After some months being listed for SALE/LEASE with another agency, the Seller was willing to listen and take advice on the best way forward to dispose of the asset. This was their requirement from the outset as they were entering retirement and no longer wanted the responsibility of being property owners.
When we were appointed exclusive agent to market and sell the property, the sitting tenant still had 3 months remaining on their lease and they would not be vacating until the end of the lease. They had occupied the tenancy for quite some time and the carpets were worn and the walls needed a fresh coat of paint to freshen up the appearance of the unit.
Initally we decided to try and lease the tenancy at $150/sqm p.a. NET + GST to enable a sale as a tenanted investment with a net yield of 7.5% = sale price $490,000 (ex GST). We used internet property search portals, signboards, and our office database to market the property looking for new tenant.
Once the sitting tenant had moved out the Seller moved in quickly to replace carpet and repaint internal surfaces which brightened up the property to no end. We had professional photos taken and spread this across all our marketing avenues. We got immediate enquiry and an offer to purchase within the first week. A deal could not be reached but the immediate impact of a brighter property, splashed across all the core areas of marketing received an immediate result and this was very encouraging.
Within the 4th month of marketing, not forgetting the first 3 months of marketing were with a poorly presented product, we had engaged the ultimate Buyer of the property. Negotiations were quite lengthy due to very comparable properties with realistic asking prices being the competition, but the Buyer managed to settle on our unit and contract of sale was eventually executed.
The settlement of the contract of sale was also a longer than expected process given the Buyer was a Self- Managed Superannuation Fund (SMSF) and the finance process is more complex than if the Buyer was an individual or company.
We are happy to say the new Owner has settled in very comfortably and the Sellers are enjoying retirement.
|Method of Sale:||Private Treaty|
|Marketing Time Frame:||6 months|
|Sale Date:||1st April 2014|
|Sale Price:||$506,000 (inc GST)|