Selling a home or other property privately is often an important and ambitious goal. A few advantages of selling property privately include no fees paid to agents, face-to-face negotiations between the buyer and seller, total control of the sales process, and a better schedule for selling the property. Not all these advantages may be present when selling property privately. Different regions or countries may have laws or other regulations an individual must follow during the sales process. Individuals should educate themselves on the various laws regarding property sales prior to engaging in this transaction.
The biggest advantage to selling property privately is the ability to reduce closing costs at the end of the sales process. An agent can charge a fairly high fee, typically a percentage of the final sales price for the property. In many cases, the final agent fee can be a minimum of four to six percent for personal property and even higher for commercial property. This fee reduces the amount an individual or business receives from the seller. Agents may also not do a lot of work in order to earn this fee, making it even harder to pay.
Eliminating the middleman is another potential benefit of selling property privately. Using an agent can make negotiations difficult, especially if the agent does not have the ability to offer concessions or make deals. This extends the sales process and may frustrate both the seller and buyer. Selling property privately can also mean face-to-face negotiations, which allows for improved negotiation settings. These meetings may also shorten the sales process.
Most property sales are lengthy processes, with 30 or more days common, depending on the buyer’s qualifications and the property involved in the sale. Total control is possible when selling property privately. Sellers can work with all legal companies or departments necessary to complete the sales process. Any problems that occur may have immediate resolution as the seller is the first to know about the problem. Sending paperwork to these companies and agencies also takes less time when selling property privately.
Property sales often include numerous viewings and showcases for potential buyers. Selling property privately allows the seller to create his or her own schedule for showing the property. The type and nature of the sales process is also left to the seller’s whim. Answering questions or inquiries also allows the seller to work better with buyers and explain the property’s benefits. Buyers may also be more receptive if they receive truthful answers from the seller rather than a sales pitch from an agent.