Considering selling your home privately? What are the pros and cons?

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While many properties are sold at auction, a large number are also sold by private sale. Choosing to sell your home privately has its advantages and disadvantages. We’ll take a look at some of the pros and cons below.

I wrote this article, which was published on Realestate.com.au in 2019, to explain the pros and cons of private sales. The points I raised in that article still hold true today. I’ve summarised them here along with some additional remarks about going private.

The first point that needs to be made is that every seller’s situation is different. The potential benefits and costs of selling privately will depend on your particular circumstances. Doing some research on sales in your area, along with obtaining expert advice, can help you decide whether or not a private sale is a good choice for you.

There are five key benefits associated with private sales of real estate:

1. Speed – a realistically priced property can often sell faster on the private market than through an auction campaign
2. Flexibility – selling a home privately allows you more time to consider offers from prospective buyers
3. Privacy – advertising privately suits vendors who prefer to maintain a low profile during the selling process
4. Cost – private sales can be significantly cheaper than auctions, although this of course depends on how quickly a sale can be finalised
5. Genuine buyers – private sales generally attract buyers who know their financial position, which means you’re less likely to be interacting with buyers who aren’t yet ready to purchase

Potential benefits always need to be weighed against costs that may arise. When selling your home privately, consider the possibility that it could lead to costs including:

1. Speed – while private sales can prove a more efficient method than auctions in some instances, they may also require more patience. For sellers who aren’t in a hurry, taking the time to find the ‘right buyer’ may well suit their circumstances.
2. Price – unlike with auctions, private sales involve setting an asking price from the outset and getting this wrong can be costly. There’s the risk of selling below the potential value of the property – or setting the price too high, which can lead to limited interest from the market
3. Lack of urgency – while auctions require homebuyers to stake their interest in a prompt and lively manner, private sales are more susceptible to procrastination from buyers who continue to seek out alternative properties

If you’ve decided that selling privately is a sensible choice for you, you’ll be able to move on with greater focus on what needs to be done. There are quite a number of things to cover when conducting a private sale. The Selling Property by Private Sale page on the Consumer Affairs Victoria website is a great reference. Expert advice and assistance will also help you during the various stages of the selling process.

Looking to sell your home in Melbourne and want to ensure you get the best possible outcome? Talk to me about how I can help you sell your home.

Ask about our Vendor Advocacy Service, where we provide you with trusted impartial advice and WE MAKE IT EASY to protect your interests through out the entire selling process – at NO ADDITIONAL CHARGE to you!

To book a free 30-minute consultation, simply click here and choose a time convenient to you. Alternatively, give me a call on 03 9686 2288 to discuss how I can help.

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