More Australians are considering the FSBO (for sale by owner) route thanks to the rise of flat-fee and low-cost real estate platforms. 

These services promise to save thousands in agent commissions by handing the reins to you, the seller. How do they really stack up, though? 

What is involved in 'for sale by owner' or selling a property yourself?

DIY home-selling services typically offer a bundle of property marketing essentials for a one-off fee — access to realestate.com.au and Domain listings, a ‘For Sale’ board, brochures, property data reports, and sometimes even basic photography or virtual tours. Packages can start from hundreds of dollars up to thousands, depending on how much support is included.

That can seem like a bargain when you consider that a traditional real estate agent’s commission is typically between 1.0% and 3.6% of your final sale price — which could mean paying $20,000 or more on a $750,000 property.

But before you pocket the savings, it’s worth considering what you’re giving up. A seasoned agent brings market knowledge, negotiation experience, and a buyer network that’s hard to replicate. And while some FSBO sellers do get a good result, others walk away wondering whether they left money on the table.

So is it worth doing it to sell your home yourself? That depends on your situation. Here are the pros and cons to help you weigh it up.

What does a real estate agent do in Australia?

In Australia, real estate agents play a pivotal role in facilitating property sales. Their responsibilities include:

• Property appraisal: Assessing the market value of your home.
• Marketing: Creating and executing a strategy to promote your property, including listings on major platforms, photography, and open inspections.
• Buyer engagement: Handling inquiries, conducting inspections, and managing negotiations.
• Contract management: Preparing and overseeing the signing of contracts and ensuring all legal requirements are met.
• Settlement coordination: Working with solicitors and conveyancers to ensure a smooth settlement process.

While it’s legally permissible to sell your property without an agent, it’s worth noting that the vast majority of Australian property sales involve agents. According to industry research, properties sold without an agent account for less than 1 per cent of all property sales in Australia.

Pros of selling your home yourself

You can save tens of thousands of dollars in agent's commission which typically sits anywhere between 1.0 per cent and 3.6 per cent depending on your area, property type and value. Our free commissions calculator can give you a clear idea of what you can expect to pay. 

You're in control of what is potentially going to be one of the most important financial transactions in your life — and responsible for whatever the outcome is. 

You don't have to put up with an agent that turns out to be not be up to the task, unreliable, unprofessional or too pushy just because you've signed an agreement that gives him or her exclusive rights to sell your property.

There are ways to determine what price you might get for your home without the help of an agent; for example, you can pay for a qualified valuer, or use a valuation tool to get a market estimate of your property. However, these kinds of options don't tend to take into account real time market demand for properties just like yours. 

Your best bet, while time consuming, is to visit similar homes for sale in your neighbourhood and talk to local agents. You should attend auctions so you can see buyer demand play out infront of you, and read widely to get a feel for how the market is tracking in general. 

Cons of selling your home yourself

The number one risk not selling your home for the best price possible. Even with the money saved on commissions, you may walk away with less than you should have.

Statistics show that sales by owners in the US usually attract lower prices than agent-assisted home sales.

To put it bluntly, selling property is not your day job. A real estate agent is likely to have much more experience and knowledge about selling a property, overcoming buyer concerns and negotiating prices upwards. Not to mention the dedicated time to liaise with buyers, conduct open homes and close deals. 

A real estate agent will have many more avenues through which to market your property. These may include his or her own database of potential buyers known to be interested in your area, the agency's website and connections to other agents.

The wider you can throw your marketing net, the more potential buyers you can pull in.

You may not have the time to do the job properly – for example, to learn about the market and what selling a house involves, to attend open inspections and follow up on interested parties and so on. Just styling a home for sale and then keeping it presentable during the sales process can take a lot more time and energy than most people expect.

Work commitments may hold you back from doing the best job you can – for example, they may prevent you from taking calls during meetings or from taking off time to open your house for inspection during the week or from meeting with prospective buyers at times convenient to them.

Advertising and other marketing materials cost money. An experienced agent will know what will work best in your area and for your type of property and can help ensure your marketing budget is well spent and perhaps even save you money.

Potential buyers might try and negotiate you down, because they know private sellers are generally inexperienced.

An agent may be more professional and impartial than you in selling your home. For example, it's business as usual for agents so they are likely to keep their emotions out of the process and will not be offended by any criticism of your property.

An agent is likely to have a recommend list of tried and tested photographers, stylists, and builders who have done good work for other clients. If you need these services, you may have to find them yourself, sometimes without knowing whether they will do a good job or are charging you a fair price.

An agent will be up on all the legal requirements and documents you need to sell your house and will advise you about these during the sales process. If you're selling your own home, you will have to find out about these yourself and face the risk of getting something wrong and jeopardising the sale.

The legal side of selling your own home

Selling your home privately in Australia is legal, but it comes with specific legal obligations that vary by state and territory. Key considerations include:

• Contract of Sale: You must have a legally binding contract prepared, typically by a licensed conveyancer or solicitor.
• Disclosure requirements: Sellers are required to disclose certain information about the property, such as any known defects or issues.
• State-specific regulations: For example, in New South Wales and the Australian Capital Territory, a contract must be prepared before advertising the property. In Victoria, a Section 32 statement (Vendor’s Statement) must be provided to potential buyers.

Given these complexities, it’s advisable to engage a legal professional familiar with property laws in your state to ensure compliance and protect your interests throughout the sale process.

The bottom line

Only you know whether you have what it takes to sell your home yourself. If you're still unsure, ask yourself these questions before making a decision.