- How many of you have a property that just can't be sold or seemingly takes years to sell?I have one that I have being tiring to actively sell for over 2 years now. Short of fire selling the property I've tried everything from giving a free new car away with the property to attempting to sub-divide it. This property has been listed with a few property agents, all have failed to even get an offer on the property.Some statistics on the property: 2 bedroom, 1 bathroom, carport on 771sqm land, 1 minute from town centre (population of around 5k). Currently rented at 155per wk.For those who are interested to know more – http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103973691&f=10&p=10&t=res&ty=&fmt=&header=&c=56904751&s=nsw&snf=rbs&tm=1199572208So do you have or previously had a property that can be sold? What are some of the techniques to overcome the problem?Cheers,GeoffB
Lower the price.
Have you had it valued by a Bank valuer?
At $155 per week rent, in a small town, not many investors will want it. You can get as good a rent return in the city, and pay not a huge amount more, and get better cap growth.
Here's one I just saw there; under contract, so there are buyers in Oberon. Took me 5 sec to find it:
Hi Geoff. I hate to break it to you, but I'm with LAAussie (Marc). Your price seems way too high from a cursory look at the numbers – and the fact that it's been on the market so long would seem to support that. Have you dropped the price in that time?
The low rental yield combined with the fact that one couldn't get a low doc loan or high LVR lendings in such a small town, plus limited capital growth prospects, make this pretty unappealing as an investment, I'm afraid.
And look at your competition: http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104445780&f=10&p=10&t=res&ty=&fmt=&header=&c=40098518&s=nsw&snf=rbs&tm=1199576696
I think you may need to drop you price $20 or $30K. I know it can be hard to take a loss – our very first property purchase was a bit of a disaster. We bought a cute old QLDer in East Ipswich in 1993 as our PPR. We paid $111K, and spent about $25K doing it up, so we had $136K invested in it, at a time when this was about two years' of our combined gross incomes. We moved interstate for work and decided to sell it. It was on the market for a year and a half and we ultimately sold for $85K. It was, at the time, a very painful learning experience; losing that much money was a big deal to us then. But looking back, my only regret is that we didn't get more honest advice from the real estate agents that this magnitude of price drop was required. We should have just dropped the price more dramatically, sooner, and have saved ourselves the mental anguish of the "death by a thousand paper cuts".
Cut your losses, get out, learn from it, move on…
Best wishes,
Tracey in Brisbane
Sorry, Geoff,
I too agree that you are priced way over the market. I don't listen to much that real estate agents tell me (or I listen, then disregard a whole heap of what they say), but an agent who I have found to be a great ally and source of information (who recently told me not to buy now – just goes to show how much more credible and sensible he is) told me that you have to put property on the market for a reasonably conservative sale so that it sells quickly. If you over price, then eventually lower your price, buyers will have already seen it, and they just won't notice the lower price (unless you do something very drastic). It is like you have one chance to get the markets attention, if you fail, they become blind to the property and you have to take dramatic action to get their attention again. I've held this remark very highly, and always instruct our selling agent that I want an estimated value based on selling the property within a month. I've noticed that some agents will just tell you its worth more, just to list it. Their theory is probably just to get exclusive listing, then lower the price as necessary. Trouble for you is that if they are unsuccesful, you have missed that all important opportunity to come it at the market price and sell it without any trouble.Simple fact is that the market will dictate the value. If it hasn't sold, you haven't met the market.
An idea to try (can't guarantee it will work): Change the look of the property from the street. If it looks different, the market might see it again (they won't just breeze past the ad having seen it before). Also, talk to a reputable agent and get a quick sale price, putting the property on the market at the value they reccomend.
Good luck
SHi Marc, Tracey and S,Thanks for your valued comments.In response to your questions, yes I have reduced the price (5 times) totalling $34k, and increased the rent in attempt to get a better yield.Your sample links to other properties in the town are unfortunate old, very old. I've been tracking all the properties listed in the town on RE.com over the years and discovered a long time ago the RE agents keep the listings listed for years after they are sold, along with not updating there current listing. The one listed as under contract has been there for over six months and the other pink house was sold when we were purchasing our place 4 years ago, if I recall. It took one of the RE agents 3 months to update my web listing to reflect a sale price reduction. One way I have tried to overcome not relying on web based listing to sell my property is to use other means of advertising, i.e. letterbox drops, local noticeboards, newspaper, local business circulation etc etc.
