Joining forces with neighbours: Maximise the sale value of your property
By Jonathan Tisher
13 December 2017
So you’ve decided to sell your property? The first question that any Vendor should ask is ‘How can I obtain the maximum value for the sale of my property?’
There are of course the usual suggestions such as re-painting, undertaking minor works, hiring furniture and “sprucing” up your house. However, an alternative method may be to combine with a neighbour or neighbours and sell your properties jointly.
A joint sale can work in any context but is often done where there are a block of old units or townhouses or two or more houses that can be sold together. The usual buyer is a developer who would see increased value because of the size of the land. The ultimate result is that you are likely to receive a higher price than if you were to sell your property on your own.
So you’ve found the perfect neighbour and decided to join forces! The decisions do not end here. You and the other owners will need to agree on many key items in relation to the sale, including the minimum sale price, the price apportionment, the agent, the selling procedure and the general decision making. The price apportionment is often the biggest stumbling block – should it take into account size of the respective properties, position, street frontage and other factors? These are important issues that need to be canvassed.
At TLFC, we have acted on the sale of many joint properties and can advise and guide you on the key issues that you need to consider when “joining forces”. We tailor the agreement to fit your expected outcomes, to ensure that when entering into the agreement all parties are protected and the prospect of confusion or uncertainty is reduced.
So the next time you have a property you wish to sell, consider knocking on your neighbour’s door before placing your property on the market.
Considering renovating your apartment? Have you checked you legally own it?
By Rachael Hammond
12 June 2018