Mr and Mrs Thurtell are an elderly couple who have asked you to conduct a listing presentation for them. Mrs Thurtell grew up in the property and has lived there all her life. The Thurtells have been married for 55 years and their children have now moved away from the area.
The house is on an attractive large block of land (2000 sq.m) and has some river front access with an established old jetty. You believe there will be high interest in the property from developers. Your estimated price range for the property is $680,000-$700,000.
The home was originally a small cottage which has had two noticeable extensions over the years. The property appears to be structurally sound and has been kept in very good condition. Mr Thurtell’s pride and joy is his established vegetable garden located at the end of the yard near the river.
The house has great sentimental value to the couple. However, Mrs Thurtell’s health is now failing and the couple has reluctantly decided to sell and move into a retirement community. Their unit will be ready in approximately nine weeks. The Thurtell’s daughter is staying with the couple until the home is sold and will be assisting them through the sale and with moving.
The Thurtells are concerned about a number of matters:
-How long it will take to sell the property as they do not want to miss out on their unit at the retirement village
-How much money it will cost to sell the property, as they are on restricted pensions
-About people walking over the vegetable garden
-The general disruption to their lifestyle with lots of inspections. In particular, Mrs Thurtell needs plenty of rest and is unsettled about lots of inspections with short notice.
a)Explain whether you would recommend the use of the auction method of sale to the Thurtells and why or why not.
b)As part of your listing process, describe how you will verify the ownership and material facts.
c)What special issues will you need to check? You should be able to comment on at least 2 matters.
The Thurtells have asked you to explain the auction process and the legalities involved.
1.What legislation is relevant to the auction process and where would you locate information regarding the legislative requirements for auctions in your state?
2.Prepare a list of the Conditions of Sale by Auction that are applicable to your state which you can provide to the Thurtells to read before they make up their mind up the sales method for their property.
The Thurtells have decided to list their property with you for sale by auction. How would you complete the following items in the Auction Agreement:
a.Instructions relating to the “reserve price”
b.Agent’s estimated selling price range
c.Special instructions (relate this clause to the Thurtell’s property and the issue of the vegetable garden
You are now required to prepare a 30 day auction marketing timeline for the Thurtells. Your timeline should highlight points in the auction campaign where you would book the auctioneer, erect signage, book and place pictorial advertising, open for inspections, the pre-auction meeting with the clients, culminating in the day of auction. Please ensure that you allow for a lead-up time of at least 5 days to the launch of your campaign.
Given the market research and price advice contained in your CMA for the seller, and the prescribed requirements for quoting potential selling price to consumers, describe exactly what you would say to a customer enquiring about the potential selling price of the Thurtells property.
You convince the Thurtells that the property should be auctioned in-rooms. You now need to start preparations for the auction. Describe how you would prepare for the in-rooms auction. Please include in your answer what handouts will be required, and what documents must be displayed for public perusal during the auction sale.
a)You have a number of interested buyers who have indicated that they will be attending the auction. Please explain what required legislative processes you must follow with these buyers to ensure that they can bid on the day of auction.
b)One of the prospective buyers interested in the property cannot attend the auction. Explain under what circumstances an absentee bidder can authorise another party to bid on their behalf and what would the written authorisation from an absentee bidder need to include?
Prepare a list of all the matters that you will discuss with the auctioneer in the strategy meetings you will have before the auction.
The Thurtells have some last minute questions for you regarding the procedures at the auction. You are keen to settle their nerves by showing you are on top of everything, so prepare a response to the following questions:
a)‘We’ve heard auctions don’t always run smoothly. What happens in the event of a disputed bid at an auction?’
b)‘What conditions apply if the seller wants to bid on their own property at auction?’
c) We have heard about arguments following auctions about who pays for GST. Describe what the options are with regards to ascertaining whether or not the seller is registered for GST.
Congratulations the property has successfully sold on the auction day! Please make a list of all the activities and matters you need to attend to at the fall of the hammer.
While you are signing up the successful buyers on contract, your associates and assistants should also be actively marketing to the unsuccessful bidders. Discuss at least 3 activities that they should be undertaking to build your client base?