Tag Archives: Auction

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!

 

How to win at auctions

Win AuctionUse a bidding style that works for you to avoid auction angst, writes Carolyn Boyd.

Tension fills the air. Your heart beats a little faster. It’s auction time.

While it may all come down to who has the deepest pockets on the day, sometimes how you play the game will influence just how high the other bidders are prepared to go.

“The tactics really are a mind game in an auction,” says auctioneer and the owner of Think Real Estate, Brian Cannan.

“I hear buyers say: ‘What’s the point? He’s going to beat me.’ So the other purchaser has done his job well. He’s just psyched them out.”

Bidding at auction can be nerve-racking for all. Here are seven ways bidders tend to approach it:

EXPERIENCED EAGLE:

Eagles can spot the prize from a long way off and have played the game before. They are happy to circle until a move is needed. But they’re just as comfortable diving in early.

“They’re a knowledgeable buyer, they’ve probably bid at auction before and that would also include buyer advocates,” says an auctioneer with Cooley Auctions, Christopher Mourd.

They tend to come in confidently and bid strongly throughout.

Eagles are never rude, sarcastic or obnoxious but they will calmly meet the gaze of others to let them know they are determined get their catch.

Mourd says they will stand looking forward to the crowd to make it clear where they are and will make very clear, bold bids.

It’s a good tactic, he says. “If you make the first bid loud and strong, well, you’re controlling the auction. You’re saying to everyone else: ‘I want this property. Now if you want it, you’ve got to beat me for it.”‘

Where there is not a lot of interest on a property, Eagles will sometimes sit back and let the property pass in on a vendor bid and then attempt to negotiate a deal.

HIGH FLYER:

The High Flyer wants to blow competitors out of the water on the opening bid. They hope to secure the house with one bid and go in big with an offer at or above the price expectation.

The risk is they may pay too much. The advantage is they could scare off competitors, particularly if they are nervous and less experienced.

Cannan says it’s a tactic that could work where there is plenty of interest in a property – and one he has used. If there’s not a lot of interest, you’d probably hold back.

“As an auctioneer, it takes a while to convince the other bidders that they should join in [after a high opening bid],” Cannan says.

“They sit back and go: ‘Wow, we’re starting there!”‘ Mourd says the High Flyer is a rare breed and often a buyer’s agent, bidding on behalf of a client.

MEEK AND MILD:

Lacking in confidence, Meek and Mild buyers may be new to bidding and are often first home buyers. They can be slow to make decisions and risk finding the auction has finished before they make a bid.

“Because auctions move so fast, often it can be difficult to keep up with the pace of it,” Mourd says. He says these bidders respond well when auctioneers give them time, and experienced auctioneers will do just that.

Meek and Mild buyers tend to cluster at the same auctions – the properties that attract first home purchasers, but they can face a real challenge if there is an investor in the room.

“Quite often they go for similar properties and you’ll find that often the investor really understands what they’re doing,” Mourd says.

While Meek and Milds are still making up their mind, Experienced Eagles may have swooped on the property and flown off with it.

If you’re not sure if you might comes across as Meek and Mild, psychologist Grant Brecht, who specialises in leadership development and coaching, suggests asking friends and family for feedback.

On auction day, take a few deep breaths to calm yourself and stick to your bidding plan. “The plan will get them there, especially if they’ve been to a few auctions to see how it works,” Brecht says.

LAST-MINUTE NELLY: 

Usually the last to show up before the action begins, Last-Minute Nellies reserve their first bid until the hammer looks certain to fall.

Cannan says Last-Minute Nellies are adopting a risky tactic that requires precision timing – and the auctioneer’s eye.

Be a split-second too late and the auctioneer may have sent the gavel down, which means the deal is already done with another bidder.

“If the gavel comes down, I can’t reopen it and people get upset,” says Cannan, who was confronted with that very scenario at the auction of an eastern suburbs penthouse.

“The gentleman got very upset and I said: ‘Well sir, you haven’t made a bid.’ And he said: ‘Well, I just did.”‘

Cannan suggests letting the auctioneer know you are in the hunt. “Make an early bid and then sit back if you want,” he says. “A good auctioneer will come back to you before the hammer comes down.”

FAST AND FURIOUS: 

Fast and Furious buyers hope to put their opposition off with their pace – or simply tire them out. They seemingly have deep pockets and can make a decision in a nanosecond.

“People turn around and go: ‘He’s just not going to stop, is he?”‘ Cannan says.

Brecht says Fast and Furious bidders can unnerve those around them. “They don’t understand what the hell is going on,” he says. “Are they going to pull out early? Or are they going to stay in there for the long haul?”

If you find yourself up against such a bidder, Cannan says try not to get spooked because everyone has a limit, even if they’re not showing it.

LOUD AND OBNOXIOUS: Once abundant, Loud and Obnoxious bidders are now a rare species. “Ten or 15 years ago, it was very commonplace for people to be obnoxious and want to take on the auctioneer and be quite outrageous,” Mourd says.

Obnoxious bidders may try to put buyers off by asking questions about the property before and during the auction – such as whether a nearby development will block the property’s view.

Cannan says such tactics could leave the bidder open to a challenge of collusive practice as it is an offence to attempt to get others to abstain from bidding.

