Selling Vacant or Tenanted

[joeExpat]

Hi,
I am looking at selling an Australian property (house near the beach, northern NSW), and this time have the opportunity to sell it vacant as the tenant is moving out soon.

Although missing out on rent while waiting for a buyer, do people think it is easier to sell and/or achieve a higher price for a vacant property in Australia ?

I know in the UK it can make a big difference, perhaps adding 5-10% to the value of the property if it is vacant. But with the high percentage of investors in Australia perhaps it makes no difference and some buyers might even prefer an existing tenant.

 

[Propertunity]

..... do people think it is easier to sell (vacant)

The property never presents as well when there is no furniture. Most people in my experience have difficulty imagining what the property will look like furnished.
However:
1. If you are selling to an OO - then they will want vacant possession anyway.
2. If you get an obstructive tenant, they can hinder the sale by denying Open for Inspections and generally making life difficult for the sales process.
3. It may be difficult getting a tenant anyway as they will know the property is up for sale. Generally we only do 3 month leases in Aust. for that reason in this situation.

and/or achieve a higher price for a vacant property in Australia ? I know in the UK it can make a big difference, perhaps adding 5-10% to the value of the property if it is vacant.

That has not been my experience in Aust. There would be zero difference in valuation or sales price for vacant or tenanted here.

Overall, I think you'd be better off selling it vacant. Intending purchasers will also think that you are a bit motivated to sell as you will not be getting any rental income for it - so you may get more offers sooner (although at potentially lower prices) - but if you cover off on that with the selling agent first, (i.e. you are not an anxious seller) you should be OK.

I trust it goes well for you.

 

[wylie]

Whenever we have sold, we have sold vacant, but have brought furniture from our own house and mum's house to "dress" it.

Rooms look much bigger with furniture in than empty and when dressed with the target buyer in mind (think trendy, but quality) and with accessories, it makes a HUGE difference to the ambience.

Plenty of people hire furniture, but we have plenty to go around, except beds, which I buy on ebay and then re-sell after the house is sold.

We dress each room, a few trailer loads plus cars full of furniture, vases, linen etc. A day to cart if over and dress the rooms and a day to undress them, but it makes a big difference to the "WOW" factor.

I think too many people underestimate the initial "WOW" and how it can grab a buyer emotionally. An empty house seems to have no "soul".

 

[INVSTOR]

Vacant!!!!!!!!!!!!!

Hire display furniture for a few rooms if you have to. Lots of places specialise in display for sale purpose.

My good tenants of four yrs made my sale hell, I would never sell tenanted again. Property ended up being on market for about 9 months and ended up being vacant for a few months anyway.

 

[joeExpat]

Ok thanks for the advice. I'll probably keep it vacant, & will check out furniture possibilities but not sure how feasible that's going to be. Perhaps just the lounge/deck area will be enough.