It is becoming apparent that selling property privately as a For Sale by Owner (FSBO) is becoming more and more popular amongst property owners across Australia.

Many property owners now realise that a no agents sale is easy as a reasonably presented property that is marketed to as many potential property buyers as possible will sell it self saving the real estate by owner on commission. The greater the audience a for sale by owner (FSBO) conducting a private real estate sale property is exposed to the greater the possibility it will sell.

A for sale by owner (FSBO) conducting a no agents sale can increase their marketing audience by making sure their property is advertised in papers, through flyers, letter box drops and sign boards. Don’t forget the internet which is one of the most cost effective and efficient means to expose a private property sale via online advertisements, email marketing and electronic brochures. Any real estate sale by owner is capable of performing these marketing functions which a real estate agent would normally perform. By doing this these for sale by owners (fsbo) will save on the commission they would normally be charged by a real estate agent.

Selling property privately with no agents and no commission is becoming increasingly popular amongst real estate owners across Australia.

A for sale by owner selling their property privately with no agents should be able to provide an answer to this question within 15 seconds of reading it, if not then the real estate by owner should not be selling their property privately with no agents.

On too many occasions real estate by owners selling privately have not had a specific reason to sell their property resulting in the private house sales process being a complete disaster. This is increasing apparent during times when property prices are on the rise and property owners conducting a no agents sale as a for sale by owner (FSBO) decide to “test the waters” by placing their property on the market and setting an unrealistic listing price.

Below is a list outlining the reasons why a for sale by owner (FSBO) property will not sell if the real estate by owner does not have a clear reason to sell the property;

Unrealistic listing price – For sale by owners (FSBO) will only accept a price which is well above the market value of the property and will not be prepared to move from this unrealistic listing price.

The for sale by owner (FSBO) is unwilling to commit marketing resources – Inadequate money and time spent on the marketing strategy for a private property sale will limit the audience who are informed that the property is on the market.

Lack of property preparation – As the real estate sale by owner is not committed to the sale they will not spend time and money to prepare the property for sale. If a property has not been prepared correctly then this could affect the first impression a potential buyer has when they inspect the property.

Stale listing – This affects many for sale by owners (FSBO) who are conducting a private real estate sale as a listing which has been on the market for an extended period of time will convey a negative image to potential buyers. Buyers will be concerned that there is something wrong with the property or that it is overpriced.

Future Price Reductions – When the for sale by owner (FSBO) does decide they would like to sell the property for a more reasonable price they will need to drop the price more than what the initial market value of the property was. The only way to sell a stale listing is to offer a “bargain” and reduce the listing price below the market value of the property.

If a property owner is conducting a no agents sale or no commission sales and the property is on the market when they are not 100% committed to the sale, can have a dramatic affect on the final price the for sale by owner 9FSBO) sells their property for.

Every property which is advertised For Sale including all private property sale or for sale by owner are required to be accompanied with a draft Contract of Sale outlining the conditions of sale. A final Contract of Sale will be prepared as soon as the buyer and for sale by owner have agreed on the final conditions of the private property sale.

A contract of sale usually includes the following information;

• The for sale by owner name(s)
• Blank space for buyer’s name
• Solicitor’s name (if any)
• Agent’s name (if any)
• The type of title
• Details of items included with the sale
• Details of items not included with the sale
• The sales price
• Exchange of Contract date
• Settlement date
• Notifications from authorities
• Details of tenants
• Special Conditions

We strongly recommend that all property owners who are coducting a private sale as a for sale by owner seek the services of a Solicitor or Conveyancer to prepare the Contract of Sale. Although there are many Do-it-Yourself (DIY) Conveyancing kits which can be used to prepare the Contract of Sale, the legal system is quite complex and the experience of a professional in this field can never be overlooked. By conducting a private house sales a real estate by owner selling their property through a no agents sale with no commission will already be saving large amounts of money.

The added benefit of a Solicitor or Conveyancer preparing the Contract of Sale is that they can deal directly with the buyer’s Solicitor which should result in a quicker exchange of contracts.

By engaging the services of a professional to create the Contract of Sale a for sale by owner conducting a private real estate sale can be assured that all the terms and conditions agreed to with the buyer in regard to the sale of the property are correctly documented and executed.

