Christchurch Real Estate

The “A” Word

Auction – there it is, out in the open! Love ‘em or hate ‘em there is no doubt that auction is a common marketing strategy in Christchurch.

I make no secret of being a sales person who advocates auction to many of my clients, however, I do believe that it is not suitable for everyone and may not be the best solution in all market conditions. But this post is not about discussing the pros and cons.

Anyone who has regularly read my personal blog will know that I think that following the weekly results of auctions can provide a timely snapshot of current market conditions. So today at the Holmwood Auction Rooms – 12 auctions called and only 2 sold under the hammer. Not as bad as that in reality, I have a multi-offer to deal with tomorrow on my auction that was passed and there was bidding on about half of the auctions – and in at least 1 case it could be argued that the owner had an opportunity to sell but chose not to!

But that said, I think what can definitely be gleamed from our results today and those in other rooms around Christchurch, is that buyers have the upper hand right now. If you want to buy a home that is up for auction you are probably best served attending and waiting – if you don’t have to bid, why would you? Bide your time and make an offer afterwards – certainly as a strategy it is hard to argue with right now.

This begs the question of why the market is how it is. A number of factors spring to mind -  many investors are choosing to wait and see exactly what changes are coming in the budget, there has been a strong seasonal increase in listings and I detect a tightening of financial conditions – anecdotal evidence from clients suggests banks are less keen to lend than they were at the end of last year.

Will these conditions last? Obviously that is the $64,000 question and one I wish I knew the answer to with absolute certainty! I suspect the market will improve into and through winter as the excess stock is mopped up, and will again be swamped in late spring / summer.  I also think lending conditions should ease in the new financial year. So what would I be doing if I wanted to sell – I think pricing competitively is a great strategy at the moment – buyers hate the lack of prices with auctions, and well priced property will always catch the eye and attract offers.

March 04 2010 | Buyers and Home Sellers and Buyers Guides and Sellers and The Market | No Comments »

Mortgagee Sales… Money Is Still Tight

Mortgagee Sales now account for 4% of all house sales. This is a disturbing statistics. It is horrifying to think that 1 in 25 houses selling on the market today are mortgagee sales. For statistics

Regional towns across New Zealand are feeling the squeeze as mortgagee sales hit another historic high in September, according to the latest figures from Terralink International.

The data released today showed 343 registered mortgagee sales – up on the previous record number of 321 in July this year.

September 2009’s figures are up 130 per cent from the 149 mortgagee sales recorded in September 2008.

In September 2007, prior to the recession, there were 16 mortgagee sales.

Terralink Managing Director Mike Donald said the new record figures followed an uncharacteristic dip in mortgagee sales the month before.

“The continuing increase in mortgagee sales came as no surprise because all indicators showed the worst was not over for property owners. I don’t think we’ll see a true decline until sometime next year,” he said.

Regional towns and cities showed the greatest increases in mortgagee sales, Mr Donald added.

The number of mortgagee sales in Manawatu has doubled in a month from 11 to 22, Hawke’s Bay has gone from 15 to 24 and there were 32 mortgagee sales in the Waikato region in September, up from 18 the month before.

Northland, Otago and the Bay of Plenty also saw significant increases.

“The recession isn’t just hurting people in the big cities, small town New Zealand is clearly hurting too,” Mr Donald said.

Christchurch was the hardest hit main city, up from 19 mortgagee sales in August, to 29 in September.

figure source: NZ Herald

As I see it now there is no logical reason as to why house prices in New Zealand haven’t yet crashed in a dramatic way like the rest of the world. Not only is farming bad but tourism is terrible. Mortgagee sales and mortgagee auctions have risen 100% in Northland from May 2008 to May 2009, In Auckland during the same period, they rose 211% and in Wellington 1000%

This begs me to ask why are people getting themselves into the hassle of mortgagee sales but unfortunately its just about people not taking the right measures to avoid it. But I still receive emails from people asking why do people get themselves into this situation and others asking what actually happens in a mortgagee sale. So here is a quick excert from a New Zealand Website that details what a mortgagee sale is…

So what happens at a mortgagee sale?

A mortgagee sale is the final stage of the mortgagee process, at which the property which is the subject of the mortgagee action is sold at public auction to the highest bidder. The sale is conducted by a court-appointed referee. The referee commences the sale by reading aloud the Terms of Sale; the Terms of Sale is the document that acts as the contract of sale between the referee and the high bidder, and sets forth the rights, responsibilities and obligations of both the referee and the high bidder. Once the referee has read the Terms of Sale, the referee begins to accept bids for the property. The foreclosing mortgage holder (the “Mortgagee”) usually has an “upset price” which is the minimum amount it will accept in satisfaction of the mortgage debt. If the highest amount bid is less than the upset price, the Mortgagee will usually be the high bidder and take title to the property. If, however, the highest amount bid exceeds the upset price, the property will generally be sold to the highest bidder.

How does this happen?

If you fail to make the payments due under a mortgage on your home, the lender (the “mortgagee”) has the right to recoup the loan amount through exercising the powers contained in the mortgage contract. Usually this is done through the power to sell the property.

The mortgagee must, however, fulfil certain strict legal requirements, including serving you (the “mortgagor”) with the proper notice. If these requirements aren’t met then you may be able to apply to the court for a remedy.

Mortgagee must serve you with notice before taking action

Before taking action the mortgagee must serve you with a notice under section 92 of the PROPERTY LAW ACT 1952. This notice must adequately inform you of:

• the nature and extent of the default complained of (that is, the amount by which you are in default)
• the date by which you must remedy the default
• the rights that the mortgagee is entitled to exercise if you don’t remedy the default by the specified date

The date specified must be at least four weeks from the date on which the notice is given. But if the mortgage contract specifies a period for this that is longer than four weeks, the date specified in the notice cannot be earlier than the end of that longer period.

If you receive a notice from your mortgagee that does not comply with the legal requirements, you may be able to apply to the court for an injunction to prevent the sale going ahead. Further, if the mortgagee exercises the power of sale before the date specified in the notice, you may also be able to apply to the court for a remedy.

The mortgagee’s duty to obtain the best price

The mortgagee has a statutory duty to take reasonable care to obtain the best price reasonably obtainable as at the time of sale. If the mortgagee breaches this duty, you can apply to the court for a remedy.

To satisfy the duty the mortgagee must adequately market the property, which may involve advertising outside the local area, giving notice of the property’s advantages (including the potential for any development), and setting a realistic reserve price based on the property’s valuation.

