“As is” market moves into the next gear

2 Riverside Ln_025

SOLD: 2 Riverside Lane, Spencerville. Listed on Friday, sold at an auction brought forward to the following Monday.

Observing the activity of the as is market over recent weeks and months it is interesting to note how this niche market is unfolding. Having evolved from “rogue real estate agents sell condemned homes” to “Fendalton home sells ‘as is’ for $1.2m” brings an interesting shift in both the perception and the acceptance of the practise of selling these uninsured properties.

With both the insurance companies keen to get the cheque book out and policy holders equally keen to resolve their 3+ year insurance claims, the only defining difference between a standard home sale and an “as is “ sale now appears to be insurance. While this may appear a little extreme, to bring it into context, owners cashing out and selling uninsured is predominantly based on a financial decision of viability of both insurer and home owner. Hence the actual damage of these homes varies hugely and in a lot of cases is quite minimal.

For an insurer to “make good” like for like in order to honour their policy promises is often massively expensive. On the contrary for someone purchasing the same property and being only concerned with returning/lifting it to a compliant and insurable standard the cost can be significantly less. Not to mention of course those who simply see these properties as an affordable option to secure a cheap home for either themselves, family members or investment and only carry out cosmetic remediation to make the home more comfortable. In a lot of instances purchasers are not even concerned about insuring these properties or are opting for partial insurance (normally accessed offshore).

Following many a robust discussion with solicitors who in the past have perceived/viewed these properties as all but a pile of rubble and who have consequently been quick to shift full liability onto a purchaser just in case the next tremor reduces the property to such a heap on the ground, I think we have all grown to appreciate that these homes are and will be a reasonably permanent fixture within the city landscape for some time yet.

Competition establishes market value. With more choice for purchasers, as is sellers can no longer hold the card and get away with selling an inferior property for an inflated price – purchasers are simply saying they will wait for a better property or move onto the next sale, often just down the road. So who knows just where this market is heading, however I think that with new technology and repair strategies being employed almost weekly, the ability to return these homes to an insurable standard is becoming both more viable and straightforward.

Despite the competition in the as is market here at the Griff team we are not complaining – with one an as is sale under the hammer, one auction brought forward on Monday and another sold prior to the campaign kicking off it is far from bad news and a reasonably productive week.

Somehow I seem to have acquired the label of the “go to” person for as is where sales, however I think it would be far to sale that we have a formula that works and if my maths is correct we are about to launch number 65 to the market this weekend.

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About Peter Griffioen

Peter Griffioen - or simply Griff to those who know him - has an established reputation as a high-producing Harcourts Canterbury salesperson. With a focused approach to customer service you can rest assured that you are in good hands, whether it be a relaxed chat about the state of the market or an in-depth discussion regarding your next property transaction. The key advantage of engaging Team Griff’s services is their local knowledge and experience. Currently in this post-seismic era, it is vital to have true professionals working on your behalf, ensuring that you are guided through the process professionally and with a caring approach. The advent of the ‘as is, where is’ market means specialised expertise are required and Team Griff has taken it on themselves to both understand and explain the pros and cons of this now accepted sale/purchase option. For over 26 years the Griff brand has become synonymous with achieving results. Griff now prides himself with his five member team and takes much satisfaction from empowering them to both achieve and reach their own goals. A team with a proven track record placed with the highest ranking Harcourts Million Dollar Club members, exceeding the $275m level. Such accomplishments highlight the team’s exceptional marketing and negotiating skills. Team Griff are recognised as industry leaders for their online presence and regular blog posts of current and relevant real estate information. E-marketing and readily available property specific detailed info means Team Griff’s clients have the edge when it comes to selling their homes, not forgetting purchasers who benefit first hand. A simple Google search says it all – the Griff brand ranking with the most frequent. Griff’s life focus extends beyond business, with quality time and fun being high priorities, while mountain biking, boating and fishing provide that vital time out. His Christian faith is his anchor for daily living, and his community is important to him. For a team approach to optimize the result for your next property transaction, be sure to talk to this award winning team - synonymous with hard work and results! Griff and his trusted team welcome your enquiry today.

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