Agent-free sales result in lower prices
A survey has found that most homebuyers expect to secure lower prices from private sales than those overseen by real estate agents.
Research by the CPREA (Certified Practising Real Estate Agents) found that 73 per cent of the 116 surveyed homebuyers believed they could negotiate a lower price with a vendor through a private sale.
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“It is not uncommon for buyers to negotiate a lot harder when they know a seller is not paying an agent,” Geoff Baldwin, chairman of CPREA said.
Mr Baldwin said it was an “unfortunate truth” that buyers usually succeeded in securing a lower price through private arrangements.
“When confronted with a lower offer from a buyer, private sellers tend to think, 'Well, I’m not paying an agent’ and hence are more likely to accept a lower price,” he said.
“What this means is that the private seller is no better off financially and it is buyers who are gaining any price advantage.”
Mr Baldwin said many vendors lose out by going it alone because they are poor negotiators – something which can play into the hands of savvy investors.
“Most property owners find it difficult to deal directly with buyers especially when they make negative remarks about a property, however experienced agents know that buyer objections are often signals that a buyer is actually interested.”
Mr Baldwin said sellers should select an agent with a record of achieving great prices.
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