Christchurch Real Estate

Christchurch Real Estate Prices Keep Climbing.

I have been reading a few things lately about the Real Estate prices in and around Christchurch and New Zealand. There seems to be much talk about the market prices climbing up and up and up in recent months and reaching what one is calling record prices. What the hell is going on. The country is still suffering one of the longest recessions in recent times and Real Estate companies across the board are spouting out that the housing market is in full recovery.

Here is what I read on stuff.co.nz http://www.stuff.co.nz/the-press/news/christchurch/3239911/House-prices-break-record

Median house prices in other regions in the year to December were, with annual price growth in brackets: Nelson-Marlborough $343,500 (14.5 per cent), Wellington $400,000 (8.1), Southland $184,000 (10.84), Otago $230,000 (unchanged), Central Otago Lakes $432,500 (1.16), Auckland $470,000 (6.81), Northland $306,000 (minus 2.08), Taranaki $280,000 (7.69), Manawatu-Wanganui $230,000 (2.9).

Come on. Look at the bigger picture and look whats going on. Now I know I am not qualified to rattle off any official stuff. But you have to ask the questions that will this price recovery actually keep going. And when they talk about median prices. The reality is that more higher priced homes have been selling in the last 6 months than in previous homes comparatively to the lower priced homes. From my understanding of going to peoples homes the amount I have been most people who own homes under the 400k mark are finding the times tougher and arent moving.

Compare that to many people who are downsizing their homes at the moment. People in bigger houses in posh locations looking to downsize and have something with smaller mortgages. The reality is that people out there still worry about the prices of homes. Our home affordability allbeit better than previous years is rising fast and is one of the most expensive in the world.

On top of all of this you have to keep in mind we still have an extremely low OCR which is tipped to rise by June this year kissing good bye to the relatively cheap money we have had access to for the past 12 months. Bollard has tipped a mid-year increase in the official cash rate from its current record low 2.5 per cent but the market is anticipating he will start as soon as March and have hiked the OCR by 75 basis points by June 30.

I am sorry to say but if you look at the signs they do not paint a pretty picture. The average Kiwi is going to be priced out of buying a home. And if they do they most certainly will be stuck with a massive mortgage.

I feel the Real Estate industry shouldnt be telling the country that house prices are heading to an all time high. Its just not healthy to be doing this at this time. Sellers will start to expect higher prices. Great if your a home owner though. There is a drought of listings at the moment. A sure sellers market. So what the industry needs to do is attract more listings. Which is what the article above will most certainly do. Before you buy or sell right now make sure you do your research on true facts as there are too many conflicting opinions out there, including mine. But you need to look at cold hard numbers and look at the trends.

Good luck.

January 19 2010 | Uncategorized | 2 Comments »

Valuations – What Are They And How Are They Made

The first thing that you must do with any real estate transaction is to accurately determine the value of your real estate property since it is important for your property to appraise for its full sale price.  You should obtain a registered valuation for your property which sometimes can take some time.  The cost of this may vary depending on the location and value of your  property but it is important to get this value accurate.

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June 28 2009 | Uncategorized | 1 Comment »

Home Hints – Should I Sell It, Do It Up Or Rent It?

What are your options?

Before you decide to sell, here are a few things to think about first

• could you get the home you want by renovating or extending instead?
• how much more will you have to pay to get the home you want – can you afford it?
• would it be a good idea to keep your current home as a rental investment?
• if you’re selling so you can retire do you have any other options?

Should you do up or move?

Selling and moving can be an expensive business. So if you like the area but the home no longer meets your needs, renovating or extending may be a good option instead of selling.

On the plus side

You save the cost of moving and selling your home. Estate agents fees could be up to 4% or more of the price you sell your home for – and moving could cost you several thousand dollars. There’s more about costs later on, and a list of costs in the guide Tool kit.

On the other hand

You need to be careful that you don’t overcapitalise and spend more on your home than it’s worth. If you alter your home would this make it better than other homes in your street or area? If the answer is yes, you may not get all your money back when it’s time to sell.

It’s not for everyone

Doing up a home is not for everyone. It can be hard living in a home during renovations, and if you have to move out for a while it can add quite a bit to the cost of the project.

There’s more about renovating in the ‘Building and renovating’ section, and some advice on what may or may not add value to your home.

What will it cost to move?

The main costs you will have when you sell are the real estate fees and your moving costs. But you also need to be prepared to pay some one-off expenses for your new home, for instance if you need to make repairs or buy new appliances and furniture.

Real estate fees

The real estate agent is paid by the seller when the house sale becomes unconditional.

The fees and costs can vary quite a bit from company to company. Some companies charge a base fee plus a commission based on how much your home sells for. Others charge just a commission and some charge a fixed fee no matter what your home sells for.

Base fees are usually around $500 plus GST. Commissions are usually about 3-4% (plus GST) of the sale price, but may work out less for more expensive homes – or you may be able to negotiate a fixed fee. You may also have other costs such as advertising (which you pay even if the home doesn’t sell).

