Selling Homes Without Real Estate Agents: A Growing Trend and Its Implications
In recent times, a growing number of homeowners are choosing to sell their properties without the help of real estate agents, instead opting to use social media platforms for advertising. One such homeowner, who chose to sell their property directly, revealed that although they used a social media platform to sell, the necessary procedures still had to be followed. These can be handled through a real estate agent or by hiring a lawyer, allowing them to avoid agent commissions, which typically cost a few hundred thousand dollars.
24 February 2024
While there are both advantages and disadvantages to this method, it ultimately depends on the homeowner's available time to handle these procedures. If the seller and buyer can both independently verify the property's condition and avoid fraudulent behavior, then this method can be a viable and cost-effective option. However, if someone intends to take advantage of the situation, this approach could be risky, as purchasing a property is not the same as buying a bunch of vegetables at the market. Spending money on a real estate agent can provide a layer of security.
Some homeowners have noticed that real estate agents often mark up properties for resale after a successful purchase. In these cases, an agent may purchase a property for 380,000 yuan, but after a round of renovations, they resell it for 450,000 yuan. They may not have spent more than 20,000-30,000 yuan on renovations and furnishings, implying that a significant portion of the increased price is the agent's commission. This has led some to suggest that agents eat from both sides, making it more beneficial for homeowners to sell their properties themselves.
In one case, a homeowner who tried to sell their property at a reduced price was met with criticism from other homeowners. The criticism stemmed from the homeowner's decision to reduce the property's price and sell it themselves, rather than go through a real estate agent. Some argue that professional individuals should handle professional tasks. If a homeowner truly wants to avoid agent fees, the suggestion is to take on the role of a real estate agent themselves, by working at a real estate agency for a month, learning the ropes, and earning a salary in the process.
The debate over the cost-effectiveness of different property transfer methods continues, as factors such as inheritance, donation, sale, and transfer between relatives involve a complex web of taxes, fees, and procedures. Additionally, there are concerns surrounding the unscrupulous behavior of some real estate agents who manipulate the market, creating instability and negatively impacting the quality of life for tenants. This unethical behavior can also affect the overall image of a city.
In light of this trend, it is crucial for potential homeowners to educate themselves on the local rental market before deciding on an agent or a direct sale. They can save money by finding properties through personal connections, online platforms, or neighborhood advertisements; however, this method can be time-consuming and labor-intensive. Alternatively, they can hire a reputable real estate company with professional qualifications. Rental agreements typically follow a "one month's deposit and three months' rent upfront" structure, with caution advised if rent is significantly lower than market rates and payment terms deviate from the norm.
When viewing a property, potential tenants should pay special attention to layout, lighting, noise levels, and the surrounding amenities. They should also test all electrical appliances and check for water leaks, gas leaks, and other hidden risks.
Calculating transportation and time costs can be a critical consideration when choosing a rental property. A general rule of thumb is not to spend more than 1/7 of one's monthly income on rent. Ideally, a rental property should be close to the tenant's workplace, with travel time involving an hour or less and affordable public transportation options available.
As the housing market evolves, it is essential for both homeowners and renters to navigate these complex issues carefully and with due diligence. By staying informed about market trends, learning from previous experiences, and seeking out reputable professionals when necessary, they can minimize risks and ensure a smoother and more secure housing journey.