In late October 2020, we were engaged by the Executor of an Estate for the sale of a property in an outer eastern Melbourne suburb.
The Executor wanted to sell the property by Christmas, so speed to market was critical..However, before any marketing could begin, there was a lifetime's collection of possessions to be sorted and dealt with first.
It's a problem we often face, so we work closely with a specialist home clearing business. Over the following week, they sorted through all the goods in the property, setting aside those requested by the Estate beneficiaries and those which could be sold, donated to charity or simply needed to be disposed of. Although second-hand goods don't sell for much, they can certainly all add up. In this case, a very handy sum of $3,740 was achieved and deducted from the clearing fee.

Once we had clear space to work with, the next task was to arrange for a thorough deep clean of the house before it was ready for professional styling. Finally, the garden received a quick makeover and the property was ready for marketing.
We selected two of the most prominent real estate agents in the area to carry out marketing proposals. Our comprehensive knowledge of the local Melbourne market means we have good relationships with local agents and can select those most suited to each property.
Both marketing proposals were similar and both offered a 'kicker commission' fee structure - where the agent receives a higher commission if they achieve a price above the nominated reserve. One agent wanted 10% for any amount above reserve and the other suggested their hard work should earn them an additional 20%! However we advised the Executor against accepting this type of fee model. Our view, supported by the REIV (Real Estate Institute of Victoria), is that kicker commissions do not (and should not) drive additional effort by agents, which is especially true when a property is sold at auction. Instead, we negotiated a set commission rate with out recommended agent that was below the standard agency rate.

With all the finer details ironed out, the property hit the market with its auction date scheduled for early December. It attracted six bidders, all fiercely competing against each other, the result of which was an impressive $75,000 above the reserve price and the agent's initial valuation.
This was a great outcome for the Estate. Not only did Tower help the beneficiaries achieve a premium over the reserve price, but there was also the $3,740 from the sale of goods and savings of over $2,000 from the reduces commission rate and $15,000 from a rejection of the kicker commission.
We also ensured the property was cleared, presented and auctioned within six weeks of being engaged by the Executor, and we comfortably met the pre-Christmas sale date, ensuring a settlement early in 2021.
It's important to understand there are numerous ways to maximise the net return when selling property, and this home in Mulgrave highlights several of them. In particular, good property presentation makes a huge difference to prospective purchasers, and keeping your agent's fees to a reasonable level means more money in your pocket.
The Executor was ecstatic that Tower managed the entire sale preparation and process in such a short time, with benefits for all the beneficiaries.