You may be able to get a better deal, especially if you sign up with just one agency, so be prepared to talk with several agents and negotiate the fee. However, the fee is not the only thing you should think about.

Moving costs and insurance

Moving costs vary considerably. You could expect to pay anything from $1,000 to $3,000 to move within the same town or city. It also depends on how much of the packing you will do yourself.

Most contents insurance policies don’t automatically cover your belongings during a move, so you’ll probably need to ask your insurer to give you extra cover for the day. Or the moving company may be able to provide the cover. If you’re planning to do any of the packing or moving yourself, it would pay to check what the insurance will cover.

Should you keep your home as an investment?

Many New Zealanders own a second home as an investment. It makes sense to do the sums and think about the possibility of keeping your current home as a rental property before you decide to sell. It could be one way to start or expand your investment portfolio.

On the plus side

If owning a rental property is something you have in mind for the future, keeping your current home when you move could be a practical way to achieve it. It means you’ll save on the time it would take you to look for a suitable rental property to invest in, you won’t have to pay a real estate fee to sell your current home, and you should have a good idea of what maintenance might be needed.

On the other hand

Not all homes are suitable rental properties. You need to be sure the home will be easy to rent, and that you can get enough rent to cover the costs of keeping it. We can help you work out how much you might need to borrow, and what your loan would cost.

Will the rent cover the costs?

To get an idea of the rent your home might fetch, check similar places listed with local rental agencies. The Department of Building and Housing website provides information on average rents for homes around the country.

You could also ask a rental agency, or property manager, to give you an opinion about how easily your place might rent and what rent you could expect to get.

Ideally your rent should cover your loan and all expenses for the property. You need to allow at least 25% of the rental income for running costs such as rates, insurance and maintenance – and more if you use a property manager.

Would it make a good rental?

You need to try to think about your home in a detached way (which is not always easy).

Ask yourself

• is the home in a good, safe area?
• are there good facilities nearby, such as shops, medical centre, sports grounds?
• is the home close to public transport?
• is it in good condition?
• is it easy to maintain?
• are the grounds easy to look after?
• is it sunny, sheltered and not damp?
• are the living areas a reasonable size?
• does it have 2-3 bedrooms?
• does it have a modern bathroom, kitchen and laundry?
• are appliances and fittings in good order?
• is there a garage or off-street parking?
• is there private outdoor living space?
• how much rent could I expect to get?
• would the rent cover the loan, rates, insurance and upkeep for the property?

If you’ve answered mainly ‘yes’ chances are your home has reasonable rental potential. But you also need to check with local authorities to see if there are any plans for major changes in the area that could affect the property’s future value, such as zoning changes or plans to build a motorway nearby.

Try to avoid ‘having to sell’

It’s best if you don’t have to sell in a hurry. So if you’re making an offer on another home, give yourself plenty of time to sell. And make your offer conditional on your home selling at a price acceptable to you. If you can’t sell by the date set and don’t want to miss out on the new home, ask your lender if you can get ‘bridging finance’ (a short-term interest only loan) to tide you over.

If you’re in a position where you think you may have to sell, it could be a good idea to put your home on the market sooner rather than later, to give yourself more time to find a buyer willing to pay the price you want.

May 28 2009 | Buyers and Home Sellers and Buyers Guides | No Comments »

Home Hints – What Legal Stuff Needs To Be Done

Your lawyer’s job is to protect you by checking contracts, explaining your rights, and making sure the property’s title is in order. They also do the legal work to transfer the property to you (the conveyancing) and register your mortgage on the property title.

They’ll provide advice on things like different ways to own the property (for example as joint tenants), negotiating the price and things you need in your sale and purchase agreement.

They may also help with arrangements for your loan and insurance. And they’ll probably suggest you make a new Will and Enduring ower of Attorney, so your affairs are in good order if something happens to you.

Before you make an offer

You should always seek a lawyer’s advice before you make an offer to buy a home.

They can help you by

• checking the sale and purchase agreement, auction or tender documents
• making sure you have the right conditions in your offer to protect you
• arranging valuations and reports
• advising you on ownership matters and any legal issues
• providing advice on negotiating the price.

If you’re buying at auction or wanting to make an unconditional tender, your lawyer will need to do all the legal checks first, such as checking the title and LIM report.

When your offer is accepted

Once your offer is accepted your lawyer makes sure the conditions in your agreement are met and starts doing the legal work to transfer the property to your name.

The transfer is done electronically using Landonline (the electronic dealing system of LINZ, Land Information New Zealand). Your lawyer signs online on your behalf, so they will ask you to sign a form giving them authority to act for you.

At this stage their job usually includes

• checking the title for any ownership restrictions
• checking the LIM for things like consents, and potential problems
• checking local authority plans to see if any major changes are likely
• checking all the conditions in your agreement are met
• preparing the authority form for you to sign and confirming your identity so they can act on your behalf
• setting things up in Landonline – a lot of the legal work is done in advance
• explaining your loan agreement to you and arranging the mortgage
• checking rates and other costs are paid up to date
• making arrangements with you and the bank for payment of your loan and your share of the purchase price.

