Advice needed on helping sell a distressed property

[Pisces01]

Hi
I have friends who are in trouble and need to sell their house to pay huge medical bills. They're expats, so they were not covered by Medicare and their insurance company wants them to pay everything upfront. In addition, they have used almost every cent of equity in their home and are a few months from foreclosure by the bank as they cannot make the repayments either. They don't want the bank to sell it for what they owe them, as that's way, way below value. They have contacted a few agents, who are all demanding several thousand dollars up front for advertising, which my friends don't have.

It's a beautiful 4br house with study and a separate 1br granny flat in an excellent location with great sea views and they're willing to sell it around 20% below market to get themselves out of their predicament, pay off the bank and cover the medical bills.

Can anyone suggest ways we can get this house on the market and sold fast without having to outlay the kind of costs the agents want?

Thanks

 

[sanj]

there is no need to sell it 20% below market.

speak openly with a few agents, perhaps negotiate a higher fee with an agent that would include advertising. nearly everything is negotiable in this world.

have they tried getting a personal loan to cover advertising expenses?

professional photos + feature listing on re.com is still well under $1k so not sure why agents are demanding several thousand dollars.

what market is it in?

 

[Pisces01]

They're self employed in and residing in another country. They can't get a loan at this point. They must sell fast though. I'll suggest the idea of a higher fee to them. I wonder if they're being asked for more because they're not in Oz?

 

[Aaron_C]

20% below market.....where do I sign?

 

[MRO]

Post an ad right here and sell it privately. They will save the agent fees and have a great target market. Just be ready for the vultures to swoop in with low ball offers!

 

[Jacque]

Contact buyers agents asap in the area they're selling
Good luck

 

[Macca]

This forum is a collection point for bargain hunting people interested in Real Estate, if it is a genuine bargain then list it under caveat emptor forum.

If it really is a bargain I am sure you will at least get a few lookers.

 

[S.T]

Let me guess, they're from Nigeria?

 

[wylie]

Let me guess, they're from Nigeria?

My first thought too ..

 

[Pisces01]

No, they're not from Nigeria. They're just Aussies who've moved abroad to live a tropical island lifestyle but life's thrown them a couple of curve balls recently The house sale is genuine. Thanks for all the feedback. I'll have a chat with them this evening and see how we'll list it.

 

[Scott No Mates]

Pisces - which state/city/town is the house located - it may raise a bit more interest with those on the forum..

 

[marg4000]

Not all agents charge up front for advertising.
Shop around for one that will defer charges until sale.
Marg

 

[Pisces01]

It's in Nelson Bay, NSW.

 

[beachgurl]

I guess that explains why the agents want money up front. I was up there last weekend and in some parts of the Bay it seems every 3rd house is on the market. Beautiful part of the world but huge oversupply of properties.

I hope they find a buyer quickly and get them out of what sounds like a terribly stressful situation.

 

[HD_ACE]

Hi
I have friends who are in trouble and need to sell their house to pay huge medical bills. They're expats, so they were not covered by Medicare and their insurance company wants them to pay everything upfront. In addition, they have used almost every cent of equity in their home and are a few months from foreclosure by the bank as they cannot make the repayments either. They don't want the bank to sell it for what they owe them, as that's way, way below value. They have contacted a few agents, who are all demanding several thousand dollars up front for advertising, which my friends don't have.

It's a beautiful 4br house with study and a separate 1br granny flat in an excellent location with great sea views and they're willing to sell it around 20% below market to get themselves out of their predicament, pay off the bank and cover the medical bills.

Can anyone suggest ways we can get this house on the market and sold fast without having to outlay the kind of costs the agents want?

Thanks

How does that work?

 

[Pisces01]

I guess that's why I'm here asking for advice. I see I used the wrong word, when I used "equity". I meant they've maxed out their mortgage .

 

[HD_ACE]

I guess that's why I'm here asking for advice. I see I used the wrong word, when I used "equity". I meant they've maxed out their mortgage .

Do you mean they cant extract equity because of their servicability? Ie cant pay for the top up even if it sorts their medical bills out?

Cheers

 

[jenni_nextplace]

Poor things sounds like they are in a tough spot.

I am surprised that you can't find an agent who wont ask for upfront money. Most agents would be fighting over themselves to get an option to sell this property, as the motivation for you is high, which means you will be realistic with your price expectations and will be willing to negotiate.

With the advertising there is also an option to pay on settlement, meaning you will pay for the advertising if they sell it. This then gives them motivation as well. Agents are finding it hard to secure good listings at the moment so I wouldn't think you would need to increase the fees.

I would be saying to them here I am, this is what I want and if you don't want to do it my way then I will find someone else who will, I can't believe they would throw a listing away.

Have you thought of selling it yourself?

 

[Macca]

It's in Nelson Bay, NSW.

That's my patch, send me a PM, I will see if there is anything I can do.

Yes, there are a few places on the market, there always is but at the moment there are a lot of "sold" signs appearing so stock is moving if priced right.

NO I am not an agent, just a SS poster who follows RE.

 

[Pisces01]

Have you thought of selling it yourself?

Yes, I have, but I have no experience and I'm not in the country either. I'm trying to work out a way of getting over that hurdle.