The changing world of insurance

Sum Insured Graphic

I received this info from my ASB private banker Jill Rogers that I thought may be of interest…

You will have seen lots of information on the changes from “Full Replacement Cover” to “Sum Insured Replacement” on New Zealand homes.

To help you through the change to “sum insured replacement” visit www.need2know.org.nz.

If you have an ASB House Insurance Policy [or any IAG House Insurance Policy], you will receive information on the changes as your policy comes up for its annual renewal.

Your renewal notice may have a “sum insured” figure provided. You will need to check this and ensure you are happy with that figure.

The above website has “Calculators” that can assist you with a sum insured figure for your home.

Alternatively – Valuers can provide a “Valuation for insurance purposes” – cost of this will depend on the size of your home.

Moving forward, once a Sum Insured value in place, you will need to continue to check it annually on your renewal date to ensure the Sum Insured figure accurately reflects the replacement value of your home allowing for any upgrades or alterations you may have made to your home.

If your home insurance policy is moving to “sum insured”, it’s imperative that you get it right – you don’t want to be caught short in the event of a total loss, nor do you want to be stuck paying higher premiums than you have to.

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Canterbury homes selling fast

Liz McDonald at The Press reports:

Homes in Canterbury and Westland are still the fastest-selling in the country, as buyers compete for properties.

April figures from the Real Estate Institute show homes sold in 27 days on average.

The median price was $353,000, up 10 per cent since April last year, but down from $359,000 in March. In Christchurch, the median price was $375,000, up 8.7 per cent in a year but 2 per cent down from $384,000 in March.

Institute director Tony McPherson said the strong demand from first-home buyers and investors at the lower end of the market continued.

The shortage of houses was leading to some investors buying damaged properties – those that were safe to occupy but uneconomic to repair – as rentals, he said.

This has definitely been my experience. In recent weeks, I have had a number of such properties sell after just a few days on the market.

The number of sales in the city was 583, almost 25 per cent higher than a year ago, while sales were up 16 per cent to 934 across the region. Within Christchurch the highest median price was $656,000 in the hill suburbs, followed by $635,000 for Fendalton-Merivale-Ilam. The cheapest area was $233,500 in Linwood-Bromley-Bexley-Aranui.

It’s important to note that for the month of April, only seven sales were completed in the hill suburbs – thus the median is heavily influenced by the small sample of sales.

My own local area, north-east Christchurch (which encompasses Avondale, Avonside, Burwood and Parklands) had 35 sales for April, with a median sale price of $322,500, compared to a median RV of $316,000.

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Spirited Bidding on TC3

Thursday morning saw 57 Queenspark Drive sell under the hammer after good interest and a couple of parties rigorously competing in the auction rooms. Personally I think this a real vote of confidence for Parklands and clearly displays there is “life after” for TC3 properties – a very pleasing result all around. Our owners, who are most impressed with the result are now one sold step further ahead toward their move to Central Otago!

With both pre-approved mortgage finance and insurance in place for the buyer this also confirms the willingness of banks and insurance companies to back these properties.

Two of my colleagues from the Parklands team and I all had clients interested in securing this property, the point being that as a team we know the process and necessary requirements in order to achieve a successful result for both sellers and buyers of TC3 properties.

So if you have any questions about which way forward for your TC 3 property do give us a call.

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Buying and Selling a Damaged Home – A Solicitor’s Word

3 Corsican Grove sold under the hammer for $375,000 after only 10 days on the market.

In browsing The Weekend Press, my eye caught the article by Suzy Garnett and Richard Lang of Duncan Cotterill who made some good points highlighting the pros and cons of pursuing a sale or purchase of such property. While what was stated is in essence the same process with the checks and measures that we recommend, it was good to hear it from a legal point of view, bringing with it recognition from the legal fraternity that there is a way forward for this type of property.   Garnett and Lang proceed to go about it in a well informed manner:

There are green-zone homes on the market, where owners have been paid out by their insurers and are selling the property, unrepaired, for close to bare-land value.

