Selling an IP in South Yarra

Discussion in 'The Buying & Selling Process' started by pool100, 8th Dec, 2016.

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  1. pool100

    pool100 Member

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    Hi all,

    I have an apartment in South Yarra that I'm thinking of selling. Can anyone point me in the right direction for selling process?

    I see many threads on BAs in this forum but just wondering if there's such a thing as a seller's agent?

    Or if anyone can recommend a good agent in that part of melbourne that would be much appreciated too.

    Thanks!
     
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  2. Big Will

    Big Will Well-Known Member

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    There are two people at my work that are looking for a unit in South Yarra area but depends on what it is as they are looking for a small unit.

    About your question there is a seller agent but they call themselves vendor advocacy. They will interview the real estate agents and you will have to pay them.

    Thing is the real estate agents get less commission from them so the better agents usually don't deal with them as they get enough work at their rate.

    I would talk with some agents and go to some open houses to see how the agents engage and who you feel can do the job the best. Otherwise if it is all to scary get a vendor advocacy to assist you just know you are paying them for it.
     
  3. MTR

    MTR Well-Known Member

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    it's a sellers market in Melb ? if the product is in demand you go auction surely
     
  4. chesterfield

    chesterfield Well-Known Member

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    I'm not so sure it's a sellers market for apartments in south yarra, there are literally thousands of apartments there... I recently rented there for 2 years and wouldn't be going to auction.
     
  5. Marg4000

    Marg4000 Well-Known Member

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    Even within agencies some agents are better than others.

    I have no intention of selling, but already know the person I will go to if I ever decide to do so.

    Attend open inspections in your area. Chat to the agent as if you are a buyer. See how enthusiastic they are, how much they interact with other people inspecting and whether they point out good features or simply let people walk around. When you find someone who impresses you, get their card.

    Once you have a couple of good prospects, then call them to give you an appraisal and marketing plan for your unit. You will be working closely with your agent, so it is essential to get someone you are confident in and can talk to when you want to.

    I would steer well clear of those new companies claiming to choose them"best" agent. They work on commission so their views are necessarily compromised. And they only choose from agencies willing to pay them.
    Marg
     
  6. MTR

    MTR Well-Known Member

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    oops, did not read this, you are absolutely right, too many apartments.
     
  7. EconomicAcrobat

    EconomicAcrobat Member

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    I moved to South Yarra a few months ago and have been keeping an eye on the market.

    It's in no way, shape or form at all a sellers’ market, in fact it’s quite the opposite! It's very firmly a buyers’ market, the sellers are just slow to realise this fact.

    There has been a massive amount of construction, thousands and thousands of dog boxes that were rushed to market to soak up the hot Chinese money built in South Yarra and Melbourne in general (Brisbane and Sydney too).

    Now that the Chinese are struggling to get finance all the off the plan contracts are failing and there is a huge amount of apartments on the market that is quickly turning into a glut. I go to 3 or 4 auctions every weekend and I have only seen 2 non vendor bids in months. That's pretty poor!

    In fact things are so bad the industry are selling this BS to the investors... this was recorded at 'grand opening' of a new apartment building... they still have over 40 apartments unsold... after combining many of the single bedrooms into doubles... kind of bad considering off the plan used to sell out a year or 2 before completion.

    Recording: https://drive.google.com/open?id=0B6P-bZoDklfSSXdJaFlGX2U3TEE

    If you still need more convincing:
    Housing boom has peaked apartment glut to rock the economy Morgan Stanley.
    Apartment prices in our cbds are falling.
    Failed off-the-plan apartments secondhand
    Scott morrison eases limits on foreign buyers as apartment glut looms.
    NAB cracks down on property lending to reduce risk.
    ANZ Bank's Shayne Elliott warns on overbuilding in apartment market
    Australian apartment developers offered an exit strategy
     
  8. MTR

    MTR Well-Known Member

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    You don't need to convince me whatsoever... read my thread "Is it time to be cautious"

    Lets put the shoe on the other foot, if I wanted to buy a bargain, an apartment, is it the right time? I expect still time to wait?
    Also, would you buy this product if it drops 30-40%?

