This Press Release Made by Harcourts Grenadier is a truely good sign that there is some definate life still in the property market.
I worked for this company for a short time and I believe their systems and agents are amoungst the best out there.
If you are in Christchurch or anywhere in the south island for that fact I reccomend you talk to
Roger Dawson about selling your property. He is definately one of the best out there.
Well done Harcourts.
July 1, 2009
Record real estate auctions
Record numbers are looking to auction their homes, with Christchurch’s Harcourts Grenadier, one of the largest real estate franchises in New Zealand, taking 80 bookings in the month of June, more than twice the average for this time of the year and 10 per cent above their previous record set in October last year.
Roger Dawson, Auction Manager for Harcourts Grenadier, said that it was extraordinary to have this level of auction bookings in the winter months when listings normally slow down.
“In these tougher economic times, people want to see quick action on their property. Auctions sell properties three to four times more quickly than normal methods in the first six weeks on the market.
“At present we are selling in excess of 50 per cent under the hammer and another 20 per cent are being sold within a week of the auction. Most sales are in the $200,000 to $500,000 range, with some up to and in excess of $1 million,” he said.
The auction numbers are not being boosted by mortgagee sales as these numbers have been constant for the last 18 months.
“The other interesting factor is that across the board there is a shortage of listings. With uncertainties in the job market, some owners are holding on to their properties. What this has done is boost demand for the stock we have to offer. We are experiencing wall-to-wall crowds in the auction rooms and bidding to match.
“And this demand is only going to intensify when you consider the dramatic fall in new homes being built and the lift in migration numbers,” he said.
Harcourts Grenadier has nine offices in Christchurch and one in Greymouth and is the largest Harcourts franchise in Australasia and the largest real estate franchise in the South Island.
This is great work by the team here. And its impressive to see the brand still growing even in times where many are struggling.
July 01 2009 | Uncategorized | 1 Comment »
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.
| Selling by |
Advantages |
Disadvantages |
| Offer and negotiationCan be done through a sole or general agency, or privately |
- Most homes are sold this way
- Buyers have a price range to guide them
- Many buyers prefer this method because they don’t have to compete
- There is less pressure on the seller
- You can take your time to consider offers and wait for the right price
- You can negotiate until you get a deal that suits you
|
- You need to be sure of your asking price
- Buyers try to negotiate the price down – you will probably get less than your asking price
- The offer is likely to have conditions included
|
| Auction Can only be done through a sole agency |
- You don’t have to set an asking price (but you do set a reserve, which is private)
- You have a set day for the auction
- A keen buyer may pay a top price to get the home before it goes to auction
- Competition between buyers on auction day may push the price up
- A sale at the auction is unconditional
- If the home doesn’t sell you can negotiate with the bidder/s
|
- It is a very public process
- It’s not so suitable for average homes
- Only cash buyers can bid, which can mean fewer potential buyers
- You may have advertising costs to pay even if you don’t sell
|
| TenderCan only be done through a sole agency, or privately |
- You don’t have to set an asking price
- It’s a private way to sell
- Buyers put in their best offers
- Offers are usually received by a set date
- You can sell early if you want
- You can negotiate with some or all those who put in tenders
|
- Not so suitable for average homes
- Some potential buyers are put off by the ‘closed’ nature of tenders
- You may have advertising costs to pay even if you don’t sell
|
June 01 2009 | Home Sellers and Buyers Guides and Sellers | No Comments »
BUYING AT AUCTION:
Auctions can be a daunting time to buy a property as some Auctions you may not have any idea where it might sell or what it is worth. In New Plymouth we have adopted a policy of publishing the Auction Reserve in order for the whole process is transparent. We do about 60% of our Auctions this way. But in any case Auctions still are done in a set time frame and you need to have things sorted out so that you don’t miss out on your dream property at Auction. Here are a few things that will help you in your purchase at Auction. In Christchurch auctions are done in a more of a traditional way where auction reserves arent published and in many cases arent decided till a few days before the auction. Here is a quick run down on the things you should do when looking at buying a property from auction.
BEFOREHAND:
Do your Research
When you are looking in an area, whether buying ‘for sale’ or through an Auction, research the prices in that area for the type of property that you want. Find out about the good and bad features of the area, and comparative prices to other areas. Look at similar properties to the type that you are seeking.
Attend Local Auctions
It is valuable experience to attend as many local Auctions as you can to see how the Auction proceeds. Observe how people bid, and who is at the Auction. Work out people’s style of bidding. The same people may be bidding against you for your property in the near future.