Your lawyer will also check the property is insured – this is a condition of your home loan. We can arrange all your insurances when you apply for your loan.

You should never sign an offer or any legal document without asking your lawyer to check it first.

Do a final check

Before settlement day it’s a good idea to do a final check to make sure

• the property is still in the same order
• any agreed repairs have been done
• everything you’ve bought is still there.

If there’s a problem, talk to your lawyer before everything becomes final.

On settlement day

On settlement day your lawyer works to settle the deal and does the transfer of ownership.

This work includes

• doing a guaranteed title search
• liaising with the seller’s lawyer to make sure you receive a clear title
• paying the money to the seller’s lawyer
• ensuring the seller’s lawyer does their side of the electronic dealing
• completing the transfer using Landonline
• final details such as where you get the keys and when you can move in!

The money paid on settlement day takes into account the deposit you’ve already paid on the home to the real estate agent.

After settlement

After settlement the lawyer will

• register the new mortgage and the transfer of the title
• provide you with a statement showing all the purchase details
• send a copy of the title, mortgage and certificate of insurance to your lender
• give you a copy of the title showing you registered as the new owner.

Are you buying with someone else?

There are two main ways of sharing the ownership of a home. You can have a joint tenancy where you own the home together and if one person dies the others take over the ownership – this is the way most couples own a home together. Or you can have a tenancy in common, where you each own a share and can leave your share to anyone you wish in your Will – this is more common when there are several owners. Another option is a property sharing agreement. Your lawyer will advise you on the best way to set things up for your situation.

What types of ownership are there?

Most people buy a freehold home, but there are quite a few different ways to own a home.

Freehold – this is the most common type of ownership. It means you own the land and house with virtually no restrictions on your ownership rights. The term freehold is also commonly used to mean that you don’t owe any money on the home.

Leasehold – with this type of ownership you lease the land and pay rent to the landowner. You own the house but your use of the land may be restricted, and the rent can go up. You can sell the lease if you want to move, but you may need to tell the landowner first.

Cross-lease – this is where there are several homes on a piece of land and all the owners own the land together. Each owner leases the land their home is on from the others for a small cost.

Unit title – you own or lease your unit but common areas (like stairways and parking) are managed by the body corporate.

Company title – if you buy a flat with company title, you buy ‘shares’ that give you the right to live there. The company administers and maintains the block of flats.

Licence to occupy – with this type of ownership you don’t actually own the land or buildings, but you have a right to live there for life. This is the most common type of ownership for retirement villages.

May 25 2009 | Buyers and Home Sellers and Buyers Guides | No Comments »

Home Hints – What Do I Do When I Want To Buy My Home In New Zealand

Well by now hopefully you have chosen what you want. Done your research and found what you need to find and are able to make an educated decision when it comes to buying your home.

There are three main ways to buy a home

1. by offer and negotiation – you make an offer and then negotiate if necessary until you and the seller agree on a price

2. at an auction – you go along on the day and everyone interested bids against each other until only one bidder is left

3. by tender – everyone interested in buying puts in a written offer for the seller to consider, usually all at the same time.

Most homes are still sold by the first means. But auctions and tenders are often used in sought after areas, or if a home has a special feature, or needs to be sold by a set date.

Buying by offer and negotiation. This is normally done through a real estate agent using a standard sale and purchase agreement. You make a written offer using this form, which the agent takes to the buyer.

If the buyer accepts your offer, they sign it and the form becomes your sale contract. But the seller may want to negotiate and make a counter offer (where they change something in the offer then sign it). The agent will come back to you to see if you agree to the change and if you do, you sign the change and the deal is done. Or you might decide to change something yourself and the process is repeated until an agreement is reached or one of you decides to stop.

The big plus about buying this way is that you can take time to think – and you can put in conditions that let you check the place out before you’re fully committed.

Important things to know

Your sale and purchase agreement is a legal contract. You need to have it checked by your lawyer before you sign it – and if any of the conditions change during negotiation. The agreement becomes binding once both you and the seller have signed it and initialled all the changes. You can stop negotiating at any time up until then.

You can take your time. You don’t have to have everything agreed in one day or evening – although this is what the agent may be hoping to do.

If the seller changes something, you can change the offer. So if the price goes up you may want to extend the settlement date or ask for something else to be included in the deal. Or you may want to make your offer more attractive without raising the price by taking some conditions out.

Paying a deposit to the agent

Once everything’s agreed you pay a deposit of 5–10% of the sale price to the agent. The rest of the money is paid on settlement day. The agent pays the money to the seller when your offer becomes unconditional (when all the conditions are met and the sale is definitely going ahead). You get your money back if the sale falls through because the conditions are not met. Butyou can’t usually get it back if you want to back out after everythingis unconditional.

The deposit is held in a trust account and is protected by law. No one can take it if the real estate company goes broke and there’s a fidelity fund to cover missing money.

