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Property investors make huge investments, so that they can make handsome amounts of profit. On the other hand, a common Australian citizen may sell a house with the same intention but for a little profit. In the later case, the problem arises when ‘the little profit’ is shared by a real estate agent.
To combat against ‘this profit sharing’, home sellers have turned to take the selling matters in their own hands. Hence, the concept of FSBO (For Sale By Owner) in real estate came into being. This post will help you explore FSBO in detail.
What is FSBO?
It is a process to sell real estate properties without hiring a real estate agent. However, the seller may have to hire other related services such as marketing, property listing, and a lawyer to manage legal matters. FSBO aims to save the real estate agent’s commissions and fees.
Why is FSBO a Growing Trend in Australia?
To understand the growing trend of FSBO in Australia, take a look at average commissions and fees.
Average Commissions and Fees Charged by the Real Estate Agents in Australia
When you hire a real estate agent to sell your property, the first thought that crosses your mind is total fee and commission that you would have to pay.
It generally involves expense incurred for advertising and marketing the property in question.
The commission is based on a percentage of the property’s sale price. The percentage may vary based on location, i.e., estate, capital city, etc. The average is between 1.6% and 4%.
The fee and commission parentage are carved in stone, so every home seller has to pay these dues. This alone is a major reason of growing trend of FSBO in Australian real estate market.
RP Data Statists
In Australia, the trend of FSBO is gaining ground with every passing day, rooting itself deeper and stronger. RP data has brought some really interesting FSBO stats to share pertaining to a few capital cities in Australia.
In FSBO house sales, Sydney tops on the list with 27 days on average.
The houses sold through FSBO spend around 34 days on the market, which positions Canberra on the second place in terms of least time spent on the market.
Melbourne shares the position with Canberra.
FSBO is certainly a smart way to save the commissions and fees when you intend to sell your house, but it might not be a very simple task to perform. However, it is not impossible. Hiring a real estate agent can take a lot of burden off your shoulder, but there is a huge price you have to pay for. To make an FSBO sale without any hassle, there are many online platform and services to help the FSBO sellers, for instance, buymyplace.com.au offers a helpful FSBO service to the sellers.
The Future of FSBO
To conclude, we can say that you shouldn’t get discouraged by the thought of going through a complex process of marketing a property and dealing with the potential buyers. If you do your homework well, know the relevant services, and practice due patience, you will love the process of selling your property through FSBO. In a few years, you can expect that FSBO will be a norm of the day.