yep – we decided to just sell this one and realise the capital gain. Then when we are ready, find a more suitable property as an IP.(This one would be CF negative and we’d have a big mortgage on the new house too)
If it doesn’t sell at auction then we’ll refinance and rent it out.

See
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=11649

Originally posted by Aceyducey:
Fnomna,

I recommend you be vary careful about pursuing an auction strategy in the current market.

Auctions work best when the property is unique or distinctive in some way and there are a number of people interesting in buying the property.

You really want to avoid paying good money to hold an auction & having no…[Read more]

thanks guys.
yes we will soon be reviewing our price in preparation for a 2 week (3 weekend) auction campaign and then if it doesn’t sell, hang on to it until it’s a better time to sell.

we would have loved to (an intended to) create a good working relationship with the first agent. But the thing that really stuffed this up was a dodgy tradesman…[Read more]

You can be as proactive as you like, but in the end if you are dealing with a rude, abusive person ( firstly you don’t want to talk or communicate with them, its only human instinct) then you don’t stand much chance or a successful outcome.
kp, that’s exactly what we felt. Next time we will hopefully nip things in the bud as they appear – or…[Read more]

Not at all yack – I have appreciated everyone’s comments. It is very interesting to hear about other people’s experiences.

We can afford to hang on to it, so we will hang in there and not be pressured.[biggrin]

Have heard of steps to tighten regulations for RE agents. Might have to do some reading on that too. As I remember, Qld and Vic have…[Read more]

By the way, we are both young/inexperienced and this is our first home and first attempt at selling. As such, my views about the whole process are only based on this one experience – hence the request for advice.

Thanks to all of you here for your replies so far! It has given us a lot to think about and remember for next time, if there is one! I…[Read more]

By the way, if the agent is in breach of any of the codes of conduct/ethics, etc, then you are within your rights to terminate the selling agency early.
Try reading the contract first or get someone to help you with it…..
We have spoken to someone and gone through the contract with someone else who should know about R/E sales contracts. We also…[Read more]

Have a meeting with the agent and show him whats on the market now in your area and compare them to your property. How do they match up price and feature wise. Get evidence behind you so they cannot ignore you. You need to support your price in the market today not when a valuer did a valuation x weeks ago.
We do keep an eye on what’s selling and…[Read more]

Originally posted by yack:
Are you sure you have set a realistic market/selling price?

Dont forget you wont achieve the same prices as 6 months ago!!!

Asking price (nearly 3 months ago) was based on a valuation we had done. But taking into account the slowdown, we would accept 5% less and consider offers 7% less.
But the closest offer the agent…[Read more]

SuperTed, now I totally understand what you’re saying and it does make sense. Now it seems like a pretty obvious tactic. Didn’t read about that one anywhere!
So when a buyer comes to them looking in the area, they could start with ours then say ‘but for another 50000 you could get a nice character bungalow/villa’.
We sort of did consider it in a…[Read more]

SuperTed, do you mean he’s using ours to show his other listings that because ours isn’t selling, the others should drop their prices to sell?
Or do you mean he is using ours to have open inspections and get new listings?

If he’s trying the former then we sort of got that feeling. If he’s trying the latter, then the agent (the director’s trainee)…[Read more]

So my first point would be ask them what they expect advertising will cost and why.We did that. He gave us a price for ads with and without pictures/sketches. The problem came in a couple of weeks when he tried to get nearly double what he said because he now had less listings and had to cover costs for a certain amount of “space” in the paper! We…[Read more]

Thanks Derek – lots of useful advice in there. Where is that other property forum? Is it public?

Thanks alf – you have an email.
I live in adelaide. Things have slowed a bit i feel. Where R/E agents had to just sit and sell now they have to work.
I agree. Will be interesting to see if there is the usual spring/summer upturn or not this end of year.
We are looking at trying an auction in about a month and a half. Are they bad or does it…[Read more]

Thanks yack – I’ll have a look. Just out of interest why don’t you think you’d ever use a Jenman agent? Not enough ‘exposure’ / no advertising/ no opens? Asking too much commission?

Do little to earn their money – I agree in this case. By the time it came to the first open inspection, we already didn’t trust them. So we sat outside a shop on the…[Read more]

Thanks for your replies – much appreciated!

Originally posted by Julia:
Fnomna,
I assume that you purchased your first house and moved straight into it. If so section 118-192 resets your cost base at the market value when you first rent it out unless you elect to leave your main residence exemption with your first home until you sell it. In the…[Read more]

Thanks to all for your replies and kind advice. I am new to this site and new to property in general!
Your advice generally agrees with what we heard from one R/E agent (not the one we are selling through ATM). It seems to make sense to sell now for a bit less than we would like and put the money into our new PPOR mortgage.
Then down the road when…[Read more]