If you’re looking to move home, why not consider selling to a developer? Melbourne’s housing market continues to be strong, with increasing demand for property in both the inner city and outer suburbs. As a more affordable option than Sydney, Melbourne continues to be attractive for investors and developers – so why not take advantage?
Here are just five reasons to consider selling your home to a developer.
No maintenance or renovating costs
Preparing to sell a house can often incur extra costs, as you try and make it as appealing to potential buyers as possible. This can range from a new lick of paint to complete renovations of outdated rooms, which depending on the scope, can be a costly process.
This isn’t necessary when selling to a developer – they will take your property as it is, as they will be looking to knock it down and build new. This is a move that could potentially increase your profits, as you won’t have to outlay any additional costs before selling.
Selling directly to a developer or investor eliminates many of the expensive fees associated with selling a home. If you follow the regular route of selling your home through an agent, you’ll have to pay a commission and advertising fees, as well as organise your home for multiple open inspections with potential buyers. By going straight to a developer, you can streamline the process, resulting in a quicker sale.
Flexible settlement terms
Most developers are happy to negotiate a settlement term which can suit both parties. For example, a longer settlement time allows you to stay in your current home and gives you more time to look around for your next home to purchase.
Higher selling price
A developer will calculate the value of your block based on its potential profitability for their new project. In contrast, a buyer found through an agent would be looking at the value based on the market.
Therefore, developers can often look to pay 5-10% above market value, as they’ll be able to make this back once their project is sold. However, this offer can be conditional, with flexibility required for elements like extended settlement terms, soil testing and the commencement of development applications.
Instead of waiting for buyers to come to you, and then competing for their attention in the market, you can approach developers directly with a proposition and receive a response quickly. The process is always much simpler – once interested developers present their offer, you can negotiate the price and conditions before signing on the dotted line!
Interested in selling your home to a developer? Get in touch with our team!