If you’re buying privately

The process is much the same if you’re buying privately but it may be more difficult negotiating directly with the seller, especially as they may be expecting more from the sale. It’s very important to use your lawyer at each step. If you buy privately, pay the deposit to your lawyer so they can arrange for it to be held in a safe trust account.

The sale and purchase agreement

The agreement mainly used these days is a standard one created by the Real Estate Institute and the Auckland District Law Society. It’s about 10 pages long and in small print, so you may want to get a copy from your agent and read it in advance so you understand

what’s in it.

It covers things like responsibilities under various laws and what happensif settlement is late – and lets youinsert your own dates, amountsand conditions.

Is your offer conditional?

Making your offer subject to conditions gives you time to check that everything’s okay. If your conditions are not met you don’t have to go ahead, or you can renegotiate – for instance you might be happy to do repairs if the price is lower. It’s very important that your lawyer checks your offer and any conditions you add. The other thing to remember is that too many conditions can put a seller off.

Is your offer unconditional?

If you make an unconditional offer you need to sort out your loan and everything else beforehand because once the offer is accepted you have to go through with the sale. If you break the contract you can be sued.

Sellers can add conditions too

Sellers can also add conditions, although this is less common. One you may see is an ‘escape clause’. This means if they get a better offer they can give you a deadline to make yours unconditional. If you can’t meet the deadline they can accept the other offer.

Important dates

Your offer has several dates in it. The finance date is when you need to have your money arranged by and settlement date is the day you take over the home. I suggest you put in a date that your offer ends if the seller doesn’t accept it – that way you’re not left

wondering while the seller possibly waits for a better offer.

This offer is subject to…

Here are some common types of conditions buyers add to the agreement.

• finance – this gives you time to arrange your loan. Make sure it says finance on terms satisfactory to you or you could be forced to borrow on terms you don’t like

• title search – so your lawyer can check there are no problems with the title, or restrictions, covenants or easements you need to know about

• valuation report – so you can check the market price. Your lender will probably want you to get one anyway

• LIM report – so you can check what the council knows about the property and make sure there are no problems with things like consents or flooding

• building inspection report – so you can check the building is sound and find out about any problems that might cost money

• engineer’s report – so you can check any structural or land issues

• sale of another home – if you need to sell one home to buy another.

You might also want to add other conditions covering things like repairs they’ve said they’ll make or extra items they’ve agreed to leave.Your conditions need to state that the report, finance or repairs must be satisfactory to you. Otherwise you will still have to go ahead even if you’re not happy with the results.

Your lender will need to see the sale and purchase agreement after the deal is done. But talk

to them beforehand to check if they have any specific clauses they want added.

My advice is to always get legal advice and get the agreement explained to you before signing anything. Although I myself think this is annoying when your trying to secure a deal I honestly believe this is the safest thing to do. An agreement is binding and I would hate to think that your going to be bound by something you dont fully understand.

May 23 2009 | Buyers and Home Sellers and Buyers Guides | No Comments »

Home Hints – Things You Need To Look Out For Before Buying Your Home

When you have decided on a house you need to take a good look at it and make sure that you are going to be buying it in a reasonable condition (do a building inspection) – this is where every dollar counts because there are some things that can be a disaster for you and cost you thousands if you do not look into them properly. If there is anything wrong with the property it is always a good idea to know what it is before you go into putting offers in. You will need to budget for these other things into the amount you can afford for the house. For example if it needs a new roof you should not pay a rice for the property that is assuming it has a good roof.

Here are things to look for:

May 21 2009 | Buyers and Home Sellers and Buyers Guides | No Comments »

Home Hints – What Are The Things To Keep In Mind When Buying Property

Once you’ve found a home you’re interested in you’ll want to check it out carefully. It really is a case of buyer beware. You don’t want to end up with a lemon, or costs you hadn’t planned for. Here are some ways you can check out the place you’re interested in.

1. Check the place out

When you visit a place you like, take your time. Go back several times. Ask the agent lots of questions, and do a thorough check for things you may have to fix or want to change.

2. Contact the council

Ask your local and regional councils for information about the area and any future plans. Talk to the town planners (and ask them if there’s anyone else you should talk to). Ask about the district or resource plan. It sets out the rules for development in the area, including zones and building heights. You can also get things like drainage and building plans and copies of permits for the property from your council.

3. Apply for a LIM report

A Land Information Memorandum (LIM) from the local authority gives you all sorts of valuable information about drainage, roads, flooding, erosion, consents etc. There’s a charge for LIM reports and prices vary around the country but you can expect to pay around $150–$350 (costs are generally higher in the larger cities and you usually pay more if you need an urgent report).

While LIM reports can contain a lot of valuable information they may also be missing vital bits (such as accurate boundaries, or mention of Wahi Tapu or sacred sites), so it’s a good idea to also talk with the staff and try and find out what other information the authority may have about the property and its neighbours.

4. Get expert advice

Get a report on the property from a licensed building surveyor. Make sure you choose someone with a good reputation and ask them what their report will and won’t cover. Also ask them to give you an idea of what it might cost to fix any problems they find. If there could be any problems with the land or large structures you should also get a report from an engineer.