Three ways of exercising the power of sale

The mortgagee can exercise the power of sale in one of three ways:

• sale through the High Court Registrar
• sale through public auction
• a private sale

Sale through the Registrar

If the mortgagee chooses to exercise its power of sale through the High Court Registrar, it must apply to the Registrar and notify the Registrar of the name and address of the mortgagor and of any other mortgagee. The Registrar must be satisfied that the mortgagee is entitled to exercise its power of sale.

A mortgagee is entitled to buy the mortgaged property only if the sale is conducted through the Registrar.

Your right to redeem the property

There is a small degree of protection afforded to you, the mortgagor, through the “redemption price” – this is the price at which you may redeem the land to be sold. At any time before the Registrar’s sale you may pay the redemption price or the amount due and owing under the mortgage; the mortgagee must then release the mortgage.

The redemption price is set by the mortgagee, and must be specified in the mortgagee’s application to the Registrar to conduct the sale. Any advertisement for the mortgagee sale must state that the redemption price is available at the Registrar’s office and can be obtained before the auction.

The best thing to do is talk to your lender and your solicitor early to avoid heartache.

The reality is that real people are having mortgagee sales. Its as easy as a person losing their job. For example a friend of mine lost his job, have a mortgage holiday but his new job did not give him enough money to pay the mortgage. He then was notified that his home was going to be sold and there was not much he could do. This is very real and looking at the economic situation out there there will not be a sudden drop off from these types of sales.

November 22 2009 | Sellers and The Market | 4 Comments »

Home Hints – When Choosing An Agent….

Real Estate Agents….. Well most think that they can be done without but when it comes to seeling your house most of us although we dont like to agree with it couldnt have done without our agent. Now you will probably agree with me more if you had a good agent. This like in any idustry is a risk that will be present but you need to identify which is a good agent. This I have done previous in this blog but I will detail off in another blog post later. In this blog post I mainly want to talk about what the agent will do to get you listed up.

When I say listed up I mean formally signed into an agreement with the agent so that the agent can act on your behalf to sell the property. Here is the catch though and you need to be aware. When you do sign up you are not signing up with the agent as such but with the agency. When you enter into an agreement with a real estate agency to market your home, you are ‘listing your home for sale’. One agent may sign you up and be your main contact, but once you’ve listed your home all the agents in that company can try to sell your home.

The agency works for you and their skill and experience can make a lot of difference.  If you dont know an agent yourself already talk with several different agencies to find the one that suits you best because you need to find someone you can trust and can communicate with peoperly. Also look for a company that looks to have a dominant market in the industry. This will really help as they will have greater reach than an agency thats smaller. So when you work with the agent you need to be confident they can do the job on your behalf. You need to ask questions.

Questions to ask the agent

• are you a member of the Real Estate Institute (MREINZ)?
• how long have you been in the business?
• what qualifications do you have?
• what references can you provide?(ask to talk to sellers they’ve worked for)
• how well do you know this area?
• what can you tell me about local trends?
• what buyers do you have on your books?
• how would you market my home?
• what sort of buyers will it appeal to?
• how are you better than your competition?
• what types of promotions do you do?
• what will you do if my home is slow to sell?
• when and how will you report back to me?
• what is your fee?
• would there be any other costs?
• what do you think my home could sell for?
• why do you think that is the right price?
• is there anything I should do to the home?

Two important things to remember

1. A point of warning. Some agents buy a listing. The value an agent puts on your house issometimes  partly based on trying to get your business (are you likely to choose the agent who gives you the lowest price?) So how they will try to get the best price for you is more important than the price they quote. The best agent to choose is the one thats going to give you the best price in your pocket at the end of the day. Your buying opportunity is best in the first month. Be very careful not to be overpriced when you come to the market. Be realistic and firm.

2. You want to be sure the agency will try to get the best price for you, not just a quick sale. So look at their approach and experience, not just the sales figures. The experience of the office is just as important as your agent.

Sole or general agency?

A sole agency is when you give one real estate agency the exclusive right to try to sell your home for a certain period. It means you can’t list the property with anyone else or try to sell it privately during that time.

A general agency means you list your home with several agencies and can sell it yourself if you want. Only the agency that sells the home gets the commission.

You generally will get better service from a sole agency because they have more incentive to sell it. My advice is to only sign up for a short time, say one or two months at a time. This will help keep the agency ‘on it’s toes’, give them incentive to sell in that time and it means you can review their performance and change the agreement, or the agency, if things are not working out as you’d like. And on the other side of this in that time you may find that you just cannot accept the market value of your home so you should access if this indeed a waist of time or not.

Home buyers tend to shop around so listing with one agency doesn’t mean fewer buyers.

Listing agreements

Ask the agents you talk with for a copy of their listing agreement – this generally is standard practice. This is the contract between you and the agency setting out what the agency will do, how your home will be sold and the fees you agree to pay.

Agreements can vary quite a bit between agents – and you can negotiate what is in them. As with any other legal contract, you should get your lawyer to check the agreement before you sign it.

Before signing, check it includes

• your name and the agency’s name
• the correct details for your home
• the chattels that are or are not for sale
• how the home will be sold
• how and when the agency will report to you (ask for weekly reports)
• the agency fees and costs.

Be careful at this stage of selling. I would always ask for a marketing plan before signing an agreement. Even if it is not a concrete marketing plan you should get a commitment from your agent so that after signing the contract agreement that you will have things start to happen.

From here on in is where it gets exciting for you.

June 16 2009 | Home Sellers and Buyers Guides and Sellers | 4 Comments »

Home Hints – What Way Should I Sell My Home?

1. by offer and negotiation

2. by auction

3. by tender.

Most people sell through an agent, but private sales are becoming more common.

1. Selling by offer and negotiation

Most homes are still sold this way. You set an asking price, put your home on the market and if a buyer is interested they make an offer. If you’re using a real estate agent and someone wants to make an offer the agent usually contacts other interested buyers in case they also want to make an offer – so you could end up with several offers at once.

Offers are usually made using the standard sale and purchase agreement form developed by the Real Estate Institute and Auckland District Law Society.

If you want to accept, you just sign the form. But if you want to negotiate you go back with a ‘counter offer’ by putting your change on the form and then signing it. If the buyer signs the change the deal is done – or they may come back with another counter offer themselves. This process is repeated until you and the buyer agree on the price and all the conditions – or you can stop at any stage. Your real estate agent will act as the go-between and try to help you make the deal.

Once both you and the buyer have signed the form and initialled all the changes, the agreement becomes legally binding. The buyer then pays the real estate agent a deposit (usually 5-10% of the sale price).

Is the offer conditional?

The buyer will normally have several conditions in the agreement, such as getting a building consultant’s report, or arranging finance. Once these conditions are met the agreement between you becomes unconditional and you are both legally bound to go ahead with the deal. The real estate agent then takes their fee out of the buyer’s deposit and pays you the rest.

