Selling a property asset can be stressful at any stage of life, particularly when it’s on behalf of an elderly family member who has owned the property for many years.

A lot of people are often involved and decisions need to be made collectively to ensure the process is managed smoothly, which can take up large amounts of time when there are multiple family members with differing opinions. 

WILLIAMS MEDIA spoke with Burgess Rawson Associate Director Tom Doran, who shared his top tips for anyone selling an investment asset in this situation. 

“Like most things in life the sooner you start planning, the better,” Mr Doran said.

“Many people underestimate what preparation is required, particularly if the seller is elderly and they don’t have important documents at hand. Sometimes important floor plans or DA approval documents are hidden away or forgotten.”

1. Meet with an agent early.

Arranging a meeting with a real estate agent once you know it’s time to sell can bring a multitude of benefits down the track. They can share valuable advice on when it’s the most favourable time to sell, based on the property condition, lease tenure or the general state of the market. It is also important that all vested parties are involved (either in person or via remote meetings such as Skype) so they can be aware of all discussions and strategies.

2. Gather important documentation.

Collecting relevant information saves you a lot of time and avoiding that back and forth will ensure a quicker outcome. Documents that you may be required to source include floors plans, title deeds (banks hold these if there is mortgage), lease agreements and DA approvals. 
 
3. Outgoings 

Once you have collated the basic crucial documents, it’s time to obtain a copy of all the property’s outgoings. These include council rates, water rates, insurance and a history of repairs and maintenance. If the property is strata titled, obtain strata levies too. The more information you can access, the more prepared your agent will be. 
 
4. Seek legal advice.

With assistance from your relative, choose a solicitor that will legally guide you through the process of selling your commercial asset. Often this is the same person they have used in the past for drawing up sale or lease documentation. A solicitor that understands the history of the building can be an invaluable asset during the sale process. 

5. Consider selling at auction. 
Auctions are often the best way to divest out of commercial property, though elderly owners can be apprehensive about the process. It is a common misconception for people selling their asset to believe they must attend the auction when that’s not always the case. Anyone selling a property at auction can do so in the comfort of their own home while being on the telephone giving a family member verbal instruction who is present at the auction. If you aren’t sure whether anyone can attend the auction - albeit you or a member of your family – you can also provide written instructions to your agent prior to the auction. 

6. Choose a family spokesperson.

To make the process as smooth as possible, it’s recommended to select one person from the family to communicate with the agent so that clear instructions can be given. This avoids confusion among vested parties, particularly when multiple people are providing different instructions. 

For more information on the best ways to sell an investment asset on behalf of an elderly family member, email or phone Tom Doran via the details below.

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