See, there is only 2 RE agents in the town and these 2 agents conclude with each other, that's one of the reasons I'm using a RE agent in the neighbouring town. It's was an unfortunate situation when I caught them out concluding, common discovery by other investors in the area I've been told.Also, from the RE.com listing the main property photo is not one which reflects the property, it doesn't do it any justice. However, there is no alternative option for a better photo other than falsifying it via photomontage. I've inquired about getting the property rendered just to make it more appealing to prospective buyers, the problem there is my inquires tell me the waiting list is about 18 months to get redering done in the area.I've thought about lowering the sale price to $100k from $180+ in an attempt to see if there is any interest, however that is wrong and would more than likely jeopardise any chance of a sale in the future.Cheers,GeoffBYou could use an RP data report to get factual information about what other houses sold for. Though, you need to take the report with you and go for a drive past the addresses sold because it gives you no information about the houses, just the land size and sale price. It is a good indication, though, and you might be able to fill in the blanks from info on RE.com if they are so slow to remove links. I still think that if the price is right, it will sell – unless a RE agent stuffs up the market for you first, which sounds like what might have happened.
Another option is to wait until the tenants lease expires, then just put them on a periodical arrangement so the house can be sold vacant possession. If you have a tenant hunkered down in there on a lease, it may turn away potential owner occupier buyers.
SWhat kind of "colluding" were the real estate agents doing? I can't figure out what they were doing to disadvantage you…
With regards to improving street appeal, then just paint the bricks – this can look almost as good! And add timber "faux shutters" aside the windows.
Don't drop the price to $100K, but if you really want to get rid of it (why not hold, by the way?) then you may want to consider dropping to about $160K.
Best wishes, Tracey in Brisbane
Great suggestion regarding just painting the bricks combined with faux shutters, that's a small cost large value option. Thanks Tracey.The current tenant is on a periodical period term, therefore making the sale cover a broader demographic.It's a long story regarding the colluding issue, it's along the line of directors of trusts/companies previously owned the property and currently own the RE agencies ect ect ect….. The RE agency owners have daily lunch get togethers etc etc…. One thing leads to another and there is not a lot of legitimate happens going on.CheersGeoffBI remember seeing a property on the market for about 2 years. The owners ended up having the bricks, windows, etc painted white and roof and gutters dark grey and then it sold straight away.
sorry to say Geoff, but paying 183k for a 155p/week return in a regional town is very poor, the potential buying has a negative geared property in a town with little prospect of capital growth , no offence but i'd rather park my money in a ING account.
what is worse is that the property has been on the market for so long.
In my street a similar thing happened someone listed a property for a stupid price (about 100k) over market value, when I heard the price I hung up on the real estate agent, no potential buyer will even try and negotitae. What happened if someone offered you 80k?? I think you would be quite offended and close all negotiations??
Anyway the property is still for sale 1 year later on at a reduced price…guess no-one wants to deal with the seller?Hi, Geoff
I hope you would'nt mind me asking… "Why are you selling the house?"
Property / House is a good investment, unless you got reasons to sell it? Are you moving to different location?
If you think that you've got to lower the price so much, just to be sold, I don't think that it is a wise move.
Now, why are you selling it? Negative gearing! How much is your monthly repayments? Or, is it 100% yours already? Free from Loans?
Or, you just wanna have an instant cash that you may want to use in a business? If yes, do you know that you could use the equity of your house? That you could have an instant cash that you could use to other investment using the money out of your property?
Have your property re-valued. But before that, have it landscaped at front, paint the walls. Dont spend too much, but this can add value to your property. Make your kitchen and bathroom as appealing as possible, as this will be the major factors that could appraise the value. You might be surprise at the new value of your home!
Also, you might wanna take a look at this. Got lots of tips on property investing and stock market investing. I have learned a lot from this. This is just for free. Free DVD and Free E-BOOK.
http://www.21stcenturyacademy.com.au/cmd.php?af=710342
Just visit this website, nothing to loose and so much to gain, nothing to buy to get the free DVD.
Good Luck! Watch the DVD, then decide, if you will SELL your House, or house to have it a better value!
I have learned so much from this, and I just want to share what I have learned.
malquisce wrote:http://www.21stcenturyacademy.com.au/cmd.php?af=710342Just visit this website, nothing to loose and so much to gain, nothing to buy to get the free DVD.
Good Luck! Watch the DVD, then decide, if you will SELL your House, or house to have it a better value!
I have learned so much from this, and I just want to share what I have learned.
Affiliate links are banned on this forum.
kmb
Yes especially when his 5 previous posts all are the same.
