As one says, “time is money” and “health is precious”. Therefore, the commission that you will save when selling a property without a real estate agent may not compensate for the work and complexity of the entire property transaction process.
Effectively, selling a house without a real estate agency brings more disadvantages than advantages. So before making a decision, you should take note of all the tasks that would be on your side: from legal issues to tax aspects, passing through market studies, marketing, communication and advertising.
Advantages of selling your property without real estate mediation
We find it hard to list the advantages of selling a house without real estate agents, apart from the obvious: not paying commission. And that's because this is a task that takes a lot of work and usually requires the help of professionals with knowledge of the local property market... and the real selling points!
However, selling a house without real estate agents is a plausible option if you want to be subjected to receiving phone calls at all hours of the day or night, receiving and replying to emails, some of which are of no commercial consequence, and always being available to show your property to anyone who knocks on your door, rain or shine, weekdays, Saturdays, Sundays and public holidays, ruining your family dynamic and eliminating any possibility of planning your personal life in the near future.
Willing to take a chance? Then take a look at some of the advantages of selling your house without a real estate agency.
1. You won't have to pay commission
In fact, the main advantage (if not the only one) of selling a house without real estate mediation is the savings: you don't have to pay the estate agency commission, i.e. pay a percentage of the sale price (which in Portugal is usually in the range of 5% to 6% of the property's sale price).
The commission can vary depending on several factors, such as the location of the property, the value of the property and the policies of the estate agency in question. Regardless of the value, without a real estate agency in the middle you can save money or keep a larger share of the profit from the sale of your home.
However, if you decide to sell your house on your own, you also have to take on the tasks that are usually left to estate agents, such as documentation, publicising the property, accurate valuations and negotiating with potential buyers.
2. Set the price according to your own valuation
You can also set the price of the house according to your own valuation and sales objective, without having to respect the indications of a real estate agency, be it a higher price or a more competitive price, since often the absence of commission allows you to lower the value, attract a wider audience and sell the house faster.
3. You have complete control over the sale
Yes, without intermediaries you can take complete control of the sales process, making all the decisions, from the price to the choice of the future owner. But this requires an understanding of the property sales process and a significant commitment of time and effort.
4. You can communicate directly with interested parties
Do you like communicating directly with interested parties, arranging viewings, welcoming people and answering their questions without having to rely on a property consultant? Then selling your house on your own could be the best solution.
5. You have more room for negotiation
Without the real estate agency commission, you have more flexibility to negotiate the final price with buyers, although experience in selling property is important for win-win negotiations with buyers.
Disadvantages of selling your property without a real estate agency
Now that you know the advantages of selling your property without a real estate agency, let’s get down to the nitty gritty: the drawbacks.
1 -
You have to have your house valued
It's true! A real estate agency makes an impartial and accurate assessment of the market value of your property, pricing it competitively. On your own, you'll have to roll up your sleeves to sell your house and find an extra dose of time and patience to do market research on properties similar to yours in the area.
You'll also have to visit identical houses to get a clear idea of the condition, finishes, location and other factors that affect value, and assess your home's particular characteristics, such as square meters, plot size, number of bedrooms and bathrooms, garage, finishes, age and state of repair.
And finally, analyse the market situation (such as interest rates and other economic factors) and trends towards appreciation or devaluation.
2 - You have to determine the selling price
As with any business, you obviously want to make money from the sale of your house, but how do you avoid selling below or above market value? With the help of a real estate agent, of course! This is the only way to get access to market studies that will allow you to analyse similar properties, check recent sales in the same area and thus determine the fair and most profitable price.
If you decide to sell your house without a real estate agent, this analysis and comparison is up to you and in that case, sorry to say, you run the risk of overestimating or underestimating the value of your house, which could negatively affect the interest of buyers.
3 -
You have to deal with bureaucracy
If you don't hire a real estate agency, all the legal and tax issues will be on your side and you'll have to waste time, money and risk a lot of headaches obtaining all the necessary documentation and drawing up contracts.
If you want to ensure that all the procedures are being followed, you should hire the services of a solicitor or lawyer. Don't forget that, more often than not, your buyer will have their own legal protection. What about your side? When it comes to arguing with the buyer, what will you do to protect yourself? Will you be on your own?