Different insurers have different approaches to allowing a house that has been cash settled to be sold unrepaired. Some insurers will not settle a claim on a badly damaged repairable house without a structural engineer’s report showing it can still be lived in and that any recommended repairs have been done. They may also want an engineer’s report when the work is done. Those insurance companies will want an estimate of salvage costs, and will reduce their offer by that amount.

If you’re buying a property which has been cash settled but not repaired, you will need to do a fairly detailed due diligence investigation.

That is why I encourage my vendors of such properties to commission structural engineer’s reports on their properties, so as to aid potential purchasers with their due diligence.

Most cash-settled property sales we have seen have been done privately, because some real estate agents have special requirements before they will list such a property.

I am aware that a number of these properties are being sold privately. However, they are becoming increasingly common in the wider marketplace. It is interesting to see the different ways in which these properties are marketed – some have been advertised as bare land with a “free” house, with others mentioning the “as is, where is” basis as a mere side note.

Any seller marketing their property themselves needs to take care not to misrepresent it to prospective buyers.

Full disclosure is always the best policy.

You will need to have the sales agreement drawn up by your lawyers, with special clauses about the damaged building – in particular, clauses recording the state of the property, clarifying responsibility for demolition, and dealing with liability for unsafe or unsanitary buildings.

You can still buy the worst property on the best street, but get tailored advice and think through the issues before you commit to sell or buy.

Having personally sold 15 of these properties with two currently coming up for auction next week we have good experience with these type of sales.  My clients benefit from all our previous sales with the contracts having been ‘solicitor approved’ 15 times now, not to mention our 150+ strong e-database of purchasers actively seeking this type of property!

The bottom line is that we have a proven sales template that produces excellent results for these properties!

I trust your week is going well – for me a busy one, from visiting my mother in Cambridge (where I am currently), to  a relative’s wedding in central Otago,  to three auctions next week.  It would be fair to say it is reasonably full on.

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A strong finish to the financial year…

Having just signed out of another financial year on a very positive note I am pleased to report that the year finished a lot stronger than it started (2012 was one of my quietest winters on record). While in-house real estate rankings (in my opinion) are a not true gauge of success it was satisfying to finish the year as the number one salesperson for the Parklands office. 

They say success follows busy people and yes I definitely am that, however I prefer to say, that success follows good clients and I can certainly testify to a great clientele! What more can I say than a big thank you; for your support and your belief in my expertise. The success stories that we have created together has made it all worthwhile.

Autumn a positive start
As opposed to last year the Griff Team’s start to the new financial year is most positive – in fact intense would probably sum it up better – we have a large number of new listings due to be feed into the marketplace over the next 4-6 weeks, so watch this space, we have some quality stock about to be launched onto the open market.

Listed this week
9 Evergreen Place – a stunning home of prominence providing luxury and space for the modern or large family. The first open home is today (Wednesday) and the property will be open each Wednesday, Saturday and Sunday from 1.00pm so be sure to check it out.

List to sell period down…
As above, with 70% of my business being transacted through the auction process the average list to sell period for those properties was a mere 22 days! Now that has got to be a real winner for clients and while I generally strike up a robust and positive working relationship with my clients I think it is fair to say that most prefer minimal intrusion into their busy lifestyles when selling.

So again, thank you for your support and the opportunity to work with you over these last twelve months. I look forward to another positive year ahead and to the opportunity of assisting with real estate solutions in these exciting times during the rebuild phase of our city.

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The week that was and that week that is…

Easter Weekend Vista of Mt Cook
Feeling invigorated after a much needed break over the long weekend I am welcoming the challenge and buzz of our current business; an auction on Thursday, and to give you the heads up, we have a couple of new local listings due to be launched next week –
so all systems are go here with the Griff Team.

May I just pay a small compliment to my new PA Karie, while at times I think she wonders what she has got herself into she is doing a great job and I can see myself spending less time in the office as she relieves me of the day-to-day admin.

290-300 Hereford Street was launched to the market by public tender mid last week – an exciting inner city development opportunity of 2400sqm of land ripe for the picking.