Hopefully admin will delete them.Richard Taylor | Australia's leading private lender
Hi Geoff,
I have made some editing, and here is how it will look like…
DARK GREY Roof, Gutters, Handrails…
LANDSCAPED at front —> dont spend much, just to have colors on the background.Also, if you want to appraise the value of your house, try to modify your kitchen and bathroom. Factors that could affect the property value. After that, have your property re-valued. Then, you could have more
http://www.geocities.com/malquisce/housecopy.jpgBy the way, im sorry for having the links that are not allowed for affiliates. I hope, you could see the essense of what Im saying and my points… I hope, you could check out the summary. I hope, all of us just wants to help everybody that asks for opinion.
But I wont argue. Anyway, im not here to prove myself that I am somebody. im just here to help. Nway, im sorry for the affiliate thing. But it really is something to look forward to. When you tried to watch the Free DVD, then decide if its nothing… Well, you may try it even just out of curiousity… but I bet, you will truly find it useful.
But why delete the posts? Are you just looking at the links, and not on the message? Wow! I was really surprised. Are the messages are all the same to you? I think its not… coz it answers different problems… But what made it seems the same, is because, all of us here are just trying to improve each other's lives. Am I wrong? Im not arguing. Im just telling my point.
Go back to Geoff, I hope that you'll like the new look of your home. I tried white bricks, but the output did not appeal to me, so, just take a look at it. Good Luck!
Hi Geoff
That must be frustating having a property on the market for so long.
Sorry I know nothing about the area your property is located in……however, do you know who your target market will be to sell too, would that not determine what you would do to the property and how you will present it.
Whenever I do a renov or subdivision, I always consider who will be buying the end product and taylor to what they will want.
Just a thought.!
Hi Geoff
I'm afraid I'm with the others. The only reason I would buy in a small town (and I would never buy in a town of less than 10,000) is if the property is positively geared with AT LEAST a 10% return.
Your property is about a 4.5% return. As the others have said, we can get better in a capital city with a much greater chance of guaranteed rental. Especially in a small town a periodic rent would make me nervous. What if your tenant leaves? How easy would it be to get another tenant?
The fact that you have had to offer a car or other financial incentives and still can't sell it in this seller's market suggests that it is VERY overpriced.
Just my opinions.
Cheers
K
IMO there are generally only two reasons a property doesn't sell. Either the marketing is very poor or the price is wrong – or in the worst instance a combination of the two! As you are clearly dissatisfied with the REA's in your area I would recommend an independent valuation, arrange to meet the valuer if possible and find out info on market rents, time on market etc – at least this will provide you a clearer, independent picture of where you stand. Good luck!
M.Thank you all for your varying array of comments and suggestions.Since I initially posted this subject I have undertaken some more extensive research relating to this property, especially in the sale price. I have made further phone calls to RE agents and obtained a RP Data report. Although RP Data reports are to be used with caution combined with the agent comments it seems my place is actually underpriced (only by a little). Now I'm a bit sceptical about what I'm hearing and reading, therefore taking that into account I feel there is more to why I'm not even getting an inspection.Currently, I'm focusing on two areas. Firstly, it's visual appearance (Malquisce, I like the photomontage, interesting) and the second is the RE agents attitude to getting a result. The latter can be approached with a good long phone conversation with the agent and the appearance can be addressed with some low cost injection of money. It's unfortunate I live 3000km away from the property or I would do reno works myself.Also, I just reviewed the latest API magazine which listed that 58 properties have sold in Oberon in the last 12 months, so properties are selling, contrary to what some RE agents are telling me….Just for your info, I obtained this property many years ago through mis-information, it was my first and I learnt from the mistake. I've since bought and sold dozens of properties worldwide based on my better experience resulting from this property, just can't get rid of the first one..Stay tuned, and again thanks for all your suggestions, it's given me the impetus to get a result and move on.Cheers,GeoffBSo how much will you take for it?
morts wrote:IMO there are generally only two reasons a property doesn't sell. Either the marketing is very poor or the price is wrong – or in the worst instance a combination of the two! As you are clearly dissatisfied with the REA's in your area I would recommend an independent valuation, arrange to meet the valuer if possible and find out info on market rents, time on market etc – at least this will provide you a clearer, independent picture of where you stand. Good luck!
M.Marketing is almost total BS.
The buyers (if there are any) who are in the market for properties in your area are already on the internet, reading the papers, trawling the streets and looking in the agent's windows all the time.
All you need to sell a house is:
1. simple sign on front fence (preferrably with no agent ad other than phone number).
2. colour printed flyers on the agent's reception counter
3. photo and description of property in the agent's front window.
4. photo and description of property on the internet – r/e.com, domain.com.
5. small, simple major newspaper ad, and possibly local newspaper ad (no ads for agent; just phone number).Tell the agent to pay for all this out of the commission. Total cost about $100-150.
One of the agents' classic lines is: "we have buyers waiting". If this is the case, then why do YOU need to do any advertising?
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