One of the critical factors when making the transition into Aged Care is funding the Refundable Accommodation Deposit (RAD). Often this requires the sale of the family home.
We at Tower recently managed the sale of a unit in Clayton South for just this purpose. Time was of the essence for the owner was already in Aged Care. The Aged Care facility required payment of the RAD asap, and the cost of the Daily Accommodation Payment (DAP) was adding up.
“The challenges in selling the property as a matter of urgency were formidable”, says Phil Hoopmann, Senior Property Manager with Tower. The property had been left un-touched for at least 30 years and it was ‘bulging’ with all the owner’s belongings. Only the few personal items that he needed had been taken into aged care – everything else was left behind.
Beyond clearing the property of remaining goods, there was also the issue of whether to sell the property as-is or to renovate it to maximise the net outcome. We estimated that about $50,000 would be needed to return the unit to a high standard.
After analysing the market and considering the time and the associated costs with undertaking renovation work, it was agreed with the owner that the best net outcome would be achieved by selling the property ‘as-is’.
Once this decision was made, things got into full swing. We arranged for the sale of anything of value, donated other goods to charity and disposed of the rest. We then undertook a thorough clean of the property and arranged minor repairs. The Unit was professionally furnished for sale.
“The transformation was remarkable” says Phil. “Although the property was still obviously in need of work, it presented as a very liveable prospect for the first home buyer”.
The client engaged us mid-June, and five weeks later we had the property ready for marketing, the agent appointed and the marketing campaign started.
The property sold at auction on the 18th August 2018 at a price that clearly justified selling it ‘as-is’. Tower also negotiated a 30 day settlement with the purchaser, meaning that payment of the RAD could be made on the 18th September 2018, just three months from when Tower was engaged.
The feedback from the client speaks for itself; “I feel the whole team did a wonderful job getting the unit sold. Phil, I appreciate your care, friendliness and most of all your professionalism in the way you handled the project”.
“Our aim is to make the sale process stress free for the vendor and their family, while getting on with the job of managing the sale” said Phil.