Selling a Damaged Uninsured Home – Part 1

71 Broadhaven Avenue is the latest of a number of uninsured properties I have successfully sold at auction.

Contrary to public opinion, yes you can sell an uninsured damaged home “as is where is” and as surprising as it may seem, there is considerable demand for them. I am frequently being asked to sell these homes and regularly people are making contact for advice on the best way to go about the process.

Perhaps before I get underway, I should address the “moral” side of the issue. Some insurers are supposedly taking the “moral high ground”, indicating that they do not want to see damaged homes left in the community, taking the view that any home that is deemed uneconomic to reinstate should be demolished. While I can understand their stance in theory, in reality it appears to have a negative impact, with empty sections becoming overgrown with weeds, looking uncared for and creating a “ghost town” image in the neighbourhood – not to mention the driving up of rental prices due to perfectly inhabitable homes (in most instances) being demolished.

In general, many of these homes are on TC3 land, and frankly at the moment without a house on these sites there is absolutely no demand for this land. Combine this with 20,000 new sections of TC1 or TC2 categories coming onto the market over the next few years, you do not need to be a rocket scientist to understand that it will be some time yet before there is any demand for them. Most people are simply putting them in the too hard basket.

Don’t get me wrong, I do wish that everybody (in an ideal world) would rebuild their homes so that we all end up with a fully reinstated and stronger community, but in many cases this is not a reality. The elderly often simply don’t have age on their side to wait 3-5 years for their home to be rebuilt and obviously some people clearly want to move out of the area. As is always the case, everybody’s situation is unique.  One must ask the question of what makes a house illegal or condemnable, and why has “level” become gospel almost overnight especially when so many Christchurch homes have not been on the level since the 19th century?

While we could argue the point all day, the bottom line is that people want to move forward and in a lot of these instances selling “as is” has been a viable option for them. The sense of relief that some people have experienced is really quite remarkable, with some almost feeling like they have been let out of jail after more than two years of battling EQC and their insurers.

As you can see there is a lot to say about this subject so for the sake of time I will continue next week, so watch this space…

On a less intense note, the festive season is upon us, December is all but here, the Christmas decorations and lights are fast appearing and the seasonal celebrations begin.

I don’t know about you, but I love Christmas – the fun, the warmer weather, barbecues etc. So I say bring it on and enjoy!

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