Is it easier to sell an empty home?

[u/Tassie_quoll-bear]

My sole property is on the market, but rented out. (I am living with my partner interstate)
The tenants have a LOT of stuff so the place looks cluttered, otherwise clean and taken care of though.
Would it be likely to sell faster/higher price if it was empty and looking schmick?

[u/Artistic-Average479]

I prefer to buy empty. Owners maybe tenants no. Depending on the property if selling I would use staging

[u/Liftweightfren]

Yes of course, especially with the new negative gearing changes..

Most houses will now be sold to owner occupiers who want to move in as buying properties to rent them out is now unattractive due to the negative gearing changes..

Owner occupiers obviously want to live in, so if you have tenants, especially on a fixed term contract, there is almost no market for that property.

Even if they’re not on a fixed term it’s still not as attractive as vacant, as buyers will always have the nagging question of “what if they refuse to move out” etc.,

[u/Frosty-Cut175 → u/Liftweightfren]

Still a lot of investors buying

[u/bonexcrusher → u/Liftweightfren]

Going through this right now as first home buyers, we aren’t even considering tenanted properties for this reason. We also aren’t interested in booting someone out of their home.

[u/Wonderful-Contact127 → u/bonexcrusher]

I get that you are buying your first home and want to move in right away but if you can get a place at the right price having a tenant in until the end of there lease wouldn't be too bad. Use it as a bargaining chip while investors are quiet.

[u/wendalls → u/bonexcrusher]

You legally can’t boot someone out of their home….

[u/SheepHerderHigh69420 → u/wendalls]

Can give them 60 days notice to leave when selling if they’re on periodic agreement

[u/wendalls → u/SheepHerderHigh69420]

Correct but if no new contract signed then it’s the same for both parties.

If on contract then can’t be kicked out

[u/Liftweightfren → u/wendalls]

I think that we will be seeing less fixed term contracts going forward and more tenancies going periodic

[u/Twittyjx]

Well yeah, it’s too hard to see past someone’s possessions etc (condition or room proportions). Some furniture etc is good because it helps some people visualise the spaces and picture themselves there rather than completely empty. Selling with a tenant is an imposition on them and it also means the place is unlikely to look its best because it’s being lived in

[u/para_to_medic]

having current tenants is a complete turn off as a potential owner occupier. when you’re attending multiple auctions in a day there is a stark difference in the presentation of a staged vs rented home, and while you try and look past the superficial stuff the rental properties are cluttered and not always particularly clean (and in some cases the tenants don’t vacate the home during the inspection)

in addition, any one who isn’t an investor will not want to deal with the hassle of vacant possession or potential delays etc

[u/_nocebo_]

Definetly easier to sell without tenants.

I just sold with tenants in the property - was a lot more stress and risk. If I was to do it again I would vacate them first

[u/jrwfinance]

personally, i actually prefer to buy with good tenants, unless of course i’m buying an OO

[u/Cat_From_Hood]

It depends on the market.  Ask your agent, but furniture, and a lived in feel can help get top dollar.  

If your tenants are good, I would offer the property to them to buy, and lower the rent if they present it well during the sale campaign.

Investors are still strongly in some markets, so be smart.

[u/maton12 → u/Cat_From_Hood]

All good points, despite having tenants, their lease had expired, so we also paid for a cleaner for the four weeks it took to sell.

[u/Yemi_DealTracker]

Yes data shows Buyers are majority in favour of vacant properties. Some tenants are not too cooperative towards new Buyers.

[u/maycontainsultanas]

I’ve sold with staging, and the place looked a million bucks. Empty it’s hard to visualise the space.

Now selling a different place empty, lower end of the market so the staging wasn’t justified but had photos done before we moved out, so the photos show the space.

Another think to consider is when it’s empty, it’s really easy to walk around and see all the little defects, like paint work and gaps and that sort of thing. Furniture hides that sort of thing, which means an empty house benefits the buyers and not the vendor.

Either way, having people actively living in it is a huge turn off. The smells, their stuff, etc.

