Homeowners are losing tens of thousands of dollars by selling off-market with new data revealing WA sellers are taking one of the biggest hits to prices.
A PropTrack report found that on average homes sold off-market in 2022 made less money compared to those listed on realestate.com.au.
Perth home owners are losing almost $30,000 by selling off-market with prices achieving 4.9 per cent lower than online listed sales.
Significant dollars are being forgone by sellers in regional WA with losses even more pronounced. Regional WA houses sold off-market achieved sale prices 5.8 per cent less — a difference of $27,500.
PropTrack senior economist Paul Ryan said “deciding to sell off-market may come at a significant cost to sellers”.
“While some sellers might try to save money by not advertising online, this analysis shows the potential earnings lost in the final sale price far outweighs the initial cost of advertising,” he said.
“These results are based on sales in 2022, when home price growth slowed in many regions, reflecting the potential costs of selling off-market in current conditions, where strong buyer demand and limited supply is pushing prices up in most markets.”
Nationally, off-market sales in locations above the median price of $725,000 performed the worst with prices five per cent lower than those listed.
Areas with prices at or below median house prices had smaller losses but still exceeded a difference of three per cent. Units sold for 1.2 per cent less off-market.
Richard Matthews Real Estate director Matthew Everington said opting to advertise a property online had huge benefits.
“While some owners like the idea of the potential savings on marketing expenditure, there is no doubt that a strong online marketing campaign helps drive heated competition and leads to the maximum price and outcome for our owners,” he said.