Just want to get some idea about selling a house by Auction. A friend and his wife have decided to sell their Sydney house and their Managing Agent is pushing to sell it by Auction before Christmas. The Date to Auction is 17/12. Wonder if it is to close to Christmas? And as the campaign has not yet started is there enough time to market properly with about 20 days. Your thoughts and experience would be appreciated. Thanks
Selling a house by Auction
hsk on 24/11/2016 - 16:09
Comments
Of course the agents want it as want to get a commission for less than 3 weeks of work. Also new listings will not start happening until end of jan and your friend might change their mind. If your friend wants to sell quickly due to personal circumstances then it is doable but probably can't get the best price as it is too short for marketing time. It is a good time to be a buyer in December as you get some very motivated sellers from my experience
It depends on the area. Houses in my area (Inner West) haven been selling like hotcakes and most seem to have only 2 or 3 weeks before auction.
December is a terrible time to sell, most people arent looking to buy, so you get a miniglut on the market, the agent doesnt care either way, if it sells for 1.2 mill or 1.5 mill, they still get their %, the sooner you sell the better as far as they are concerned, even if you dont reach an acceptable offer.
Depends on the costs involved, also as a real estate agents perspective, if you pass in the auction, then the agent in question will propably put alot less effort into selling your property afterwards. So you might need to find a new agent after your contracted time expires.
The agent is also the managing agent for the rental. The house is old and tired on a small block of land near Parramatta and Bankstown it has tenants who pay ok but do not look after the house. The agent wants exclusive selling rights from now untill the end of February 2017 and has put that in the contract.
100% get a new agent.
The guy just wants to make a fast buck!
They are sorta stuck with this guy as he is the managing agent and he would not hand the tenancy agreement over to the conveyancer as they said it is being sold vacant. The owner had not agreed to that. So owner went to agent and said if u want to do that u need to follow up on the tenant damage (windows and door) from October/November inspection. Agent then said that the tenant would have to be evicted and then that would leave them with damaged house and no rent… so maybe they should sell as they had been told.
- Your friend should have a copy of the tenancy agreement as we sign 3 copies at start of lease (1 for tenant, landlord and agent)
- Would not hand it over? Landlords have a right to get a copy when requested
- Window and door damage should not be that much and not worth the hassle (shouldn't the agent chase this up)
This agent sounds dodgy and bullying your friend. I would serve notice to applicable period according to state law (not eviction) to the tenants and agent can chase us damages through the bond (that's their job) and find another agent after the new year.
This agent seems incompetent as Rental agent so definitely wouldn't sell with them
Tell your friend to be in contact with consumer affairs as may need it with dealing with this agent
There is no wrong time to sell. You set a reserve, it either gets to that, falls short or exceeds your reserve.
Houses in many areas can take months to sell as a listing, or a day to sell as a listing.
Auctions are much the same. Depends who's there on the day with the pre-approved finance.
My own personal opinion…. set a high reserve. (can always bargain down, but can't change your mind, legally, if auction bids go above reserve)
Great advice thank you just one more question on the front page of the Auction Agreement where it says PRICE there the Agent has put an amount estimated selling price $$$,$$$ - $$$,$$$ in the box AND then on the next line where it says The principal instructs the agent to Market the Property at a price guide of AND the agent has typed the words RESERVE PRICE in that box and outside the box it says to tick if not applicable… and the agent has ticked this box… very confusing but if u understand what I have said could you please tell me is it normal for there not to be a $$$ amount where it says RESERVE PRICE.??
i could be wrong, but the reserve price is usually set on the day of the auction
Set days before. If they're doing it on Auction day I'm unsure that is even legal.
You will go through a long list of paperwork signing your name, initials, checking details, making changes, putting your reserve price etc. If you are not given ample time before auction day for them to sit down with you and show you through it all, then they're next to useless.
rules in Sydney could be different to Brisbane
ive been to a few auctions here where the reserve was written on the day just before auction
Not enough time i would say. Check the statics for the area.