How homeowners are scoring a ‘financial own goal’

In attempting to cut corners when it comes to their homes, some Aussies are costing themselves plenty.

In attempting to cut corners when it comes to their homes, some Aussies are costing themselves plenty.

According to a revealing new report, home sellers have been scoring what’s been labelled a “financial own goal” in the quest to save money – and it’s costing those who have done it an average of more than $60,000 in some markets.

Across Australia, real estate agents have reported a rise in secretive sales from homeowners wanting to offload their properties quickly through off market sales, but new research has revealed this approach has been costly.

In attempting to cut corners when it comes to their homes, some Aussies are costing themselves plenty.

PropTrack’s Off-Market Sales Performance report has found that houses that never had a public sale sold for an average of 4.3 per cent lower than those taken to market over 2022.

PropTrack senior economist Paul Ryan said it was no surprise that off market sales tended to be lower, but the price difference was more significant than many vendors realised.

“This report finally quantifies it. And it’s a big difference,” he said, adding that public campaigns made a bigger impact for pricier properties.

“As properties get more expensive, it becomes more beneficial to cast a wider net to attract more people,” Mr Ryan said.

“Once you get to the very top of the market, the ultra-prestige property, it’s a different because there are only a small group of people who can afford those prices. But certainly if you take something like a $2m listing, going to market is beneficial.”

The best sale policy is taking your home to market. Picture: Julian Andrews

This is what the report found in markets across the country.

SYDNEY AND NSW

Off market sales were estimated to equate to an average loss of about $63,000 across Greater Sydney, although there was variance across city regions.

Price differences tended to be lower for units.

On market sales were an average of 2.8 per cent higher, the report showed.

Read more about Sydney and NSW

MELBOURNE AND VICTORIA

Cost-cutting Melbourne homeowners have been warned taking selling property into their own hands could be costing them almost $30,000.

PropTrack’s Off-Market Sales Performance latest report shows house sales off-market, relative to those listed on realestate.com.au in 2022, sold for 2.6 per cent less in Melbourne and 6.3 per cent less in regional Victoria.

It equates to almost $30,000 for Greater Melbourne homes.

Read more about Melbourne and Victoria

BRISBANE AND QLD

Queensland vendors risk losing out on an average of $30,000 by selling their homes off-market, with a leading auctioneer revealing that sellers who knocked back off-market offers did better on the open market.

On average, off market homes sell for 4.3 per cent less nationally. Picture: Max Mason-Hubers

PropTrack’s Off-Market Sales Performance report shows that houses, on average, sell for 4.3 per cent less off-market nationally.

In Brisbane, that number improves slightly, but houses are still sold at prices 3.6 per cent lower than those achieved for an on-market property, while in regional Queensland it is 4.2 per cent.

Read more about Brisbane and Queensland

ADELAIDE AND SOUTH AUSTRALIA

In Adelaide, house listers pocketed an average $6800 more than those who sold off-market, with regional listers fetching an extra $7000.

Ray White Glenelg director Adam Keane said the potential profit could easily be far higher.

Mr Keane recently listed and sold a Warradale property, initially offered off-market.

“After 16 groups of buyers came through the property, there were no offers over $900,000,” he said.

“After encouraging the vendors to style the home and list, they had 12 registered, and eight active bidders, pushing the sale price to $1.035m.

“An investment of an extra few thousand dollars in marketing resulted in more than a $135,000 increase.”

Read more about Adelaide and South Australia

Originally published as How homeowners are scoring a ‘financial own goal’