All Topics / Help Needed! / Help needed on sale of property

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  • Profile photo of PenproPenpro
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    @penpro
    Join Date: 2012
    Post Count: 6

    My unit is  in the market for a year and there is no offer from a single buyer. The unit is marketed by an agent who conduct regular open house.

    There are buyer walking through the unit and the feedback are;

    – its too small for a two bedroom

    – living room is small

    – kitchen is small

    – insufficient natural light

    Currently, I'm living in the property.

    Appreciate advice on how to sell my property.

    Thank you in advance for your advices.

    Profile photo of Jamie MooreJamie Moore
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    Hi and welcome aboard.

    You need to lower the price – one year on the market is too long, chances are you need to adjust your expectations.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of PenproPenpro
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    Thanks Jamie.

    I'm flexible with my price.

    There ain't an offer from buyer.

    Profile photo of DerekDerek
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    @derek
    Join Date: 2004
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    Aside from possible wrong price it would also seem that the unit is/appears small.

    Can you remove some of the clutter (excess furniture, chairs, kicthen ware etc) to make the place seem more spacious?

    What about a change to lighter colours to make the place seem larger?

    Having curtains and blinds open?

    A couple of strategically placed mirrors can make a place look larger.

    Have you spoken with another agent. Some agents are LAZY – there is no other way to put it.

    Profile photo of Richard TaylorRichard Taylor
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    Have you consider providing some form of Vendor Finance or second mortgage carry back?

    Might open up a different category of potential buyers.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    0-40 Properties in a decade with an unencumbered value of over $35M. Email for a copy of my API article

    Profile photo of Jamie MooreJamie Moore
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    Maybe look at assigning a new agent. Any property will sell at the right price – maybe your REA isn't being proactive.

    Like Derek said – try to declutter the property and maybe put up some mirrors to give the illusion that there's more space, this can work wonders.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Jacqui MiddletonJacqui Middleton
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    Join Date: 2009
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    Definitely de-clutter.

    What colour are the walls and ceiling?  If the answer is not white, then paint them.  White.

    Jacqui Middleton | Middleton Buyers Advocates
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    Profile photo of Nigel KibelNigel Kibel
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    I would also suggest a new agent. The problem is that the agent whether they mean to or not will also have a negative attitude about your property. I am not knocking the agent its just human nature. A new agent will take a fresh approach and will also have a more positive attitude. When I was an agent it was always interesting that even when a property had been on the market a long time once a change of agent took place the property often quickly sold.

    Nigel Kibel | Property Know How
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    Profile photo of InderInder
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    @inder
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    I believe that every house has a buyer and I am sorry to say that you might be with the wrong Agent.

    There are few things you might need to Re-considered

    Price – C.M.A. (comparative market Analysis) –

    Comparing Sold and listed prices for similar houses /units in your area – your agent should be doing that at least once every month for the simple fact the real estate prices move up and down

    Living room, Kitchen, bedroom to small –

    Try to move furniture around, clear all unwanted furniture or clutter and try to make more empty space. If the wall and décor color are too dark it might be one reason of the property looks small

    Insufficient natural light –

    Change your inspection timing to when your property gets best natural light. During Inspections just make sure you open all doors and windows turn on all lights inside the room, try to use some nice natural oil fragrance (not the cheap artificial once) and it might do the magic

    If you still don’t get any offers its worth talking to property stylist and renovating the property smartly.

    Feel free to ask any questions and Good luck for your next open home.

    Regards

    Inder Waraich

    Profile photo of kong71286kong71286
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    @kong71286
    Join Date: 2009
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    Katrina Maes Sells a course on How to Stage a Property and sell your property faster and for more

    Might be well worth the investment considering the costs (E.g. Marketing, Interest on loan) involved for having your property sit on the market for long periods of time

    Profile photo of DerekDerek
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    Nigel Kibel wrote:
    I would also suggest a new agent. The problem is that the agent whether they mean to or not will also have a negative attitude about your property. I am not knocking the agent its just human nature. A new agent will take a fresh approach and will also have a more positive attitude. When I was an agent it was always interesting that even when a property had been on the market a long time once a change of agent took place the property often quickly sold.

    Hi Nigel,

    That is a perspective I hadn't considered – cheers

    Profile photo of PenproPenpro
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    @penpro
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    Thanks for all the advices.

    The property is in a block (of 90 units)  and there are > 10 units up for sale at point in time.  There was not one sold during the last one year.  

    Numerous agents and hundreds of potential buyers have plied the block. The main setback is the floor layout  which presented the property with the following issues;

    – its too small for a two bedroom

    – living room is small

    – kitchen is small

    – insufficient natural light

    Is anyone familiar with this site :   http://www.sellyourhomefast.com.au and how does it operates.

    I've an agreement (expired) with the current agent which states the marketing fees (approx $1K)  is payable upon the sale of the property.  In this instance, as the property is not sold, will the agent offer a discount on the marketing fees.