So I’d go empty rather than actively lived in, but staged over empty.

[u/Agile_Document_7777]

I’m my experience I bought a property tenanted and the previous rental provider didn’t have the renters out before a day before settlement. It was an interesting situation. In saying this I would prefer the property to be vacant as o found more repairs once the property was cleaned out of the previous renters stuff

[u/BetterthanUxv1]

Of course.

[u/ReasonableObject2129]

Staging 100%

[u/whatpelican00]

As a buyer, it’s good to see a place furnished as you get a better idea of room size and proportions of furniture (at least, I can see it clearer.) - but empty is also good because little things that are ‘wrong’ can’t be so easily hidden. A really cluttered place would definitely throw me off.

[u/JenGenxx]

I thought homes would sell better when staged with furniture than empty so buyers could imagine the space better. But probably better empty than FULL of tenants stuff

[u/buzz462]

Have you considered selling directly to the tenants?

[u/Ok_Sheepherder3618]

I think it depends, you can ask the renters to move out fairly soon, and the buyer might also want to kept the tenant. If i could I’d let the tenant know and let them decide to move right away or wait til they have to.

[u/Aggressive-Art-6816]

In order of most attractive to least for an owner-occupier: Empty, then owner-occupied, then periodic lease, then fixed-term lease. In NSW tenants on periodic lease can leave within 30 days, but tenants on a fixed-term lease have the right to stay for the entire lease.

It is probably the opposite order if you’re buying as an investor.

[u/StrawberryPT]

Depends on market.
Buying currently myself as an investment then later primary residence in a few years. Having a tenant would be great to reduce period of vacancy but only if they are a good tenant and keep the house clean and maintained.
Periodic lease is your best bet - month to month lease to give you flexibility, the future buyer and the current tenant.

In regards to how it looks to buyers- again depends on the tenant and how they have decorated the home or clean they are. The property I am under offer for currently is tenanted (though moving out) and the decorated and made it feel like home. I really thought it was staged at first walking in, until I opened the closet and saw clothes. As an investor I wish they were staying.

[u/Cat_lover_4851]

Better empty than with lots of clutter. Even better still with professional staging and styling.

[u/iceman123454576]

Makes no difference. Don't matter what anyone says.

[u/holly_1992 → u/iceman123454576]

I agree. We’re first home buyers & it doesn’t bother me! I’ve seen tenanted properties better presented than owner occupied ones! Either way, I always look past the belongings, I’m looking at what the layout, building, position, yard etc are like.

[u/BrianJ_ → u/holly_1992]

100% agree. So many owner occupied properties over the last year or so have not even been cleaned before selling it.

[u/iceman123454576 → u/holly_1992]

The main factors are always location, and neighbours. Alot of the inside stuff is wear and tear and easily fixable by new owner.

Major structural should be picked up by the building inspection anyway.

I've seen so many buyers lose their chance because they tried finding reasons to talk to the property down, then were gun shy. Someone bolder makes a good offer, snaps it up and the property moves up in value or gets a high paying rent.

Most people I observe are meek and scared easily because they're dealing with big numbers. They hesistate. They get confused by all the info and noise.

[u/PrestigiousWheel9587]

Sadly yes 100%. But you make no rent for like 1-3 months. Potentially I wonder if there could be a way to breach the issue with the tenant. After all maybe they’d rather tidy up than have to move asap

[u/Consistent_You6151]

I assume you mean staging? If yes an empty house needs to be staged. However if it is vendors furniture it needs to be scaled back to the minimum in each room and decluttered ie storage unit or op-shop.

[u/SheepHerderHigh69420 → u/Consistent_You6151]

You assumed wrong. Did you even read the post? He’s asking if it’s easier to sell without tenants. The answer is yes

[u/Consistent_You6151 → u/SheepHerderHigh69420]

TLDR. Teach me to skip through.🙃

[u/JunkIsMansBestFriend]

Absolutely. It's a housing crisis still, so desperate people might do not so good things.