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TO SELL VACANT OR TENANTED, THAT IS THE QUESTION…
An excellent question at that, and one that requires a comprehensive response, not a reactive answer because how long is a piece of string?
Selling with tenants does not have to be a nightmare, nor does it always happen smooth... BUT... with the right preparation and communication, the process can take place without much disruption to all parties involved. But will your home sell in a shorter time, and for more money vacant…or tenanted?
Before you have decided to sell your property you need to take stock of all formal arrangements, including the lease. If you have a lease in place with your tenant and the expiry is not for some time, selling vacant right now is not an option… unless your tenant wants to move and you can make a further formal arrangement for them to leave with no financial penalty to either party. If the lease is up and you want to sell, almost smooth sailing towards the horizon…almost.
Is it easier and beneficial to sell vacant, or better with a tenant in place? There are so many variables to consider and cover so I will limit it to the two most common issues; price and timing through one aspect - presentation.
As a generalisation, owner occupiers have their homes’ presentation to a higher standard because they are financially motivated. If the presentation is fantastic, the home is at a more saleable standard. If there are toys in the yard, the dishes in the sink and clothes on the floor in the bathroom, chances are prospective purchasers are going to become hung up on the view and will not usually appreciate the home for itself. (There are always circumstances where tenants have much better presentation than some owner occupiers, but because of the financial benefit to the home owner in having their home at A1 standard, we find this is quite rare. So if you are tenant bucking the trend, pat yourself on the back!)
Taking into account only the presentation of the home, you can see why it may take longer to sell a tenanted property and usually at a lower price. Selling a vacant property can also be fraught with the same issues of price and time. Without furniture, prospective purchasers can see the entire home in its naked form, all the scratches on the polished timber floors, furniture rub marks on the walls, dust that gathers everywhere, and smells of a home closed up over summer.
So… weigh up your position, take into consideration the overall presentation of your home and make your decision. If in doubt give me a call, I can offer you an opinion and foresight from someone in the industry.
Joshua Rub
Principal
0411 694 728