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Geoff Baldwin Wed 15 October 2014

Private Sellers often lose more than they save

A survey of home buyers has shown that most would expect to buy at a lower price from a private seller compared to a property listed with an agent according to CPREA (Certified Practising Real Estate Agents) Chairman, Geoff Baldwin.

“Of the 116 people surveyed, 73 percent said that, because the seller wasn’t paying an agent they would expect a discount on the sale price”, he said.

“It is not uncommon for buyers to negotiate a lot harder when they know a seller is not paying an agent and the unfortunate truth is that they usually succeed in buying lower.

“When confronted with a lower offer from a buyer, private sellers tend to think, well I’m not paying an agent and hence are more likely to accept a lower price.

“What this means is that the private seller is no better off financially and it is buyers who are gaining any price advantage.

“In fact listing the property with a proven, experienced negotiator can not only justify the agent fees but in many cases will result in a sale price thousands, if not tens of thousands higher than if sold privately.

“Most property owners find it difficult to deal directly with buyers especially when they make negative remarks about a property however experienced agents know that buyer objections are often signals that a buyer is actually interested.

“Also, private sellers often run into difficulties when trying to assess the financial capacity of buyers, contending with “subject to sale” offers, writing solid contracts, extracting meaningful deposits and many other aspects of ensuring a smooth and successful sale process.

“Rather than selling privately, property owners would often be better to ensure they select an agent who has a record of achieving great prices for their clients and one sure sign of their negotiation ability is to see how well they handle the listing interview” Mr Baldwin said.

ENDS

Media contact – Geoff Baldwin 

 

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