process and your listing.

Change your property listing details – such as open for inspection times, sale price, upload new photos – anytime, by accessing your online buymyplace account.

Any updates that need to be made are done by the agent, during their business hours.

Any updates that need to be made are done by the agent, during their business hours.

Any updates that need to be made are done by the agent, during their business hours.

What’s the best way for me to sell my place? 

Now that you have some more information on the different ways to sell real estate in Australia, hopefully you’re in a better position to choose the method that’s right for you.

There’s no doubt that the private selling of real estate can significantly reduce the cost of selling a house.  The method you choose will depend on how comfortable you feel in paying agent fees when selling a house and how much you want to spend for the work they do.  Our customers report on average that they spend 14 hours selling their house.  That represents a huge saving in real estate sales  commission for 14 hours of effort.

Are you ready to save on real estate agent fees and sell your house for less?  See just how easy it is to create your own property listing – try it now and sign-up for free.