A for sale by owner selling their property privately with no agents must always use a solicitor to finalise the Contract of Sale for the property.

Property inspections are an important way for any private property owner who is selling privately to make contact with prospective buyers. They also allow a for sale by owner (FSBO) and real estate by owner to gauge the views of their target audience in regard to their thoughts about the private property sale owner’s property, its listing price and the marketing strategy they are undergoing.

An essential item in conducting a property inspection as a property owner selling privately is an Open Inspection sign which is displayed outside a property while a property inspection is performed. There are two benefits from having an Open Inspection sign erected at the front of a property, these include;

1. Directions – It provides directions and helps prospective buyers who had planned to view the property find the property when they arrive for an open inspection. It is important that viewers at open inspections find your property easily as often they have a tight schedule of viewings they need to get through in a morning, afternoon or evening.

2. Attraction – People who are in the neighbourhood who weren’t planning to view the property will be attracted by the Open Inspection sign and if they are interested in real estate then they may view the property.

If you are selling property privately with no agents and no commission then it is a necessity to include an open inspection sign in your marketing campaign when you are holding an open inspection.

A For Sale sign is your virtual agent marketing your property 24 hours a day. As a for sale by owner selling your property privately it is an absolute must to include a for sale sign in your no agents marketing strategy.

When conducting a private house sales a For Sale sign not only notifies pass-biers that your property is on the market as a private house sales but it helps potential buyers locate your property during property inspections which are a large part of a no agents private real estate sale.

By using a For Sale sign when conducting a private sale with no agents has the potential to reach an audience that no other means of advertising and marketing can reach. The audience we are referring to are those individuals who live in proximity to your property and who are not currently looking to purchase a property.

These individuals who are not currently looking to purchase a property wouldn’t normally frequent online real estate websites nor would they read the real estate section of a paper or magazine. Also, these individuals would more likely than not ignore all real estate flyers which reach their letter box.

These people are basically immune from all real estate marketing you throw at them! However, through using a for sale sign in your no agents sale will reach them no matter how determined they are to ignore real estate marketing.

It can be tricky negotiating the private sale of a property as a for sale by owner. This process usually begins with verbal offers but we highly recommend that when conducting a real estate private sale as a for sale by owner you encourage potential buyers to make all offers in writing. When a price and conditions are finally agreed on by both you and the purchaser, the offer must be made in writing and any amendments need to be made to the Contract of Sale.

Offers to purchase a property whether through a private real estate sale as a for sale by owner or through a real estate agent can be conditional or unconditional. A conditional offer is one that is subject to conditions that need to be met in order for the sale of the property to be finalised. If these conditions are not met within the pre-arranged time, then the offer is void and the private real estate sale will fall down. Both buyers and the for sale by owner may have specific conditions they would like to impose on the sale.

Buyer conditions may include things like:
• A building/inspection report which needs to be complete and match the buyer’s expectations.
• The buyer may want to move in immediately.
• The sale may be conditional on the buyer selling their property.
• The for sale by owner may be required to fix a default in the property.

For sale by owner conditions may include things like:
• A specific amount of money as a deposit from the buyer.
• An early settlement date.
• The option to lease the property for a period of time.
• The desire to maintain ownership of certain things attached to the property.

In most cases, an interested buyer will offer a price and wait for a response from the for sale by owner. The first offer is usually lower than the maximum price which the potential buyer is willing to pay. The for sale by owner selling their property privately can respond either by accepting the first offer or rejecting the offer and making a counter offer. If the first offer is accepted, then there is no need for further negotiation. If the offer is rejected, the for sale by owner will go back to the potential buyer with a counter offer or will see if they are prepared to make another offer and/or alter or withdraw conditions. Through a process of negotiation, the for sale by owner will eventually reach a mutually acceptable agreement to sell their property privately with a buyer.

Any for sale by owner conducting a private real estate sale should consider the following things in relation to offers and property negotiation:
• Negotiating Offers – The for sale by owner should ensure to do this as often as possible in writing. This documentation will be valuable if a dispute arises.
• Terms of Sales – The for sale by owner should not be afraid to trade terms of the Agreement for a greater sale price.
• Accepting Offers – The for sale by owner should accept an offer sooner rather than later. This will reduce the chance of a buyer changing their mind about the offer.
• Amendments to the Contract of Sale – Any amendments require the signature of both parties to be legally enforceable.

