Christchurch Real Estate

A New Generation Is Going To Change It All!

As you know I really believe in the Generations and their relevance to how and what they purchase. When it comes to Real Estate this is particularly important because you need to identify which property would suit a certain type of person and then from there you need to work out the way that you can market to that audience the best way. And so far every aged generation has been different in general. Previously we have grouped generations by the dates they were born. Baby boomers born 1946 to 1964-ish, Gen X born around 1965 to 1975 and Gen Y born around 1977 to 2000. Why were these generations grouped by years.  Generally its because they all shared the same social environment  that were present at the time and therefore generally speaking have similar core values.

However now there is something else happening. And no its not a new generation of people born after the year 2000. These people will all be under 10 still and I hardly think they will be buying real estate. No. It’s a new generation named Generation C. And it is unique as this is the first generation ever that isn’t bound by demographics. It’s a psychographic generation—it’s the generation who communicate using digital technology, they like being ‘in’ digital environments and they are a growing group of people.

Generation C is the world’s first opt-in generation, with an attitude that people of any age can choose to adopt and become one of this generation. And it is clear to see how! Take for example second life, a very out of it reality internet virtual life game. The average age of people on Second Life is 35 years old. But listen to this – its the same age group that accounts for much of the activity on Facebook, and for Twitter the age group skews even higher. People are choosing to become part of Generation C, rather than merely being born into it.

What does the C stand for? Well it’s Control, Communication, Contact and all that goes with it. Generation C is the generation who are in control. Information drive this generation. And we thought generation Y wanted things now. Try this generation. We want it now, and if we don’t get it we will get it from someone or somewhere Else. Its simple really. And you as a real estate agent need to be aware of it. There’s no longer a single dominant culture shaping our thoughts. Commanding the digital environment empowers this generation to carve out their identity by taking that control and making it ‘their own’.

Marketing to generation C is the tricky part. This generation know what they weant and where to get it. This is the internet age and the internet has largely created this generation. The time has come to engage the audience and not just tell them.

There is more on this at http://deonswiggs.com/this-generation-will-change-everything

May 10 2010 | Buyers and Sellers and The Market | No Comments »

Maintenance On Your Home Should Be As Important As Remembering To Eat Breakfast!

But hey!! Reality bites.

How many people these days eat breakfast. I know for one that I skip it – are you like me.

But more seriously maintenance on your home should be as important as your car. If you do not do maintenance on your car it will break leaving you stranded usually in the most inconvenient place imaginable. Just for example when my BMW decided to loose a pipe holding all the transmission oil in the middle of the Kaikoura ranges where there was no cell reception. I am sure most of us can feel this pain. Now I am sure a house wont do this to you. But the point I am trying to make here is that if you dont look after your house and the upkeep. One thing that recently happened to me at our house is a classic example. Very very strong Canterbury nor west winds + a rotten window sill = window falling out = grumpy Deon.

All this could have been avoided if I just opened my eyes and actually took note of the house. This is something we all fall short on, we take our house for granted. Possibly because it doesn’t move and we think that it wont degrade. But the fact it the weather and moisture and just us using the home will cause it to slowly deteriorate. So from now on take note of your home. In the long run it will pay off. It is of course a very expensive asset.

What I have below is a list of some of the more cosmetic things that you should be doing at this time of year. Remember winter is coming. These things are not just for the WOF of your home but also to make sure it looks good for the season ahead.

Things you could have done in March.

1. Inspect the weather-stripping around your exterior doors and windows; replace as needed. – this is what i needed to do!

2. Inspect the caulking around exterior windows and doors to keep out drafts; repair as needed.

3. Inspect exterior roof vents and clean and/or repair as needed.

4. Inspect roofing and chimney caps for damage; repair and/or replace as needed.

5. Get your chimney and your fireplace professionally cleaned to avoid chimney fires and blockages. If your in Canterbury you probably don’t have a fine place any more… how sad!

6. Make sure your heating is working well and efficiently.

7. Inspect the entire outside of your house for cracks, holes, and other openings in the siding. Depending on the exterior material of your home, a Painter, Plasterer or Carpenter may be able to help with repairs you may need.

8. Check to see if your insulation is up to scratch.

9. Inspect the roof space and the under side of your house for signs of pests such as birds or rats and seal cracks and holes if there are any.

10. Pressure wash the outside of your house and garage. Use your own water-blaster, or ask a House-Washing company for a quote to pressure wash your house on an annual basis so that you will have one less thing to worry about.

11. Check that your smoke alarms batteries are fully charged; recharge or replace if needed – this is the classic daylight savings thing to do.

