Tag Archives: “As Is” Homes

Demand for ‘as is, where is’ properties remains strong

As Is Update(3)

Backing onto a strong start to the “ as is” market Team Griff’s 100% auction strike-rate year to date reflects both a strength of this active market for 2018 and the team’s proven marketing expertise.
Underpinning this 100% strike rate is multiple party participation, with an average 4-5 bidders participating in each auction.

Providing our homeowners with a selection of active bidders on auction day is directly attributable to our 1800+ strong database of known ‘as is, where is’ purchasers gleaned from a long track record of sales of uninsured properties dating back to 2012. This translates to competition with the real benefit of not having to rely on one person’s perception of value, as is invariably the case with an “off the street” type sale.

As the supply of uninsured homes on the open market now begins to decrease, we foresee the demand remaining strong, reflecting the inevitable fact that there is a finite supply of these properties.

Whether you are contemplating to sell your ‘as is, where is’ property or simply need a sounding board to bounce options off, please feel free to contact us in confidence – we’re ready to assist.

 

Recent success stories

45 Medway Street, Richmond

45 Medway Street, Richmond
3 beds, 1 bath, 1 living, 1 garage
Declared reserve $110,000
Days on market: 14
Number of inspections: 30
PropertyFiles downloads: 47
Bidders: 5
Sale price: $155,000

1
529 Bower Avenue, Parklands
4 beds, 2 bath, 2 living, 2 garage
Days on market: 21
Number of inspections: 56
PropertyFiles downloads: 32
Bidders: 7
Sale price: $397,000

591 Madras Sunny-5


591 Madras Street, St Albans
4 beds, 2 bath, 1 living, 2 garage
Days on market: 7
Number of inspections: 21
Bidders: 3
Sale price: $365,000

From Rags to Riches…

Rags to Riches

Talk about both ends of the property spectrum! Team Griff have just sold an earthquake-damaged flat in Waltham for $86,500 and a stunning architectural build in Waitikiri for a street record in excess of $1.3m – two Christchurch suburbs that are like chalk and cheese.

In both cases, assisting our owners to move forward with their lives for differing reasons is what makes this business so positively enjoyable. This sort of job satisfaction is hard to beat.

At Team Griff we pride ourselves with such versatility, having the skillset, systems and experience required to service a broad cross-section of both clientele and property.

For the cheapie in Waltham, it was a case of mucking in, digging deep into our 1,800 strong ‘as is, where is’ database of potential purchasers, not being too proud to do the hard yards of selling something that was rather undesirable. On the flipside, the $1.3m sale was one of my old neighbours simply touching base giving the heads up that they were intending to sell within the next twelve months. As it worked out we were working with a purchaser whose brief fitted the property perfectly – the rest being history. Needless to say, the owners were overjoyed with the result, let alone the convenience of not having to go to the open market with all the fanfare and intrusion of a full marketing campaign.

So whether your property is in the “rags” or “riches” basket (or somewhere in between) be sure to make contact, as there is a good chance we will be able to perform our magic for your situation and property too.

‘As Is, Where Is’ Market Update

Live Update- As Is Where Is Market (2)25 Foresters Crescent | Parklands
Inspections: 32
Bidders: 6
Sale price: $365,000 at auction
Vendor feedback:
“Good result today with the sale and appreciated the regular communication; a job well done.”

3 Kakariki Lane | Sumner/Clifton
Inspections: 
35
Bidders: 
3
Sale price:
$515,000 at auction
Vendor feedback:
“While it would be fair to say that ours was not the easiest of properties to sell Team Griff took on the challenge professionally, dug deep and produced several bidders on auction day. The result, a sale price that we were quite happy with.” 

‘As Is, Where Is’ current market comment

Numbers through open homes are still holding up and while some are feeling the brunt of lending institutions both tightening their belts and lending criteria, our owners are still benefiting from multiple parties bidding on the day. The large majority continuing to be sold under the hammer. Team Griff’s sizeable purchaser database of 1500+ “as is” purchasers is proving invaluable when it comes to getting these properties across the line in a firming market. To date with 246 sales under our belt home owners looking to sell can rest assured that they have an experienced team at the ready.
To have the peace of mind that your property has been fully exposed to the wider open market in order to achieve the best possible result.

Do contact us today for friendly chat and to explore the options available to you.
Keep warm,
Griff Signature Jpeg version

238 ‘as is’ sales and counting

Pictured: 22 Titirangi Crescent - sold for a record 'as is' price in Tumara Park

Pictured: 22 Titirangi Crescent – sold for a record ‘as is’ price in Tumara Park

Celebrating our 238th ‘as is, where is’ sale is both rewarding and humbling, especially for a market that we didn’t originally set out to become specialists in. I have full respect for my team who have worked hard in a focused effort to help create the systems we have now, and the results simply speak for themselves. Of the 239 that we have listed 238 have sold! From the collation of property info packs both online and in hard copy to pre-drafting the sale and purchase agreement with appropriate clauses that protect both vendor and purchaser my team’s work ethic is nothing short of phenomenal.

