Powered by MOMENTUM MEDIA
realestatebusiness logo
Powered by MOMENTUM MEDIA
Subscribe to our newsletter SIGN UP

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

news image

‘Overwhelmingly optimistic’: Investors approve of current market

May 29, 2020Grace Ormsby

It’s as good a time as ever to buy residential property, according to 70 per cent of Australian property investors. ...

REB_top100agents
top 10 agents

1

Alexander Phillips

Year of Experience: 20

Support Staff: 3

Residential Properties Sold: 215

Total Value of Residential Properties Sold:

$ 522,477,791

VIEW COMPLETE REPORT

Have you experienced sexual harassment or bullying in the workplace?

Yes, I've been the victim of sexual harassment (15.8%)
Yes, I've been the victim of workplace bullying (21.1%)
No (63.2%)

Total votes: 19
The voting for this poll has ended on: April 30, 2020
TECH MARKETING SALES BETTER BUSINESS PROPERTY MANAGEMENT
pile documents reb REINSW launches own contract creation tool

A new online program is set to revolutionise the sales process and get properties to market quicker than ever before, ac ...

Gary Flowers reb Yabonza enlists heavyweight to board

Property start-up Yabonza has named a new board chairman to propel the company through its next phase of growth. ...

Neville Pozzi reb REIWA rolls out new ‘digital doorknock’ strate ...

The Real Estate Institute of Western Australia’s longstanding partnership with The Salvation Army is seeing the real e ...

Property technology app smartphone reb App aims to kickstart the real estate market

As the real estate industry continues to adjust to the new norms brought about by the COVID-19 pandemic, an app develop ...

Mark Morrison WEB 2020 REB Business Empowerment Showcase: An innovative p ...

The global pandemic has undeniably presented some challenges for the real estate sector. However, there are still opport ...

Michael Johnson WEB How COVID-19 has been impacting real estate agents ...

In April, Momentum Intelligence conducted a major survey to understand how the coronavirus pandemic has been affecting t ...

Tom Panos 140520 What’s Making Headlines – 14 May 2020

What’s Making Headlines is your new source for all the latest in Australian real estate news. ...

Heath Williams WEB Selling Brisbane’s most luxurious properties dur ...

After an initial lull, things have started ramping back up in the Brisbane property market, but Heath Williams, lead age ...

Mark Morrison WEB 2020 REB Business Empowerment Showcase: An innovative p ...

The global pandemic has undeniably presented some challenges for the real estate sector. However, there are still opport ...

Michael Johnson WEB How COVID-19 has been impacting real estate agents ...

In April, Momentum Intelligence conducted a major survey to understand how the coronavirus pandemic has been affecting t ...

Tom Panos 140520 What’s Making Headlines – 14 May 2020

What’s Making Headlines is your new source for all the latest in Australian real estate news. ...

Heath Williams WEB Selling Brisbane’s most luxurious properties dur ...

After an initial lull, things have started ramping back up in the Brisbane property market, but Heath Williams, lead age ...

Positive Mindset in Business reb The impact of a positive mindset in the business o ...

Let’s be real: running a business or an office is stressful. Here’s a quick rundown of some insights on keeping yo ...

Cameron Black reb Lies and statistics: Has the property market actua ...

It seems like there has been a huge change of sentiment in the last month as a confluence of factors has come together t ...

short 850x400 june2019 How to get that big win

Getting a big win is more than just sales. It involves strategic planning and setting goals, according to real estate bu ...

MeganSmith 050719 cropped Ray White’s Megan Smith sells $14m property in B ...

Ray White Balmain sales dynamo Megan Smith has sold one of the most expensive houses in Australia this year, with the pr ...

housing properties reb New projects to enable better housing policy decis ...

The Australian Housing and Urban Research Institute (AHURI) is undertaking several priority research projects which aim ...

suburbs high shot reb Forward indicators point to property recovery

The property market is beginning to show signs of life, with sellers looking to cash in on buyers’ demand, according t ...

housing properties reb ‘No signs of distress yet visible in housing mar ...

While the current crisis could exacerbate high mortgage debt, there are currently no signs of distress visible in the ho ...

home owners reb Home owners given stern warning on upcoming regula ...

Property managers in Victoria should advise caution to home owners, after a stern warning was issued about regulations s ...

EVENTS
REBAWARDS Listready
Real Estate Business Awards 2020

The REB Awards is the benchmark of success in the Australian real estate industry. It reflects not only the business astuteness of the country’s leading real estate operators and networks..

Learn more >
FROM THE WEB
Recommended by Spike Native Network
Do you have an industry update?

What’s the best strategy when selling a duplex?

19 September 2019 Benjamin Mulae
Ben Mulae

With affordability decreasing and pressure on local councils from the state government to increase the number of dwellings in an area, there has been a steady increase in duplex construction activity over the last 10 years.

It’s not just seasoned developers building duplexes — everyday property owners are building them as a way to downsize into a newer property at the same location while making a profit from the sale of the other side, or keeping it as an investment for the cash flow and future capital gains, or families looking for multi-generational housing.

Strategy 1

But what about when it comes time to sell, and the aim is to sell both sides of the completed duplex on completion for a profit?

Advertisement
Advertisement

Sellers are often faced with a choice of the best way to market the two homes. One strategy is to sell the duplex one side at a time. Often, they will put the best one on the market first as it should achieve a higher sale price, with a view that it will set a benchmark to leverage off when selling the inferior side afterwards.

The problem with this though is that it is a slow process as each sale can take four to eight weeks to exchange, increasing the developer’s holding costs. It’s also difficult to predict which side of the duplex a buyer is going to prefer. This is a personal thing and it doesnt always play out the way that you think.

Once one side sells, agents will then place the other side on the market. But getting the same buyers back for another look can be difficult, and by then they may have already purchased somewhere else. It can also create a negative experience for buyers if they’re told that the other side of the duplex isn’t available and then not long after it goes to the market. This can reduce trust in the real estate agent, which is not ideal when trying to get the best outcome for our clients.

Strategy 2

The other approach is to market both sides of the duplex at the same time.

In our experience, this creates significant additional interest as there are two properties for buyers to consider rather than one. It also gives the agent the chance to cross-sell between the two homes at the same time.

This is important, as a purchaser’s preferences in a home are so personal, and it allows them to form an opinion between the two homes and subsequently an emotional attachment with the side that they prefer.

This all maximises the chances of a better sale price for our client and provides a better purchasing experience for the buyer. It also means that the vendor/our clients can reduce costs from the increased economies of scale when marketing the homes at the same time, and this strategy also reduces their holding costs as both properties will likely be sold in half the time compared to selling them in two stages. 

This can add up to savings of thousands in both marketing and holding costs. It also widens the buyer pool as there may be buyers who are looking to purchase both sides of the duplex as an investment or for multi-generational living.

Family first

In recent years, we’ve also seen more buyers partner up with family members, friends or their boyfriend/girlfriend to purchase property. Purchasing a duplex minimises the risk for both parties so has been a popular choice for buyers looking to secure their first property.

When looking to sell, having a wider selection of buyers vying for your property is always advantageous and can help you achieve the best possible price for the property.

Benjamin Mulae, partner and sales agent, LJ Hooker Avnu

What’s the best strategy when selling a duplex?
Ben Mulae reb
lawyersweekly logo
Emma Ryan

Emma Ryan

Emma Ryan is the deputy head of editorial at Momentum Media.

Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.

Email Emma on: [email protected]com.au

FROM THE WEB
Recommended by Spike Native Network
Do you have an industry update?
REAL ESTATE BUSINESS NEWSLETTER
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.