Tag Archives: As Is

‘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

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

Uninsured property update

Just Listed: 40 Bottle Lake Drive. LIghtweight construction, minor damage.

Just Listed: 40 Bottle Lake Drive. Lightweight construction, minor damage. More info at www.petergriffioen.harcourts.co.nz/pd3944

A24 Glastonbury_017

Just Sold: 24 Glastonbury Drive, Burwood – well presented, some remediation completed. Sold under the hammer for $365,000 with competitive bidding.

Just Sold: 39 Rawson Street. In complete disrepair. Sold for $75,000.

Just Sold: 39 Rawson Street, New Brighton. In complete disrepair. Sold for $75,000.

767-AU3723-Christchurch-City

Sold: 29 Foresters Crescent, Parklands. Fully habitable. Sold for $330,000.

Sold: 25 Seabrooke Drive, Spencerville. Minor damage, floor levels within MBIE guidelines. Auction brought forward and sold for $330,000.

Sold: 25 Seabrooke Drive, Spencerville. Minor damage, floor levels within MBIE guidelines. Auction brought forward and sold for $330,000.

Demand remains consistent
With Team Griff having just chalked up its 74th ‘as is, where is’ sale, it would be fair to say that the demand for these properties remains consistent. Our most recent sale saw five active bidders sparring for the same property. It goes without saying that the owner was very happy with the final result.

Target marketing of our 475+ strong “as is” e-database as our first point of contact continues to produce good response for our clients. Equally fresh enquiry from new purchasers also continues to fuel this demand as the greater marketplace gains both a better understanding and confidence in the process of acquiring these affordable opportunities.


Not just investors buying

Last week in two instances ‘as is’ properties were purchased for family members. The first instance being a couple securing a property for their parents to live in. The second, an overseas client who specifically flew to Christchurch to purchase a property for his family and will be returning with them early next year to settle in Christchurch. Once again it’s a clear reflection that a broad cross section of purchasers are pursuing this affordable housing option.


Sourcing insurance

While there is never any guarantee that any specific property will be able to be insured via a New Zealand insurer, we are now beginning to see numerous occasions where after either remedial works have been completed and or a favourable structural report (based on the structural integrity of the property) has been obtained, that several of the mainstream insurers are comfortable to re-insure these properties. It is pleasing to see that a common sense approach is beginning to prevail and more credence is being given to the integrity of the property rather than a black and white approach with regard to floor levels. We all know that around the country there are many properties that are fully insured and are “not on the level”.

 

More to come yet
Yes it appears that as both the policy holder and insurer are keen to reach settlement that the “uninsured” market will continue to forge ahead for some time yet. Also it is worth noting that in a way it is filling a need in the market by providing affordable housing in what is regarded by many as an overheated local marketplace, driven by the demand for housing and a fast growing population.

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.