21 Sylvia Street is going to auction tomorrow – my first “as is” property to be sold with insurance and full geotechnical info available.

1/38A Tilford Street confirmed last week to a first home buyer who is prepared to wait until next January when the tenant vacates – testament to the scarcity of property and shows that buyers are beginning to think outside of the square.

New listings coming onto the market – a couple of fine properties, both offered for sale by public auction and both by vendors who are relocating to new towns (one to Auckland for golf and one to Central Otago for the good life!), so high motivation to sell all round.

While it would be fair to say that enquiry was a little quieter over EasterWeekend (great for fishing) in general the real estate market is “alive and well” with steady to strong enquiry in most sectors of the Christchurch market. I think the word is out amongst
purchasers“now is the time to buy”as evident price increases and bidding wars reflect a market of a building momentum. I echo this thought and would go as far as saying “now is
acquisition mode”and the best time to do it is immediately!

So do be sure to check out Griff.net.nz for this great line up of listings and of course for up-to-date property info.

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Auction – $100k to vendor in ten minutes!

For the Griff Team last week was a week of selling auctions early and as far as the vendors were concerned the results were exceptional.

The first was a property that we received an acceptable pre-auction offer on which consequently brought the auction forward (the most transparent and fairest option). To cut a long bidding story short, two determined purchasers fought it out to finally see the property sold for an additional $100,000. Needless to say the vendors were most impressed.

3 Corsican Grove successfully sold under the hammer last Friday at an early action.

The second was where a pre-auction offer was submitted on a property that was only on the market for one day – an opportunity that the purchaser did not want to let slip by. Again the result was a very happy vendor and a satisfied purchaser for the ultimate sale all round.

There is no question in my mind that the auction process provides a great platform to produce great results. Do be sure to talk to us if you not only just want to get sold but wish to get the best possible result, it truly is an option worth considering.

Easter – a time to refresh and reflect
I don’t know about you but I’m certainly looking forward to the long weekend away with family – a time to relax and a wee break away from the busyness of life. Easter is a special time for those of us who believe in Christ’s death and resurrection - so that’s important too. I trust you manage to get some time out and spend some time with those who are special to you – do enjoy.

Well that’s me done for the week, take care and keep safe.

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Christchurch property values continue upward trend

Property Sales Statistics for February 2013

Once again we read in The Press that the housing market is continuing to increase both in value and volume.

A reasonably predictable trend is emerging and as Liz McDonald reports:

“A year ago the big growth in Canterbury house prices was in the districts around Christchurch, as red zoners pushed out looking for affordable homes.  Now prices are rising faster inside the city, as confidence grows over issues such as insurance, repairs and land classification.  Low interest rates and rising rents are attracting first-home buyers and investors, further increasing the pressure in a market already short of stock”

Being out there on the coalface of the local property market there is no question in my mind that a very broad cross-section of the buying market are actively pursuing property, and all for the right reasons. Clearly the writing is on the wall and the word out there in the market is “act quick before somebody else snaps it up”. Housing is in demand and when the old supply and demand beast kicks in, property values only head in one direction, up! Buyers are interpreting this current activity vibe as now is the time to act, understanding that property values are not going to get any more affordable for some time yet.

 

Griff business ramping up…

Following the successful sale of 12a Woodgrove Avenue which incidentally maintains our 100% strike rate of selling “as is” properties at auction, we have had a busy week with a number of new listings coming to the market.   Be sure to keep an eye on my website at www.griff.net.nz as we feed these properties into the marketplace over the next couple of weeks.

21 Sylvia Street

JUST LISTED: 21 Sylvia Street, an “as is” property with current insurance in place.

I would like to take the opportunity to bring to your attention 21 Sylvia Street, Parklands – this is a substantial “as is where is” property however it is the first property like this that I have brought to the market with current insurance in place and a full geotechnical report available.  Another affordable opportunity, well worth checking out.

From the farmers’ point of view, it was great to see the rain and like we are here in the “Griff Team”, we certainly hope you are having a positive week.

