19 Van Asch Close Doolandella is a 3 bedroom plus study brick and tile property on 604m2 of land. The property is 8 years old and was built by Claridon Homes. From my visual inspection, the property appears to be in very good structural condition. All the bedrooms are of a good size with walk-in robes and ceiling fans. Bedroom 3 is airconditioned.
Features that stand out with this property are as follows:
- All bedrooms are apart from each other and have a feeling of privacy.
- Master Bedroom has direct access to the backyard.
- Master Bedroom has an ensuite and walk-in robe.
- The garage will accommodate 2 large vehicles
- The garage has direct access to the house via the kitchen as well as direct access to the outside of the house via a doorway,
- Property has 3 water tanks
- There is a 1.5KW solar power system installed.
- Dual living areas with the front room, however, it is not large.
- Gardens and Backyard would be considered low maintenance
- Located on Cul De Sac
- As the property is less than 10 years old, you will be able to claim depreciation for the next 2 years.
There are many features to this property that will appeal to a wide range of tenants. When I conducted the rental comparison, I could not find a similar property within 1 kilometre that was asking $490 per week. However, I have used the very conservative worst-case rental return of $440 to $460 per week.
The only issue with this property is the fact that it needs a bit of minor maintenance and a good clean.
In regards to the price, I am dealing with a very ditzy female real estate agent who talks and talks and talks. She released information to me that I would never tell anyone. She stated the current owners paid $500k for the property 2 years ago and this is evident. The current owners purchased the property for $500K in November 2016. However, she then has stated that they will take $485,000 for it. She has also stated that the current owners would like to rent the property.
I am valuing the property at $500K and that is simply due to the untidiness of the property and the minor maintenance issues that need to be attended with. In my professional opinion, if this house was better presented then it would be valued at $520,000.
Factors affecting the current sale of the property. There is a divorce taking place and from what I can gather the wife and 2 adults children plus a dog are staying in the home. I gather that the wife is struggling with the mortgage repayments and is in a distressed state. I believe they have had one contract on the property which fell over due to finance. This only adds to the distressed estate.
Competition, at the moment there is a lack of good properties on the market right now. Open homes are receiving around 30 groups for each home on the market.
Strategy, Normally I would craft a 3 stage negotiation process. The first bid would be countered with a counteroffer we would anticipate, with our second counteroffer being the agreed purchase price of the property. This works every time. But we have a different situation here and the agent has disclosed to me that $48K would secure the property. I believe that to be $15,000 under the current market value of the property. I do not think starting with an initial low offer only to arrive at $485K will work in this situation.
Further to this, I have never met this agent before and she has blabbed out everything she shouldnt have, but if she has done it to me, she has done it to everyone else. It is for this reason that I would expect multiple offers of $485,000 to be presented. Where we have the power to overcome any other offers is going to be in my training of the agent into the suitability of my client to not only have finance approved in a timely manner with no issues anticipated at all, As I am a mortgage broker, the agent is receiving qualified and reliable information, which means my buyer becomes a known outcome. In addition to we can meet the short term settlement needs and allow the current owners to rent the property.
This is a very unusual way to purchase a property but in my opinion, place a one-off offer of $485,000. I think you’re getting a $15,000 discount. The terms of the finance are 14 days for finance approval, 7 days for building and pest and 30 days for settlement.
That is a very sound offer and if I am right, it will appeal to the agent as she has also told me she is leaving this real estate agency shortly and that means that a solid contract with a short term settlement will appeal to her as well.