One of the more rewarding sales managed by Tower was for their client ‘Lyndell’, who recently engaged us to manage the sale of her mother’s (Molly’s) property in Blackburn Victoria.
Proceeds from the sale were required to fund Molly’s RAD (Refundable Accommodation Deposit) payable to her Aged Care Provider. A quick sale and settlement were needed by Lyndell and Molly to settle the RAD and to avoid the ongoing cost of a DAP (Daily Accommodation Payment) being charged by the Aged Care Provider.
Speed to market is often important to sellers, but when selling for Aged Care it can be vital! The faster the resident can get to settlement the faster they pay the RAD and stop paying the DAP.
As Christmas was fast approaching, the time to conduct a typical four-week auction campaign had run out, meaning that a sale by auction would only be achievable in February of the following year. Settlement would therefore be in April at best.
‘TOWER ON AVERAGE GETS A PROPERTY TO MARKET 30 DAYS FASTER THAN VENDORS! – that can save thousands…
To resolve this dilemma, Tower negotiated a two stage strategy with a local real estate agent, whereby the property was immediately listed for an ‘off-market’ sale by private treaty. The asking price was agreed with Lyndell and Molly based on the savings that would be realised by avoiding an auction of the property in February. These savings included; the additional DAP payments; marketing costs; additional presentation costs and a higher agent’s commission charged for an auction campaign.
The strategy was also to market the property to under-bidders from the expected sale of another unit that was being auctioned in the same complex just prior to Christmas.
In addition to this, Tower discovered that Molly’s property had a distinct marketing advantage, in that the front courtyard was found to be ‘on-title’, unlike all other units in the complex where the courtyards were part of the common property.
The strategy was a huge success. A buyer was found for Molly’s property on the 30th of December, above the set price, and the settlement was transacted in March. The need to auction the property was therefore avoided, along with the time, effort and uncertainly that would have ensued.