Melbourne is approximately 6 square kilometres and has 25 parks covering nearly 36% of its total area. The population of Melbourne in 2006 was 21,285 people. By 2011 the population was 28,353 showing a population growth of 33% in the area during that time. The predominant age group in Melbourne is 25-34 years. Households in Melbourne are primarily childless couples and are likely to be repaying between $1800 - $2400 per month on mortgage repayments. In general, people in Melbourne work in a professional occupation. In 2006, 32.9% of the homes in Melbourne were owner-occupied compared with 34.5% in 2011. (source: Australian Bureau of Statistics).
Agent commissions in Melbourne
Agent commissions in Melbourne are lower than most other states, to sell a property in Melbourne with a conventional agent you can expect to pay around 1.99% - 2.05% plus GST on average. On top of the commission, you would also generally have to pay additional advertising fees such as Realestate.com.au upgrades, which can increase your total cost significantly. All up, your total cost is likely to be $14,000 - $20,000+ if you decide as opposed to as low as $694 if you sell your home yourself with the help of PropertyNow.
The real estate market in Melbourne
The real estate market in Melbourne has been slowing down at a rapid pace, with house prices expected to fall further in the coming years.
Dwelling values in Melbourne, much like other capital cities, have continued to fall. Dwelling values decreased by 1.2% in the first quarter of 2018 leaving them 2.2% higher over 12 months but still 1.6% lower than their peak in November 2017.
From a broader perspective, we’ve seen annual growth of 3.7% and a 5.7% growth over the past decade. The median dwelling price in Melbourne is $720,000, with median house values at $824,000 and median unit values at $574,000, which is higher than previous years.
Rental rates and yields for 2018 show weekly rent at $430 for houses and $420 for units. The gross rental yields are slowly climbing from previous years, up 2.6% for houses and 3.9% for units since July 2017.
The average number of days on the market for sale properties is the same as last year, with 29 days on the market still being the average as of June 2018. Units are taking longer to sell, at an average of 88 days on the market.
Auction clearance rates have dropped to 56% as of early June 2018 (compared with 65.4% the previous year).
Selling property in Melbourne without an agent
Given Melbourne's cooling market, selling your home without an agent could be a great option to save on agent fees. By not paying a commission, you leave yourself more able to negotiate the sale price with buyers.
So where to start if you want to sell your own property? If you are in Victoria, particularly in Melbourne and want to sell privately, your first step is to determine the market price of your property. In this way, you can reasonably assess your property and avoid under or overpricing it. Fortunately, you can request a free property value report from us here PropertyNow.
We also provide access to agent-only websites like realestate.com.au as well as a full platform to manage your listing for a flat fee of $694.
If you'd like to know more about selling your property privately in Melbourne, simply contact us for more information or a free guide.
Reviews from people who sold their house privately with PropertyNow
Julian sold his property in Fitzroy North in June 2018 and said "Great customer service, quick response and good chat function."
Angela sold her property in Mill Park in May 2018 and said "PropertyNow provided the support and knowledge I needed to have the confidence to sell my property on my own. Their support and feedback throughout the process was great. I highly recommend them."
Eve sold her property in Montmorency in May 2018 and said "I can't recommend Property Now highly enough. Forget about paying real estate agent percentages and just do it! The site is easy to use, all the information and all the help you need is available at a moment's notice, with friendly good humour and excellent knowledge, experience and professionalism. Signage has a very professional look (unlike some agent-assisted sales sites), extras are not expensive and well worth having, and everything is done with a minimum of fuss or delay. I haven't been able to think of anything that could have been done better. Even if there is a minor mistake on occasion, it is rectified straight away once queried. I expect I will use Property Now for any property that I sell in the future. Thank you again!"