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With the Sydney housing market still in a downturn and uncertainty on when the market will bounce back to late 2003 levels, sellers are asking themselves how they can gain maximum returns on their property in such a market.
According to most market commentary, there is unlikely to be any significant lift in property this year, with lack of affordability and the exidous of investors continuing to have an impact on the Sydney market.
According to ComFree's Mark Farrugia, the current market situation means that vendors need to consider the best sale method for their house, if they want to cut the sale cost, while also ensuring they get a good return.
"Obviously when you're selling your home in a market where prices are low, you want to try and squeeze every cent from the sale of your property," Mr Farrugia said.
"The method that you use to sell you home can mean the difference of a few thousand dollars."
The three dominant methods of home sale currently are; Real Estate Agent managed, auctioneering, and private sales.
Selling through an agent
A Real Estate Agent managed sales will generally see your house put on the market for a fixed price.
However vendors have found that this does not always yield the best results, given that Real Estate Agent's get their fees through a percentage commission on the sale price.
Some vendors have reported that agents try to convince them to take a lower price so the sale goes through quickly. Others have complained that the agent draws out the sale process deliberately on the chance that a higher price - and therefore a higher commission - could be obtained, only to find the potential buyers scared off and the seller needing to sell at lower price than the one advertised.
On average, the sale time of a house sold through an agent is 105 days.
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Added to this the vendor still has to pay the agent the commission fee, plus any advertising costs in addition to that agreed under the commission.
Auctions
While more than 15 percent of NSW houses are sold at auction, and some record prices are gained by this method, auctioning only works well if the house is in an area where prices are high to begin with.
The auctioning process is a long and drawn out process, and often results in a large amount of pressure for the seller - while at the same time provides no guarantee that the house will be sold.
Auctions also attract a commission fee from the real estate agent, additional advertising expenditure and in some cases the auctioneer's bill.
The auction clearance rate in Sydney has recently dropped to 45.7 per cent on the unofficial last selling day of 2006.
Private sales
Private sales provide the vendor with the opportunity to set a price, deal with negotiations and can also result in a quicker sale time.
ComFree - a company born out of Canada where an estimated 25 per cent of houses sell privately - provides vendors with advice, training and materials to help them sell their house quickly and effectively.
Mr Farrugia said that as far as selling your house goes the best method is often the easiest.
"Selling your house using the ComFree method - which is available for the flat rate of $899 - will not only keep your sales costs low, but will ensure that a vendor gets the maximum return on their house in a minimum amount of time," he said.
The average sale time for a house sold using ComFree is 95 days.
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