Arrange your Finances
Ensure that you have your Finance in place prior to the Auction. Establish you bidding limit. Make sure you allow for all extra costs that may be involved and leave a buffer for bidding so that on the day you know exactly what it will cost you when your bidding.
WHEN YOU HAVE DECIDED ON THE PROPERTY:
Register your Intent with the Agent
Advise the Real Estate Agent if you are interested in a property. They will be able to give you more information on the property and guide you through some other things.
Establish your Bidding Limit
It is important that you set your own bidding limit. Decide what the property is worth to you based on what you can afford. Talk to your local mortage broker or bank for this as they can give you advice on repayments at any given cost.
Check the Paperwork
If you are seriously interested in a property and intend to bid you should have your Solicitor inspect the Contract of Sale. It is a good idea to have a good read through all the paperwork related to the Auction beforehand. Wherever possible, contact the Agent handling the sale and ask them to provide you with a copy of the documentation. This is normally possible in the week prior to Auction. Read through all of the documents and always ask if you are unsure of anything. It is important to clarify details such as settlement terms, deposit and fixtures before the auction commences.
Inspections
If you want a building and LIM inspections done do it before the Auction. It is not possible to make an Auction purchase conditional on inspection results. Make sure that any reports or inspections have been carried out to your satisfaction before you attend the Auction.
Ask for Help
Many people find the Auction process daunting. Don’t be afraid to ask a friend, relative or Real
Estate Agent, to assist you with your bidding. Many people ask someone else to bid on their behalf as they may be less inclined to bid emotionally and will not exceed a predetermined limit. Make certain that they have very clear instructions in writing on what they can and can’t do on your behalf.
ON AUCTION DAY:
Check the Contract of Sale again
On the Auction Day you should always check that your copy of the Contract of Sale is exactly the same as the original Auction Contract and that there have been no late changes.
Bidding
Remember how an Auction looks from the Auctioneer’s perspective. They are often looking at a large number of people who are invariably turning around, whispering etc. If you are standing at the back of this scene, or hidden in the shade of a tree, the Auctioneer may well miss your bid, particularly when you are bidding for the first time. Stand in clear sight of the Auctioneer and make your first bid obvious to them.
Make sure the Auctioneer understands what you are doing. Bid early, clearly and confidently, and avoid unusual sign language that may be misunderstood. Buyers are usually reluctant to start bidding at Auction but the best policy is to bid loudly and confidently signalling to all other bidders you intend to purchase the property or should the reserve price not be reached that you are given an opportunity in any further negotiations.
Keep Control of your Bidding
If the bidding is increasing in larger denominations than you are comfortable with, consider offering a lower denomination as your bid. The Auctioneer does have the right to refuse it, but there is absolutely no harm in trying.
It is important not to be drawn into a bidding war on a property you want. Emotion can lead to you payingmore than you can afford and there is no cooling off period with an Auction.
Making the Deposit
When the property is sold at the Auction you are required to sign the Contract of Sale and pay a deposit of usually 10% on the spot. This can be paid by Personal or Bank Cheque.
This information should be used as a guide. Always seek legal and professional advice when buying any real estate. Every situation is different so make sure your prepared. Enjoy the process and enjoy your new house if your buy one.
November 27 2008 | Buyers | 2 Comments »
Yesterday saw a historic day for Real Estate Auctions in New Zealand. What is said to be this countries largest ever property auction event Ray White of Auckland auctioned 100 properties at one event. As David Leggott said in his blog the event was major. With models, balloons and a DJ involved there was more than just properties on the show case.
There were properties of all sizes and shapes and of all ranges of price tags, the range was from $200,000 to 2 Million dollars. The event held at the Telstra Clear Pacific Events centre created a huge amount of interest and made buyers turn out in their droves.
On the day 8 sold under the hammer and 15 were negotiated after the auction. And a number were sold prior to auction. In an auction you must remember that it is a 3 stage process. You have the marketing period, the auction itself and then after the auction with negotiations with interested parties. Quite often buyers cant bid at auction. To bid at auction you need to be unconditional in all respects. Some buyers aren’t so they wait to get the chance to voice their position after the auction. This gives added pressure to the people who can bid to bid so that they don’t have as much competition.
It will be interesting to see over the coming week how the properties stack up in regards to sales. There will be many busy sales consultants in the Auckland Ray White group at the moment.
On TV3 news tonight there was a story Falling prices make it a good time to buy a home. In this article they say that property is the most affordable it has been since May 2006 and it now costs 68% of the average wage to service the average mortgage. Prices of property are down but people are still not buying. Bryan Thompson says on his blog that people are hearing conflicting messages in the media and are uncertain whether it is a good time to buy now or whether to wait.