    MTR:)
     
  9. EconomicAcrobat

    EconomicAcrobat Member

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    Still time to wait. While there is a huge number of apartments on the market now there are 10x more in the process of construction...

    If you truly get a motivated seller, buy for sure. A month ago there was a report of a Melbourne CDB 1 bedroom apartment being sold for $161k!
     
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  10. Ouchmyknees

    Ouchmyknees Well-Known Member

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    There are good apartments and bad ones in South Yarra. The newly-built shoe box ones which target overseas clueless investors are mostly bad in my opinion.

    Some period apartments are very gorgeous and spacious, perfect for DINKs and hippies. I'm biased, I have one in a neighboring suburb, when I leased it, it was only on the market for one day.

    There are also gems like this which rarely go to the market and are in a league of their own.
    391 Toorak Road South Yarra Vic 3141 - Apartment for Sale #123764398 - realestate.com.au
     
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  11. Cimbom

    Cimbom Well-Known Member

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    That is very nice. I wonder how much it costs :p
     
  12. Big Will

    Big Will Well-Known Member

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    listPrice:3750000

    I would say they are after about 4M for the joint.
     
  13. Cimbom

    Cimbom Well-Known Member

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    Back in Canberra!
    Wow, a lot more than I thought
     
  14. Indifference

    Indifference Well-Known Member

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    That's about what a 1 bed with no car space should cost IMHO.....
     
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  15. zed_kid

    zed_kid Well-Known Member

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  16. EconomicAcrobat

    EconomicAcrobat Member

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    I'm in total agreement. Many have been asking over 500k though!
     
  17. melbournian

    melbournian Well-Known Member

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    That is very true. The apartment market has many product types. The ones most which are at risk are those student based accommodation and small ones. Not surprise someone mentioned you can get 1 bedder for 161K it is likely without carpark and below 50sqm in size. in fact I have seen ones for even less than that.

    You have the "the block" type apartments that get sold for millions. You have many loft apartments build in the late 90s which are the size of a small house in surburban areas for less than 800K. you have the full facility ones which are costly like the freshwater places, eurekas etc. Even exclusive apartments like the melburnian which footballers and celebs live in.

    So it is hard to paint an overall picture but badly designed products are the issue esp in CBD and southbank. the other thing is the general perception that the money is only Chinese (as in mainland Chinese). There are many different type of Chinese in the Melbourne market and the biggest players are not necessarily Chinese.
     
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  18. MTR

    MTR Well-Known Member

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    that is very cheap, that would be a studio under 50 sqm? what would be the true value??

    My daughter moved to Melb and looking for something for her and when we travel over to Melb which is now frequently, 2 bedder. I will pay attention to this market, I think you right wait, early days hoping over next 12-18 months we will see some fire sales.

    MTR:)
     
  19. melbournian

    melbournian Well-Known Member

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    Whereabouts are you looking ? suburb wise
    there was a passive drop in 2004/05 like 20% drop in apartments that time.
     
  20. The Y-man

    The Y-man Moderator Staff Member

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    I have a 1BR in the area, and it is definitely a buyer's market. If there was anything close to a property price crash - this is it! The value for our property is at around 2003~4 levels after coming of a high just prior to the GFC

    If you are definitely needing to sell, we have just had a good experience with an agent selling a small (sub-40sqm) apartment in inner-Melbourne and happy to forward their details to you (they are apartment specialists).

    In terms of a process:
    1. get a property report run for the current value (to set your expectations)
    2. visit opens of other properties for sale. Determine the similarities, note attendance numbers and follow up what they sell for
    3. commission your lawyer/conveyancer to prepare the Section 32 - do this EARLY! Do NOT let the agent do the first open without the seciton 32 being ready (we made this mistake - the most enquiries are in week 1 - you must have the s32 ready)
    4. meet the agent(s), establish pricing, costs for advertising, commissions method of sale
    5. make sure the property is immaculate before the photographer goes in
    6. make sure power is connected for the duration of the campaign

    The Y-man
     
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