Selling in Gladstone

We have had our unit on the market for nearly 2 months now. Started off at $260,000, dropped to $219,000, then to $199,000 and now we are at offers over $170,000. Still not much interest.

I believe we have made a mistake with the marketing - should have gone in a lot lower in the first instance. Now people have seen the price tumble - that would surely put people off..

Anyone have any suggestions on how to turn this around and any tips on selling in a depressed market?

 

I'm not sure, Ems. You might have ended up where you are a bit quicker, but that's all. I don't think any harm has been done. The market decides what something is worth, not necessarily the marketing.
You're not in a position to do vendor finance or anything like that and you wouldn't be interested in a long settlement.
Scott

 

For marketing to work there needs to be a market there to support it.

Maybe a reverse auction could be a goer? Start at a high price and then decrease until someone buys it.

 

Is that a real thing?
How does it work in regards to bidding?

 

Others will probably be able to give better answers but if you are talking Gladstone, my gut feel is that it could hang around on the market for a year or so unless the pricing is very attractive. Anything faster and you have done well.

 

I think you are correct, the market has tanked so you need to meet the sweet spot unfortunately.

I would look at most recent sales for similar property and use this as a guide. I think go in aggressive, by this I mean low price to attract a buyer and offload asap

 

Auctions only work if you have competition/buyers, unfortunately this market has tanked.

 

Sorry to hear you are hurting. Re the market...Vacancy rates topped in early 16 at 10% and have since fallen to 5% so it would seem to me the worst is over but the rental market will take a bit more time to equalize (around 2.5%). It usually takes another few yrs for capital values to get out of dead cat bounce and into recovery mode. In this case it really depends on the QLD mining economy which of course depends on global appetite for ore - a pick up could see a faster recovery I guess but its still hard to predict that coming immediately. Depending on your personal situation it might even be worth sticking with it if you are in no rush. If you need to exit of course rip the bandaid off. Is it rented out ok?

 

At $170k what would be the net yield (%)?

 

Thanks all.

It's currently renting for $325 a week but that's fully furnished.

 

How much are the annual holding costs (strata, council, water, insurance)?

 

Around $7500 pa.

 

Hi @Ems how did you go, Get through a sale?

 

So based on the Market price of $170k it has a net yield of 4.4% so about breakeven
So probably with holding

 

Yes sold in August for $172,300.

 

Great so only 1 left???

 

They have both sold now. The other went in July.

 

Both sold?

And a new little baby girl?

Winning!
Marg

 

Ok great news, congrats!! Must feel good to have them offloaded. So 6 months on the market sounds quite good, any feeling up that the market is slowly turning & buyers were becoming a little warmer in showing interest?

 

I know exactly how you feel (mostly)

The day when your bleeding property settles, Is a huge weight off your shoulders