There is a chance Loud and Obnoxious bidders could undermine the confidence of other buyers – or they could just infuriate them.

“Some people say … ‘even if it costs me another 20 or 30 grand, I’m prepared to go there just so that someone that obnoxious doesn’t get their way’,” Brecht says.

Mourd puts the disappearance of Loud and Obnoxious bidders down to stronger regulation to make auctions fairer and more open.

“People know they’re going in and bidding against genuine bidders and all that passion and heat has long since left,” he says.

THE OUTSIDER: Wrangled in to bid on behalf of a friend or family member, The Outsider is aloof. It’s not their money, after all.

“They can be very offhand because they’re not emotionally attached to the property themselves,” Mourd says.

Auctioneers can usually spot The Outsider and so can other bidders. Their presence can elicit one of two responses, Mourd says.

“They might seem more experienced and more confident and therefore can put that feeling to the other bidders that this is a person who is going to own it,” he says.

Alternatively, they can sometimes come across as arrogant.

“Anyone displaying arrogance at an auction can upset the other buyers to the extent that they will be determined to beat them.”

PREPARE TO BID:

* Go to a few auctions to get comfortable with the process.

* Learn who the auctioneer will be and attend some of his or her auctions.

* Ask the agent how many building and pest inspections have been done, to get an indication of the likely interest level.

* Set a limit. Auctioneer Brian Cannan says your maximum should never be a round number, as that is where other bidders will set their limits, too. So if you are thinking of $800,000, try to stretch it to $802,000.

* Think about your strategy. Psychologist Grant Brecht says if you are naturally less assertive, a strategy can get you through.

* Remember to take identification and your deposit to the auction.

Parklands home goes to auction with $60,000 reserve

1/14A Branksome Place, Parklands. To be auctioned on 24 October.

1/14A Branksome Place, Parklands. To be auctioned on 24 October.

In a first for my 25-year real estate career, I’ve listed a property with a declared reserve – below its rating land value of $75,000. Now I know what you might be thinking. Why on earth would you do that? Doesn’t that remove the vendor’s ability to negotiate? Is the property that bad?

Let’s add a bit of context to the situation. The property in question is 1/14A Branksome Place, Parklands – an earthquake damaged three-bedroom semi-detached unit to be sold without insurance. Your classic ‘as is, where is’ situation. The fact that it’s on a cross-lease title also gives rise to some issues, namely that it is in breach of the provisions in the Memorandum of Lease. The right of way is unsealed and in need of repair. Nevertheless, the property itself is still pretty tidy and easily rentable.

At the moment, there’s still a considerable number of uninsured ‘as is’ properties on the market. As the person who’s often selling them, I’m finding that more needs to be done to make sure that the subject stands out from the rest. It’s no longer sufficient to yell out ‘it’s ‘as is’ and it’s going to be cheap!’ Buyers familiar with the market now know that they won’t necessarily sell for bargain basement prices.

So when it came to listing Branksome Place, I discussed with my clients the prospect of marketing the property with a declared reserve.  My rationale was that it will help make the property stand out from its competitors. It also tells prospective purchasers that the sellers are serious about selling and there’s no question about their motivation. I’m confident it will stir up some interest and I’m certainly excited to see how the whole campaign pans out.

It’d be great to see you at one of our open homes, 2.00pm every Wednesday, Saturday & Sunday prior to auction. Watch this space…

UPDATE: The property sold under the hammer for $111,000 with competitive bidding from the floor.

Unprecedented market intensity for Canterbury

Well it’s certainly been a case of hitting the ground running at the beginning of this year. Even after 25 years in the biz, I can’t say I’ve seen the market as frenzied as it is right now. Already for our office we have 15 auction listings on the board. This time last year we had just three!

As with the Auckland market, the auction process is becoming  sellers’ preferred method of sale. Buyers, however, can be turned off by the process. They consider it to be a high-pressure process with no certain reward at the end. I can understand that it can be frustrating to set your heart on a home only to be outbid on the day. However, the reality is that when a property is in demand, there can only be one successful buyer.

One of the benefits of the auction process for buyers is that it is all out there in the open – if you’re outbid, at least you know for yourself that’s the highest you could’ve gone. Another benefit of the auction process is that it’s becoming commonplace for sellers to provide purchasers with all the relevant documentation including the LIM, structural reports, insurance information so that purchasers can get all their ducks in a row. In some cases it’s preferable to a multi-offer or tender, where you have no idea what sort of money or terms your competitors are offering.

My advice to buyers is to get in touch with a well-honed agent who is an expert on the auction process – they’ll be able to assist and ensure that you put your best foot forward come auction day.

Griff’s tips for bidding at auction…

  • Strategise  Sit down with your agent and devise a plan of attack prior to going into the rooms.
  • Don’t be afraid to open the bidding – a strong opening bid says to the rest of the room that you mean business.
  • Own it – be bold, position yourself to make a statement.
  • Know your mind, know your limits – but be sure to keep a little in reserve should bidding get competitive.
  • If you really want the property, be prepared to bleed a little. At the end of the day, you’re buying an appreciating asset, and it’ll pay off in the long-run.

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.

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.