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Some people think that they need to use a real estate agent
when buying property in the same way that you need to use a stockbroker to buy
and sell shares. This is not true. In Australia there is no legal requirement
for property to be sold through a real estate agent.
Other buyers think that the process of buying property will
be quicker and easier using a real estate agent. Wrong again. Many buyers find
that by cutting out the middleman the process is faster and far less stressful
than purchases made through an agent.
Who better to tell you about a property's features than an
owner that has more than likely lived in their home for many years? The owner
is likely to know what schools are in the area, the location of amenities such
as parks and where the closest shops are. Real estate agents on the other hand
are often woefully under-informed about the property that they are showing. A
typical agent will often have several properties on their books at anyone time
and will only remember the basic details of each property. Some agents don't
even know the basic details! At one open house that I attended the agent didn't
even know if there was secure parking on title. Can you imagine an owner
forgetting where they parked their car at night?
Some agents will claim that by using their services buyers
are protected from any misrepresentation as any disputes can be taken to a real
estate tribunal. Unfortunately this is not the case. Agents found to be making
false claims about a property will often claim that they are acting in good
faith on the instructions of the owner therefore they are not guilty of
misrepresentation. Members of these real estate tribunals are often chosen by
the real estate industry and unsurprisingly dismiss many complaints brought
before them. I wonder how many convictions you would get for armed robbery if
bank robbers were allowed to select the jury?
One of the main reasons that buyers chose to buy properties
for sale by owner (or private sale as it is known in Australia) is that they
know the owner can be more flexible on the price and both the buyer and the
seller can still end up better off. As the owner is saving on the real estate
agent's commission (sometimes this can be as much as 3%) they can sell the
property for a lower price and still end up with more money in their pocket
than they would have had they used an agent.
Buyers should not however expect the owner to discount their
property by the full value of the commission saved. Although selling your own
home is not nearly as difficult as real estate agents would have you believe
there are costs involved both in terms of time and money. It is only fair to
expect that the owner will want to keep some of this saved commission as a
reward for their endeavours.
Real estate agents may claim that buyers can find a home
more quickly by using their services as they have many properties on their
books for the buyer to choose from. While this may have been true ten or twenty
years ago like many other aspects of our lives the internet has changed this by
offering a cheap way to bring buyers and sellers together. There are now
dedicated private sale real estate websites such as
http://www.smartvendor.com.au that allow buyers to compare hundreds of
properties online, all for sale direct from the owner.
Visit for more information:-http://www.realarmsforsale.com
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