Team Griff’s 99.6% success rate for ‘as is, where is’ sales
Such results are a direct reflection on our knowledge, expertise and systems. It may seem strange, but I am quite passionate about the process and the great thing about it is that process is very transparent. Post-quake and numerous scopes later, we have become “professional report” rich – great info to be able to prove the actual damage of a property.
Beware of the opportunists off the street or on the radio
With opportunity comes opportunists, and having heard some of their sales pitches, they are quite persuasive. The problem being their reality of value is based on both their perception only and in many cases, they pitch that conservatively to line their own pocket. Integrity is vital post-quake, especially so when people are vulnerable, some ground down by the process of fighting both EQC and their insurer for years. I recently met a gentleman who had been at it for more than six years – needless to say, he was at the end of his tether.

Marketing expertise
Effective marketing will bring you multiple parties and fair competition, a much more transparent way of establishing true market value.

1528 as is where is buyers as the click of a button
Team Griff have built up a strong following of ‘as is, where is’ buyers – as easy to unsubscribe as subscribe, our database has proved invaluable for both purchaser and vendor. With our first port of call being e-notifying 1500 plus as is buyers, vendors can be assured that their property is being marketed to those most likely to respond, let alone the phone calls we can make if the going gets tough.

The proven value of the auction process
Without question the auction process achieves better results for most properties. The reality is that it is very seldom that we don’t have multiple interest in an ‘as is’ property and auction is the best and fairest way of dealing with competition. There are more times than not where we get a better selling price than expected and with just one property last year that didn’t sell under the hammer, it is no wonder most sellers rejoice over an unconditional result that is on their terms.

The listings keep coming
While the ‘as is, where is’ numbers have eased a little over recent months there are still a lot coming through the system, so expect more of the same and be sure to keep in touch for the heads up on that new listing before it hits the market. Here’s to many more win/wins for sellers and buyers – both parties securing upside!

 

Team Griff sets local record for EQ-damaged property in Waimairi Beach

12 Cordyline

Last Friday saw a new record set for an uninsured property in Christchurch’s north-east with the sale of 7 The Belfry for $860,000.

The auction for the architecturally designed and Metzger-built luxury home was brought forward after the owners received an acceptable pre-auction offer of $645,000.

With a full auction room and five active bidders, the sale price quickly rose to the final figure. After securing an extra $215,000 in the space of less than ten minutes it goes without saying our owners are really going to enjoy their upcoming holiday! The property’s 2013 rateable value was $720,000.


The 283sqm family home was situated on the boundary of the local golf course and just minutes from the shores of Waimairi Beach. Exhibiting a mere 42mm in differential settlement, the property was deemed a repair by the owners’ insurer. The property’s enviable location, coupled with its barely noticeable damage meant the property attracted a good cross-section of interest from tradespeople and owner-occupiers. The successful purchaser, a local, intends to repair the property to an insurable standard and move in with his family.

Our owners, who plan to build in Clearwater, were approached several times to sell privately before taking their home to the market. Clearly their decision to engage Harcourts and utilise the auction process paid dividends.

The facts
Days on market: 11
Open homes: 5
Inspections: 68
Active bidders: 5
Views on Trade Me Property: 2860
Views on Harcourts.co.nz: 1501
Trade Me watchers: 128

Reinsuring your damaged home: 5 essential steps

Reinsuring Your Damaged HomeIn recent months, we’ve noticed an increased number of buyers who are looking to purchase damaged ‘as is’ properties to repair, renovate and on-sell. While it’s encouraging to know that these properties aren’t just going to be patched up and rented out, it’s important to know the essential steps in going about it. Continue reading

Surge of ‘as is’ listings provides greater choice

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If you thought you had been seeing an increased number of ‘as is, where is’ properties on the market, you’d be correct. A search of Christchurch listings on Realestate.co.nz with the key words ‘as is where is’ pulls up over 230 listings.

Undoubtedly this stems from the mainline insurers’ shift towards cash-settling earthquake claims as they struggle to meet deadlines.

Interest.co.nz reports:

As at January 31, IAG (excluding its newly acquired Lumley brand) had only completed repair of 258 of the 3952 property repair claims it had received. It had cash settled 1099 claims.

It had completed the rebuild of 435 of the 4299 rebuild claims it had received. It had cash settled 2085 of these.

IAG’s executive general manager of Canterbury Recovery, Dean MacGregor, says, “We simply can’t ask our customers who have not yet signed a contract to join a construction queue, if we can’t guarantee that we can reinstate their property within a reasonable timeframe.”

