Selling renovated or "as is" in Brisbane

We have been thinking of selling our IP in Brisbane for some time and have been doing our research re similar properties for sale in the area and the sale prices for same and we think that now would be a good time to get this property on the market - with an expected sale price somewhere in the $400s depending on how the market goes beween now and when the tenant leaves - end of June but maybe slightly earlier.
Our PM advised that the property would need a cosmetic reno and some minor repairs/replacements - we expected that to be the case.

We contacted two agents and both have viewed the property and their appraisals vary for expected selling price and costs - Agent 1 suggests low $400000s+ would be easily achievable with costs in low $30000s (reno, commission, marketing and styling) and with Agent 2 costs would be in mid-$20,000s with expected sale price of $425000+ - his most recent sales for similar properties range from low $420000s to low $480000s with multiple offers on all.
Ours is smaller than the higher priced one but better in several aspects re the one in the $420000s, leading us to think that ours would sell within this range if it was renovated and on the market right now.

Both agents would arrange and oversee the reno. but seeing the tenants will be there for next 4-6 weeks, we can't do anything yet except sign with an agent and let them organise the tradies to move in and start work as soon as the property is vacant.
OK, so we decided that the second agent would be our choice due to our belief that he'd be more likely to achieve a better result for us - probably a higher sales price, better reno and with lower overall costs.

Before we could put anything in train, we received unexpected contact from our PM - not associated with either real estate agency- advising that a potential buyer has appeared asking about upcoming sales and this person has seen the property and is happy to buy 'as is' and do own renovation as and when it suits and is also very flexible re contract dates - can settle at a time to suit us and the tenant.
We've had preliminary conversations with this buyer but before we discuss further in next few days we need to reconsider everything..................

No finance clause has been mentioned yet and only pest inspection required although probably not necessary as this has only recently been done.

Of course our costs will be much lower and timelines much better with this option (no vacancy period so loss of rent not an issue) and overall this private sale would be a whole lot less hassle but what about selling price under these circumstances given that nobody knows what the market will do over the next couple of months? and what else should we be factoring in with this approach?

Thanks for reading this long explanation and all replies greatly appreciated.

 

Initial conversation indicates that this buyer would be happy to pay $400k but we'd want to negotiate up from there as we think it's unders right now and likely to be even more so by end June.
It's the nett amount that we end up with that's important as well as the hassle factor.

 

475k , unconditional offer.

Negotiate from there to land somewhere lower where you'd be happy with.

Avoid agent comps, marketing, reno too.

 

Why would u go for one buyer? Why not go to market?

Good luck with it

 

I'd forget about the reno.. if you're only getting a return of $1 for every $1 you put it, it's not worth the hassle. The market should be hot enough to get a good result without worrying about presentation.

The offer of the property managers project managing the reno sounds to good to be true.
Are they're licensed builders that can project manage a reno, cover the home owners warranty (required for all work over $3.3k) and pay 0% commission for their legwork? (builder's usually charge 20% margin on top of trade prices).
I wouldn't try this in quiet times.. but now? try getting any trade at the moment, if they're good, they'll have no time for you.

 

Re sell or no reno, for me it's about where the current value sits. Obviously the land has value. So the question is, will renovating the house add enough value to make the whole proposition worth it. If you can get $2.5-3 returned for every $1 spent (based on current sales evidence of similar), then it's worth the risk imo.

If renovated comparable sales to your property suggests that the money you spend will basically just be returned to you at best, then it's a pointless exercise to reno.

 

I have not read any of this thread at all including the original post. So sorry in advance if off the mark.
In my experience renovated properties are easier to sell and go for more money. You just get a bigger audience. More people at opens, auctions go higher.
Generally speaking I would not sell a property without making sure there are not any obvious ugly aspects.
Kitchen and bathroom are really important.

 

But it's not always the case. Yes renovated properties will likely sell for more, but your capital injection is also more. Which is fine, if you can get a decent return on the money invested for the reno.

That's how I see it.