You my also want to check with the Weathertightness service (see the Useful contacts section) to see if there has been a leaky home claim for the property.

5. Check the title to the property

This will tell you if there are any restrictions that could affect your ownership or use of the property. The agent should have a copy of the title. Also talk to your lawyer about the title and any other checks they think you should do.

You might also want to ask your lawyer about title insurance. It could help protect you if you find later on that the boundaries are wrong or there has been illegal work done on the property.

Is the home in good order?

Before you buy a place you want to be sure it’s in good order, or at least know what repairs are needed and how much they may cost. Your best protection is to get a report from a building consultant. But you probably won’t want to pay for a report until you’ve done some checks yourself and are fairly sure it’s the home you want.

Here are a few pointers

When you check the home look for structural problems, or things like rotten wood or leaks that can be difficult and expensive to fix.

Signs of movement and sinking include cracks in walls and doors or windows that are crooked or jammed. Rotting or borer filled timber is soft and spongy. Rotting wood sounds ‘dead’ when you tap it and crumbles if you push a key or something sharp into it.

Signs of leaks include mould, mildew and bulges in the wall. Often the place will smell musty as well. Musty or unpleasant smells can also be a sign of problems with the drains or sewerage.

Be wary of fresh paint and plaster especially if only some areas have been done up – it could well be covering up a problem. Furniture and pot plants can provide good camouflage too, both indoors and out, so don’t be embarrassed to look behind or under them.

Some common problems include

• poor ventilation and lack of insulation

• lead paint and asbestos problems

• dangerous wiring

• deterioration in wall claddings and roofs

• rotting timber windows

• perishing seals on aluminium windows

• breakdown of silicon sealers

• leaky homes.

How much will maintenance cost?

The cost of repairs and maintenance depends on the age and condition of the home. But you’ll probably need to allow at least $3,000-$5,000 a year. It doesn’t mean you’ll spend this much every year. But over the years you will have maintenance costs, sometimes quite big ones, and you need to be prepared for this. Here are some rough estimates based on an average size home.

May 19 2009 | Buyers and Home Sellers and Buyers Guides | No Comments »

Home Hints – Where Do You Start When Looking To Buy Real Estate In New Zealand

How do you find a home?

Once you know what you want and can afford, you want to get a ‘feel’ for the market. You could start by

• searching the Internet – try trademe.co.nz or realestate.co.nz

• reading the papers – weekend papers often have lots of adverts

• driving around areas you like, looking for ‘For Sale’ signs and open homes

• looking at homes in real estate agents’ windows, or on their websites.

Real estate companies

Many people find their homes through a real estate company. Often homes are only listed with one company, so ask agents from different companies to show you suitable homes. If a home is a ‘sole agency’, only that real estate company can show you the home. A ‘general agency’ means the home can be listed with a number of companies.

Private sales

Not all homes are listed with real estate agents. Some people try to sell their homes privately and they may use a ‘private sale’ company to help them with marketing. Don’t assume a private sale means you’ll pay less – the owner may be trying to get more from the sale by not paying an agent – and dealing directly with the owner may be quite stressful.

Finding it yourself

Some homes never come on the market. If you know where you want to live you could put a short note into letterboxes in the area, ask locals if they know of anything coming up, or even put your own advert in the paper.

Things To Ask Your Real Estate Agent if you use on (Just a Hint – A Real Estate Agent if your buying a property can be your best friend if you know how to use them properly, but speaking from experience you need to know how to ask the right questions as at the end of the day the agent is working for the seller).

• why are the owners selling the home?

• how long has it been on the market?

• how much interest has there been?

• what is the Rateable Valuation?

• how much are the rates?

• what are the properties nearby worth?

• what have other places nearby sold for recently?

• what are the neighbours like – do they have children, pets, or noisy parties?

• what facilities are in the area?

• what are the schools like, are they zoned?

• is the house north facing (for sun)?

• when does it get the sun?

• what is the prevailing wind direction?

• is the home sheltered?

• is there noise from traffic, trains, planes?

• is there a danger of flooding or erosion?

• are there any major redevelopment plans for the area?

• are there any zoning restrictions?

• what type of title (ownership) does the property have?

• are there any covenants (restrictions) or easements (rights) on the title?

• are there any protection orders over the trees or buildings?

• where are the boundaries?

• is the home suitable to renovate?

• could the section be subdivided?

• does the home need any urgent repairs?

• has this home been a ‘leaky home’?

• have there been any alterations – do these have consents and certificates?

• has it been re-piled, re-plumbed or rewired – and when?

• what heating and insulation does it have?

• what fittings are being sold with the home?

May 18 2009 | Buyers and Home Sellers and Buyers Guides | No Comments »

Home Hints – What Type Of House Do You Want To Live In

After you think about the area you want to live in you need to decide what type of home you want to live in. Sometimes this can change the area you will need to look in so you need to get this step sorted out relatively early so that you can get it right so that you are not left at the drawing board for too long. Here are some of the things you have to ask yourself and think about when trying to decide what type of home you want to live in.

