Selling IP 'off the market'

Hi all,

We’re looking at selling our IP in Burnside SA. It’s a 2br apartment adjacent to cafés, currently tenanted to April 2019. We’d like to close a deal in Feb or March at the latest.

Is it viable to sell ‘off the market’ by preparing a brochure and sending to all agents in the area? We’ve had an unsolicited offer in the past via an agent with ‘people on his books’ looking for similar IPs. If we can get a fair price this way is this a good option, or are there pitfalls?

Thanks!

 

Why? Are you trying to avoid paying agent fees or is there another reason?

In my experience this is just a hook to get you on their books, then they list your property and it doesn't sell for 3++ months even though they said they had buyers lining up to buy your place, maybe they had someone interested but until they give you a firm offer with deposit ready then it's just all talk IMO
A good selling agent is worth paying for

 

No not looking to avoid REA fees...if they can sell at market rates they get commission.

A number of considerations...

• We cannot present the place well with tenants in there
• They have possessions stacked up to the ceiling in an already small apartment
• Logistics of arranging (potentially) many inspections while tenanted
• Time to sale might be reduced if there are buyers waiting

We have professional photos from when it was impeccably presented - we'd like to use these, but buyers will be walking into something that looks half the size due to tenants possessions.

If we wait until the lease ends then we'll still need to refurnish for sale, and additionally will miss uni student / summer work transfers / etc markets.

I'm assuming that if we send the brochures out to REA's, we wouldn't have to sign with a particular agent unless they have an offer on the table? Perhaps REA's will not work under this arrangement.

An 'off the market' arrangement may not be workable for any number of reasons, really just looking for feedback at this stage!

 

Who wants to buy a place with 2-3 months left on the lease? Investors want a new lease. Oos want it empty.

 

No decent agent who knows the Act and Regulations would take the risk of introducing a buyer to a property without a signed agreement in place for which he/she may not receive a commission.

 

The building is 50/50 owner occupiers / renters. It's difficult to know who to market to. We can extend the current lease in Jan but then we exclude OO's?

 

Thanks for the advice, much appreciated.

 

Tough bikkies for the tenants, sorry! You would not be the first person to sell an investment property or any other property while people are living in it. Any potential buyer will look past the tenants possessions and see the property for what it is. Logistics of showing a property for sale while tenanted is most likely worse in your head than they are in reality

Is it possible to put the tenants on a month to month lease after their current lease expires (if they agree of course) you can always ask the question? Not an agent so not sure of the legalities of doing so but I have been a tenant on a month to month lease before (in QLD).

 

Either get the tenants to clean up or sell it empty in april.

 

So you want someone to buy it without inspecting?

Expect a very low price offer.
Marg

 

Yep the PM has advised that's an option in SA if we haven't sold before then.

 

The property we're in now was purchased with only the buyers agent having inspected it. So it does happen, but probably not common, and perhaps unreasonable to think that would occur when we sell

 

Some cost are worth paying then avoiding and this one is surely worth it!!...

Cheers,