See transcription here
Hi there! It’s Jarrad Mahon here from Investors Edge Real Estate. Today, I’m with one of the savvy real estate agent, Logan Duncan Smith. Thanks for joining us! In this video series we’re going to be going through how to make tens of thousands extra when next selling your Perth property.
And today, we’re actually running through the whole furnished vs. unfurnished debate that we so often get asked. And if your property is vacant and you’re coming to sell, it’s really worth considering furnishing your property. Buyer’s come through so there’s really no soul, there is nothing to show them how the property can be set up when it’s unfurnished. And so by putting your furniture in, we could really paint that scene for them and show them what it could be like for them to live in the property.
Typical cost
So first of all, I thought we would chat to Logan about the typical cost that we find to furnish something.
Logan, what are they for a different property types that you usually working on?
Logan: Typically speaking, it can range from anywhere from $2,600 to about $4,000. Just rough off the head for a single bed single bath apartment could be about $2,600 per month. Two bed two bath around $3,000. And then with the houses 3×2 I’d say roughly about $3,300 and then 4×2 houses around $3,600. That’s per month and then obviously on going from there, it does come down a little bit but for the first month how much roughly it should be costing.
Jarrad: We would want them to be sold in the first 4 to 6 weeks, in any case, you don’t have to go with furnishing the whole entire house, you could always just furnish the master bedroom, family area, the back and the dining and maybe one of the bedrooms, just depends what sort of budget you’re on.
Logan: Yes, that’s it. And we’ve been in that situation where, it has already been partly furnished and we just furnished the rest of it as well. And that worked out really well as well.
Case Study
Jarrad: Great! So that’s a bit on the cost. So, can you speak of a case study you can think of just so everyone can wrap their head around, kind of returns you might be expecting. I know we can’t go and sell a property twice and find out what we got selling it furnished and then selling it unfurnished but I think in the case study, two identical apartments or 3×2’s in the same group was it?
Logan: Two 3 x 2 units relatively the same, one furnished one was unfurnished. The one that was furnished sold within I think about 3 weeks but it was also more so the buyers that were coming through. The sort of mentality or sort of thinking the furniture really helped. It created like a sense of “How can we afford this?” rather than the unfurnished is quite cold and not very welcoming, it was always like “How cheap can we get it?” and it was reflected in the selling price. I think furnished one sold for an investment of $3000 it sold for $12,500 more .
Jarrad: So that’s about four times return?
Logan: As well as the time of market. I think I sold within 3 weeks and the other one was on the market just over 8 weeks.
Jarrad: I guess what we kind of hope to see is at least doubling back of your investment, that’s one of the main benefits and it’s also great when you are going to market to know that you’re leaving no stone unturned. You really just want to know you’ve got your best price from the market.
The Benefits
Jarrad: What are the benefits that you’re seeing Logan?
Logan: The main one is that we see creating emotional buyers. We’ve got few other things, we’ve got few other tactics that we used to create emotional buyers but at the same time, nothing more than furniture.
It does quicken selling time, there is nothing more costly than being on the market too long. The first question you get asked as an agent is how long you’ve been on market. And it’s hard to be truthful when it’s been six months but it’s pretty open knowledge now, how long the property has been on the market. And we’re pretty honest and upfront with people but I see with furniture’s it’s going to help bring that time down.
Jarrad: I guess when buyers get in that emotional space you’ve got more chance of having multiple buyers interested at the same time and getting that competition.
Logan: That’s it as well. When people walk through create that sort of emotional connection where they can see their kids grow up and what not. They’re definitely going to pay more and it’s definitely a benefit to the seller so we can’t recommend furnishing the house high enough.
Jarrad: Great! So that’s pretty much sold to me. If you’ve got your mind to furnish definitely worth the investment and we can help you arrange that whenever you come to sell a vacant property. Thanks for joining us!