For someone looking to buy now there are some great deals out there. The people that are selling by in large are motivated to sell and move on. My personal observation is that I see quite a few buyers sitting on the fence and waiting to see what happens, but they are there ready to make a move. In the past few weeks there have been some very positive signals from the Housing market in New Zealand and it will be interesting to see how these pan out with home buyers. Interest rates have fallen, BNZ now offer a 6 month fixed rate of 6.99%, Fuel prices have come down and we are in the process of having nation wide tax cuts. All these factors are putting extra cash into the back pockets of everyone and will definitely help improve confidence within the market over the coming 12 months.
November 26 2008 | Buyers and Sellers | 2 Comments »
This afternoon two further properties sold by Mortgagee Auctions. The two properties of 24 Tuiti Street in Waitara and 28A Record Street in Fitzroy went up for auction at 5:30pm today at our Auction Room in New Plymouth. There was a very large turn out of people who were obviously out to hopefully bag a bargin.
This is what Wikipedia says about a Mortgagee Auction:
Mortgagee auction is the term used in both Australia & New Zealand to describe a property foreclosure auction. It is the process by which real estate is forced to auction by a bank or lending institution. This normally happens when the borrower defaults on their mortgage. Although the term “foreclosure auction” is the most common terminology in America for this type of real estate sale, this is not so in either Australia or New Zealand. In these two countries, the term that is recognized by both real estate agents and property investors alike is mortgagee auction.
The advertising for 24 Tuiti Street, Waitara was:
A PROPERTY WITH POTENTIAL
On a rear 948 sq metre, fully fenced, FREEHOLD section, sits a tidy 3 bedroom home with a double garage.This property is a must view if you are contemplating adding to your property portfolio or about to begin your journey into property ownership.
This property was Auctioned publicly first and sold for $175,000 with bidding starting at $150,000 there were two bidders bidding on this property on the night which is much less than I thought would have turned up considering the lower end of the price bracket this property was in.
The advertising for 28A Record Street, Fitzroy was:
SMASHING HIT ON RECORD
Mortgagee Auction, With an easy walk to the beech and town this is the perfect property for someone looking to enter the popular Fitzroy location coming up to summer. Low Maintenance with two bedrooms and open plan living and a single garage, this property wants you.
This property was Auctioned publicly second and sold for $205,000 with didding starting at $120,000. With two strong bidders bigging against each other. One of these bidders was on the phone. I was again surprised to see only two bidders as this property is in a prime location and had a lot of potential to make very nice.
I personally dont like to see mortgagee sales. They are on the increase. This was the third one to actually go to Auction with us at Harcourts in the past 2 weeks. The first one being 371 St Aubyn Street. Mortgagee sales are a fairly sad time as it usually means that the owner has not met their mortgage commitments and the lender has taken over the property to recover the money they have lent on the property.
The best advice I can give someone is if you are getting into a situation where you are falling behind on repayments take action quickly and try and sell your house before the lender does. Aquire professional advise early in the piece from your solicitor, accountant and your real estate professional. By taking proactive steps you may save yourself huge worry and in some cases a lot of money.
November 18 2008 | Uncategorized | 2 Comments »
Well Today I had the opportunity to meet many of the Harcourts team down in Christchurch City Branch (Grenadier). I was totally surprised to see a 4 story building standing in front of me. With a cafe on the ground floor this office seems to have it all. Anyway I was fortunate to watch a few of their auctions today. I only got to see 8 of them (there were 20). But the results were good to see. 2 of the ones I saw sold under the hammer, 5 of the properties had bidders leaving only one of them I saw not having any bidders but after speaking to the owner it sounds as if that had some strong conditional interest in it. This is some fairly good results when you look at what’s happening around us all at the moment.
I also took a few moments to speak to some of the buyers in the room and all of them were optimistic about the market conditions. One person went on to tell me that he wasn’t worried about the market. He was telling me that if you look closely at the world prices of almost everything (gold, oil, minerals, materials of sorts) they have all reduced in price. He said to me he has been watching the housing market come back and is of the opinion that if the short term pain is a small adjustment for the long term gain.
I couldn’t not think to myself how true this statement was. All the major experts you talk too about property investing say that the profit margin in property is of a long term secure type. And if you look at history property prices have gone up steadily. The median prices traditionally have their ups and downs but all in all the line is slowly and gradually upward in the long term i.e. 10+ years.
