- GeoffBeck wrote:yes I have reduced the price (5 times) totalling $34k, and increased the rent in attempt to get a better yield.
so that would mean your original price was $217k for a property earning $140? a week?
what you smokin man!
I think the property will sell for around $100k. remember, rates have gone up a lot lately. Secondly, the house will be bought by an investor as there is a tenant, so dont make any comparisons to PPR sales. No investor will buy unless the numbers stack up, and of course they dont start to look good untill yield reaches the mortgage interest rate (currently mid 8’s)
take new photos, and change the front yard, it looks barren.
maybe evict the tenant so you can bring in the owner occupied market.
If the locals aren't doing it for you, terminate their contract (in writing, including removal from the net etc).
Market it yourself after getting the minor works done – note it as a 'fire sale/pre-mortgagee sale/divorce settlement etc' but leave sufficient room to move on price. Advert in local paper, SMH/Age/BCM country properties & on the web with a couple of good photos once all the work is done. Have the work done by a couple of subbies from out of the area whilst the agency period finishes.
This is why in my view buying properties in small country towns does not work. Firstly you will recieve very little if any capital growth ans frankly the returns do not make up for that lack of growth.
Nigel Kibel | Property Know How
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Marc,
I'm wondering why you object to allowing the agent to have his name etc on the signage, advertising. Secondly, I'd consider all of your suggestions to be a form of marketing, just not an expensive marketing campaign. Sometimes I wonder if agents are paid a commission on the advertising that they sell. I'd absolutely agree that these expensive marketing strategies are unnecessary if you have the property correctly priced. Some markets have a realtor magazine, I find that I like looking through these personally, and the local papers as it is much more enjoyable than trolling over the stupid internet, through ads that are a year old, past the same old properties again and again. An agent that I work with a bit sends us this realtor magazine as a standing order, to keep us informed of the market. It makes good reading over a cuppa on the weekend. Personally I've found that fostering a good relationship with a good agent ensures a win win situation for everyone. A good agent is such a wonderful source. I'm always happy to see my agent get something out of the advertising.
SSHales wrote:Marc,
I'm wondering why you object to allowing the agent to have his name etc on the signage, advertising. Secondly, I'd consider all of your suggestions to be a form of marketing, just not an expensive marketing campaign. Sometimes I wonder if agents are paid a commission on the advertising that they sell. I'd absolutely agree that these expensive marketing strategies are unnecessary if you have the property correctly priced. Some markets have a realtor magazine, I find that I like looking through these personally, and the local papers as it is much more enjoyable than trolling over the stupid internet, through ads that are a year old, past the same old properties again and again. An agent that I work with a bit sends us this realtor magazine as a standing order, to keep us informed of the market. It makes good reading over a cuppa on the weekend. Personally I've found that fostering a good relationship with a good agent ensures a win win situation for everyone. A good agent is such a wonderful source. I'm always happy to see my agent get something out of the advertising.
SI'm not objecting to the agent having his/her name on the sign, or the ad, or the photo, or the poster. They need to have some point of contact.
But what happens is they take over the whole god-damned thing, plastering their face, their name, their agency and number all over everything. It becomes an ad FOR THEM; not your property.
Very standard industry practice I'm afraid.
And yes; they are paid kickbacks for the advertising; despite what they tell you. Good luck proving it though. Agents all over Aus are making thousands from advertising for their company that YOU pay for. Why should we?
I agree that you need a good relationship with an agent, but what happens if there are only 2 in the town like with Geoff, and they are both doing a bad job? If these 2 agents were any good, they would have told him truthfully that his property was probably $50k too high; could be more by my guess.
My mother is going through this exact situation right now; her house is way too high. I've told her (nicely) but she wants to listen to the local agents, who she slags off on a daily basis for not selling her house. Go figure that one!
millions wrote:I 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.Did it sell for the asking price?
Could work, but what will probably happen in a town like this is the cost of the changes will not be reflected in the sale price. All it will do is make it more attractive to look at.
It is sad that sometimes the most believable voice is the one saying what you want to hear. Something to remember for the future. And yeah, these two agents sound like a right waste of time – certainly not worth preserving a relationship with. I'm wondering why it is within their interest to not sell this property?
As to making changes to the property – I bet Geoff is in a similar boat to us. If you can carry out changes yourself, then they make economic sense. To pay tradies, though, during a trade shortage, it just doesn't add up. Paint, though is, I think just about the best value for money improvement you can do.
I showed my husband a photo of Geoffs property. And, this might hurt a little, but you should probably hear it. He said it looked like a brick public toilet. Perhaps if you can take away the public convenience aesthetic, that would help.
SL.A Aussie wrote:millions wrote:I 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.Did it sell for the asking price?
Could work, but what will probably happen in a town like this is the cost of the changes will not be reflected in the sale price. All it will do is make it more attractive to look at.
Hi Marc, they put the price up $10k and got it. The new owners sub-divided the block and when they put the original house on the market it sold again within weeks. It was a very dull house on a main road in unpopular suburb, close to industrial area but after the paint job it looked quite cute.
crashy wrote:so that would mean your original price was $217k for a property earning $140? a week? what you smokin man! quote]I don't smoke… See Crashy, if you had bothered to read my earlier posts I tested the market out at one point to establish a environment/demographic by offering a new car into the property package, hence yes I did have the property on the market around the $215k mark whilst it was being rented at $150.00. Therefore, yes, it may not of been appealling to you or an investor but maybe to a young family looking for a solution. Least I tried something.
GeoffB
attitude not required. I was under the impression you wanted a solution, sorry I wasted my time trying to help. If you wanted mindless reassurance & hugs you should have asked for that.
what you call "testing the market" I call "burning the market"
how many families in a small town want a new car?
how many people would say "Im not an idiot, this guy is just jacking up the price to pay for the "free" car, its sounds sus"
what about insurance on this new car? did you consider the serviceability issues?did you really expect the bank valuer & bank to overlook the discrepancy between purchase price & valuation? what would the ATO have to say about the deal?
I had a "stale" property once. I changed agents, took new photos & changed the pricing method. It immediately sold within 24 hrs @ top dollar.
Crashy,I look outside the square to find solutions. You haven't demonstrated an understanding of the solution to the problem I was tiring to achieve, hence all your presented problems. I could respond with solutions to all your question posed, as I did when I undertook the marketing proposal, but I will let you think about them because there all solvable. I endeavour to avoid creating walls.Have a good daymillions wrote:L.A Aussie wrote:millions wrote:I 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.Did it sell for the asking price?
Could work, but what will probably happen in a town like this is the cost of the changes will not be reflected in the sale price. All it will do is make it more attractive to look at.
Hi Marc, they put the price up $10k and got it. The new owners sub-divided the block and when they put the original house on the market it sold again within weeks. It was a very dull house on a main road in unpopular suburb, close to industrial area but after the paint job it looked quite cute.
Good result, but not a good comparison for Geoff I think, unless his block can be subdivided? That would an attractive feature.
I think if you take an ordinary house and make some small improvements it can make a huge impact on peoples emotions. A couple of times we've just tidied up some yards, trimmed trees and shrubs, added a garden and mulched it. They amount of positive comments from neighbours is proof it makes a big impact. Maybe that may be a better soloution for a country town. Here's and example of one we did.
http://www.propertydivas.com.au/Images/Lin/Lin_exterior_before_bw.jpghttp://www.propertydivas.com.au/Images/Lin/lin_exterior_after.jpg
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