If either you or the buyer back out at this stage it usually means the lawyers (and maybe the courts) become involved and penalties and costs may be awarded.

Negotiating the deal

As the seller you can also negotiate on the price and the other conditions. For example you might be prepared to accept a lower price if the buyer makes an unconditional offer or agrees to give you more time to find another home. Or you might want to keep some of the chattels.

If the buyer wants to make their offer conditional on selling another home you can add an ‘escape clause’ in case you get a better offer from someone else. It means you can give the first buyer a deadline to go unconditional and if they can’t meet this you can accept the other offer.

2. Selling by auction

Auctions are often used if a property is unusual or hard to value because it has a special feature, such as a great view. The main advantages of selling by auction are that competition between buyers can push the price up – and the sale is unconditional.

The way it works is that interested buyers bid for your home on the auction day. You usually set a reserve (the minimum you’ll sell for) and once bidding is over this level the home is sold to the highest bidder, they pay a deposit and settlement is usually 20 days later.

Two important things to understand

1. you shouldn’t tell anyone your reserve – only the auctioneer just before the auction starts

2. you need to do your homework before setting the reserve, because if a home sells at auction it is unconditional – you can’t negotiate further.

What if the reserve isn’t reached?

If the bidding doesn’t reach the reserve the home is ‘passed in’ and the auction ends. However, you can then negotiate with the highest bidder or, if that doesn’t work out, with the other bidders.

You can also sell before the auction if you receive a good offer – but you would generally expect the offer to be unconditional. Usually if this situation arises the agents will notify everyone interested in your home, so they have a chance to put in offers as well.

One drawback to selling by auction is the extra cost of promotion, which you will have to pay on top of the real estate fees.

3. Selling by tender

Tenders give the seller a chance to see what interest there isin their home, without having to put a price on it. Tenders can also be useful if you have a set date you need to sell your home

by, but they generally work best for special or unique properties.

Potential buyers are invited to submit written offers, usually by a set date. You are not obliged to accept any of the offers, and can choose to negotiate with any of the people who have made an offer if you wish.

If your home is likely to attract a lot of interest, a tender may help you get the best price for it. This is because potential buyers don’t know what other people may offer and tend to put in their best price with few if any conditions. On the other hand tenders can limit the number of people who are prepared to make an offer – some are put off by the closed nature of the tender process.

You can tender your home using the services of a real estate agent, or privately through a lawyer or another agent. If you use a real estate agent they will arrange everything. You will pay their normal fees and probably extra for advertising.

June 01 2009 | Home Sellers and Buyers Guides and Sellers | No Comments »

Home Hints – How Do I Decide What To Sell My Home For

It’s important to do your homework before you decide on the asking price for your home. There are several sources of information you can use to work out what your home might sell for.

Your rateable value

The rateable value (RV) provided by your local authority is not necessarily a good guide to what your home might sell for. Some homes sell for a lot more, or less. The value does not include chattels, such as carpet, drapes, light fittings, appliances and built in items that can add to the saleable value of your home.

Your real estate agent

Most agents are happy to do a free appraisal to give you a price they think it would sell for. While an experienced agent will have a good idea of the current market, it is still only their view and different agents could have quite different views. Some may tend to give a higher price to encourage you to sign up with them, while others may give a lower price because it makes the home easier to sell.

Other recent house sales

Try to find out what other homes in the area have sold for in recent months. You can buy this information from QV (Quotable Value). Your real estate agent can provide similar information from the REINZ (Real Estate Institute) database. You could ask the agent to show you similar homes for sale in your area, so you get a feel for the ‘competition’.

Registered valuation

Getting a valuation from a registered valuer may cost $500-$800, but it can be a good guide to how much your home is likely to sell for. The valuer will look at the features and condition of your property, as well as what similar properties in the area have sold for. Ask your lender who they recommend you use.

A registered valuation can be a useful negotiating tool. You don’t have to tell the agent or anyone else what the valuation is, but you can indicate that an offer is under valuation and needs to come up. Or if you are happy to accept an offer at the valuation price you could offer to share the valuation report with the buyer if they share the cost with you.

What will a buyer pay?

Many people think their home is worth more than it really is – but in the end it’s only worth what a buyer will pay. If you overprice your home you could put genuine buyers off. And if a home is on the market for a while without selling, buyers tend to wonder what’s wrong with it. So it pays to be realistic about your sale price at the start.

Is your home hard to value?

If your home has features that set it apart from other homes, such as a view or waterfront location, it may be hard to decide on a sale price. It may be better to sell by auction or tender because you don’t have to set a sale price – instead the buyers bid or tender what they are prepared to pay.

Do you have a large section?

It will increase the value of your property if your section can be subdivided. Check it out with your local authority and if subdivision is possible tell the valuer and agent.

May 29 2009 | Home Sellers and Buyers Guides and Sellers | No Comments »

Home Hints – Where Do You Want To Live?

By now if you’re looking to buy a property you will have been told about the saying, Location, Location, Location. But why do people go on about this so much? Why is it so important?

Well your home is one of the biggest assets most people will ever buy in their lives. It is therefore important to be happy with where you live because if you’re not happy you can’t pick the house up and move to somewhere better. You have to go through the whole process of selling which is both expensive, time consuming and stressful.

When you look for a house to buy you need to look for a house in the most desirable area your money can afford. Desirable areas hold their value better because others want to live there, and when prices do increase the more desirable areas tend to rise first and faster than other areas. Also you will be likely to get the money you invest initially back.

How do you find a good area?

·         Talk to family and friends about the areas they live in.

·         Ask real estate agents and valuers about local sales in the areas, price and sales volume trends. Look for areas that are selling fast and with holding values in this market.

·         Look for areas with good facilities such as transport, shops, schools, cafes, sporting venues and entertainment for the family and yourself.

·         If you’re looking in an older area of town look at the places that are getting renovated – and if it’s in a new area look for signs where people are taking the effort to make homes look loved, i.e. landscaping and variety of design.

·         If there is variety in landscape where there is flat land with water and views, this will always sell well.

When you decide with is important for you in an area and what would suit you look at the pro’s and con’s of where you’re living.

Here are some things to consider:

·         How close do you want to be to work, family and friends.

·         Are you prepared to commute – what will be the costs.

·         Do you like to be in a quite location or in the heart of the action.

·         If you’re preparing to run a certain activity from your home, will the zoning allow you to do this?

·         What sort of people do you want to be living amongst, do you want to be in newer homes or older homes.

