Why private sales often fail
In this day and age, the statement 'You can do whatever you put your mind to' is no longer just an inspirational quote, but an achievable goal.
07 July 2019 | Business
A story comes to mind of the DIY homeowner who, rather than call in a plumber, decides to install his new taps on his own. A few YouTube tutorials and blog posts later, the homeowner successfully manages to fasten the taps to the kitchen sink. But, as soon as he goes to open the tap, water gushes out from every poorly joined pipe, flooding the kitchen floor and damaging the wood of the cabinet beneath the sink.
“While attempting a DIY project at home may cost you a couple hundred dollars if you mess up, attempting to sell your home on your own might set you back hundreds of thousands of dollars in value, not to mention the legal implications if you do not draft an OTP correctly to protect your interests,” says Adrian Goslett of RE/MAX of Southern Africa.
While the temptation to sell your home to avoid paying an agent's commission is compelling, Goslett warns sellers that what they could end up saving in commission fees, they're likely to lose in market value.
“The longer a home stays on the market, the more likely that its asking price will have to drop to attract buyers. Because private sellers simply do not have the same marketing reach as estate agents, their homes are more likely to stay on the market for longer than if they had partnered with a real estate professional backed by a reputable brand. This means that they are also more likely to achieve a lower asking price than if they had listed with an agent from the beginning.”
So, while it is possible to sell your home on your own, it is not really the most efficient or cost-effective way to sell your home.
“Property24.co.na is an excellent example as a platform that is an industry supported model that displays listings from reputable real estate brands. This is because, as the consumer market currently stands, buyers often do not trust private sellers, which means that homes still sell faster when backed by a reputable brand.
“So, rather than going to the trouble yourself, save yourself the time, money and effort by signing a real estate agent from the get-go,” Goslett concludes.