Thousands of Australian homeowners are ditching real estate agents

When Nicholas Gray decided to sell his regional Queensland home, he was quoted approximately $11,000 in commission fees by a real estate agent, who also valued the property much lower than he had anticipated.

Instead, Mr. Gray chose to sell the property himself.

He is part of a growing number of Australians who are opting to bypass real estate agents, choosing to list their properties privately in order to maximize profits.

“Having full control and not dealing with a middleman, being able to communicate directly with potential buyers, was a great experience,” Mr. Gray explained.

Nicholas Gray successfully sold his North Queensland home privately. (Supplied: Nicholas Gray)

He listed the property on a third-party website, which allowed his advertisement to appear on popular real estate platforms for a flat fee.

Within 12 hours, he had arranged an inspection, and three weeks later, his North Queensland property was under contract.

It ultimately sold for $40,000 more than the agent’s estimate, and Mr. Gray saved the $11,000 commission fee.

“With the current market demand, you can list a property a bit higher and still attract interest because houses are in such high demand,” he said.

Growing Trend of Private Sales

Michael Fotheringham, Managing Director of the Australian Housing and Urban Research Institute (AHURI), noted that selling privately is becoming more popular.

Dr. Fotheringham attributed this shift to the rise of third-party platforms that charge flat rates to list homes on real estate portals like realestate.com and Domain.

“These online real estate portals have changed the landscape, making it easier for people to sell their homes privately,” he said.

Colin Sacks, who runs ForSaleByOwner.com.au, reported a 30% increase in inquiries over the past 12 months.

“Many people are finding it hard to service their mortgages, and some don’t have enough equity to afford high agent commissions, so they’re exploring private sale options,” Mr. Sacks said.

Another website, SaleByHomeOwner.com.au, saw a 25% rise in listings this year compared to the same period last year, according to a spokesperson.

Wendy Baxter, a homeowner in Rockhampton, Queensland, plans to sell her property privately after renovating it.

With an agent’s appraisal valuing the property at $500,000, the commission would be around $12,000 at 2.5%.

“I think private sales are becoming more common, unless you’re a big investor or need someone to look for properties,” Ms. Baxter said.

She added that strong market demand has lessened the need for real estate agents.

“Two houses near us sold within a week of listing,” she said. “[Agents] are pricing themselves out of the market.”

Proceed with Caution, Says Real Estate Institute

Antonia Mercorella, CEO of the Real Estate Institute of Queensland (REIQ), emphasized the importance of agents in the sale process.

“Despite the growing trend, it’s still uncommon for property owners to sell their own homes, and for good reason,” Ms. Mercorella said.

“Selling a property involves understanding legal requirements and contracts. Even in a seller’s market, it’s not an easy task.”

The Legal Process

In Queensland and the ACT, the legal process of selling a property requires a solicitor. In other states, a licensed conveyancer can be used. These professionals handle the legal aspects, including reviewing documents and conducting title searches.

Mr. Gray acknowledged that selling his home without an agent had its challenges, including arranging professional photos and managing the time-consuming aspects of the sale.

“The most difficult part was preparing the house and communicating with buyers, but saving money and having control over the process made it worthwhile,” he said.

Mr Gray enlisted the help of friends to take photos. (Supplied: Nicholas Gray)

Dr. Fotheringham also pointed out that private sales highlight the hard work agents do behind the scenes.

“Many vendors think the agent just shows up and the property sells itself, but agents put in a lot of effort presenting and marketing the property,” he said.

“There’s a significant amount of work involved in making the sale.