Forum Replies Created
Thanks for all your posts.
Special mention to LA Aussie!
I have taken all into consideration, prior to my posting I had already been in contact with three agencies to get a feel of the market, each self promoted there organisations extremely well and I didn’t go home empty handed.
Glossy brochures, magazines, marketing proposal’s and page after page of referrals/thank you letters from happy clients openly expressing their gratitude towards the agent for selling there property above the agreed reserve.
It has been an interest process, I’m known to talk with a mouthful of marbles under water, but couldn’t appear to get a word in during our appointments.
I have taken time out to attend a number of open for inspections and auctions that each agency conducted over the last couple of months and believe that one agent stood out from the others.
He conducted his business in a very professional manner, was very approachable and didn’t do the hard sell by forcing the property down people’s throats.
I have done my homework to determine a realistic market value for the property.
The property was valued for refinancing purposes 10 mths ago, so I already had a copy the the banks valuation. I obtained a report on comparative properties in the same area over the last 12 mths through the REIV and have also been keeping a close eye on the market for a while as well.
I have now offered the agent an incentive based commission, which was based on my determined reserve (undisclosed to agent) and the agents value, which was very close to my reserve $-10k, so I offered him a 1.7% commission to his value, then 10% for the next $20k and 20% any amount greater.
I allocated $3k to marketing and also spent an additional $1.5k on presentation, as the place was vacant and looked small without furnishings.
I though whilst we where on this topic, I’d throw another scenario at you.
I am currentl in the process of finalising building permits for 3 townhouses in a Melbourne bayside suburb and would also appreciate some comment on selling and promoting. eg. Grouped commisions/exclusive rights to sell all town houses, Boards, internet, should we sell off the plan?
What advertising, gives the best exposure and is the best value for money?
Could anyone recommend an agent in the Mordialloc area.
In appreciation
Ash
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Just another point, make sure the unit isn’t apart of a stratum development. These are hard to obtain finance for as your interest as owner is only registered on title via a caveat. Banks do not like to lend money for theses properties as they can only register their interest as mortgagee with a caveat, this does not allow them the right to foreclose on the property when payments are in arrears.
Ash
Depending on the area, a car park can add 30-40k to the value of the property (CBD). If your intention is to rent the property and it is close to public transport and a university, then it may be a good buy to pitch to the student market. Be aware though buying a property without car parking limits it marketability. As MIKE JACKSON indicated, check the title details as some strata subdivisions have accessary units that are car parks linked to unit or in recent subdivisions sometime units may be broken into parts.
All the best
Ash
[biggrin]Lily
The API is the Australian Property Investor’s magizine, it comes out monthly and can be picked up at your local newsagency.
Thanks Eric
I have read the article in API’s May edition, that’s what prompted me to write in the forum. I have also read John Forlee’s book on property development in Australia, a great book which provided a substancial amount of information. I am now looking to put things into practice and perhaps are seeking advice on the practical aspects on making things work.
Thank for the info.
Ash75
