| by Kenneth Chase | No comments

Hidden Costs in Apartment Sales

G’day Andrew Murray here from the
Apartment Specialists, welcome to our channel. Today we’ve got John here from the team.
– Hey guys – Cool, today we’re talking about costs because when you’re selling
your apartment it’s about what ends up in your back pocket. How much money you
get… you have… so what costs often people don’t explain to owners, that evolve when
you sell apartment? – Cool so yeah transparency very important you need to
know what costs are gonna run you. The first thing that you’re going to
encounter most likely in a selling scenario is going to be marketing and
this is going to be one of the larger costs that you outlay usually and it’s
the most important or one of the most important it can run you from $0 which
isn’t ideal to thousands and what’s the most important is that you’re outlaying
an appropriate amount of money to hit a appropriate demographic that is specific
to your apartment. Secondly you’re going to run into costs associated with
documentation that is required to sell your PCDS for example, that comes to
mind, Pre Contractual Disclosure Statement this can vary slightly
depending on the body corporate that you’re obtaining it from but it’s
usually around two hundred and fifty dollars, on top of that you’ve obviously
got solicitation or your legal fees average is about a hundred… or one
thousand five hundred dollars but there can be give or take obviously depending
on the complexity of the transaction then you’ve got stuff like tenancies as well…
– Yeah so all of this is about a strategy okay you’ve got you’ve got your
legal requirements like you’re Pre Contractual Disclosure which John
mentioned, your lawyers you need a lawyer you have to have one but when it comes
to things like marketing or tenants it’s about strategy to get the highest price
for your property and there are extra costs involved so when you… for example
if you want to sell your property vacant so you can actually market it better and
stage it, well there’s gonna be a cost involved because you’re gonna not have
the income coming in, but you’ve got to look at each one and work it with your
agent and go okay if I spend X, let’s say I spend $5000 for spending that
$5000 I’m gonna get a return of maybe four or five times that outlay
and then it’s… then it’s worth it so… but realizing it’s all about a
strategy and your agent should be able to, as we all do, lead you through that
process so you can understand where your money’s going for and why, that is really
important. So in summary you have your unavoidable costs when selling an
apartment which are obviously you need a lawyer, there’s also the costs involved when you need documentation, which is unlike
houses and then you have your variable costs which is all about strategy, okay
you’ll be thinking when you’re when you’re spending this money to sell your
apartment that you’re making more money from doing it. For example marketing,
renovations maybe having a place vacant, things like that, it’s all about strategy
and it’s all about making you more money, and I think we summed it up pretty well.
– Sounds good to me. – Every property is different Anyway thanks John, thanks for
coming in, thanks for listening.

Leave a Reply