At the end of the day you need to look at lots of homes in many different areas to get a feel for what you like and can afford. A home to buy and live n is not a short term thing, so bearing that in mind you need to keep in mind what will the area I like now be like in the future. In order to do this you need to check the zoning for the area with your local council and ask if there are any changes planned. You want to be sure the area is still going to be a nice place to live in the future. Zoning allows and restricts activities that can happen in an area, such as running factories or businesses. An area may seem quiet now, but if it’s zoned commercial you may find yourself surrounded by businesses later on.

Here are some of the advantages of investing in property

• If values go up you’ll make a gain

• There’s usually no tax on capital gains (the profit you make if the property goes up in value)

• Many people are better at paying off loans than saving

• You could make money by buying carefully, or with some types of renovations

• It’s a relatively low risk investment that should keep up with inflation

• You own your home and end up with an asset instead of just paying rent.

But you need to look at the options that are available to you.

• Other investments may earn more

• Property prices can go down as well as up

• It may take time to sell – if you’re in a hurry you may have to accept less

• You have ongoing extra costs like maintenance, rates and insurance

• If you don’t keep your home in good order its value may go down.

If buying a property is what you want then to make the most of your investment

• buy in the best area you can afford (buying the worst house in the best street is still good advice)

• check everything out thoroughly first to avoid problems (there’s a checklist later)

• keep your home well maintained

• get advice from a valuer before you do any major alterations – changes don’t always add value.

May 15 2009 | Buyers and Home Sellers and Buyers Guides and Sellers | No Comments »

March 2009 QV Statistics And New Zealands Housing Sales Volume

Christchurch

This is the latest Press Release from QV.

Property values in Christchurch decreased by 9.7% over the last year (calculated over the three months ending March 2009 in comparison to the same period last year), deteriorating further from the 9.1% annual decline reported in February. The average sale price for the city increased slightly from $344,816 to $349,442.

Melanie Holcroft of QV Valuations said; “The Central and Northern suburbs are holding as the strongest areas of Christchurch City, with the Eastern suburbs mirroring the Canterbury market.  The Hill suburbs have decreased from -8.1% in February 2009 to -9.9% in March 2009. The upper end of the market seems to be experiencing less activity compared to the middle and lower sections”.

“Property values since December 2008 continue to decline, although this appears to be at a slowing rate. Whilst the average sale price for Christchurch City shows a small lift, it must be kept in context as this data is easily skewed by normal market fluctuations and the mix of property being sold,” she said.

“The anecdotal signs of increased market activity with properties that are well priced continue on from last month, and buyers are showing plenty of interest in these. It should be noted however that the overall sentiment is still cautionary, with job security appearing to be the key driver affecting purchasing decisions. Local banks are also reporting a noticeable increase in pre-approvals, but this is still slow to filter through into market activity. We anticipate a slower market over the winter months, with current trends in line with seasonal behaviour,”Holcroft said.

Here is a snap shot of New Zealands Median Price for Property over the past 9 years.

Now here is the median for the same 9 year period in Christchurch.

The trend is very much the same.

Now the big change that agents have noticed is the drop in sales volume. Here is a graph from treasury that shows the drop in sales volume over the last two years and how it has changed.

As you can see there is a huge drop of with sales volume at about the time of the housing crisis in The United States which has evolved to the global credit crunch. But on the other side of this look at how steep the sales volume grew. This is post the 9/11 Twin Tower events which saw the number of migration of ex pats and new people to New Zealand grow at very fast rates as the graph below shows.

Now whether 9/11 was hoaxed by the Illuminati in a bid to change the world and protect certain people wealth or it was a real act of terrorism are still up for debate but the after effects have been more than anyone can detest. The jobs and employment from the upbeating of security was massive and in New Zealand the return home of thousands of New Zealanders pumped billions into the economy. But this caused the bubble that just kept getting bigger and bigger and created more and more debt. This debt is the real reason for the market the way it is. Now we have inflated prices with less capital and the same amount of debt.

When will the housing market start to move again.

Signs are already of more activity and there is a clear sign of migration numbers increasing as more people return home. These people have to live somewhere.

April 25 2009 | Buyers and Sellers and The Market | 1 Comment »

Points To Consider When Looking To Build A Green (Eco) Home.

Financially as well as environmentally, if you are building your own home, it is increasingly making sense to build eco homes. Done properly, not only are there huge running cost savings to be made from an eco build, but also an element of future proofing when it comes to current value and future resale value, if and when you come to sell.

For many though, providing a family-safe, non-toxic home and reducing the environmental impact while still enjoying the comforts of modern living remains the main motivation. It doesn’t mean you have to build with straw bales or rammed earth, though these are options; most successful eco builds are very conventional in appearance. But it is much more than just choosing environmentally friendly materials and paint.

The main priority should be designing a home which reduces energy use and therefore production of CO2 which is whats been blamed for climate change. Conserving water comes a close second.

Consider the following, especially if you normally worry about your car use, or the advent of cheap flights – these stats I found from the UK energy wise website.

* Homes in the UK use three times more energy than all our cars.

* Buildings are the fastest-growing source of the UK’s CO2 emissions, currently responsible for 46 per cent, with homes responsible for 27 per cent.

* More than half – 56 per cent – of water supplied is for households, and demand continues to increase.

* Energy use in non-domestic buildings is increasing as fast as fuel for air travel.

When you think of an eco home you need to look at all the angles. These include the location of the materials ie where they come from and how they’re transported. Who is making and transporting these materials and here do they get their training from. A big thing is are they local people so you are putting back something into the local economy.

Building an energy efficient eco house is highly technical, so it is important to check credentials and skills, which are currently in short supply. And you need to properly understand the concept. People are getting the wrong messages. Tacking stuff like a wind generator onto your roof won’t do it; you have to look at the fabric of the building, otherwise everything else is bolted on. Also if you build a 300 sq m mansion it can never be an eco build. Build to your limits.

If you’re building from scratch, even your dream home, it makes sense to consider its marketability should you want to sell. Meanwhile the social housing market already insists builders conform to various eco requirements, such as energy efficiency, as well as considering the local environment. One thing that is coming to New Zealand is double glazing in new builds.

Will it Cost More?

In the past as recently as the 1980s, we were limited by a very small supply of the materials alone. But things have changed. You can now build a low energy house as cheaply as you can build a standard house. There are now more and more places that will help you build an energy efficient home and as more and more people invest in these homes it’s becoming more affordable.

The building budget is always going to be an issue but you have to take into account cost over the lifetime of the property as well as the initial cost. That includes the running costs where owners can look forward to major savings. This is because at this time the supply is and manufacture of the materials to build and eco home are still not common.

Here are some of the things you should look out to do when you build a new energy efficient home.

