Our place is for sale!!

[RightValue]

Below is what I put in my valuation reports about Auctions when I am doing a valuation for Mortgagee in Possession in the first home buyer areas.

there is a high likelihood of the property going to sale by Auction. It should be noted however that in the current market in this area Auction sales may not be the best sale method. Buyers are currently using Auctions to soften up the vendor and increase their bargining position. In addition if the property is located in an area that has only limited success with auctions, with the majority of the purchasers being first home buyers most of whom are precluded from bidding at auction due to not having unconditional finance. The remainder of the potential purchasers are generally investors who are currently thin on the ground or who are seeking a real bargain.


What I am saying is ...An Auction has a high likelihood of a sub optimal outcome in terms of selling price.

Your property appears to be well in this first home buyer price range and Queensland is not really an Auction state like Victoria is.

Mistake number one is to trust the agent (who is paid a comission only if successful at selling, otherwise they work for free) or actually believe they are acting in your best interests. Most agents act in the best interests of the agent.

 

[stevie_sloth]

Yeah...I thought this already. Our property is a dime a dozen in this area. There is an almost identical building down the road from us, and they always have apartments for sale in there. All listed above $369,000 and sitting there forever, unsold and with no price reductions, before they get taken off the market, and then reappear again at the same price a few months later.

I know auctions work better when your property is unique or in demand or different in some way.

In this building's recent history...

- We bought our apartment private sale in 2008. It was $357,000, came down to $337,000 and we bought it. It had been on the market about 3 months. (ground floor)

- An almost identical apartment on the top floor went to auction after a 4 week campaign in late 2010. We were told by the agent they wanted $370,000. It was passed in at $320,000. It then sold 2-3 weeks after auction for $335,000.

- A property on the top floor on the corner of the building (different layout to our's but smaller in size. 106sqm vs 120sqm) was listed as private sale a couple of months ago for $329,000. It sold in 2 weeks for $300,000.

- Another property on the top floor that is identical to our's was originally listed as private sale for $345,000. It then came down to $325,000 but is still sitting there. It's been around 9 months or more now.

- An apartment in a building around the corner from us which is very similar to our building went to auction and sold on the day for $320,000.

- An apartment in another building 2 blocks away also very similar to our's was listed for $340,000. Sat for 2 months, then went to auction, was passed in and sold a week later for $312,000.

So I don't know. I guess if you just want a sale and don't mind the amount, auction is ok. But surely you could get that from a private sale anyway...?

 

[wylie]

So I don't know. I guess if you just want a sale and don't mind the amount, auction is ok. But surely you could get that from a private sale anyway...?

Exactly my thoughts.

Please let us know how you go with changing from auction to private treaty. If you really don't want to take it to auction, tell the agent, and quickly. Don't let them bulldoze you. Check if you have a cooling off period from signing on the dotted line.

People here are happy to help.

 

[RightValue]

ouch, sounds like your place will get about $300k to $320k.


When you quote 120sqm does this include balcony or courtyard? Is the 106sqm unit smaller because it has a balcony rather than your larger courtyard (if you have one) because living floor space is what counts.

As for ground floor vs top floor that is often a matter of personal preference. I personally prefer the top floor as I do not hear the noisy thumping tenants above, others prefer the benefit of a courtyard and no stairs accepting the noise.

I am concerened that your reference point is some sales that happenned well over a year ago and the market has probably been declining since.

What did the agent appraise your place at?

Bear in mind an agent will usually give you a range and the bottom of the range is usually where the market is actually at and the top of the range is what you hear and expect and eventually accept after being conditioned by the listing agent.

Once again, asking prices are irrelevant.

 

[stevie_sloth]

Hmm.

Our place is 120sqm including the front and back large balcony areas.

The smaller place of 106sqm also included their front and side balconies (which are not tiny). You could see that their living area was smaller than our's. The kitchen and bedrooms (and bathrooms) were the same though.

In any case, we would HOPE for slightly above $320,000. We don't have hugely unrealistic expectations. We are painfully aware that asking prices around here (ranging from low $300s to high $300s and even low $400s sometimes for similar properties) are not reflected in the sale prices (low to mid $300s) but do tend to reflect the length of time on the market (the one that was listed low to begin with - $325,000 - sold in just 2 weeks - unheard of right now - for $300,000).