12. Sink/Tub Stoppers and Drain Holes: Clean out debris.

13. Garbage Disposal: Flush with hot water and baking soda.

Before the cold winter hits us this is what you should be doing in April and May

1. Clean leaves, branches, and other debris from roofs because of the Autum Fall.

2. Clean out gutters and downspouts and inspect for leaks and damage; repair as needed.

3. Remove window and door screens and clean. Inspect the screens for tears and holes and repair as needed.

4. Clean out de-humidifiers that you use in the winter and replace the filters – or look at buying an HRV.

5. Follow the manufacturer’s instructions and drain your hot water cylinder.

6. Trim tree branches around your house that are touching or are near your roof. This can be dangerous!7

7. Range Hood: Clean grease filter.

8. Tub Drain Assembly: Clean out debris; inspect rubber seal and replace if needed.

9. Floor and Outdoor Drain Grates: Clean out debris.

10. Nuckle down for the Winter and Enjoy the ski season.

This is a fairly generic list of things you should do. But at least its a minimum. You need to look after your home. There are plenty more thing you could and should be doing but please use your common sense with what you want to do to your own home. Remember you have to be comfortable inside it.

March 30 2010 | Sellers and houses | 1 Comment »

Trades People – You Must Ask Questions.

If you have a list of questions ready to ask a tradesman, always ensure that you get the answers you need from them immediately. There’s no point in waiting around for them to get back to you. A good tradesman will know the answers straight away and will be happy to put your mind at ease with his or her responses. Below is a list of questions you should always include before hiring any tradesman.  And please remember, that the cheapest is not necessarily the best.

1. How long have you been in business?

Always ask initially how long the tradesman has been in business. If they can provide you with some form of proof also, that is even better as you can see they’re not ‘fly-by-night’ types and this should mean they have an established business and business address.

2. Do you have references for past work?

If you can find a tradesman who is willing to show you examples of their past jobs, this is a good sign. If they have photos of their previous jobs, take the time to look at them. Also, if they have references, ask if you can have a copy, then call these people to ensure they were satisfied with the work.

3. Are they a member of a trade organisation?

Many organisations have a protection scheme that helps to resolve any disputes that may occur and also gives you peace of mind that there’s someone to turn to if things go wrong. Get the name of the organisation or association the tradesman belongs to and then ring them to find out whether they’re a member.

4. Do they have insurance against damage?

It is absolutely crucial that you find out whether your builder has insurance to cover any possible damage against your property. Even if they’ve never had any issues in the past, there may be mistakes made in the future, so check that they are liable should there be any unexpected events whilst the work is being carried out.

5. What is the guarantee on their work?

Make sure that you get a written guarantee of work, or that you see their standard guarantee before signing. If their guarantee is backed by insurance, this is even better as you will have protection should the tradesman’s go out of business. It is very important to look at the guarantees as you don’t want to suddenly realise there’s a problem a few weeks outside of your standard guarantee period.

6. Ask if you can see their license?

Obtaining the details of a tradesman’s license can be one of the more fundamental questions to ask before starting any job. Take note of the license details and ensure they’re up to date and are genuine. You may need them in the future and it’s possible that if something goes wrong the tradesman won’t be willing to give the details by that stage, so get them early on and keep them safe.

7. What do they estimate to be the time frame for the job?

Always get a written estimate of the time frame for your job. If you need work to be completed by a certain date, make sure that the tradesman is aware of that and ask for it to be written down as an estimate if they believe they’re able to make that deadline. Never agree to a contract with no foreseeable completion date.

8. What will be the quote for the job?

Try to get at least 3 quotes from a variety of different tradesmen, but always ensure that it is a written quote and check how long it is valid for. If there’s anything on the quote you’re not sure about, ask specifically about it and don’t ever feel that there’s a dumb question. Get all the information on how much the work will cost you before agreeing to a contract.

9. When will the work begin?

Many people agree to a contract after being happy at the length of time quoted for completion of the work, but then don’t hear anything from their tradesman for some time. Always find out what the start date will be for your job and make sure that they stick to that. If you can, have it written into the contract that they must start and complete the job by a specific time.

10. What are the terms of payment?

Agree with your tradesman the terms of payment before you sign the contract. Some tradesmen will require a deposit upfront, whilst others are happy to carry out the work and receive payment then. Some will bill you for the work, whereas others may require cash or a credit card on completion. Arrange it in a way that suits you best and makes you most comfortable, but again, get this in writing.

March 10 2010 | Sellers and Uncategorized | 2 Comments »

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.

.
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 »