* Insulation, throughout the house; make sure it is not compromised too by building construction, eg the accidental creation of ‘thermal bridges’ allowing heat to travel out; design should also include airtightness and ventilation.

* Water: conserve and minimise use of water. The average person uses 140 litres per day but should aim to reduce this.

* Energy: includes using natural materials such as wood for burning to heat water while renewable energy systems including wind turbines and solar panels.

* Lighting: should maximize the use of natural light, while energy efficient lighting is used throughout.

* Electrical appliances: eliminating the need for some eg providing a clothes natural drying space, while ensuring A++ energy efficient standard for others.

* Materials: consider those which are natural and from a renewable source; use locally grown timber; also more durable wood such as heartwood which reduces the need for preservatives. Look at the energy involved in production/transportation, and use manufacturers which can provide such information. Avoid PVC.

* Recycle or reuse where possible.

April 21 2009 | Buyers and Sellers and sustainable houses | No Comments »

Westpac The First New Zealand Bank To Give New Zealanders A Mortgage Holiday

Finally there seems to be a little relief for those who are becoming financially stressed by this global economic downturn. Westpac is the first bank in New Zealand to follow Australia’s lead and offer 12-month mortgage holidays.The decision is part of the bank’s new set of measures to help financially stressed customers. Australia’s biggest banks are offering customers a 12-month holiday after pressure from their Prime Minister Kevin Rudd to go easy on those who had lost jobs and were struggling to pay their mortgage.

Prime Minister John Key said he welcomed the positive step to help those New Zealanders who had lost their jobs and still had to service their mortgage. Westpac New Zealand discussed its proposals with Mr Key before announcing it would offer customers new options of interest-only repayments and to extend the period of loan contracts.

But while many customers will welcome the new offers, Westpac acknowledged that postponing loan payments for any period would increase debt, and therefore may not be suitable for many borrowers. Mortgage holidays are nothing new. They have been around for some time and under special circumstances the banks usually will allow you to ask and try for one. But now the recent announcement is a step forward for people who are struggling a little more than they could have before. Its a step to helping people keep their homes in my view.

There are inherent dangers of mortgage holidays – for like all holidays they ultimately have to be paid for and would be careful in the way it applied the options.

Taking a holiday from your mortgage repayments certainly gives you a breather for a few months if that keeping that roof aloft begins to look a bit precarious, but to ensure your next intake of breath isn’t a sharp one, beware of the pitfalls. Missing payments can have a huge impact on future payments and the size of you overall mortgage.

Here’s what will happen to say myself in this situation;

• Taking just one year’s mortgage payment holiday.
• The price of the home dropping in value by 10 percent.

CASE STUDY

My house is worth $300,000 in todays market. My mortgage loan is for $270,000. So, I own 10 percent of my home at the moment. In one year, the 10 percent estimated drop means my home will be worth $270,000 the amount of my loan. If I add on the $15,000 I plan to defer on the mortgage that then means I owe $285,000 on the mortgage, but the home is now only worth $270,000 and I will owe $285,000 so that means I will have negative equity in the home. Meaning I will owe more on their home that it’s actually worth. This isn’s a problem if I don’t intend to sell but I probably wouldn’t be able to remortgage in future untill I get some equity in the home.

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It sounds like a really terrible situation and sounds daunting and you have to look at both sides of the fence when thinking of taking the holiday. The most important action that can be taken in times of hardship is for you to talk with their bank early so that if you are in trouble the bank can help you make the best descision for your current financial situation.

April 11 2009 | Sellers and The Market | No Comments »

Mortgagee Sales are up – Whats happening out there?

Today I read a very interesting article on stuff.co.nz about an Auction that a good friend of mine Roland Lina conducted last night in New Plymouth. It highlights a good point about what is happening in the market. The article reads as follows.

Three words are dominating Taranaki’s real estate pages “sell, sell, sell”.

As house prices and interest rates continue to plummet desperate vendors trapped in mortgages they can’t afford are looking for creative ways out.

Last night at Harcourts New Plymouth an auction attracting almost 100 people sold an expansive Heta Rd property for almost $120,000 below its government valuation (GV).

Advertised as a pre-mortgagee sale under the title “beat the bank” the six bedroom, 1582sqm, 2 1/2-year-old home had a reserve price of $380,000, was valued at $680,000 and sold for $566,000.

Auctioneer Roland Lina said the days where you could simply “nail a sign to a fence” and a place was sold were over.

“I can assure you if we had advertised it for $600,000 it would still be on the market,” he said. Having worked in real estate for 18 years Mr Lina said clever marketing was needed to get the best price and houses off the books.

Several bidders at the auction said they had come in the hope of getting a bargain but expected the “marketing ploy” would push the price way past the low reserve.

Other advertisements on both Trade Me and in real estate publications are littered with phrases such as “lawyer says sell”, “priced to sell fast”, “bank wants all offers presented NOW” and “Crunch Time!!”

Thought of as existing in a bubble, mortagagee and pre-mortgagee sales are starting to creep on to the region’s real estate market.

Industry insiders report a rise in the number of people forced to default on mortgages they got into when interest rates were as high as 9.5 per cent.

Nationally mortgagee sales listed on websites Trade Me and realestate.co.nz have more than doubled in the past year.

The country’s increasing unemployment has been blamed for the mortgagee sales.

The last comment here is one that doesn’t go down too well with me. Sure enough unemployment is one of the reasons there may be some mortgagee sales but if you get into the nitty gritty of it most of the people that have mortgagee sales at the moment are still on high interest rates. And after talking to a few people in that situation they simply say they canot afford with the incomes they are gettin to pay the mortgage.

Sometimes this figure is up to 80% of the total income goes on the mortgage. And I am sure that there are some people with more. Now think about it, on top of that yo have to eat, pay the rates, the power, the phone, the car bills, insurances and any other costs that you can think of.

What I have found is that some people I have spoken to have been surviving like this purely because of credit facilities that they have been using. For example the weekly wages goes toward the mortgage and then the rest goes on the other bills, but the shortfall is made up of credit – eigther a credit card or a personal loan. Some people have even got to the state of getting personal loans just to pay the credit card off.

Now the simple fact is that you can probably live like this for a very short time until things ironed themselves out a little, but we are in a ressession, if you cant see that or think it wont last i believe you need to have a good look around you. Mortgagee sales will rise because of this fact. As people run out of credit they need to sell or should sell. MOst people will try and hold on to what they have but in a lot of cases the bank steps in and takes over which is what you then call a mortgagee sale.

