Dogs breakfast of a sale process -advice please!

Hi guys,

Selling a PPOR in the Wollondilly, seemingly a booming market and the agents made a complete disaster of the sale so far.

Firstly it’s tenanted. We should have just given the 90 days and waited, but the agent wanted to push ahead with the tenants in place. First open, we accepted an offer of $800k, about $50-$80k less than he’d said he expected and then we sat around for a week waiting for the buyer to sign the contract, missing the chance to open the next weekend when the buyer invariably pulled out (despite me nagging to list the open anyway!).

So open again yesterday, another offer, but I believe the agent told the interested party that we’d had a contract fall through for $800, so they’ve offered $802k and refuse to budge upwards. Offer also was pending their own sale going unconditional. Agent went in Gung ho with a counter and got shot down, and now it’s been left in a very awkward position.

Now, being stuck in agency agreement til 2 July and the tenant now officially leaving in a few weeks, I think our only options are 1) to try and accept the $802k tomorrow morning, if it’s even on the table still. 2) short term rent the property or leave it vacant and list it July with a better agent, or 3) just take it off and wait the month or so until it’s empty and have this less than desirable agent relist it and cross fingers?

Advice please, we want the cash to build a new place but are not desperate yet. Have been caught in a market that turned on a dime in the past, so slightly (maybe irrationally) concerned about waiting months, albeit maybe a higher upside. TIA

 

If it’s in a somewhat high demand area, you can keep on the market and see if you get a better offer. Possibly even change it to an auction campaign, as you say it’s seemingly a booming market.

Gotta say though, I really don’t like your agent. I’d be ropeable.

 

Problem is you'll have to pay another lot of advertising fees if you switch agents in a month.....but probably worth it given your description of the issues this far.

 

When the tenants are gone, go in and clean it up, pay for staging and get new photo's done (could be the best $3-5k you spend).
If you don't get an offer closer to $850k then wait, hold your ground (tell the agent outright today "don't come back with any offers under $850k ).

 

Same! Maybe name & shame them. Might not help you, but may help others, but wait until you are no longer under contract with them.

 

Sometimes you just have to play hard ball with the Agents. I had one a while ago. All the Agents we interviewed said that it would sell for around X price. I said that I wanted Y price, which was around $60k more. I told the Agent that we chose that I would not sell for anything under Y price, and gave him a tiny window of two weeks to achieve it (he only had a contract with us for two weeks), or we'd go elsewhere. He got the price we wanted.

 

Agent sounds quite inexperienced. If you're getting an offer each open, then why not wait for another open to see if you get a better offer, it will put upward pressure on your first offer.

Also next time you sign an exclusive agency agreement, make it 60 days instead of what sounds like 4 months this time?

 

I agree with Stoffo above. If you can wait until the property is untenanted, you’ll likely expand your buyer pool.

Once vacant - clean, style and sign a new agent. It’s anyone’s guess where the market will be at that point, but I believe you would be giving yourself the best opportunity at a premium price.

All the best!
- Paul