Would you prefer an older home?

An older home can provide character in an established setting. Rooms are often large with decorative details. But don’t get carried away with the character and forget to think about the work and money that might be needed.

Here are a few things to consider

• older homes can be hard to heat – they often have no insulation

• the layout may not suit modern living – often the living rooms are at the front, away from the kitchen and private garden

• it can be hard to know what’s ‘behind’ the walls, so alterations can be expensive – builders may want to work for an hourly rate instead of giving a firm price

• the age may mean wiring, roofing, piles and plumbing need replacing

• sometimes even if you want to make small changes you’ll end up having to do other work to get consent

• some renovations need special care – asbestos products were used until about 35 years ago, and some paints contained lead until about 15 years ago.

Check everything carefully, get expert advice first, compare as many homes as you can – and ideally find one where the major work has been done for you.

Do you want a new home?

New homes are generally well insulated, need little maintenance and have modern kitchens and bathrooms. But you may have the extra costs of landscaping, buying curtains and carpets, and commuting. A new subdivision can take a while to start to look established. If you’re keen to build, read the section on building and renovating later

Do you want an apartment?

Living in the city is popular and an apartment can be the ideal first home or retirement unit. An apartment can provide convenience, security and less maintenance, and make it more affordable to live in a good location.

On the other hand, a small two bedroom apartment with no parking or outdoor space in town can sometimes cost more than a three bedroom home further out. And not all apartments are good investments.

Apartments in older converted buildings can be a problem and make finance and insurance harder to get. Why? Because older buildings may need expensive maintenance, and many earlier conversions were poorly done by people out to make quick money.

There can also be problems with newer apartments, for example with building quality or sound proofing. And in some areas the large number of smaller, poorer quality apartments built has affected prices.

In general it’s not a good idea to buy ‘off the plans’ in a new complex where you have no proof of the finished quality. Some owners spend years getting problems sorted out.

Many people say they love apartment living and it’s one of the best moves they’ve made. But there can be pitfalls so it’s important to do your research and get good advice first. Here are a few tips to get you started

• talk to your local authority and ask them if they know of any problems – they do all the consents and inspections

• get advice from an independent valuer with experience of apartments in the area you’re looking – don’t rely on a developer’s valuation

• choose buildings by local architects, builders and developers with a good track record

• be wary of buildings where apartments often come up for sale – there may be problems with the building or the body corporate.

When you’re looking ask

• is there enough space to suit your lifestyle and belongings?

• does the home have the features you want? Use our checklist over the page

• does it have storage and parking? Can you get in and out of the park easily?

• does it have good safety and fire prevention features?

• will noises and smells from the area bother you? Visit at different times to make sure

• what happens to the rubbish? Check it’s not stored near your unit

• can you hear the neighbours? Check for living and plumbing sounds at times others are home

• is there a live-in manager? If there is, meet them and ask how things run

• what work has been done recently and is there money put aside for new work?

• have there been any problems with the apartment or the complex, such as leaks, and what has been done about them?

• what are the body corporate rules and the levies you have to pay?

• is there a fund or savings plan to cover large maintenance work?

• what are the other owners like – are they mainly owners or renters? This may affect how quiet and well kept the complex is

• what is the area like – how is it likely to change in the future?

What’s the body corporate?

Most apartment complexes have a body corporate. All the owners belong and pay a levy to cover building running costs and maintenance. The group is responsible for looking after common areas such as stairs, hallways, garaging, car parks and grounds. It also sets the rules for the complex and these can affect what you can do with your unit (for instance you may not be able to alter your unit or run a business from home). Every body corporate is different and it’s important to find out how it works and what the rules are, because it can affect both your use of the property and the value of your investment.

May 16 2009 | Buyers and Home Sellers and Buyers Guides and houses | 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 »

Renting vs Buying – A Personal Perspective

Many people wonder whether renting or buying a home is better decision. Most of the time, history has shown it is a smarter financial move to purchase a home than to rent.  The final decision is unique to each situation of course. Here are a few points to note about both renting and buying.

 Buying

• May require a larger initial investment – the deposit (usually a mortgage is 20% of the sale price)
• You must be responsible for all upkeep otherwise value is affected
• If you want to move, your home generally must be sold
• Equity may go up, down, or stay stagnant depending on the home’s value
• Over time, the mortgage balance decreases and equity builds
• The ability to remodel and redecorate the home to match your needs and desires
• There can be tax advantages attached to home ownership

Renting

• Smaller amount of “up-front” cash
• When the lease is up, you can just move
• Costs for the term of the lease are more fixed
• Not gaining equity, but not losing it either
• Generally less work in maintaining a home or apartment
• Even if the property goes up in value, you will never gain equity
• Limitations on what you can do to “make it your own”
• No tax advantage to renting

Today we live in a more transient society. People move around a lot more with their jobs, are getting married later and want more flexibility with their living arrangements. There also doesn’t seem to be as much emphasis placed on the importance of having your own home.  Long term renting is becoming more and more common. A concerning reason for this trend is that it is becoming increasingly difficult to afford to buy a home, firstly save for the deposit and secondly be able to afford the mortgage repayments, especially in the major cities and more highly desirable and expensive areas. Housing affordability has increased from 2.1 times the average income to over 5 times the average income over the last couple of decades.

