Real Estate Agents Can Benefit a For Sale by Owner
Sell your property privately through Privatepoint the private real estate sale, for sale by owner ( FSBO ), DIY sales private house sales website.
A real estate for sale by owner is often performing a private real estate sale because they believe real estate agents do not offer any value to the sales process for real estate. A real estate for sale by owner often overlooks is that real estate agents always have a dynamic and current database of potential real estate and property buyers.
A real estate agent usually specialises in a particular geographic area and has a certain amount of real estate and house for sale in the suburbs around that area. How real estate agents build their database of property buyers is through the enquiries they receive for all the property they have listed and also through attendees at open house inspections they hold.
If a real estate agent has 20 property listed in an area, when they receive an enquiry for one property they will have another 5 property similar to that property which match the preference of the person making the enquiry. What I am getting at here, is that by using a real estate agent a property owner is getting access to the entire database of potential buyers which a real estate agent has and could prove to be quite fruitful in selling the property belonging to the property owner.
I am not saying a property owner should not perform a for sale by owner or private real estate sale but each property owner should at least contact their local real estate agent and ask them if they have any potential real estate buyers. If the agent doesn’t then the property owner should try and organise an agreement where if the real estate introduces the property owner to a buyer than the property owner will pay the real estate agent a fixed referral fee.
By the property owner entering into such an agreement with the real estate agent allows the property owner to sell privately through a private real estate sale or for sale by owner but still allows the property owner access to the real estate agents database.
Just something to consider as a property owner in the future before you choose to write off a real estate agent.
Comments
This is a fantastic idea but would it really work in reality, agents aren’t likely to negotiate on their commission.
Drew Burkinshaw
20.11.08
10:23 pm
I think you would be surprised! I read an article yesterday that some agencies located in the country are only doing 1 sale per month. If you have a receptionist, property manager and maybe 2 sales staff then one sale a month won’t go too far. If you had any property buyers who were somewhat interested in another property then you would be likely to accept a reduced commission for passing on their details.
Amanda B
21.11.08
6:26 am
This is spot on Amanda.
If the agent has showed an interested party all the listings they have and the party is not interested then of course any rational agent will sell the details to a property owner.
I would pay a $1,000 for the details of someone who purchased my house.
Micky
21.11.08
11:45 am
Agents will never agree to it.
1. Because it has never be done in the industry before.
2. They would be helping private sellers.
3. Without the agent passing on the details, the interested parties would never know about the property. The reason is because the property will not be displayed on major advertising portals so unless the property buyer is looking at websites like Privatepoint they will never know about it.
Agents control the industry and they always will!
T-Bone
21.11.08
12:34 pm
T-Bone I don’t really understand what you are saying in your last point about buyers not seeing the property…..???
Micky
21.11.08
7:56 pm
Basically, the point was that the majority of property buyers search for property using the major real estate portals and not private selling websites.
Agents are likely to know what properties are for sale in their suburb regardless of where they are listed on the internet as they will see the for sale sign or someone from within their office will.
An agent might know a private listing is on the market but a property buyer will not. So unless the agent tells the property buyer than the buyer will never no about the property.
This reduces the bargaining position of the property seller as they have no other way of informing buyers their property is on the market.
In the end they will give in to the agents demands!
T-Bone
21.11.08
10:02 pm
Thanks T-Bone
Micky
22.11.08
12:05 pm
This is all very interesting so real estate agents do control the industry. Is there ever going to be a proper alternative to using an agent?
Adam Hearne
22.11.08
8:12 pm
As long as http://www.realestate.com.au remains the number one real estate portal in Australia and agents continue to control it and not let private sellers list properties then agents will remain in control of the industry.
T-Bone
22.11.08
10:45 pm