Selling Strategy - free stamp duty

Hi all

just a quick question, we are having trouble selling a small vacant land lot and thought that perhaps if we offered free stamp duty it might motivate a buyer to put an offer on.

Do you think this is a reasonable thing to offer?

Thankyou.

Adam

 

When real estate is not selling the reason more often than not, is the price. So you have lots of options: free car, free stamps, free holiday, free whatever that your particular market segment appeals to......who is your audience? FHB? Retirees? Holiday makers? Target your offering accordingly, Adam.

 

Thanks Alan, food for thought. When we settle on an agent I will look at some of your options and work out a strategy that suites the location and possible buyer. Many thanks, Adam

 

Where is your land, what’s the size and how much are you selling for? Have you got a link to the listing?

You might be able to get some feedback from forum members about why it isn’t selling.

 

Also, if I saw free stamp duty I’d probably think it was a scam. Why not just drop the price by the stamp duty equivalent - you might see some action then.

 

Fair point thanks Curious, however, I have tried to sell it with or without price, make an offer etc, just can't seem to get a bite.

 

Only the office of state revenue can offer free stamp duty, and they won't.

If you're suggesting you'd rebate the stamp duty, lenders will simply assume the value of the property is the purchase price minus the stamp duty and lend against that. This will limit the purchaser's finance options.

 

Thanks Peter
Yes, fair enough. Just trying to find something that will make it stand out a little so that people might at least put an offer on the table.
It's a nice piece of land, just not selling.

 

Double the agent commission?

 

Thanks Terry, I will have a squiz

 

Seeing as you put up the address I did check it out and I think there is a number of issues
1. you started too high so the listing went stale, once it goes stale it falls off everyone's radars. If something hasn't sold within 3mths it's best to take it off the market and relaunch it with a more competitive price. Your listing started at $185k and then dropped then was on the market for more than a year. When it just says Price Upon Application it turns people off. People want to see a price and know it's a good price
2. it's just too expensive. COnsider this listing which is quite closeby but 90sqm more of land is cheaper 2/76 Verna Street, Gosnells, WA 6110

That's my 2 cents. You may know the market better but at the moment it's all about price and there are quite a few blocks that are cheaper than yours in the area that are not being snapped up. It's quite amazing how cheap land is there but it still has to be good value.

 

Hi Westy
Thanks for your input. Yes the price was high before but the market here has dropped significantly since then.

Maybe I could drop it to the same price but there are actually other lots dearer than mine but they haven't sold either. There is movement though, just got to get the listing right. I have asked people to make an offer so what else can I do?

 

my bad looking at the wrong lot!! You are indeed correct.
I think I’d contact a few builders and see if they have a design that fits your lot and see if they can put up some H&L packages on it to try and generate some additional interest. @Scott Townsend is this something you guys do?
Plus relaunch afresh with a keen price. Make sure it has a price listed and just start again.

 

Have you considered the tax implications of selling a vacant lot?

You will have to pay GST and all the profits will be considered income, and be taxed at the marginal rate.

Are you in a position to finance a build on the block?

 

Thanks Arch, don't worry, we won't be making any profit so no need to consider those issues sadly. I am not sure if the market will support building as a viable solution at the moment. Maybe it is a question I need to ask in this forum somewhere. Thankyou for the thought.