Spring has sprung and the buyers are out of hibernation

The past couple of months have seen a resurgence in enquiries for management rights.   

I believe the low interest rates, with little or no chance of them going up in the foreseeable future, strong September school holiday activity and the prediction of a long dry summer has given potential buyers new confidence in the holiday market. Where permanent complexes have continued to be strong in some price ranges we are now seeing holiday buildings selling again with half our “under contract” sales currently holiday buildings.

Among the normal general enquiries there are people who are in the ready-to-buy-now category but it is not easy finding the right building that suits their requirements. As buyers have become better educated regarding management rights they are more critical of what they perceive to be over priced businesses with residence values and current figures the two most talked about points.

If you are considering selling we constantly advise vendors to have up-to-date figures prepared and a valuation on the residence to eliminate any conflict. As a couple of recent examples we had one residence come in $20,000 short and another one over $60,000 so it is much better to negotiate your price once than renegotiate after valuations or verification. The multiplier, whether we like it or not, has come down in the past couple of years for the first time ever and we now have a different market place to work with than ever before. Having said that, where we have a willing buyer and a willing seller we will do our utmost to bring the deal to a successful conclusion for both parties.

I said earlier that our buyers are more educated than before but that doesn’t mean they are always right in what they think and say. We are prepared to work with them for a lot longer than previous years and they need to be nurtured along the way, not pushed into signing contracts too early. A high number of contracts fall over because we believe the buyer was not ready or qualified properly by the broker involved. As broker and vendor we need to work together as a team to ensure everything possible is in place to make the sale as easy as possible for the buyer especially now where we have an increased number of potential buyers in the market place. We are encouraging all buyers to only use industry experts, including ourselves, to steer them to the right properties based on their criteria through to solicitor, accountant and financier and forget the “family” solicitor etc. The same needs to apply to vendors particularly in the case of profit and loss statements. They need to be prepared by your accountant wherever possible to avoid GST being left in or 13 months figures instead of 12, both of which have occurred in a number of cases.

While we have this increased activity at present everybody involved in the sale process should be very active in making sure we have every chance to leave a lasting impression on the buyer. Preparation is the key and with buyers over prepared in some cases we all need to be proactive to make sure we don’t miss the opportunity when it comes along.

Let’s make it a great summer for everyone in the industry as well as the new comers!

Related Articles

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Back to top button
WP Tumblr Auto Publish Powered By :
Would love your thoughts, please comment.x