Way back when we first began thinking of selling and moving, we were very positive because all we looked at were asking prices. All around $380,000-ish. We thought HEY! We could get even $360,000 and then move! But of course, nope, that's not the way it works. Especially not nowadays.

Our place was valued by the agent at between $310,000 and $370,000. So yep. $310,000 - $320,000 would be about an accurate result...or a hopeful result depending what happens with potential buyers.

Oh, and those "bank valuations" are computer automated by RPdata.

 

[stevie_sloth]

Oh! One more thing...

We have cancelled the print / newspaper ads. Way too expensive.

But I went onto the Gold Coast Bulletin website and went through the processes as if I was going to book an ad in the Saturday Property Guide liftout, and it said for 4 lines of text and picture(s) (don't know how many), it was from $102, plus $12.70 (approx.) per extra line of text.

So...how does it become $550.00 for an ad one tenth of a page?? And $1,100 for an ad one fifth of a page?

Then I wonder...each week for MONTHS on end around here, you see the same full page age luxury homes...are these people asking multi millions for their homes JUST to pay for all these full page billion dollar ads each week!?!? lol

 

[Aaron_C]

Then I wonder...each week for MONTHS on end around here, you see the same full page age luxury homes...are these people asking multi millions for their homes JUST to pay for all these full page billion dollar ads each week!?!? lol

People who sell multi-million dollar houses don't care about small money like this?

 

[vaughan]

Oh, and those "bank valuations" are computer automated by RPdata.

I believe the company that owns RPdata also owns and runs the valuation clearing house. They KNOW what the actual valuations are.

 

[stevie_sloth]

So what does that mean? That the info we have from RPdata is accurate...or not? Whenever we have had agent valuations they give a range of values, and this actually had a single figure at the top of the printout (the lowest one), and then the lowest and highest underneath. (which I think I referred to as a range earlier in one of my threads today).

And yes, people that sell those multi million dollar properties obviously wouldn't notice spending $2,000 a week on print ads. I forget these things sometimes. lol

 

[sanj]

stevie, if youre having trouble working out what your place is worth and sorting ******** from the facts it might be worth the few hundred dollars to get a proper independent valuation done. at least you can then try to make an informed decision

at the moment you are leaving yourself quite open to being taken advantage of

 

[lizzie]

$310,000 - $320,000 would be about an accurate result...

So, list it for $325k (like the one that sold in 2 weeks) and see what bites you get.

Sorry to hear the price went down so dramatically. Not good news. I assume you've answered this elsewhere - but is there no option of renting and holding until the market recovers?

 

[stevie_sloth]

Yeah...renting and holding...we would if we could. We just can't afford it...to be still paying the same strata fees, council and water rates, home loan repayments, and then rent on top. We already struggle as it is.

Ideally, we'd do that though. Hold on for 10 years, make some actual money and move on. But we can't afford to rent or move elsewhere in the meantime, and we can't afford (based on our happiness level) to stay put either for that long.

 

[The Y-man]

So what does that mean? That the info we have from RPdata is accurate...or not?

It's a guide - what an actual valuer commissioned by a bank would look at is in much more detail - looking through the place, looking at fixtures, fittings, surrounds, etc etc.

The Y-man

 

[Andrew_A]

It's a guide - what an actual valuer commissioned by a bank would look at is in much more detail - looking through the place, looking at fixtures, fittings, surrounds, etc etc.

The Y-man

If it's an RPdata autoval then it's to be checked out carefully, excellent work for computer generated numbers but you really need to verify carefully and they are really just 'estimates' and not valuations.

 

[lizzie]

But we can't afford to rent or move elsewhere in the meantime, and we can't afford (based on our happiness level) to stay put either for that long.

I still can't understand this - what is it about the "beautiful" unit that is affecting your happiness?

Happiness is an emotional state of mind that comes from within - not external factors. Why do you think people can still be happy living in a squat with only 2 meals a day? What can you do to be more accepting of your current situation and stay until the market improves? Can you change the paint colour - can you put in a pretty garden?

The problem is that, if you don't work out why you are not happy where you are, then wherever you go you run the risk of taking that unhappiness with you.