Hello everyone! It was good to see everyone in Melbourne Seminar. This is the first message after the seminar – Help needed, please.
Since after I attend seminar – and did bit of a calculation – I have decided to sell my one investment property. This is my first sale ever and so i request if you guys can give me some suggestions about how should I go about it? Any practical guide – things which I should be aware of or what are the things I should be thinking of, taking action to avoid any disappointments any thing basically which you guys do when you sell your IPS.
Sincerely,
viralkHave a look at http://www.jenman.com.au
Its not gospal and I dont suggest a jenman agent but have a look. It will make you more aware of some of the problems in selling and what tricks some agents may get upto.
I would steer clear of auctions. They usually cost more, are mostly advertising for the agents. And, if nobody bids to a price you are happy with you still have to pay for the auction.
In my oppinion it is best to ask a price well above what you expect and then gradually step the asking price down. Most people looking for a house will mostly look at places in the price bracket they can afford.
James,
Have you ever sold a property via the auction method? Clearly selling by auction enables you to sell the property faster, and you also have the added protection of a reserve. For those who are investors, surely the quicker you sell the quicker you can access the cash for other opportunities. As far as costs go, what evidence do you have to support your claim that Auctions cost more? If your property is sold via private treaty it will remain on the market for an average of 90 days (just did a formal study for work) if you sell by auction it will be sold in an average of 43 days. Clearly a little more reading is required good sir.
hi viralk,
i’m doing the same thing, and heres a couple of things that i’ve done so far.
interviewed a couple of RE agents.
asked why it should sell for that price.
not go for the highest price, unless the RE agent can justify it with recent sales in that area and how long it was on the market.
living in queanbeyan, ive finally selected one agent. he’s telling me units have gone down about 16%, fair enough the markets changed. as my IP was valued at 195k 4 months ago, it should sell for 160k. however the problem i have now, it the agent wants to advertise it at 159k for a quick sale… what the?
isnt he meant to get me best price?
i’m trying not to be greedy, and all my stats that i investigated myself tells me that its worth 160k.
so i’ve gone back to the agent and told him to put it on the market for 162k. the minimum i will accept is 157 – 158k and dont bother trying to sell it for less.
is this the right thing to do?
heres a copy of the email i sent him.
what do you guys think?
Gday jason,
its shaun walker here, not sure if you got my phone message,
but will repeat it here anyway (that and give you my email address)
ive accidentally scribbled on the exclusive agency agreement, and will need another copy.
sorry about that.
after getting several other quotes for selling (lj hooker and raine and horne)
i’m a little concerned about settling for 155k.
both other offers came in over 160k but they could not substantiate their claims ie as to why it would sell for that price nor could they give me any time frames.
so i have decided to sign up with you with the following corrections to the contract.
advertised price at 160k, this is still around 18% below last valuation.
i will not accept a price below 157,000 but will happily accept 158k should it be offered. i know that it may seem a little high as you are expecting it to go for 155k, but as the unit next door (same complex) sold for 150k several weeks ago and it hadnt been renovated at all (in fact it needs new curtains, carpet, stove, hot water system and painting), 158k seems a fair market value to me as everything has been renovated.
the agency agreement clause.
clause 1. the date thats fine, 90 days.
clause 2. is fine however i will be giving you in writting on the 90th day that i will want to terminate the contract with no further obligation as the participant to pay you any fees.
i understand that during the 90 days that anyone that i introduce to the property that you are entitled to your fees, (fair enough, you did the work why shouldn’t you be paid)
all other clauses are fine.
if you have any questions please feel free to contact me
cheers all
shaunLead, Follow or get out of the bloody way
My only suggestion is that 90 days is a long time. Alot can go wrong in 12 weeks. Jenman suggests 7 weeks. thats enough. My brother signed for 90 days – they had a sort of fall out – the agent was a ass and it just stayed on the market and the agent did nothing.
As for price. I sold a property about 4 weeks ago and got more than our initial discussions with the agent. But I still feel I could have got a bit more as a similar property sold for a few $000 more. But to me it was a trade off – pay extra interest or just sell it.
Just keep reinforcing to the agent what the other properties on the market are selling for. He cannot refute that information.
I think that it is really important for you to know the realistic price for your property and don’t rely on the agents figures.
We put our last property on teh market to auction but never intended to go to auction, the auction date gave us a finish date for the property to sell and gave the agent some leverage with prospects that “…if you don’t offer now then you will have to bid at auction, and it propbably would sell before that …yada yadda” and we gave the agent instructions to make a private sale.
It is worth spending some money to make some money, like cleaning up, maintenance etc just don’t over do it of course.
Good Luck
Leigh K[biggrin]
thanks all,
i will be putting it on the market for 162k as advertised price, and giving him 7 weeks to sell.
his stats that he showed me says units sell in around 34 days so that should give him plenty of time.
will let you know how i get on.
any other suggestions for viralk and myself?shaun
Lead, Follow or get out of the bloody way
hi all, the latest update from the RE agent, ref my email that i sent him earlier.
his replyShaun,
Thank you for the reply and yes I did actually get your message and a new
agreement was at the counter yesterday afternoon.In relation to the price I did supply the market evidence to support our
market estimate due to the current market situation. I do believe that the
unit will sell for a price between $153,500 and $158,000 as stated on my
appraisal letter.After reading your e-mail I would recommend advertising the property at
$162,500 and listen to all offers from here. In relation to clause 2 we
believe, through competitive pricing of the property, that the property will
be sold.We look forward to selling the unit for you and appreciate you appointing us
marketing agents.Regards
Jason
so it looks like ive won (so far) next step will be to get a friend to the open house and see what he does then.
cheers
shaunLead, Follow or get out of the bloody way
viral,
I think it’s important to develop a good relationship with the RE agent when you decide who it will be. There may be times when you feel you need to contact them (“is it sold yet? is it sold yet? ad infinitum…) so it’s good if you choose a RE agent you can relate to- not completely based upon price and bottom line- but also on how they deal with you, the vendor- not only prospective buyers.
I used the agency who managed my property and the agent who sold me the property- he knew it insde and out, so half the legwork was done. Also, because we had known each other for some time, I felt I could trust him- goodwill counts for a lot, in my opinion.
Another thing I did after sale, was to let the Principle of the RE agency know that I was really pleased with the efforts of the agent- I think sometimes they cop a lot of criticism, and don’t get much praise… and a good way to help them in their job is not just to thank them, but to tell their boss that the individual is doing a good job.
kay henry
an another update,
guys you’re going to love this.
i went into the RE agents office on friday to sign the new contracts and he’d changed alot of it to lower numbers.
he now reckons it will sell for 150 – 155k.
wow a 3k drop in 2 days,, impressive.
so i rewrote the contract as per email above and gave him seven weeks to sell.
i havent heard from him so it must be ok (i hope)
cheers
shaunLead, Follow or get out of the bloody way
Shaun, Your agents antics remind me of my last property sale. I had done a lot of research to the market value and listed my property at a reasonable price of $220k.
One week later, the agent hadn’t even listed the property on his website yet and he asked if he could drop the asking price to $210k. I asked had he had any ‘offers’ yet and he said no. I asked why would I drop my asking price first, before anyone put in any offers.
Property remained at $220k, property was finally listed on his website and it sold within a week for full asking price. Buyer didn’t even negotiate a lower asking price. He obviously knew the area’s market value and thought it a good purchase.
Cheers Brenda
If you want to get out of a hole, first stop digging.
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