What selling privately means
One guide describes selling privately as selling a home without a real estate agent. The same guide says the owner acts as their own agent and takes on the work an agent would normally do. It also says that while it is easier than before to list a home online, a private sale is still hard work.
Another guide calls the method a private sale and breaks it into seven steps. That guide says that with a bit of planning and know-how the process is far from complex or difficult.
The steps a private seller takes
One guide lists four main areas that agents cover: researching and preparing a home for the market, marketing it to buyers, negotiating with a buyer, and handling administration, contracts and settlement. It says each area contains many tasks.
The other guide sets out seven steps: research, preparation, legal steps, attracting buyers, open inspections, offers and negotiations, and time to celebrate. It recommends having sale documents ready before listing and says many of its own vendors receive offers at their first open inspection.
For preparation, the other guide suggests painting in neutral colours, decluttering, attending to the garden and exterior, and considering updates to the kitchen, bathroom, lighting and outdoor areas. It also advises checking council zoning laws or building infringements before work and obtaining the appropriate certificates.
What sellers weigh: savings and risks
One guide says a private seller might save on commission, since acting as your own agent cuts out fees and commissions, but would spend on advertisements, take on all legal risk and put in many hours. The same guide says fewer than 1% of Australians sell privately. It gives the average agent commission as in the range of 2.4%.
The guide lists drawbacks: long hours answering calls and organising inspections, handling pushy or emotional buyers, paying for photos, listings, signs, styling and insurance, and the risk of selling for less. It says agents often get 3% to 6% more than owners acting alone, and that contract errors can expose a private seller to costs.
The other guide says preparation, professional photography and an upgraded listing are used to attract buyers.
Legal help and state rules
One guide says a solicitor or conveyancer is needed to prepare and file the contract of sale, a vendor statement and disclosures, and that each state has its own rules. It notes that in NSW, solicitors did this work until a 1992 change in legislation allowed licensed conveyancers to be used.
The other guide says that in NSW or the ACT, a contract of sale is a legal requirement before listing a property. It also says it can help with the contract of sale through a partnership and that settlement is separate.