But as Roland said in the article above there needs to be some smart thinking going on and try and people need to sell before the bank steps in. In that case you as the home owner will have a little more control over what is going to happen to what probably could be your biggest asset. If you are a home owner please do take a close look at your speding and where your money is going. It is much better to try and sell before there is a problem. Becoming a mortgagee is not a nice place to be for anyone.

March 19 2009 | Buyers and Sellers and The Market | 1 Comment »

Home Staging and its Importance in Todays Market

If you are one of the tens of thousands of homeowners attempting to sell your home at any one time now then you know how hard it is becoming to both get people to the home and once there get them to like it enough to put an offer on it. You will have been undoubtedly been told that times are tough and to expect to take a hammering on the price of your home. Not only are homes all over the country losing value, but sellers are having to compete with mortgagee sales at lower than market value and the credit freeze that is preventing a lot of people from getting financed. So what is the secret to selling in today’s market? If you are really serious about selling. Over the past few months I have been flooded with reports with people saying they know the answers to how to make that sale in this market and there seems to be a clear point that all seem to agree on. And this is Staging.

Chances are, if you’ve bought or sold in the past few years, you’ve heard of the term “staging.” Staging is the art of preparing your home to appeal to the most buyers through de-cluttering, organizing, cleaning and repairing, and then marketing to your target audience. The last one may sound like a business pitch, but it is vitally important. The first four on the list are not only important, but will benefit your family and your well-being by bringing about a change and newness to your home and ultimately prepare you for your next move.

De-Cluttering:
This can be a touchy subject for some people. We all know that many items in our home are sentimental but when you have to resort to trailblazing a path to the front door, it’s time to let go. If you MUST keep 100 copies of your favorite magazine, rent a storage unit while your house is for sale. You will get back the money you spend when your house sells faster and who knows, you may even learn to enjoy the extra space!! De-cluttering also includes de-personalizing. Start your packing early by putting family photos, heirlooms and other personal items in storage. Replace them with neutral accents or nothing at all. A buyer has to feel as if the home they walk into could be their home.

Organizing:
This goes right along with de-cluttering. Organization and placement of items in your home will not only make your rooms and closets look much larger, it will show the buyer that the current owners are organized and accountable and believe it or not, trustworthy. Check out home décor magazines for inspiration and ideas.

Cleaning and Repairing:
We all put off home repair or remodeling projects due to lack of funds, schedules and other priorities, but now is the time to get serious. Any project that has been left undone needs to be finished or at least finished to the best of your ability/budget. This will be your advantage over foreclosures; many of them are left dirty and in disrepair. If your home shines and looks well cared for, the buyer’s perception is their reality! The number one complaint from real estate agents who show or visit your home is a lack of cleanliness. Cleanliness also happens to be the hardest part of staging. If you have animals or children, you undoubtedly find a mess as soon as one is cleaned up. Deep cleaning is the first step. Clean your drapes, dust your window blinds, and by all means, keep your kitchen spotless! If you are leaving the appliances, make sure they are thoroughly cleaned with a grease cleaner, oven cleaner or specialty cleaning agent for your appliance. Don’t forget the top of the refrigerator and range hood! You never know how tall your potential buyers may be! Then have your family make a pact and be diligent about it until the house is sold.

Reaching your target audience:
This is where the little touches make a big difference. Make sure your home is inviting from the inside out. Neutral paint on in the interior, adding greenery on tables and shelves, and dressing up the front porch or entry with a wreath or nice patio furniture will all make an excellent first impression. Put away any kids’ toys in the front yard and hide garbage cans the best that you can. Don’t forget to make a lasting impression by having a sheet with all of your home’s information– schools, shopping, library, golf course, etc. And last but not least, treat your potential buyers like a new friend: have warm coffee or tea brewing, bottled water and cookies or other snacks readily available in the kitchen.

These are the very basics of home staging. You can find many more tips and suggestions on the internet, home and garden programs or with your real estate company. Also, there are many professional home stagers who will do the job for you. If the project overwhelms you, this may be a practical and worthwhile solution. Find these professionals online, in the phonebook, ask a friend, or enquire in your local chamber of commerce.

The benefits of home staging are lasting long after the ink is dry on the contract. You may just make a habit of staging your next home…for yourself!

February 25 2009 | Sellers | 7 Comments »

House Hunters International Coming To New Zealand!

An opportunity exists NOW for a property buyer in New Zealand to participate in an International TV documentary. If you’re looking to buy a home or vacation property and would like to have it documented on an American TV show that airs in several different countries around the world, including New Zealand then I need to hear from you.

About the show:

The show takes the viewer through the buyers process from touring houses to making offers, each episode of HOUSE HUNTERS INTERNATIONAL highlights the experiences of finding and purchasing a property. Each episode breaks down as follows:
* First, we meet the buyers in their current residence to find out what type of property they are looking to purchase and what they would like in a new home. They give us a tour of their current residence.
* Then, we meet the agent who discusses the home buying trends in the area and shows the clients three comparable properties that suit their needs.
* Finally, the clients select a property to purchase and the episode ends with the homebuyers already moved into their new home.

To have a look at the show go onto Youtube.com and type in House Hunters international or follow this link to HOUSE HUNTERS INTERNATIONAL

For the person/people chosen to participate cameras will follow you as you tour 3 different properties and ultimately choose the one to buy and move into. This is a great opportunity for you. Whether you like the thought of being on TV or if you like the thought of being able to have a professional documentary of you buying a property, this is for you.

The show is looking for outgoing, lively people who are planning to purchase a place in the next 3-6 months. Please note that shooting usually takes about 5 days. If you are interested, please contact me on deon@deonswiggs.com or deon@propertyprofitsecrets.com or call me on my mobile 0274620350 for more information.

February 14 2009 | Buyers and Sellers and The Market | 2 Comments »

Going Green – Are You Going to Keep Up With What Society Wants?

Generation Y have been bought up with an awareness of the environment and have become more inclined to use and purchase items that are deemed eco friendly. As a result eco-friendly properties are growing to be more well-liked. For a sellers best interest if your house is eco it’s useful for your buyers to be able to identify sustainable home building resources for themselves. When it comes to buying a home if you know the details of its build you can make vital decisions between one property and another based on just how careful the construction has been with taking into account the impact of protecting the environment. You can also identify which properties will save you funds when it comes to running costs and making repairs. And if you plan to put up additional buildings or extensions to your property, you’ll know how to go about it in a responsible way.

