Hi All, Hope everyone is well. We are planning on selling our investment property in Sydney and just want to get peoples opinions or advice on what to watch out for or look for when selling and what are some good selling strategies. Question on fees: What are reasonable agent fees these days? Our real estate agent came back with 5.8k proposal for marketing costs which seems quite high, including 1.5% plus GST for commission. Is selling via Auction recommened for achieving highest price? We also like to small renovate our property which is overdue and requires, but currently have tenants in there month by month, and was wondering if it would negatively impact the results of the sale if we to remove the tenants, renovate and then sell while the apartment is empty. Thanks in advance. Cheers, John
Agree. It includes advertising in portals such as domain.com.au, signboards, photography, etc. The listing and advertsing of the property in a portal such as domain.com.au or other I think is sufficient enough in todays market, but they have come back with a full package with many options to choose from. Gotta love the gold listing 60 days +ebrochure for 1307.
Not sure why you'd sell your property empty - it's been our experience that buyers are better able to gauge size of rooms and overall look of property when it has nice furniture and accessories - they are more likely to fall in love with the property and pay more. Seeing you say that your property needs some work, it wouldn't be advisable to try to do this while your tenant is there - too inconvenient for your tenant as well as those doing the work and also once tenant is gone, you will be better able to see what actually needs to be done - e.g. paintwork, carpets etc. In your case, it would probably be better if you gave your tenant notice and had the work done afterwards - quicker and easier all round. After that, have it styled by a professional property styiist who will bring in all that's required - furniture, accessories, artwork, style the beds, even provide towels etc. - money well spent. Not sure of costs in Sydney but a few thousand dollars for a set time period which can be extended if need be.
Definitely do this - a quick clean, paint, floor and window furnishings can do wonders for the price. Plus having tenants there means open inspections much more difficult etc The Y-man
Our REA also recommened to best have tenants in there during the sale as per fantail. What's a reasonable commission rate these days including GST? Our REA is asking for 1.65% incl. Can these rates be negotiated? Thanks.
I am currently in the process of renovating an apartment I've held for a few years in Sydney's eastern suburbs and doing a cosmetic reno to update, add more perceived value than cost and arouse the emotions of buyers to pay top dollar. But that's because my DD for my area and property led me to that decision. I know nothing of your property but if it were me,.This is what I'd be doing before deciding how to sell. 1. Compare current sale values of renovated to unrenovated stock as similar as possible to yours. If there is a significant price gap then, 2. Determine how much you would be able to do a reno for. If you cost it at 30k, and based on comparables it could increase your return of 60-90k on your money spent, so for every $1 spent you can get a return of $2-3, then a reno would definitely be worth the associated risks (for me). 3. If reno vs unrenovated isn't worth it after a cost/benefit analysis, then probably do a very simple interior paint job and tidy. Often some paint can drastically change the feeling of an older place. 4. Negotiate on commission with 3 agents you feel are good. Don't try and kill their fees, but some negotiating can save you a few thousand and the agent will sell be happy to get the listing. Let's face it, agents turn up 5mins to open, take numbers, call and present offers. 5. If you live in a high demand suburb where prices are growing strongly and many are selling for good prices at auction, then I'd definitely be going to auction. Talk to agent re auction and also do your own DD on recent sales, for sale vs auctions. Best of luck
Most agents do average, like any business. Only the best ones last long term and do well. Real Estate Agent Salary in Australia | PayScale
1.65% isnt high. I would say thats well on the lower side of average. Maybe no negotiation vs a agent with 2.7% Any agents who marketed low fees arent in business anymore. We had one who used to promote 1.1% incl GST. You have to ask why so many choose to list with local agents that charge twice that and they keep selling them even while prices rise. Maybe they focus on selling at higher prices rather than just getting it sold ? And spend some $$ on marketing. Given this market just make sure you set a high but realistic selling price so they do their job and achieve what you are seeking. Its not a market for buyers to negotiate a price down unless its over priced. Some property is selling way above asking just 6 months ago so focus on what agents consider it may realistically sell for and take their guidance on all strategies to help that happen. Focus on the selling price not what it costs to sell. If they sell for $100K more than a cheap agent you will be 98% better off. A good agent will play three interest bidders off and still be seeking a 4th buyer to join the bidding. Picking the cheapest agent wont mean a better outcome if they do a rubbish job. Is a auction worth it or not ? And listen to their opinion on renovation and tidy up etc.
