Selling apartment in Inner North, Melbourne

Discussion in 'The Buying & Selling Process' started by mc123, 27th Jan, 2019.

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  1. mc123

    mc123 Well-Known Member

    Joined:
    28th Jul, 2015
    Posts:
    100
    Location:
    Australia
    Hi all,
    Looking to sell an older style 2 bedder apartment in the inner north of Melbourne.
    I've spoken to a few agents and now toying up whether to run an auction or private sale campaign, and if private whether to put a single price or a range. Given that it's a 1980s apartment in a complex of 10 and not a family type house, i'm leaning towards private sale, and really relying on the agent to work his negotiation skills.

    There seems to be contradicting opinions from the REA but I guess they have their own agendas in getting a sale across the line.
    Auction - Pro's: creates a sense of urgency and pre-determined deadline but can still sell any time of the campaign (who really knows what a best offer is until you look at hindsight), potential to draw out an emotional bid?, Con's: If it passes in, it becomes a private sale and may have a negative perception as "damaged goods"; agent may lose momentum in getting a top result if it passes in, doesn't seem to be the right method given apartments are homogenous and not unqiue

    Private listing: Pro's: Vendor can control the process and get buyers to create closed door competition. Listing a range may get people to low ball with REA having to work his magic to increase their offers. Listing a flat price will probably get low offers and negotiations to move up. Downside is - if it doesn't sell after a period of time, the flat price will only be revised down creating more negativity..

    Con's: can drag out on and on, may not get that emotional bid? People may already have a negative perception and ask if it passed in at auction otherwise it won't be a private sale?

    Apologies for the ramble but keen to get some views given the dwelling / location.

    Thanks
     
    mc123, 27th Jan, 2019
    #1
    KateAshmor likes this.
  2. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,498
    Location:
    Melbourne
    Oddly when I sold our 1BR Nth Melb apartment back in the end of 2016, I thought we would go to Auction as we always have. Our agent in the area however said to go private sale. We were rather surprised, but went with his plan - and he got it sold (and this was the THIRD time we were trying to sell it over a 10 year period!!)

    Main thing - get an agent who has successfully gotten a good price for a similar apartment in the vicinity

    The Y-man
     
    The Y-man, 27th Jan, 2019
    #2
  3. Alastair Mairs

    Alastair Mairs Member

    Joined:
    6th Feb, 2018
    Posts:
    9
    Location:
    Melbourne
    Auctions are great but only if the property is in high demand and has scarcity value. No point having an auction for a high rise apartment for example that is dime a dozen. Private sale asking price needs to be well thought out particualrly in this market so to not scare buyers off from inspecting.
     
    Alastair Mairs, 6th Mar, 2019
    #3
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