Below I have sourced data from the sales in Christchurch for the last 5 years and then 16 years. It’s truly interesting and very different to the New Plymouth Market. The Christchurch Market seems to more seasonal with probably the higher priced houses been sold in the summer and the others in the cold south island months. To read this graph each line represents a month in its respective year.
Below is the 5 Year Trend
Below is the 16 Year Trend
November 01 2008 | The Market | 2 Comments »
BUYING AT AUCTION:
Auctions can be a daunting time to buy a property as some Auctions you may not have any idea where it might sell or what it is worth. Here in New Plymouth we have adopted a policy of publishing the Auction Reserve in order for the whole process is transparent. We do about 60% of our Auctions this way. But in any case Auctions still are done in a set time frame and you need to have things sorted out so that you don’t miss out on your dream property at Auction. Here are a few things that will help you in your purchase at Auction.
BEFOREHAND:
Do your Research
When you are looking in an area, whether buying ‘for sale’ or through an Auction, research the prices in that area for the type of property that you want. Find out about the good and bad features of the area, and comparative prices to other areas. Look at similar properties to the type that you are seeking.
Attend Local Auctions
It is valuable experience to attend as many local Auctions as you can to see how the Auction proceeds. Observe how people bid, and who is at the Auction. Work out people’s style of bidding. The same people may be bidding against you for your property in the near future.
Arrange your Finances
Ensure that you have your Finance in place prior to the Auction. Establish you bidding limit. Make sure you allow for all extra costs that may be involved and leave a buffer for bidding
WHEN YOU HAVE DECIDED ON THE PROPERTY:
Register your Intent with the Agent
Advise the Real Estate Agent if you are interested in a property. They will be able to give you more information on the property and guide you through some other things.
Establish your Bidding Limit
It is important that you set your own bidding limit. Decide what the property is worth to you based on what you can afford. Talk to your local mortage broker or bank for this as they can give you advice on repayments at any given cost.
Check the Paperwork
If you are seriously interested in a property and intend to bid you should have your Solicitor inspect the Contract of Sale. It is a good idea to have a good read through all the paperwork related to the Auction beforehand. Wherever possible, contact the Agent handling the sale and ask them to provide you with a copy of the documentation. This is normally possible in the week prior to Auction. Read through all of the documents and always ask if you are unsure of anything. It is important to clarify details such as settlement terms, deposit and fixtures before the auction commences.
Inspections
Get building and LIM inspections done before the Auction. It is not possible to make an Auction purchase conditional on inspection results. Make sure that any reports or inspections have been carried out to your satisfaction before you attend the Auction.
Ask for Help
Many people find the Auction process daunting. Don’t be afraid to ask a friend, relative or Real Estate Agent, to assist you with your bidding. Many people ask someone else to bid on their behalf as they may be less inclined to bid emotionally and will not exceed a predetermined limit. Make certain that they have very clear instructions in writing on what they can and can’t do on your behalf.
ON AUCTION DAY:
Check the Contract of Sale again
On the Auction Day you should always check that your copy of the Contract of Sale is exactly the same as the original Auction Contract and that there have been no late changes.
Bidding
Remember how an Auction looks from the Auctioneer’s perspective. They are often looking at a large number of people who are invariably turning around, whispering etc. If you are standing at the back of this scene, or hidden in the shade of a tree, the Auctioneer may well miss your bid, particularly when you are bidding for the first time. Stand in clear sight of the Auctioneer and make your first bid obvious to them.
Make sure the Auctioneer understands what you are doing. Bid early, clearly and confidently, and avoid unusual sign language that may be misunderstood. Buyers are usually reluctant to start bidding at Auction but the best policy is to bid loudly and confidently signalling to all other bidders you intend to purchase the property or should the reserve price not be reached that you are given an opportunity in any further negotiations.
Keep Control of your Bidding
If the bidding is increasing in larger denominations than you are comfortable with, consider offering a lower denomination as your bid. The Auctioneer does have the right to refuse it, but there is absolutely no harm in trying.
It is important not to be drawn into a bidding war on a property you want. Emotion can lead to you paying more than you can afford and there is no cooling off period with an Auction.
Making a Deposit
When the property is sold at the Auction you are required to sign the Contract of Sale and pay a deposit of usually 10% on the spot. This can be paid by Personal or Bank Cheque.
Once you have done this it is time to celebrate your new home with a glass of wine at your local Real Estate office…
Deon Swiggs
Property Profits
July 06 2008 | Buyers | 2 Comments »
