This month’s client story is a memorable challenge from our archives.
We took on the task of managing the sale of a modern cottage on MacLeay Island, just a few km’s off the coast between Brisbane and the Gold Coast. The block was a generous 1,170 m2 and classed as ‘waterfront’ property.
Our client had acquired the property as part of a legal settlement and had never seen it.
What could go wrong?
Our ideas of selling the idyllic island beach cottage soon changed once we started doing our due-diligence on the property.
Although classed as ‘waterfront’, the property had no practical water access or views, due to a mangrove swamp between the house and the ocean;
MacLeay Island has no major shopping facilities or secondary school. Access to the island is by passenger ferry, vehicle barge or boat;
The property had the following (somewhat alarming) Council overlays:
A Flood and Storm Tide Hazard Overlay, based on an assumption of the following impacts as at the year 2100:
A rise in sea level of 0.8m; and
An increase in cyclone maximum potential intensity of 10%;
A Coastal Protection (Erosion Prone Areas) Overlay;
An Environmental Significance Overlay;
A Landslide Hazard Overlay; and
A Waterway Corridors and Wetlands Overlay.
The property was next to conservation land, however the most prominent wildlife appeared to be midges and mosquitoes from the mangrove swamp!
The house was a 2 bed-room, fibre cement ‘flat pack’ from China. Some minor repairs were required but of greatest concern were the non-galvanised wall nails rusting through the painted cladding.
The house did not have a Final Building Certificate from Council and required 12 different trade certificates for a final certificate.
The builder had moved to ‘somewhere in New Zealand’ and the sub-contractors were either unknown, un-contactable or owed money and un-cooperative. Getting a tradesperson to certify another tradie’s work is almost impossible.
Banks treated properties on the island as ‘low-grade rural’ for lending purposes and did not want to take security where there was no Final Certificate of Occupancy; and
The median days on market for MacLeay Island properties was 140, so no quick sale!
Anyway. Enough complaining. We had a job to do, and we were going to do it.
Our first step was to find a reputable local estate agent. Box ticked! We also obtained an independent valuation to help set the asking price for our client.
The agent initially auctioned the property in the hope of getting an unconditional sale, leaving the purchaser to do the repairs and obtain the final building certificate. Unfortunately, only midges and mosquitoes turned up for the auction.
We could see that the property was unsaleable in its current condition. We then set about repairing the house and obtaining the trade certificates needed for the final building certificate.
Everything works on Island time, and it took 11 months to arrange the works, get the trade certificates and have the Council issue the final building certificate.
Our tenacious estate agent then produced two offers. The higher one was subject to approval of finance in 21 days, and the other offer was unconditional. Both offers were above valuation.
A gambling person might bet on the higher offer going unconditional, but our client agreed that the chance of that not happening, and the unconditional offer being withdrawn within the 21 days was too high. ‘A bird in the hand’ has never been a truer saying, and the unconditional offer was accepted.
Our client was delighted to have this saga put behind them, and grateful to Tower for our persistence in putting the property into a saleable condition and finding a new owner for their ‘island beach cottage.
Thinking about selling your property? Contact us today for an obligation free consultation.
Phil Hoopmann 0402 890 830 | Robert Allanadale 0418 517 643 | info@towerpa.com.au
Level 3, 277 Camberwell Rd, Camberwell VIC 3124 | www.towerpa.com.au