Selling property with tenants

by Administrator 29. May 2013 22:46

There are both positives and negatives to placing a property on the market with tenants still in residence.

With a tenant still in residence, the period between the sales listing and the sale can be fraught with complication. Even the most accommodating tenant is likely to be stretched by the extra requirements that come with living in a property listed for sale.

Legally, all tenants must allow access to agents to show prospective purchasers through their residence once open for inspections begin — providing reasonable notice is given.

Tenants are also generally obliged to allow photos of their residence to be displayed in advertisements however we at M Residential ensure extra steps are taken to be mindful of the tenants privacy.  They must also face the fact that once their lease expires, the new owner is not obliged to renew it, however they are guaranteed whilst still in a fixed term tenancy, their residence at the property is secure.

Yet, despite the imposition of a sales campaign, we at M Residential believe most tenants are co-operative, and we ensure close communication is upheld with the tenant to assist in a smoother process.

When you're selling a residential property, you want to attract as many buyers as possible. If you have a tenant in a fixed term lease, immediately you eliminate a potential owner-occupier.

Naturally, there are some tenants who will also undermine the success of a sale, sometimes shaving tens of thousands from the price a vendor may otherwise have achieved.

Some tenants have beautiful furniture and really make places look smart but if you haven't got good tenants, you could be devaluing your property, by anything up to 10 per cent less on some places that are poorly presented.

In real estate terms, “poor presentation" can translate to something as simple as breakfast dishes being left in the sink or carpet that hasn't been vacuumed.

While tenants must allow prospective buyers to view the property, there is nothing to say the tenant must be absent during those inspections.  They can slouch around the place during your viewing.

Despite some drawbacks of selling with tenants in place, most sellers with M Residential choose this option.

In part, this may be because sellers are obliged to give 60 days' notice to tenants if they wish them to vacate for the sale, effectively delaying the sellers' sales listing by two months.

Or because many sellers can't afford to have their property sit vacant for the duration of a sales campaign.

If you have a tenanted property that you are considering selling, make sure you chat with the sales department at M Residential and we can provide suggestions and recommendations based on your current situation.


Getting Pre-Approved Finance Before Buying

by Administrator 7. May 2013 18:57

A pre-approval is one of the greatest assets a home buyer can get.

Pre-approval is a written assessment of your worthiness for a loan. When you seek pre-approval for a home loan, your lender will assess your ability to pay, as well as your credit history, to decide how much they are willing to lend you.

Although you can make an offer and go through to the start of property settlement without having pre-approval, smart home buyers get pre-approval before they make an offer.

Really smart home buyers get pre-approval before they even start going to home opens.

Here’s why having pre-approval will benefit you:

When you visit a home open and talk to a real estate agent, letting them know that you have pre-approval will convince them you are a serious buyer. Once a real estate agent knows you’re serious about buying, they’re likely to contact you about potential properties before they hit the market, giving you a better choice of properties.

To sellers, pre-approval is almost like a guarantee that the deal they strike with you won’t fall over. Sellers want certainty, because if the buyer they choose can’t get finance, the seller will have to start marketing their property all over again. A seller will accept what they believe is best for them, even if that is a lower offer because that buyer had pre-approval.

Getting pre-approval will give you a much better idea of what homes are within your price range, so you’ll know in advance which properties are too pricey to waste your time on.

Imagine falling in love with a property and even going so far as to make an offer on it – only to find out at that it’s out of your price range! Save yourself the disappointment of having a deal fall through by knowing in advance what you can (and can’t) afford.

If you’re planning to buy a home, get a pre-approved home loan (click on our Finance tab for preferred lenders).You will find it beneficial to securing your preferred home.


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