    Thanks.

    Profile photo of mel_d01mel_d01
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    @mel_d01
    Join Date: 2008
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    Hi Penpro,

    Do you have an online listing with pictures maybe a floor plan?  then we could give some pointers, painting everything white is a good idea but buyers nowadays are switched on to this, that sometimes all white seems too stark and uninviting. Maybe adding wall lights with directing light up to the ceiling maybe able to create a more ambience light and at a relative low cost.

    A year is rather a long time, how many people have come to view your property over that time?

    Hmm sounds like you have a bit of competition with 10 other units. Who are you marketing the property to? another investor, a city commuter, a student? maybe offer an extra incentive with the property like a new appliance (eg TV or Ipod dock with wireless speakers set up in living area) only if your marketing towards owner occupiers. Investors only want to see numbers and lower prices or maybe depreciative fixtures? Has anything been renovated recently?

    Profile photo of PenproPenpro
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    @penpro
    Join Date: 2012
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    Thanks Mel.

    I'm planning to speak to a property stylist  for options.

    Profile photo of thecrestthecrest
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    If you're living in the property at the moment, you might need to de-clutter so it looks as tidy and functional as a serviced apartment or motel unit, which would create the illusion of more space and create a point of difference with thew other 10 units competing for the attention of buyers and agent.

    Also you can immediately create a point of difference in the agent's mind by increasing the agent's commission by $2000, instead of sliding on your price under pressure.

    Cheers

    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
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    Profile photo of Scott No MatesScott No Mates
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    Market it as a 1 bed + study/2nd bed – create that point of difference. Declutter & style appropriately to suit the marketing story, move all the excess into storage.

    Profile photo of Paul DobsonPaul Dobson
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    Join Date: 2003
    Post Count: 1,196

    Hi Penpro

    I'd go back at Richard's (Qld007) suggestion, i.e. Have you consider providing some form of Vendor Finance or second mortgage carry back?  'If you make a property easy to buy, you make a property easy to sell'.

    Cheers,  Paul

    Paul Dobson | Vendor Finance Institute
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    An alternative way to finance your home.

    Profile photo of mattstamattsta
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    What area is your unit located in? It can be two options: you are expecting too much for the unit or you have a bad agent. If you believe that your price is right, just change the agent. I agree with previous posters: 1 year on the market is too long. 

    Profile photo of Tamara43Tamara43
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    Join Date: 2012
    Post Count: 57

    Hi Penpro

    I'm in agreement with Paul and Richard….you might want to consider setting it up as a VENDOR/SELLER FINANCE sale and offer the property as an "opportunity" for a first home buyer. Please don't lower your price – you don't need to. (Sorry Jamie – disagree with you on that one!).

    1) I would get rid of your RE Agent…..sounds like he's doing a terrible job!  No place should be on the market for 1 year and you don't need to pay any money to this person.

    2) Declutter, paint if you need to brighten up the walls to give the illusion of space etc…..but don't spend a fortune on this as it's not worth it! I wouldn't go to the trouble to have it staged by a professional or anything like that. People in general are fussy and/or weird about interior decor, so no matter how you style it, there will always be someone with a negative comment or statement.

    3) PUT AN AD IN YOUR LOCAL PAPER and SIGNS AROUND THE AREA:

    " No Bank Qualifying, buy my 2 Bed Unit, $xxx/week, Call (insert your name): your phone number."  The dollar figure you'll need to work out as what works best for you in terms of payments over time.

    4) Let buyers know what your selling for and offer them the ability to pay you an upfront amount of say $5-$10K as their deposit and the rest can be paid in installments. If you go through a mortgage broker they may be able to assist in qualifying buyers for you and you'll need to see a VF Lawyer to set this deal up as an Installment Contract.

    This should set your unit up as a "point of difference" to the other units, and could also potentially increase the price of the other units in the block that are going up for sale. It's a very effective method of marketing to a large proportion of people who cannot get bank finance in this day and age and/or cannot or have not saved a huge deposit, but would love the opportunity to purchase property.

    To read more about Vendor/Seller financing…..Rick Otton has a book called "How to Buy a House for a Dollar". 

    Good luck. Hope all goes well…..cheers, T43

    Profile photo of Paul DobsonPaul Dobson
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    Join Date: 2003
    Post Count: 1,196

    Hi Penpro

    I agree with Tamara but advise you to also consider the rules that go around vendor financing.  I'm not discouraging you in any way but I suggest you have a read of this post:  https://www.propertyinvesting.com/forums/creative-investing/4346526  to ensure you operate within the rules.

    There are also some rules about how you go about advertising your vendor finance (VF) property that aren't covered in the book mentioned above.  If you do consider selling with VF and would like an information sheet on these rules, let me know.

    Cheers,  Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

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