January 9, 2020
How to leverage your neighbour’s sale to get a better price for yours

Timing is a critical factor when selling your home. Pick the right one and your result can skyrocket. But pick the wrong one, and the outcome might be dire.

A great time to sell is when a neighbouring property has just sold, and here’s why.

Big savings on marketing costs

If a neighbour’s home has just sold, this means at least one potential buyer missed out. In reality, it could be many more.

These buyers have formed an emotional connection to your area during your neighbour’s marketing campaign. If you time your sale right, you don’t need to spend any of your hard-earned dollars to entice them to yours. They are already there, ready and willing to buy, particularly if your home is similar to the property they just missed out on.

This is when an off-market sale can be the most advantageous, and our case study is the perfect illustration.

The case study

In late 2019, we had the pleasure of selling 19 Brunton Crescent in Mulgrave for $693,000. The auction attracted five very interested buyers, which meant four ended up missing out. All of these were ready to purchase immediately.

A nearby neighbour at 29 Newport Drive had a property with a similar floorplan. They’d been thinking about selling in the near future, but hadn’t taken the step of putting their home on the market.

After discussing in detail the options available to them – from auction to an off market sale – they decided to opt for the latter. We expedited their selling process by introducing those buyers that missed out on the neighbouring property to view this vendor’s home. In the space of just one week, we struck a deal with one of these buyers to sell 29 Newport Dr for $687,000.

19 Brunton Crescent

29 Newport Drive

You might rightly point out the vendor of 29 Newport Dr got a lesser sale price than 19 Brunton Cres. On paper, this is true as they sold it for $6,000 less. But let’s delve deeper into the overall costs.

Our vendor at 19 Brunton Cres spent the following to get their property sale-ready:

Painting                      $1500
Furniture hire           $2500
Gardening                  $300
Marketing                  $5500
Total upfront cost    $9800

The owner of 29 Newport Dr spent $0 in their home sale preparations, so in the end, they were actually $3000 better off!

Too good to be true?

While this sounds like a one-off, this situation occurs frequently. Of course, there are variables involved, such as the vendor’s preferred sale method (auction, off-market etc.) and the condition of their home. But we believe it is well worth considering an off market sale if your neighbour’s property has just sold.

Should this be the case, please get in touch with us on 03 9562 2090. We’d love to discuss in detail how an off market sale might benefit your property.

Even if you aren’t quite ready to sell, you might like to take the opportunity to get an updated property appraisal. This will assist you in fully understanding where your home fits in the current market.