Steps in Marketing your Property

Independent Valuation of your Property

As the first step it is recommended that we get an independent valuation for your property. The valuation is important for the following reasons:

• It helps establish a fair price for your property. The valuers that PPI recommend are thoroughly conversant with the market value when assessing the value of your property.
• It is a valuable marketing tool, particularly for inter-state buyers who are often in a situation where they will be buying 'site unseen'.
• It avoids the need for repetitive inspections by purchasers. Tenants whilst cooperative, may not always enjoy being available for frequent inspections. Experience has proven that the less dependence we have on having to gain access to the property - the smoother the process will be.
• It decreases the time once a purchaser makes a decision, to organise finance, as the valuation is already in place. For that reason we use and recommend valuation companies that are used by most major banks.

With a satisfactory valuation, PPI's ability to sell your property in a timely period, through its large inter-state network is significantly enhanced.

To proceed with the valuation you will need to:

• Forward PPI a cheque made out to the valuer.
• Send PPI a copy of all relevant information for your property (i.e.: lease, site plans, floor plans, rates notice etc).

On receiving the details on your property, PPI will:

• Advise the tenant that the property is being sold and gain their cooperation in the process.
• Provide all relevant details to the nominated valuer.
• Prepare marketing material.

ESTABLISHING THE MARKET PRICE

A copy of the valuation will be sent by the valuer both to yourself and PPI. A decision now can be made as to the marketing price of the property and about the marketing strategy that should be employed. Normally, the marketing price should be closely associated to the valuation provided.

Once a decision is made to proceed with a sale, you will need at this stage to:

• Sign a marketing agreement with PPI.
• Provide additional information on the property which was not provided at the valuation stage.
• Nominate a solicitor to handle your sale. For NSW based properties we will need to prepare contracts before we can officially start marketing your property. Legislation varies in other states. If contracts need to be prepared in advance, our solicitor will need to charge a fee.

MARKETING YOUR PROPERTY

PPI will offer your property up for sale and negotiate whilst armed with the valuation in order to attain the best possible offer for your property. You would only be liable to pay PPI a total commission amounting to 4% of the eventual sale price.

PPI will be marketing your property:

• Through its offices and agents through-out Australia.
• Where necessary through its network of financial advisers and accountants.
• Through the Internet.
• Through direct advertising locally if necessary.
• Through its normal advertising channels which are on a National Basis.

It is PPI policy, that owners are not normally expected to pay for any costs associated with advertising. Your only up-front cost will be the cost of the valuation and for NSW based properties, your solicitor's costs in drawing up contracts.
Most properties are taking on average 8 to 10 weeks to sell. Settlement terms are usually on the basis of 45 days from exchange. During the marketing period PPI will as necessary, keep you abreast of the response. PPI will only discuss offers with you, which are either on, or very close to the agreed marketing price.

SALE OF YOUR PROPERTY

Once we have an acceptable offer that you have endorsed, PPI will fax sales instructions to both yours and the purchasers solicitors. Contracts (if not already done), will be prepared and will need to be signed by you as soon as possible. Until contracts are signed by both parties then exchange cannot take place. If you are going to be absent for any lengthy period during the sales campaign, it is very important to advise PPI. In some cases it may be prudent to prepare and pre-sign contracts and have them sitting with your solicitor awaiting your instructions.
PPI do not usually hold money in their or their agents trust account. We are normally re-numerated according to our marketing agreement out of final settlement funds. You will need to provide instructions to your solicitor to that effect.

FEE STRUCTURE

PPI are only remunerated on the basis of success (i.e.: through the successful sale of your property). PPI believes that you will receive a far more satisfactory price for the sale of your property through PPI's marketing approach than say through say local based real estate agents. You can rest assure that PPI will only take your property on if it believes that it can be sold at the agreed levels within an acceptable period of time.
PPI remuneration is negotiable of the purchase price, or $8000 whichever is the greater (plus 10% GST). If as part of the selling process, then PPI would only be expected to be remunerated $1000 to cover its administrative fees.

THE NEXT STEP

Please feel free to go through any of the details outlined in this report with any PPI staff members.
Your first step in the process should be to instruct PPI to arrange for the valuation.
I look forward to assisting you in this very important transaction of selling your investment property.