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.

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.

Confused about whether to use a real estate agent to sell your property or whether to perform a private real estate sale as a real estate for sale by owner? There are pros and cons from each method of real estate sale but what is important is whether as a real estate for sale by owner you have the time and motivation to perform a private real estate sale.

Here are the benefits of performing a private real estate sale as a real estate for sale by owner ( FSBO ):

Real Estate For Sale by Owner or FSBO receives enquiries directly - Interested property buyers will contact the real estate for sale by owner or FSBO directly cutting out the real estate agent meaning the process of the sale will be more efficient and information will be relayed faster.

Real Estate For Sale by Owner or FSBO knows their property better than anyone - A real estate for sale by owner or FSBO knows their property better than anyone else so instead of a real estate agent showing their property it makes perfect sense that the real estate for sale by owner or FSBO is the best person to market the property.

Real Estate For Sale by Owner or FSBO receives all offers - The real estate for sale by owner or FSBO knows exactly what offers have been submitted and who is interested in their property. The real estate for sale by owner or FSBO will not have the real estate agent talking up interested parties or parties who are about to make an offer. The real estate for sale by owner or FSBO can see this for themselves as they are a part of every piece of the sale.

Real Estate For Sale by Owner or FSBO only deals with serious buyers - Real estate agents have been known to show a property owner’s property to buyers they have for a different property. They do this so they can use the property they are showing as leverage for the property they want to sell to the buyer. Real estate for sale by owner or FSBO will know that if a interested property buyer inspects their property it is because the property buyer has a general interest in purchasing the property.

Real Estate For Sale by Owner or FSBO is in full control - The real estate for sale by owner or FSBO can decide what tasks involved with the sale and at what time things are done. The real estate for sale by owner or FSBO is not at the mercy of a real estate agent and does not have the added pressure which real estate agents usually apply.

Here are the negatives of performing a private real estate sale as a real estate for sale by owner ( FSBO ):

Real Estate For Sale by Owner or FSBO limited resources – A real estate for sale by owner or FSBO has limited resources compared to the resources a real estate agent has available. These include real estate market reports, extensive database of buyers, other real estate agents and franchise offices and marketing resources.

Real Estate For Sale by Owner or FSBO limited experience – A real estate for sale by owner or FSBO has only limited real estate sales experience where as a real estate agent can have up to 40 years experience. This real estate sales experience can be vital when it comes to negotiating with interested property buyers.

Real Estate For Sale by Owner or FSBO no access to online real estate advertising websites – A real estate for sale by owner or FSBO can’t list their property on certain real estate advertising websites including Realestate.com.au, Homehound.com.au and Myhome.com.au. These websites have frequent buyers who search them for real estate for sale and offer a large amount of internet exposure for a property owner.

Outlined below are the property auction results for this weekend according to Australian Property Monitors:

Total auctions: 637 (last week: 524)
Sold: 320 (last week: 262)
Withdrawn: 63 (last week: 40)
Clearance rate: 46% (last week: 46%)
Total Sales: $ 156,894,140 (last week: $ 135,231,970)
Median: $ 493,750 (last week: $ 505,000)

Privatepoint is a for sale by owner private real estate sale website allowing a property owner to sell privately and market their property to a large audience of potential property buyers. As a property owner you can enter your property details into the Privatepoint website and have your property listing appear on a number of popular private real estate sale websites.

Real estate private sellers often set a selling a price which is well above the market value of their property. It appears that some real estate private sellers think because they are not using a real estate agent they can demand a higher price for their property. More often than not, this is the reason they receive minimal enquiries for the property and evidently why their property does not sell.

I have previously written articles about setting the listing price of your property and also discussed what is know as Comparative Market Analysis which is the best method to determine the market value and listing price for a property. Further to these articles I believe private sellers should discount their property below the market value to highlight the commissions they are saving by not using a real estate agent. You might think I am crazy but I urge you to continue reading to understand my reasoning behind my model.

Lets use Domain.com.au as an example as this website allows private sellers to list their real estate. Probably around 99% of the real estate on Domain are properties which are listed through real estate agents and the remaining 1% are private sellers. As an example lets assume I have a property I would like to sell privately and it is in Wagga Wagga. It is a house and other similar houses which are listed with agents are for sale for between $490,000 and $510,000 so lets assume that a fair market value for this property and other similar properties is $500,000.