Under the cureent economic situation I have myself looked into buying another home. But for myself I cant get conventionally a 20% deposit as the eqity in my first home has fallen below the loan amount which I know has happened to many many people out there. Although this is not a problem for me bcause I do not intend to sell. The rent covers the mortgage payments and it works for me. But due to this I cant get another loan for another home to live in in Christchurch. So I have been forced with renting.

What I have found though is for my situation renting may not be the worst thing for me to do at the moment because housing prices are surely to come down further as this year unemployment and money problems worsen in this country. In saying that there has been some hugely increased sales volumes as of late. I am putting this down to the low interest rates where hungry cash ready investors see some good buys out there at a good interest rate. An investor friend of mine told me they were not worried if the price of the property dropped another 10% in value over the next year. They can see good returns at the current prices and the current interest rates to make it work. They also went on to say which is correct that the rice of property will go up again. A recession doesnt last forever.

If you are in my situation and find yourself unable to buy at the moment a house whether its your first or second or what and you find yourself haing to rent the best thing I think to do at the moment is find a relatively good priced property and cut your expenses down and save for a while. I believe the current cycle of good buying will not be over for some time. So if you sit down now and save you might be able to buy again when the horse is about to take off again. Thats what I am doing

April 19 2009 | Buyers and The Market | 1 Comment »

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 »

A Quick Guide To Buying A Home. What To Look Out For, What To Watch.

There is probably no better way to become aware of the condition of a home than to have your home inspected by a licensed inspector. However, there are several considerations on which only you, as the purchaser, can decide. And, as I’ve said in other articles, it’s my belief there are some things you must do yourself: Manage your money.  Raise your children.  And, also… purchase your home!

1.    Location, location, location…

Probably the most important factor is that your new neighbourhood is a good fit.  Take some time to drive around the area and make sure you like it. Check out the traffic at rush hour – if the home you like is on a main street, make sure the traffic noise won’t be a problem for you.

Additional location considerations might include: Where are the closest schools?  Having schools nearby can be great if you have young children yourself.  It can be rather annoying with noise or traffic, if you don’t!  Does the lot back to a wash? If you have cats or a small dog, they might be at risk to urban coyotes and other wildlife. Is there an alley? Alleys have both positive and negative features. They provide a buffer between you and the back neighbor, but they also give opportunities for clandestine behavior since they are relatively private.

You might want to check the crime statistics for the area, something you can find by googling “neighborhood crime data” along with the community of your choice.  You may also go to the county sex offender registry and make sure you are comfortable with your neighbors. I

Check into nearby vacant lots. You never know when the lot your kids play on will be developed into something you might not want to have as a neighbour.

You can even ask your agent to speak with your potential new neighbors. Find out if there is any unreported crime; ask if there is a rock band that practices all afternoon. Find out if there is a problem neighbor at whose address the police have a reserved parking spot. Ask the immediate neighbors if they plan any major remodeling or additions. This could lead to a year of construction vehicles and noise from sunrise to sunset. A few minutes of due diligence can prevent an unhappy ownership situation.

Make sure the lot has good features; i.e. not located in a flood area, and not the lowest lot in the area (sure to be 3 inches deep in water every time it rains). Generally this is not a big issue because most municipalities will not give a building permit for such areas.�
 

2.    What do I really need…?

The home you pick should meet whatever needs you or your family have. Think about the future. Having kids? Already have kids? Kids leaving? Getting married? How big a home do you need, how many bedrooms and bathrooms? For later resale, the most popular single family home is a 3 bedroom 2 bath home. Homes with only 1 bathroom or only 2 bedrooms are more difficult to sell than the more standard 3/2.

Take the family and spend a little time in the home. Spend a couple hours, especially during the morning or afternoon rush hour. Make sure the noise and activity levels are acceptable, and make sure the home has all the conveniences you like.

Is a pool important? Somewhere to relax on those hot summer weekends? Be sure to inspect the pool closely, using a professional inspector. Pool maintenance can be quite expensive and time consuming. I personally do not have a pool service, instead I have an automatic chlorinator and an automatic pool sweeper. These items are a significant up front expense, but can yield years of virtually maintenance free pool enjoyment. Insist that all pool equipment be in excellent working condition.

3.    Last year’s remodel… this year’s nightmare?

Many older homes may have been converted from a one bath to a two-bath home. You can usually tell.  Make a careful inspection and see if this was done.

Sometimes a master bath has been divided and made into two bathrooms. If the remodel was done well and permitted (a permit was obtained from the municipality), this is a better situation than a poorly done, unpermitted change. You can often find permit information at the city planning office.