Often potential buyers will make low offers as they feel they can intimidate a for sale by owner conducting a private real estate sale. If you are a for sale by owner selling your property privately then all you need to do is decline the offer and stand firm on the money you are asking for. Remember, buyers do not know how many other potential buyers are interested in the property resulting in serious buyers having to make serious offers.

Many for sale by owners (FSBO) who conduct a private real estate sale with no agent always struggle to set the listing price of their property. Setting the listing price of a property if you are conducting a private real estate sale with no agent can be hard but if the for sale by owner does the following then it will be easy.

For sale by owners (FSBO) who are conducting a private real estate sale with no agent need to discern the market value of the property. Once the for sale by owner (FSBO) has obtained the market value of the property the listing price can be established by taking into consideration the personal requirements such as time frame and financial return needed by the for sale by owner. The for sale by owner (FSBO) conducting a private real estate sale with no agent then needs to compare their property with what similar properties which are listed for sale.

It is perceived throughout the real estate industry that only real estate agents can accurately estimate the market value of a property. For sale by owners (FSBO) are led to believe that sophisticated mathematical calculations and specialised inside knowledge is necessary to determine the market value of a property and that a for sale by owner conducting a private real estate sale with no agent can not do this. However, all real estate agents do to determine the market value of a property is a simple Comparable Market Analysis (CMA).

A CMA is the comparison of similar properties which have been sold or are listed on the market in a particular suburb. Real estate agents usually get this data (known as Property Reports) from online real estate data websites. A for sale by owner (FSBO) conducting a private real estate sale can perform a CMA, it is easy and can be complete in approximately 20 minutes by the for sale by owner performing some simple research over the internet about similar properties to the one they are conducting a private real estate sale with no agent.

To sell property privately through a DIY sell is something which is still achievable given the current market conditions across the real estate industry. Many people believing selling property privately is no longer achievable but if you are a determined property owner and have access to resources like Privatepoint then a DIY sell can still work and with a little bit of luck you will sell your property privately.

You have decided to sell your property privately with no agent so you do not need to pay a commission. A for sale by owner often has trouble with a no agent sale especially when they are conducting a property appraisal for their property.

A property appraisal is an important step when selling a property with no agent as a private seller. It outlines the positive and negative features of the private sellers property and provides them with the necessary information to prepare their property for a private sale, set the listing price and successfully perform open inspections, negotiating with interested buyers.

As a private seller performing a no agent property sale the following things need to be performed to complete a property appraisal:

• Internal Features – Internal positive and negative features about the property including number of bathrooms, bedrooms, type and style of fittings, floorings, age of property, windows, views.
• External Features – Positive and negative external features about the property including gardens, balcony, lawn, garages, parking, pool, tennis court, spa.
• Location Features – Positive and negative property location features including local amenities, schools, public transport, freeways, views, location to noise, shopping centre, beach.
• Zoning – Positive and negative council regulations, renovation approvals, new constructions.
• Outgoings – Such as strata fees, land tax, water, gas and electricity rates and insurances.

Once the private seller has completed the list they need to rank the positive features from best to least favorable. The private seller needs to do this for the negative features listed, ranking the worst features first and moving down to the least negative feature.

Performing a property appraisal as a private seller performing a no agent sale can be an easy process as long as they break the process down.

The current times aren’t that great for a for sale by owner or private real estate sale. However if you are a real estate buyer than this is the Christmas you have been waiting for. There are good buys in most places but if you really want value for money then buy real estate in a smart suburb. The smartest suburbs are those closest to transport, shops and recreational facilities.

This Summer, you won’t have to look too far to find a property for sale at a cheaper price than you would have this time last year or even a few months ago. So, provided you’re not planning to offload it this year or next, then you won’t lose.

However, some purchases will always be smarter than others. Perhaps the price is cheaper, it may achieve a higher rent or the long-term capital growth potential is far greater. If you are thinking about purchasing property have a look around for a private real estate sale or a for sale by owner as they will usually provide a good deal.