Here is a quote taken from a book I have been reading on sustainable living. It says sustainable material can come in many forms. Preferably it should be offered locally to lessen the environmental impact on transportation. The materials should originate from renewable sources, such as sustainable forest plantations, and the processing and manufacturing involved in preparing them for construction use should be efficient and non-hazardous. They should also be intended to last for a long time, reducing the need for repairs and replacements. It sounds like a lot of hog wash but the practical use and the impact

Sustainable building materials are not only excellent for the environment, they’re good for your health. In order to take full advantage of their staying power, they should be water resistant, which will also go well in stopping the growth of mould and rot, which can harm your health in many ways. Using natural materials such as wood or stone means you won’t have to be concerned about toxic and carcinogenic emissions such as those emitted by some petroleum-based building materials and asbestos. If builders used recycled or reclaimed materials in the construction of a property, you can use air-monitoring equipment to check the interior air quality and make certain no problems have arisen as a result. For many construction businesses, such tests are standard on eco-friendly homes, making them a better bet than ordinary properties. And most sustainable materials are designed for easy cleaning so that you won’t have to use to use strong chemical cleaning products which can potentially harm both you and the environment.

Once you begin looking into sustainable building materials, you’ll find that there are all sorts of intriguing options out there, including traditional cedar or stone, lightweight but unexpectedly strong bamboo or cork with wool-based cavity filling providing a tremendously efficient substitute to standard insulating materials, and linoleum or terracotta tiling perfect for floors. Materials such as these can be used to craft a home that is good for the environment, good for you, cheap to run and truly individual. You really can’t lose.

But for a start here are a few things you can do in your house today.

Start with Just a Bulb

Start with small changes that make a big difference in your own energy use and the pollution we generate. If every homeowner replaced their five most frequently used light fixtures or the bulbs in them with ones that have a low energy rating then you can save 10% of your power bill straight away. The initial cost can seem high but the long term rewards are good.

• Kitchen ceiling lights
• Living/Family room table and floor lamps
• Outdoor porch or post lamps

Facts

Energy saver lighting uses about 75% less energy than standard lighting, produces 75% less heat and lasts up to 10 times longer.

The energy used in the average home can be responsible for more than twice the greenhouse gas emissions of the average car. Helping with global climate change starts right at home with easy changes like light bulbs and fixtures.

Heart of the Home

Close to 50% of the energy used in your home goes to heating and cooling. It makes sense to ensure your systems are operating efficiently.

Air Filters & Obstructions

Change the air filter on your heaters or air conditioning modules at least every 3 months to run it at its maximum efficiency. Clogged, dirty filters really reduce efficiency of your system and the air quality in your home.

Keep your vents and registers unobstructed. Move drapes, rugs and furniture away from heat registers and return-air vents. Free-flowing air through the units provides more comfort and will save you money.

Save Money with Regular Maintenance

Get a tune-up for your HRV equipment yearly. Airflow and other problems can reduce your system’s energy efficiency by 15%.

Install a Programmable Thermostat

A programmable thermostat can save you  hundreds a year in energy costs! It will give you the flexibility to turn down the heat or air conditioning during the day and when you are away for extended periods of time.

Save 25 to 40% on Energy Costs

Seal your leaky heating and cooling ducts and increase their efficiency by as much as 20%, while increasing the comfort in your home. Much of your heating and cooling goes out through leaky ductwork.

Close to 75% of installed cooling equipment has the incorrect amount of refrigerant. This can lower efficiency from 5-20% and cause premature failure. Work with your contractor to verify the level is correct.

Going Tankless

Infinity hot water heating (tankless) have an advantage over tank water heaters because they provide significant energy savings. The tank water heaters must constantly heat the tank’s water waiting for the demand, where the tankless provides the hot water on demand. Installing tankless water heaters in new homes makes a lot of sense. When replacing a tank water heater in an existing home, the cost of the tankless, plus installation will generally be 2-3 times higher.

If you are replacing an electric or liquid propane tank water heater with a tankless, the savings can be up to 50% on water heating costs. The cost of heating hot water in a home is about 14% of your energy bill, so it is a significant expense.

There are both electric and natural gas tankless hot water heaters. The natural gas units are more expensive than the electric, but they cost about 10-15% less to operate. A good plumbing contractor can help you calculate your potential savings and payback period, plus discuss which is better for your home.

Front Load vs. Top Load

When you need a new clothes washer, there are quite a few choices, but the primary choice is between a front or top loading machine design.

Front loading machines use about 38% less water and 56% less energy, and they are also easier on clothing because there’s no agitator. They require less detergent too. Big families can fit more clothes in a load, saving even more energy and some time doing laundry too. Front loading machines also extract more water, reducing drying times for additional energy savings.

Front loading machines do cost more upfront, but can pay for themselves fairly quickly. A family of four can save around $100 annually just on water and energy costs alone. The cost of top loading machines ranges from $400-$1200 and front loading machines from $700-$1500. A front loading machine can pay for itself in 2-3 years, depending upon the model you choose.

Remember to always look for ENERGY STAR!

ENERGY STAR Savings

Products with the ENERGY STAR rating use 10-50% less energy and water than standard models. The money you save on energy will more than make up for any additional cost. Look for the EN ERGY STAR label on clothes washers, refrigerators, dishwashers and many other household systems and appliances.

January 25 2009 | Buyers and Sellers | 2 Comments »

Kitchens And Bathrooms Sell Houses

What are the two areas that we spend the most time in during any one day? The answers is the kitchen and bathroom. These areas are the business areas of anyones home and can easily set your home apart from the others. In previous posts I have spoken about the need, espessially in this current market to set youself apart from your competition. People spend a large part of their day in their kitchen and bathroom and this goes hand in hand with all the research I have looked at that has shown these two rooms to be at the top of the list of selling features when it comes to real estate sales.

Todays trend is to have an open plan kitchen. A big open plan kitchen can be good for watching the kids while making dinner, but not only growing families are looking for a larger kitchen. Open plan kitchens are also great for those who enjoy cooking and entertaining. When it comes to selling your house take care to make sure your kitchen is showing its true counter and cupboard space by clearing the bench clutter and removing excess decorative items from the tops of cupboards and in glass door cabinets. Also, make sure there are no additional carts, bookshelves or tables hindering the traffic flow.

When showing the house make sure the kitchen looks bright and clean. This area is generally the ladies area. In the kitchen you need to be thinking “how am I going to get the ladies to like this area.” This isn’t fact but generally the lady in the family will have more say when it comes to the buying process and the kitchen is a great place to start winning her over.

Today’s image of the ideal bathroom is that of a spa-like getaway inspiring a sense of relaxation and freshness. No matter the size or style of your bathroom, you can make it a more restful place to escape. The bathroom is a family area and generally a private area where parents are looking after their younger children or the rest of the family are cleaning and preparing themselves for the day or night. It’s very important.

