Dear All,
I am planning to sale one of my IP and need some help.
Currently the IP is managing by PM. Tenanted ’til June 2004. I want to privately sale it.Questions:
1. How do you get to bring people who interested to buy to inspect property if it is managing by PM.2. How to reno if tenant still living in there? You might said kick the tenant out and reno, but I would say how do you know how long to take it to sale? if 3 to 6 months to sale, there’s go all the profits.
Any input is appreciated.
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Hi Chan$,
Check out these two site for selling without agents.
http://www.diyhomesell.com.au/
http://www.diypropertysales.com.au/
Cheers
[
]
PropertyGuRu
Who want to be billionaire?Its no big deal.
Just let your agent handle it.
It will be easier if yiu sell through your property manager/agent as they will know the tenant.
If your selling you don’t have to worry about the tennants leaving as much do you?MJK
PropertyGuRu & MJK,
Thank you for the responded.
MJK,
If you are selling through the agent that currently looking after the property then I have to pay commission. Mean losing money. By selling privately I will save a thousands of dollars. Yes you can sale it private and the presentation will look sensational if it is you PPOR which mean you can do reno.Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Chan, I think you’re confusing a “property manager” at a RE with a RE agent selling your place for you. They have nothing to do with one another really. For example, you could have a PM from one agency, and ask another agency to sell for you.
If you are selling privately, be careful about using the PM as a defacto seller… they will get jack if you ask them to do all the functions of an agent who might be selling for you. They’ll probably want to just continue with their usual functions of collecting rent, paying bills on your behalf etc. But, Chan- they are not gonna charge you commission for you making inquiries about what to do re intruding on the tenants’ lives by selling.
I imagine you’d probably have to make private arrangements with tenants if you’re selling, about the tenants allowing people to view the property etc. but others on here can tell you that in more specifics. I recall that tenants have to let you show people around if you’re selling a place, so they can’t get too snippy with you for wanting to do so.
kay henry
Agee with the above, and Chan$ you cannot do that to the tenants to start to reno while they are still living there! WOuld YOU like that?[:0]
If the reno is very minor though, perhaps you could offer them to stay for half the rent if they allow for the renos. If they’re not intersted, you’ll have to wait until they’ve moved out.About selling the place yourself to avoid paying commission, no problem if you’re a good negotiator or you have a property that kind of ‘sells itself’. But I do think that a good, experienced agent should be pretty good at negotiating the right price for your property. Perhaps better than you could get yourself. It all depends if you have the time to do it and if the property attracts lots of potential buyers.
Chan, if having a house vacant for three to six months makes the difference between making a profit or not making a profit it looks as if you may have paid too much !?
I hope you were exaggerating there ?
As far as inspections are concerned it will be better for you (and more appreciated by the tenant) if you
have all the prospects come through all at the same time (a suitable time as arranged with the tenant).I would also be inclined to offer the tenant some money for the inconvenience in the event the property gets sold during the inspection period.
Have you asked the tenant whether they could be interested in buying the property ?
Pisces133
Dear All,
All the replies has been taken into consideration in this process. Thank you very much.
I spoke to the tenant, he said he will be very happy with the new kitchen. As at this stage the floor is carpet and underneath is floor board. He is very happy for me to go in to rip off the carpet and polish the floor board. But what he does not know is that I am going to sale afterward. Which is quite bad to the tenant if I am going to do this. That is why I intend to give a vacant notice after the lease which is in June 2004. Therefore I can spend more time doing reno to the details.
My father-in-law is a carpenter therefore it will cost me nothing accept half of the materials cost $200 to $500.
My father-in-law also have a friend who specialise in floor board which will cost me minimum amoung of money.
At the same time while reno I still be able to advertise if possible.
Celivia.
If the reno is very minor though, perhaps you could offer them to stay for half the rent if they allow for the renos.I never tell the tenant that I am going to sale the property.
Pisces133
I would also be inclined to offer the tenant some money for the inconvenience in the event the property gets sold during the inspection period.I kind of agreed with you and would rather vacant the property.
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Chan$, why don’t you see if the tenant wants to buy it? Will save on advertising costs etc.
Cheers
MelMelbear,
I will contact the tenant at later stage because I not sure at this time is a good time to let tenant know.
I wish I live in that house so I can do all the reno as much as I want it.
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Chan,
You don’t need to hurl the tenant out because you want to sell. Some buyers will want a tenant if they buy. If it’s a good tenant, he becomes an asset to the house. Think carefully about your strategies.
I can imagine the tenant getting all exicted because you’ve told him you’re going to get a new kitchen. Perhaps let him know you’re selling. Mt tenants were fabulous in helping me sell my IP. They kept the place looking immaculate and were just lovely when people came and looked at it. So much so that I gave them a week’s free rtent for helping me to sell it.
Owners and tenants can have a good partnership. don’t boot him out just yet until you work out the best thing to do.
kay henry
Kay Henry,
Your last replied was the one that make my eyes open wide. Thanks for that. Up until this stage I still have not work out the strategy.
At this point I don’t think I will do the reno while tenant still in place coz it’s a good tenant.
May be I just sale as what it is now. So I don’t have to waste time and spend those spare time looking for more IPs.
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Chan$, one question. If it’s a good tenant, why sell?
Cheers
MelMelbear,
The reason that I want to sale because it is heavily negatively gear. If I sale this property then I will be able to buy 3 to 5 more +ve Cash Flow Properties.
Toward the end of this year there will be only me who bring in the income to the family coz planning to have another baby (equivalent to 1 to 2 properties).
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Chan$ said:
“planning to have another baby (equivalent to 1 to 2 properties).”
hehe- I’ve never seen babies given a currency like that before!
You’re a funny fellow, Chan$
kay henry
Kay henry,
My daughter name is Kay i.e. Kay. If the next one is a boy may be I should name him Henry…..hahahahahahah…..
Hi Kay, what are you doing Henry. Get back here, quick.
Kay, can you bring Henry over here.Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Chan$, If you sell after you’ve renovated, this new kitchen and lovely polished timber floor and perhaps a fresh coat of paint in neutral colours will give you a much better profit than selling as is, especially since the reno is not costing you much at all. It’s a good opportunity and a shame if you don’t use it.
Also, don’t forget that after the reno you could increase your rent.
Again (Gee Kay must be getting completely sick of me always agreeing with her[:o)]) I have to agree with Kay, thinking out a strategy is the best thing.
And I would also ask the tenant if he/she wants to buy.Kaaaaay, Hennnnnnnry, dinner’s ready. Oh Kay Henry you’re here too, you can come too if you like…… [
]Cheers
MelKaaaaay, Hennnnnnnry, dinner’s ready. Oh Kay Henry you’re here too, you can come too if you like……I like it. So what happen if it is a girl?
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Celivia,
I agreed with you coz this is the best opportunity for me to learn how to reno from my father-in-law.
I am still scratching my head of how I am going about doing it. I am so dump at this.
It is so much easier to go out there and buy IPs, but now I learn it is not that easy when it come to sale.
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]
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