Sometimes additional square footage has been added to a home, either by converting the garage into a bedroom or office, or by enclosing the patio. Telltale signs of this might be: No garage, or a garage door that is still there but has no purpose; a slanting floor (garage floors and patios often slant to provide drainage); unusually low ceilings in one room; no air conditioning vents in the room; an outdoor carriage light on the wall of the room; a room with one cinderblock wall and 3 wood frame walls.

Some homes built with a carport have had the carport enclosed. This is an inexpensive and useful remodel, provided it was done correctly and with the proper permits. Things to check for: A window from the house into the garage; garage door is not self closing and/or is not  a solid core door; one garage wall is block, the other walls frame; no power outlets on the garage walls except on the back wall.

Look at the flooring in the home. Flooring is an upgrade many homeowners attempt on their own, but without sufficient skills. Often before selling, owners will rip out old carpeting and install laminate wood flooring. Look for the seams in the laminate; one of the more difficult things for the unskilled installer is to plan the job appropriately so that the seams in the flooring come out right, with no gaps. Further, many installations run right up to the baseboard – sometimes there are two baseboards, the old original and then the new baseboard to cover the gaps from the flooring!

The proper installation is generally to remove the old baseboards so that the flooring is seamless from wall to wall and only a single baseboard is installed. New baseboards should be installed – this minor step costs little and makes a big difference. You can often see a discoloration at the bottom of the old baseboard where the carpet used to be. And, most do-it-yourselfers are not good at mitering the corners and fitting the baseboards perfectly. Just look at the joints and the corners – you will be able to tell, easily, whether the installation was done well.

Tile is another homeowner do-it-yourself favorite, and again, without the proper skills, the job can look terrible close up. Uneven levels in the tiles, grout lines that are not straight, and poorly done corners are just a few examples. Just look at the work, you will be able to tell whether it was done professionally or not.

Finally, look for additions. This is often evidenced by one part of the home leaning away from another part – look at where outside walls meet. Look at joints in the outside walls and see if they are pulling away from each other. Look at the flooring in the home at the same point; if there is carpeting, it is harder to tell, but sometimes the addition will have a different slope from the main part of the house.

For information about remodel work, trust your home inspector. This sort of thing is often more cosmetic, but might make a big difference upon resale.

4.    Who built the ark?  OR….

How is the home constructed? Some older homes are slump block, and this is a wonderful thing, as the utility bills will be substantially less than for a frame house. These homes stay warmer in the winter and cooler in the summer.

While my personal favorite construction is slump block, a close second would be block homes. With these homes, you may find the cable TV companies complain when they have to drill through the block to add an outlet! Block or brick, or some form of masonry, can provide a strong, stable framework that has inherently good insulating qualities.

For some time, homes were literally built by framing the home, wrapping it with insulation and chicken wire, and then using a gunite machine to spray stucco on the outside. I know I am not characterizing this very well, but it is probably the bargain basement construction method. Unless this process is completed carefully, the stucco can develop cracks. Newer homes are built with framing, then engineered wood (plywood or particle board), then insulation and stucco. This is much more stable than chicken wire over framing!

Any of these construction methods, done properly, are acceptable. My opinion is that the risk of problems is lower with masonry of some sort.

When my grandparents bought their last home they did not check any of the electrical outlets. The inspector verified that they worked, but the brand used by the contractor must have been the very cheapest, because none of them will hold onto a plug – the spring action is so weak that the plug literally falls out of the outlets, this is just something to keep an eye out for.

Similarly, look at the valves under the sink and toilet. Make sure the lines are copper and not galvanized. Galvanized pipe, installed in the 70’s, will almost surely be rusty and possibly leaking now, 35-40 years later. Insist on a repipe to copper at the seller’s expense. Have your inspector make sure the plumbing is copper.

I like to make sure the inspector checks the shut off valves under the sinks and toilets, because in older homes, they are often frozen and impossible to use. If there is any evidence of leaking, have the seller replace them with new ones which are less prone to freezing. When you have to have your sink or toilet worked on, you won’t have to shut off water to the entire house for half a day.

5.    Rules, rules and more rules…

who ever your agent is they should make sure you get a copy of any Covenants, Conditions and Restrictions on the property. These are rules associated with a property which are part of the deed and run with the land. 

Other things to think about (this list is by no means complete):

-    Cost of homeowner’s insurance

-    Taxes/Rates

-    Utility costs

-    Garbage pickup / bulk pickup

-    Neighborhood watch

-    Internet service

-    Sky

-    Street condition, paving

-    Security system

-    Paint condition

-    Driveway condition

-    Roof condition

-    Age of air conditioners

-    Septic or sewer?

-    Age of faucets and other fixtures and their condition

-    Type of electrical wiring (aluminum, copper?), electrical panel, breakers

-    Condition of shower enclosure and tub area (mold?)

-    Insurance claims history

-    Street utility manhole in front of house?

-    Distance to fire hydrant?

-    Water pressure?

-    Condition of watering system for grass, shrubs?

Finding the perfect home for you and your family should be an enjoyable experience.  I hope these guidelines will help you in your search and home buying experience! Good luck.

February 08 2009 | Buyers | 1 Comment »

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 »