Here is a list of things you can do to improve these two key areas in your home:

* Start with the paint colour. Pick a neutral colour that will flow nicely with the rest of the home. Paint the ceiling a tint of that colour and the trim a lighter colour. White trim can give a clean feeling to a room.
* Fix damaged tiles or replace unattractive flooring. Old vinyl tile with mold and mildew stains will really diminish the value of your home. Update with current flooring to make the room look more appealing and larger. Take the time to line up new tiles properly, crooked tiles or inconsistent patterns are not an improvement.
* In showers, sinks, tubs, or toilet repair damaged caulking and get rid of mildew stains. Wash fabric shower curtains to remove mold and mildew or purchase new shower curtain liners.
* Shine hardware. Make your faucet, taps, and showerhead sparkle. Use a toothbrush around faucets where it is difficult to clean. Turn your shower curtain bar, so that the shiniest part is facing outward. The eye is attracted by shiny things and it will make any hardware look new again.
* Sinks should be clean and stain free.
* Tighten or replace loose cabinet handles. Updating cupboard hardware can be a really quick update and change the whole feel of the kitchen or a bathroom vanity.
* Leaky faucets should be repaired.
* Old kitchen and bathroom cabinets should be painted or refinished. Do not be afraid to paint wood.
* Bench tops that are old and scratched should be replaced; an updated bench top will make a big difference in the offers that you receive.
* Remove garbage for a clean look and smell. Make it smell pleasantly clean but be careful not to over-scent with products that may be offensive to some.
* Allow natural light to come in. Tie back curtains and reevaluate window treatments. Window treatments should highlight the window, not conceal or distract from it. Clean mirrors, lighting fixtures and bulbs as well as, windows inside and out.
* Remove things that make the house and these areas personal to you. As they are family orientated areas people will want to try and imagine themselves in there.

By doing these things and possibly spending a little more time fixing or cleaning these areas can have a great effect on the selling of your home. I am not going to say that it will increase the value of your home – unless you totally renovate. But what I will say is that it will give your house that edge to stand out in the crowd. With sales volume the lowest in 17 years you need to have an edge and a reason for people to want to buy your house. I believe if you follow the steps outlined above you will be well on the way to having a better competitive edge than your competition.

January 18 2009 | Sellers | No Comments »

Selling your house in 2009

Marketing, price, presentation

Christmas and New Year is over. We are pretty much now beginning the 2009 year off back into work. I was back at work today to a bombardment of paperwork to be completed. The joys of life. As I said in my previous posts I said 2009 will be a year for change and opportunity. In terms of the change I believe that it will be more important than ever to be at the front edge of what’s happening so you don’t get lost in old ways of technology so that you’re not left behind which could cost you money.

There will be in 2009 a very big change in focus when it comes to marketing. As the credit crunch and the recession take full effect during the early parts of the year there will be a focus to finding more effective ways to market products to reach the audience. And Real Estate will be no different. This to me will be a vitally important key component that is going to become more and more important this year than ever before. Where and How you market your property will be the defining point in the result you achieve when you try selling. Obviously there are other things and I will cover them here as well.

The medians to advertise your property are going to change. In my opinion the need for print media is going to become less and less effective. The cost vs. the result isn’t stacking up any more. Don’t get me wrong that if you put a good sized ad in the news paper you are going to get a lot of local views that day in the paper but it’s a one shot. With the time taking to sell increasing and the attention span of the reader gets smaller due to increased pressures at work and with the family. (Our lives aren’t getting any slower). I think the way to go moving on in the future will be for longer term and specific advertising. This will be online and longer term print media.

When I Say longer term print media I am talking about the local Real Estate book that gets published by either the company or a collective of companies. But I feel that if the company isn’t big enough and doesn’t hold enough listings that if it tries to make a publication of its own for the area it will not get as much coverage. This is only because people these days and I think more towards the future don’t want to have to look all over the place to look at their complete choices. The one stop shop type of model is going to please the consumer of tomorrow.

Realestate.co.nz which is now New Zealand’s leading online Real Estate portal has a dominating effect on Real Estate adverting online. But this is a good thing for the way we as a society want to go. This will enable the public to have the greatest and a more comprehensive search. The reason I say that these sites and publications are going to become more important to your marketing is that people will want to compare your property with what else is on the market. I know people have been doing this for ever but the thing that I think is going to change is that people don’t want to be searching around all over the place to find comparisons. Also with our ever fast passed world you need to be out in the spotlight for longer. This is the reason for the publication with a longer shelf life to be more important in your marketing.

Along with where you market your property in 2009 Price is going to be ever so important. The slow down and recession which started in 2008 and that is now coming with us in 2009 is going to make pricing harder than ever but more important than ever. The thing is that some people will price to the market and some wont. If you are one that hasn’t our going to help the ones who have sell their property.

During the comparing process the buyer goes through your property will simply be eliminated because it’s a higher price compared to what they could buy down the road. I can’t stress this enough. You MUST price the property competitively in today’s market if you want to sell. And you need to advertise that. Be firm on that price but make it known. If you’re going down the track of no priced marketing Auction is the best way to go but make sure you at least have a guideline and listen to the buyers feedback on where they believe the price could be. But be firm on a reasonable value because buyers in a buyer’s market are tough but do listen.

One thing I want to mention on this point is that I know of agents out there actively in the field who are buying listings. Telling the vendor at the point of sale that the property is X amount which is a little more than any other agent you had in has said. This tactic is going to kill your chances of selling and what’s more frustrating is its going become more stressful for you when it seems like your dropping your price constantly because your agent you have chosen says you need to meet the market. 2009 will not be a time to test the market. It’s a time to listen, be aggressive and achieve results.

Presentation is going to be important. When marketing your property online the only guide the buyer has to go by when in the comparison stage is the pictures. Which make having good quality photographs very very important. There are plenty of places to go to have photography done and there will be more I think coming soon to give you a good choice of photographs. But it’s also about the photos that you take. Some agents and people swear by having less photos so that a person enquiring will ring the agent for the enquiry. This is wrong. And even more wrong for a generation Y person. Generally what will happen is that people just want to see everything so that they fully know what to expect. Then they can compare and either eliminate or shortlist the property.

Once the property is shortlisted you then will find the buyer will contact the agent and find out more meaningful and maybe more specific information for their needs. If they don’t contact the agent directly they will go to the open home.  If all the preparation work and everything is done right then you will hopefully get a contract on your property. But everything has to be right. In 2009 there will still be sales and probably more than in 2008 but the properties that sell will be priced right, marketed right and well presented. The combination of these factors and doing them right, especially been proactive about the marketing will ensure that you have a successful sale in 2009.

January 05 2009 | Sellers and The Market | 5 Comments »