One piece of advice for selling your house without any hiccups: don't get involved in drawing up contracts. Protect yourself against a possible accusation of unlawful prosecution, as these professionals are responsible for drawing up promissory purchase and sale contracts and negotiating their respective clauses, deadlines and contingencies, as well as accompanying you all the way to the deed.
And this is without forgetting that if something goes wrong after a contract has been signed, and it becomes necessary to involve the courts to litigate between the parties, you will never be able to present in your defense a contract drawn up by you and not by a lawyer.
4 -
You have to create and publish adverts
Selling a house involves creating and publishing adverts on the internet, on specialised websites, social networks, newspapers and also in conventional media... and paying the costs!
However, if you hire a real estate agency, you'll benefit from its own advertising platform and other online and offline platforms (national and international) to advertise your property in a clear and appealing way.
And that's not all! You'll also be able to delegate the creation of the advert, with its description, photographs and virtual tour video. All done with the highest quality and professionalism, with a specific target audience in mind so that the property advert reaches the right client quickly!
Otherwise, when the advert is not directed at a specific target, as well as not reaching potential interested parties, you waste time and money attracting visits that will never convert into sales.
5 - You have to promote your property
A sign saying "for sale" isn't enough! If you decide to sell your house without a real estate agent, you'll have great difficulty promoting the property and making the advert accessible to as many people as possible.
In other words, on your own your advert will be at the bottom of the list, but with the help of a real estate agency with multiple agreements with other entities, your property advert will get more visibility and prominence because agencies have marketing resources to attract buyers that private individuals can't even dream of!
6 - You have to make the property stand out
Of course, you don't need a real estate agent to tell you that you have to clean and organize your home before taking the photos for the property ad... or to remind you of the importance of presentation during scheduled visits with potential buyers. But who will give you all the tips to make your home more attractive to visitors? Who's going to give you solutions to enhance your property? How to get around a lack of space?
Before putting your house up for sale, you should follow a series of recommendations from a property consultant that can help increase the value of the house: cleaning, remodelling, repairs and new decorations that can make a difference.
More information on remodelling used houses? Click here
7-
You need to filter contacts
Without a real estate agent, you'll need to filter the contacts you receive in response to your adverts at your own risk. Since you don't have any experience in property sales, you could make a mistake. And since you don't have the necessary knowledge to establish and maintain a relationship of trust with potential buyers, you could also make a mistake when it comes to negotiating.
On the other hand, estate agents have vast experience and a wide network of contacts that can be useful in finding suitable buyers and speeding up the transaction process.
8 - You have to take responsibility for scheduling visits
Do you have all the time in the world to schedule visits with potential buyers? Great, but can you respond correctly to objections? Emphasize your strengths? Minimize your home's weaknesses during viewings and open days?
Don't forget that modern consumers only make purchasing decisions after obtaining as much information as possible, quickly and effectively.
9 - You need to be able to qualify potential buyers
Are you prepared to open the doors of your home to the curious? Then it's best to delegate it to a real estate agency that has enough experience to qualify potential buyers and avoid wasting time (and security) on people who don't have the financial profile to buy a house.
10 - You need to assess financial viability
If you can't assess the financial capacity of a potential buyer, it's best to delegate this task to a real estate agent who is better at analysing and who is not embarrassed to ask for proof to justify a person's financial capacity to buy a house.
Moreover, a real estate agent experienced in this type of negotiation can often even tell if a client is willing to pay more than they are asking for their home!
11 - You have to negotiate
Negotiating directly with buyers can be complex and emotionally challenging. Do you have the time and desire to engage in direct dialogue with prospects? Are you persuasive enough to close the sale? Maybe not...
Your idea is to sell a house quickly and well, which is why a real estate agency acting as an intermediary can be key to completing the process efficiently, with satisfactory results for both parties.
12 - You have additional expenses
Okay, you'll save on the real estate agent's commission, but if you sell your house on your own, you'll have to pay other costs, such as marketing and advertising, hiring a lawyer to review the legal documents and valuing the property, for example.
So, selling your property without a real estate agency… is this a good idea?
Not really! Selling a property is always a complicated process, so before moving forward, you should consider whether the financial savings you get by selling a house without a real estate agent are worth it or if it is preferable to save your time, your well-being, your work and your resources by hiring a real estate agency.
Before deciding to sell a house without real estate mediation, carefully weigh up the pros and cons, considering the specific characteristics of the local property market and your ability to act as a consultant in the sales process.