07) 5594 0016 or 0403 050 255 (Terry), or
0403 382 046 (Mei) Fax 07) 5594 0034
Queensland Gold Coast 4214
W: www.terrymcmiles.com
Brilliant is when you know which half to believe"
2) MANAGEMENT RIGHTS. Terry will be very keen to talk to anyone who wants to sell their Management Rights Unit & Business in just about any part of Queensland or NSW (Terry is licenced in both States).
This is very much a specialist area only handled by a handful of Brokers and Terry is fast building a reputation for excellence in finding solutions for both Sellers & Buyers.
Terry operates this area of his business differently from the larger broking houses. Rather than just advertising an asking price and a nett return, Terry understands that savvy buyers want more information than this. Whilst Management Rights are sold on a multiplyer of net profit, this is not the only criteria, nor in fact the most important. Please have a look at the buying page (click on Buying Enquiries above left) to see the level of information Terry makes available to Buyers. . . . . a comprehensive report on every Management rights property, without disclosing sensitive information in regard to earnings or net profit.
This protects you as an owner from "every man & his dog" knowing how much money your business is netting, but gives a buyer enough information to decide if they wish to take the next step. Only genuine buyers who are prepared to sign a confidentiality agreement & buyers undertaking are given any financial information. This financial information is incorporated into an informative report which gives an interested buyer all of the information he or she will need to talk with their accountants & finance people. "Waste of time" inspections are avoided to the benefit of both buyer & seller.
Terry & Mei own Management Rights. For information on how best to sell your Management Rights . . . . Contact Terry.
3) UNITS & TOWNHOUSES IN MANAGED COMPLEXES:. Just as it makes more sense for a buyer to purchase their smaller investment properties in Complexes where there are on site Managers, those on site Managers will be keen to have units in their managed complexes going to Investors. Let Terry help you find those Investors.
4) OTHER INVESTMENTS AND HOMES. It is difficult to generalise on the best way to market specialist properties and Homes. However, at any given time there is only one "right" way. This may not be the way the mainstream Agents are suggesting you should sell. Use Terry as a "sounding board" - he will be happy to help formulate the best plan for your Investment or Home.
In addition to the Legal costs of selling, i.e. Conveyancing costs through your Solicitor or specialist Conveyancing Company, (and here we recommend you 'phone up and ask for a price), the other costs are Agents Commission and Advertising. You can choose to sell privately to avoid paying a selling commission and you could put a private for sale sign outside your property and minimise advertising costs. Experience shows that both of these actions also tend to minimise the sale price achieved. The reality is that properties tend to sell for Current Market Value, or less.
The ones that sell for less are more often than not, those that are unprofessionally marketed . . . with price expectation set too low through lack of knowledge of the marketplace, or alternately, set too high. A "too far over market value" asking price is quickly perceived as unrealistic to genuine buyers who look for other property to negotiate on. The tragedy that follows is that as the price comes down towards current market value the "marketplace" perceives that because the property has been for sale for a long time "there must be something wrong with it". These become the other properties that eventually do sell, but sell for less than current market value. The other problem with selling privately is that negotiations are never as easy as through a third party.
You can't expect to sell for better than current market value, but you can maximise your chances of getting towards the top end of the best current market value range. This should be your aim.
Advertising:
These days, many Management Rights & Hospitality properties are sold from enquiry generated via websites. In many cases I will be able to help you find a buyer with no advertising costs payable by you. I do not charge for any internet advertising at all (including Realestate.com, Realcommercial.com and Thepropertymanager website).
For specialist properties and luxury homes it is sometimes not that easy. You can't always expect to get the best available price if you don't tell people that your property is for sale.
A good "rule of thumb" is an advertising allocation of between one tenth of one percent of the value of the property and one percent of its value. The more expensive the property the greater the impact needs to be and therefore the higher you go up the scale. I believe that excellent results can be achieved at the lower end of the scale on most properties, and an allocation of from a quarter of one percent to a third of one percent can achieve the desired result providing that , you have selected the correct way to market your property for the prevailing marketplace (see above) and you have chosen a realistic asking price.
Therefore, a budget for a $300,000 Unit could be approximately $ 750 to $1,000
a $500,000 Home, approx $1,250 to $1,665
a $750,000 Home, or Investment property, approx $1,875 to $2,500
a $2,000,000 property approx $5,000 to $6,650
Advertising can appear to be expensive, but in relation to what you are selling it is a good and necessary investment to achieve sufficient "marketplace cover" to achieve best market value. Sellers should be wary of Agents who offer to pay for advertising, in most cases it won't be enough to cover a reasonable campaign, and the casualty will always be price achieved. A dollar saved can easily relate to ten dollars lost at the end of the day. Please Note that whilst I do not fund print advertising, I will always agree to a deduction of all Vendor funded advertising from my commission on the completion of your successful sale. By letting me handle your sale, this can mean that (apart from Legal)"at the end of the day" your only selling costs become my commission.
Commission:
For Homes & Units the "standard" rate or scale of commission is 5% of the first $18,000 and thereafter 2.5% of the balance. I work on this scale as do most other competent Agents. You are entitled to negotiate a lower rate, and some Agents will even offer a lower rate. As your aim should always be to achieve top market value, common sense will tell you that your chances will be better if your Agent knows he is being adequately rewarded to Industry standards. Using the first 2 price points in the example above, on a $300,000 property commission is $7,950.00; on $500,000 it is $12,950.00. Don't risk maximum achieved price becoming the casualty of a few thousand dollars saving in commission.
For Hospitality Properties (which include a business component ) my fee for Freeholds is 3.5% up to M$2, and 3% above M$2. For all Leaseholds 5%. All percentages plus GST.
For Management Rights , the residential component is charged at the Home or Unit rate and the Business component at the freehold hospitality rate.
Further comment on my policy regarding a negotiated lower commission rate on higher priced Management Rights Complexes. There is a reasonably valid argument that there may be not much greater effort by a broker in negotiating the sale of a quite expensive Complex compared to a cheaper one.
In some cases this can be true, and for this reason I am prepared to negotiate a lower commission rate on Complexes where total sale price is expected to be above $600,000 - on these, flat rate of 2.5% +gst
above $1,000,000 - on these, flat rate of 2.35% +gst
above $1,500,000 - on these, flat rate of 2.25% + gst
Please note that even at these reduced rates, all print media advertising funded by owners will still be deducted from commission due to me on the completion of a negotiated sale.
To discuss any aspect of selling your home, Investment or Hospitality property, or Management Rights, call Terry and . . . .
"Talk to someone who's paying attention!"
