Hi all!!!
After trying to sell an Elwood beachside 2 br apartment via negotiated sale 12 months ago, I'm now due to have a shot at it again. I learnt alot last time, as the apartment still had tenants, the furniture was not too flash and it was far too cluttered. After seeing another near identical apartment in the same block sell for what I thought was a reasonable amount, I can now do a quick reno and stage the apartment the way I want.
I would love to get people's views on whether I should then go to auction, use an agent to sell or I am even prepared to sell myself? I have read Neil Jenman's thoughts about auctioning only benefiting the agent, but I feel that by going to auction it will force a result and then I can go to negotiated sale later if required. Thoughts anyone?
Negotiating a sale myself doesn't phase me either as I negotiate big dollar contracts in my current work, and I don't feel emotionally attached to the property or that I must get a certain price. I recognise that market value is only what someone else is prepared to pay. Happy to hear other's experiences?
Finally, if I go the agency route (auction or negotiated sale), unless an agency is going to negotiate a sale price for me, I really don't see the value in paying 2% of the sale price to basically facilitate open for inspections twice a week and run an auction day. Has anyone here organised the sale of a property via auction themselves. Ie Facilitating the inspections yourself and having an auctioneer run the auction for you?
I know its lots of questions but this is my first ever property sale. I really want to sell this property now as its negatively geared and I want to free some cash to move on to other things. Looking forward to hearing from someone who has been through this before.
Thanks,
Clint
I have just been through all of this for a sale of a rental of mine in Brisbane. I know Elwood as well and have a place in Hampton.
I finished the tenant up, done some maintenance, painted all of downstairs and the kitchen, reoiled front deck, got a the furniture pack and went down the auction route. Even though I don't like auctions I went for it just to speed things up, he auction was a disaster and the high bid was that low that it ruined my weekend. I am convinced that the agent can use an auction to soften you up.
Lessons learned auction are good for flushing out buyers and forcing bids, the bids can be shockingly low, empty is good, furniture pack is good, but at all costs avoid the big marketing fees that they try and bung on you. Also when you empty the joint and have a furniture pack in you have stopped receiving rent and have more outgoings, this clarifies your thought process.
Mine is settling next week, I never sold at auction and I was on the cusp of reletting it when an offer came from left field about $30k higher than the auction bid. The rent I would have got was a lot higher due to the clean up, painting and furniture pack.
Lastly do you really have to sell as a two bedder in Elwood might be a good keeper.
Thanks for you thoughts bardon!!! Your auction experience is what I am expecting and is why I want to consider a negotiated sale also.
Regards, Clint.
Hi Clint, (and Bardon)
If you do have to sell, maybe auction it and pass it in, to negotiate after. We did this (not in the current market) and it worked well. The highest bid at auction was about $50k less than we got in the week after. One we put up for auction, it never got to auction it sold previous as the buyer didn't like auctions, and another one we passed in, and in the next week only got $5k more….. still not bad for a week of waiting. It's not for the faint hearted tho! We also staged (furniture etc) these properties and had fresh flowers etc at every open.
You're right about having to pay the agent extra, it feels like a bit of a waste when the agent pockets a bunch of cash he didn't really do much for, but it does give buyers an end date.
The other option you could use is sale by set date, set a 6-8 week timeframe and pick a date. This also puts the idea in peoples heads that it will sell.
I highly doubt if you decide to go the sale by negotiation route that the property will sit stagnant for too long….. it's Elwood.
Theres a buyer for everything……
Cheers
D
DWolfe | www.homestagers.com.au
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