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New repair strategy comes to the fore

NEW TECHNOLOGY: A high-lift jack is tested on a Rolleston house.

Earlier this week I received this update from IAG (my insurer) and it caught my eye as to the new innovation for concrete floor slab replacement. Who would have thought we would have been working under homes a couple of years ago, let alone one that is on 2.7m on stilts?!

… the volume of earthquake repairs involving house lifting provided the right opportunity for local company, Smith Cranes and Construction, to innovate and improve on existing methods.

Smiths set about developing a high-lift hydraulic jack around 18 months ago, spending time developing and testing the new system to get it right at a cost of around half a million dollars. Last month IAG was the first insurer to use this exciting new system as part of repairing a customer’s home.

It makes for interesting reading and it really is quite remarkable what technology is out there to assist with progressing the rebuild of our homes. 

 

 

JUST LISTED: 3 Corsican Grove

Uninsured “As Is” Homes
Both these properties provide opportunity in their own way – 12A Woodgrove Ave is likely to be one of the cheaper homes we have sold and certainly the reserve price reinforces that! 3 Corsican Grove, our new listing for the week falls into the repairable category and now that we are able to source insurance from overseas this property is now even more viable! Check them out online at www.griff.net.nz.

Enjoy the great weather, however with having been a farmer, I do feel for them now in the grip of ‘the big dry’.

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Christchurch building consents hold steady


 

 

 

 

 

With new building consent figures equal but not bettering last year’s figures I think it is not unreasonable to ask why? Liz McDonald in The Weekend Press writes:

New Canterbury homes are going up no faster than a year ago, according to building consents figures compiled by Statistics New Zealand.

A total of 378 new homes were given building consent by local councils in January, almost the same number as the 379 consented in January last year.

Numbers fell for Christchurch City, down about a quarter from 209 to 152, while consents for new homes rose in surrounding districts.

One could be forgiven for coming to the conclusion that the rebuild of our city is stifled, and it is not hard to understand why some home owners are totally frustrated and had enough. Come on EQC and insurance companies – can’t we pick up the pace a little for the sake of sanity?

 

The basics still apply…
Presentation, Presentation, Presentation…. Yes the old adage of “presentation sells” has certainly stood the test of time during my 24 year tenure of selling real estate.  There were some great ideas the in Your Weekend insert in The Weekend Press. Here’s an excerpt from the article ‘Going For Sold’:

People are often unaware, says agent Helen Anderson, of the power of setting up a house to sell. ‘‘People who understand that, do it. Often when they don’t, they have no idea that big prices come from well presented homes.’’ Location can’t be upgraded but presentation can.

While it sounds like sales hysteria it is the truth. It is hard to feel excited about a dowdy and boring home, on the contrary sharp and appealing presentation creates energy and a sense of well being. It’s a pity my teenagers don’t get that about their bedrooms! Well that’s another story and best I don’t go there…

 

Go the extra mile when selling in Christchurch
Taking the time to compile additional information when selling will definitely pay dividends. Everything from EQC and insurance scopes to even providing a simple thing like an insurance policy number can all help to give both the purchasers and their chosen financing and legal professionals the confidence to help the sale across the line. Engineers’ reports or thorough property inspections including floor levels – it all starts from the ground up after an earthquake – are invaluable in the sale process. Forgive me for saying it again, but every house should have some form of post-quake inspection – a warrant of fitness, so to speak. Knight Frank valuation director Will Blake has also stressed the importance of robust reports when selling TC3 properties:

Knight Frank says its research shows real estate agents are finding TC3 properties take more work to sell because of the stigma attached and because lenders are cautious. However, the agents report success, and emphasised the need for sellers to provide thorough reports. Homes in the suburbs of Fendalton, Merivale, Strowan and Parklands were selling especially well.

No longer do we paint by joining the numbers, we sell by joining them. Credible and transparent information wins the day!

 

On that positive note it is time for me to sign off but not before I welcome Karie Thoms to Team Griff as my new office administrator – she comes with very high recommendation so watch this space….

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