Selling my ex PPOR to tenants - advice?

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goldies
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@goldies
Join Date: 2010
Post Count: 115
July 10, 2012 - 7:41 am
Hello knowledgable ones…
ANy advice / suggestions on not using an agent for a sale, simply going from one solicitor to another.. here is the situation…
I recently moved out of my PPOR (6 months ago) and moved to WA. The tenants in it have decided they want to buy it from me.
I have had 2 different agents come out to do an appraisal and they both sit at a listing price of $449k with definite sale between $428 – $435k. I have disclosed the listing price only to the tenants so they are aware of the value.
Now some people in my life are saying I should take another $12- $14k (agents commission) off that bottom end sale price of $428k and be happy with that but I think that the house is worth $435k and It should be a benefit to me that I dont need to use an agent, therefore pocketing the commission..
Thoughts?
Also, anything I should be wary of / instruct my solicitor to do? I have never sold, only bought so I have no idea…
Thanks everyone!
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
July 10, 2012 - 9:06 am
Get a valuation done. Agent's listing price usually doesn't bear any relationship to value
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Jamie Moore
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@jamie-m
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July 10, 2012 - 11:28 am
What Terry said – REA's will tell you what you want to hear…which is often an inflated value of your property.
At the end of the day, you should only sell it for what you believe it's worth. An independent valuation should provide some good guidance.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Mortgage Broker assisting clients Australia wide Email: [email protected]
Your Broker
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Join Date: 2012
Post Count: 22
July 12, 2012 - 2:27 am
Ultimately whether you use an agent or not what you sell it for is a negotiation. I would let the tenants know that the listing price is $449K . Then leave it to them to make an offer.
If you get a valuation done yes you are going to get a more conservative value, but accurate that could be questionable the way valuations are coming back at the moment. I would question what you want a conservative valuation for when you are the vendor.
As a vendor you always want to get top dollar and that is your right. I would leave it in the tenants hands to make an offer. I would still go for top price and only take into account the money you save on commision when you are considering there top offer. eg. If there final offer came to be $425K do you want to risk going on the market to possibly get an offer of $430k only to have to pay agents fees and marketing fees? that is the only time i would take agents commission into account.
You also have to remember the tenant have to take into accoun they are buying a house that they already live in so they will be saving money on moving, not to mention stress of moving and hassle of you having the house on the market while there in there.
Go for top dollar but keep in mind what you may lose if you put the proeprty on the market.
As for doing private sale get in contact with your conveyancor and discuss it with them they will have all the documents for doing up private sale documents. quite an easy process.
regards
Dustin McMahon
Your Broker
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goldies
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@goldies
Join Date: 2010
Post Count: 115
July 12, 2012 - 7:36 am
Thanks guys. Let's not even begin to discuss bank valuations at the moment!!!
I am still waiting on their reply. Shall let you know how it goes.