Beware developers trying to buy your WA property

Investors and property owners with suburban blocks zoned for development must be cautious of developers offering less than their blocks are potentially worth, RE/MAX WA has warned.

Managing director of RE/MAX WA, Geoff Baldwin, has warned that property owners must choose their marketing method carefully when selling if they wish to avoid the risk of underselling.

“We are repeatedly seeing owners of potential development blocks being approached directly  by builders and developers with offers to buy their properties however in many cases the prices being offered are substantially lower than what they would receive with a professional and targeted marketing campaign,” Baldwin said.

“Often these properties are owned by elderly people who have lived in them for decades and hence they have little concept of the true value so when they are approached with what looks like being a trouble free sale they are trapped into selling cheaply.”

Owners of properties in areas popular with developers are advised to speak to their local agents for indications of a reasonable selling price, and should consider the benefits of offering their property onto the market to reach owner occupier buyers.

“These sites are now in high demand and although developers won’t overpay, it is important that an agent knows how to create competition and hopefully attract multiple offers to ensure the best result is achieved for the seller,” Baldwin said.

This is especially topical as R-Code changes open up more sites in WA for potential development.