Probably, at least $14,000.
This is a difficult question to answer as there many complexities to consider which will affect the answer.
The best place to start is to look at how much an Agent will charge to sell your property.
Firstly, they will want upfront marketing and advertising costs. The amount will depend on the type of property, the location and the method of sale. It is typically upwards of $2000 and a great deal more if you choose to take the property to auction. They will certainly suggest, online advertising, signage, brochures and possibly print advertising. The more advertising dollars they charge, the more marketing they do. This is not just marketing of the property, it is marketing of their profile. There is a difference between marketing and advertising. When engaging the Agent, check if advertising dollars are refunded, if not sold. I would suggest, not. If the property fails to sell, you are paying for advertising, with no result, This is money down the drain.
Next is the commission. This is payable on completion of a successful sale, thankfully. No sale means no commission. Commission is calculated on a % basis. The higher the selling price, the higher the Agent gets paid. Do you think it takes more effort from the Agent, to sell a $500,000 property than it does to sell a million dollar one? They may be able to justify a bit more advertising, but not commission. A sale price of $500,000 is an average $14,000 in commission.. Most states have a de-regulated commission structure , so this can vary. From research conducted, commission rates can be as low as 1% and upwards, near to the 4% mark. The average being around the 2 to 2.5%. Make sure that you thoroughly check out all of the Agent's charges before engaging them. Make sure they are in writing and signed by both you and the Agent.
Real Estate Agents are not all the same.
The hidden cost is the skill of the Agent. An Agent who is not highly trained and skilled in negotiation, can potentially cost you thousands of dollars. A Real Estate Agent is employed, because we believe they have buyers, they are experienced and they will negotiate the best possible price from the buyer. This is not necessarily always the case. Ask the Agent to guarantee a likely selling range, before you engage them to sell your property and make sure it is in writing.
So, what are the savings, by selling privately?
If you can research the market thoroughly, advertise the property on the major Real Estate Sites and study negotiation, then many thousands of dollars.
By spending less on marketing, but still advertising on Realestate.com.au and Domain.com.au, having an asking price that is realistic in the current market and making sure that you get every last dollar from the buyer, you win. As you can see, selling a property yourself, is not all about trying to save the commission, you need to be able to achieve the same sale price, or even more than the agent would.
List your property on realestate.com.au and domain.com.au with ReDIY.
ReDIY.com.au can advertise your property on the major sites, for a low one off fee.The advertisement remains on all sites until the property is sold. This gives you the opportunity to attract lots of enquiry and attempt to sell the property yourself. So, why not do this, before considering engaging an Agent. You have the chance of saving marketing costs and commission. This is certainly the best option if you have a block of land to sell. It should sell itself. The Agent would not be conducting inspections.
What are the true Savings in selling Privately?
When selling a property yourself, you can see there are many factors to consider. You know your property better than anyone else. You bought it, because it appealed to you, for some reason. This is probably the same reason that will make it appeal to your buyer. Do not just consider saving the commission, consider all the other factors that will effect the net amount you achieve from the sale. This is the final selling price less costs. If you can negotiate the highest price, pay no commission and save on marketing and advertising costs you will save many thousands of dollars.