WA, Kwinana offer too good to be true?

Hi,

I'm a first time seller of a tenanted investment property (apartment) in the Kwinana LGA. I don't have any experience in property sales so looking for a bit of advice from more experienced people on this forum.

I rang a couple of agents who sell in that area to get quotes for selling costs. (Lowest was 3.1% + $1150 advertising). Within 24 hours one agent came back saying he had a buyers agent from the East Coast looking for properties like mine. The offer came back today right on asking price (<$170k) Subject to building and Pest, 28 days finance then 28 days to settle. They were asking me to sign an offer acceptance contract which I haven't done yet.

I'll be honest, the market for apartments in Kwinana has been awful. I bought at market peak in the last boom and would be selling at a loss. I had expected it to sit on the market a while, have a few lacklustre offers and eventually sell.

What is going on that my dinky little apartment in a low socio economic area has an offer straight away at asking? Should I be aware of any "got ya's" here? Try boost up the offer price then take the money and run?!

I know the market is hot, but surely not that hot in Kwinana?

Hoping to hear your experiences in this market and any wise advice for a complete newbie.

Thanks

 

Cashed up east coast investors are jumping in
I am from Perth I get pms daily asking for advice on the market

I also am buying and my competition are investors from everywhere. Its called a boom cycle

i agree units/apartments have done zip and Kwinana is not ideal, but investors from east are purely looking at the numbers/cashflow

They probably dont care its Kwinana, I would not buy here but I know more than someone using a BA from east

3.1% is high selling??

 

Thanks for the reply MTR. I'm leaning towards signing on the dotted line and freeing up my cash flow for better opportunities!

 

good idea
Now is a very good time to be loading up in Perth. So little stock its driving prices north

 

Have you signed the agency agreement with the REA for him to sell it?
I'd be pushing back on such high commission rates and as it wasn't officially listed I'd probably even counter offer the $170k amount so that it covers the commission - maybe $5-10k more
i definitely wouldn't be signing something that agreed to marketing fees if you haven't signed the agency agreement and (s)he didn't advertise it.

 

Plus advertising

 

this is over top
Should be around 2.3%

 

If you thought $170k was a good price last week take it. A sale like that maybe 2/2.5%

I recently sold one in the same way. 2 potential agents presented verbal offers before I signed anything with them. All I paid them was the 2/2.5% commission.

 

No harm in going back and requesting a counteroffer at a higher price to cover agents' fees as already suggested, in fact, this needs to be mandatory in the current climate where it's a definite seller's market.

It's hot everywhere, so yes, can include Kwinana.

THIS ^^^^^

 

Thanks everyone for the thoughts.

I will definitely go back with a counter offer and challenge the marketing fees that haven't actually been spent. I haven't signed the exclusive listing yet so have a little wiggle room.

Good to know the approx going percentage for selling fees, looks like the few agents I called might have been taking advantage of my inexperience.

Cheers!

 

Also a good time to offload lemons

 

2.2% +GST is generally the going rate in Perth. They may have increased it for such a low sales amount so that they still make a standard commission in dollar terms but I would really push back in your situation.

 

Totally agree, seems like the boom is not stopping anytime soon. Buyers from the East generally don't care about the location as long as the numbers add up "has to be positively geared" and anything under $800k they are snapping it without a second thought....

 

But investors should really think about this and make good choices. Infrastructure, school zones, growth, rental income
I am happy to help but you need to do the hard yards