It also says it has received overwhelming feedback from its customers that cash settlement has put the power back in their hands and given them freedom to make choices that work best for their particular circumstances.

From the perspective of a person who sells a considerable number of ‘as is’ properties (we’ve just chalked up our 111th ‘as is’ sale since 2012), it’s apparent that buyers are currently are enjoying a greater deal of choice than they did 18 months ago.

The ‘invisible hand’ referred to by Scottish Economist Adam Smith prevails in such circumstances. Increased supply means diluted demand, and therefore less heated competition.

More than ever before, the skills of a proven real estate professional are imperative in achieving the best possible result. With so many ‘as is’ properties on the market, it’s no longer sufficient to plaster ‘AS IS, WHERE IS’ on your marketing materials and expect the punters to show up. With refined contact systems in place, and an ever-growing e-database of over 650 buyers, you can be assured that Team Griff can give you the best chance of extracting the very best from the market. We know this market like the back of our hand.

If you’re one of the 1,000 or so policy holders now embarking on the course of a cash-settlement, we invite you to make contact for a discussion about your options and the necessary precautions. Besides, we are known for achieving great results!

As Is, Where Is: Why The Demand?

Bower

Today here in the Griff camp our 28th “as is” sale has been confirmed and the demand for these homes continues. So why the demand and who is buying these damaged uninsured homes? Some would say it doesn’t make any sense that people would want them, while others just can’t get enough!

The bottom line is they are cheap and the average Kiwi struggles to let a bargain go unnoticed. The following should provide a reasonable overview of why this current demand is continuing.

Affordability: Apart from the obvious as stated above, the affordability provides a double assurance and protection for the future when rents firm up. It has been so rare in Christchurch in the past to get cash positive investment properties.

Cash cows: with acquisition costs low and rent returns high the maths is simple – more money in with less money out (costs) leaves you with profit!

Rental demand high: Never have I seen such high demand for rentals in Christchurch and it looks like it will continue in the short to medium term yet (5-10yrs).

Returns/yields up: The same as the above – low supply and high demand will always drive up rents.

Short term rentals: Currently insurance companies are happy to pay motel rates for clients while their home is being remediated.

Fully furnished: Premium (motel rates of $175-$220 per night) are being paid for fully furnished accommodation, however a word of caution, the insurance accommodation benefits that clients have are not open ended and while these budgets cover short term repairs with ease it is likely that the budgets will remain the same or similar for longer repair periods, but time will tell.

Every man and his dog in town: With so many tradies and professionals in town, they all need somewhere to lay their weary heads at night. I actually think a lot will look to stay on once the rebuild is completed (not that that will happen over night!)

Christchurch is the place to be: even after the rebuild, while probably not cheap it will unquestionably be a great and modern city to live in.

A captive market: currently sitting at 270+ our current e-database for “as is” specific purchasers continue to say “keep ’em coming”!

Credible property info: Insisting on engineer’s reports often wins the day and creates confidence for purchasers to proceed well informed.

Mum and Dad buying for the kids: A great way to affordably provide a leg-up for the kids – one home sold last week was a delightful wee honeymooner’s nest!

I could go on, but how much convincing does one need? The odds are stacked well in favour of the purchaser and while they are not for the risk averse they are proving popular for the property savvy, investors and young entrepreneurs.

Whether you have a damaged home to sell or looking to launch out into the investment market and could do with some practical advice, don’t hesitate to make contact, we are here to help.

Raising the bar of “as is” homes

JUST LISTED: 495 Bower Avenue has undergone some remediation with the owners having gone through Southern Response’s rigorous cash-settlement process.

This week has seen one our first remediated “as is” uninsured homes come to the market. Let me explain: Since mid January Southern Response (the government-formed company to settle claims by AMI policyholders) have implemented a procedure for those clients who have chosen to cash settle their claim and wish to retain their home. This procedure is basically made up of three components:

      1. A habitability inspection by their project managers Arrow International;
      2. An engineer’s report; and
      3. A salvage quote (that is deducted from final settlement figure)

This process often means that some remediation work is required in order to bring the property up to the required standard prior to a final insurance settlement agreement can be reached. Needless to say we are now seeing “remediated as is where is” properties coming on to the market. I would like to make it clear that these homes have not been remediated to the level of the current building code (generally floors will still outside tolerance levels) however once the criteria is met, Southern Response are happy to sign them over to the owner, thus relinquishing their liability to the property.

At the end of the day while these properties are being represented on the basis of the original engineer’s report (pre-remediation) they are raising the bar of the “as is” market – well worthwhile checking out and I am hearing the odd murmur of people sourcing insurance for these properties, so watch this space…

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.

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.