Now, all property owners who are using a real estate agent are likely to have to pay around 3% sales commission to the agent once they sell the property, so around $15,000. Let’s say they sell the property for their asking price of $500,000 so the price after commission is $485,000.

In my opinion property owners who have chosen to sell privately should list the price below the market value at $492,500 representing a $7,500 discount on the market value. If they then sell the property for the listing price of $492,500 then they are $7,500 better of than what they would be by selling through an agent.

In theory all properties advertised by private sellers on Domain should be priced less than similar properties listed through an agent. What should then happen is that properties listed privately on Domain will become more attractive to property buyers and almost all privately listed properties on Domain should be sold before properties listed through real estate agents.

Here are some very important points about this pricing model.

• More Profit for the Property Owner – Although the selling price is lower than what you would achieve with an agent the net profit from the sale is $492,500 rather than $485,000 which could be achieved through a real estate agent.
• Lower Purchaser Price for the Buyer – The purchaser is buying the house for $492,500 rather than $500,000 a saving to them of $7,500.
• Property Priced Below Market Value – The property will be priced below market value and will be more attractive to potential purchasers meaning it will sell quicker than other properties listed on Domain through real estate agents.
• Real Estate Agents will Reduce Commissions – If this pricing model was used correctly it would results in real estate agent commissions reducing because their properties would only sell after all privately listed properties sold.

This pricing model is mathematically and fundamentally sound and works in theory but very randomly works in practice. The reason you never see it in practice is because private sellers almost never list their property at a discount to the market value and most cases list their property at a premium to other similar real estate on the market. Some private sellers are too greedy and what the best price for their property. This is fine but to do this you need to compete against real estate agents, all of their resources including databases of buyers, networks and extensive marketing reach. Not to mention that trying to get the best price could mean you property sits on the market for an extended period of time.

The simple solution is to price your property using the method I have outlined above and it will sell a lot quickly than any other property and the net proceeds will be greater. A win win for property sellers and purchasers and a loss for real estate agents.

Outlined below are last weeks property auction results according to Australian Property Monitors:

Total auctions: 492 (lw:444)
Sold: 280 (lw:260)
Withdrawn: 28 (lw:20)
Clearance rate: 54% (lw:56%)
Total Sales: $159,686,000 (lw:$133,054,250)
Median: $545,000 (lw$485,500)

Don’t forget that Privatepoint is a free online real estate private selling website allowing private sellers to market their property to a large audience of potential property buyers. As a property owner you enter your property details into the Privatepoint website we then automatically send your property listing to a number of popular real estate advertising websites.

Outlined below are last weeks property auction results according to Australian Property Monitors:

Total auctions: 444
Sold: 260
Withdrawn: 20
Clearance rate: 56%
Total Sales: $ 133,054,250
Median: $ 485,500

Don’t forget that Privatepoint is a free online real estate private selling website allowing private sellers to market their property to a large audience of potential property buyers. As a property owner you enter your property details into the Privatepoint website we then automatically send your property listing to a number of popular real estate advertising websites.

Please let us know whether you have used any of these website and if you have whether you received many enquiries. If I forgot to include a website you are aware of please let me know.

For Sale by Owner and Private Selling websites in Australia include:

www.diysell.com.au
www.noagentproperty.com.au (free)
www.owner.com.au (free)
www.zeroagents.com.au
www.propertynow.com.au
www.ozhomes4you.com.au (free)
www.sellmyhouseonline.com.au
www.ozprivatesale.com.au (free)
www.buyitprivately.com.au (free)
www.ppl4sale.com
www.home-sale.com.au
www.myhousesale.com.au
www.propertysalesdirect.com.au (free)
www.hotproperties.com.au
www.propertyeasy.com.au

The following websites are not specifically for private sellers but allow private sellers to list properties with them:

www.ebay.com.au
www.graigslist.com (free)
www.gumtree.com.au (free)
www.OzCastles.com.au (free)
www.onthehouse.com.au
www.domain.com.au