Tag Archives: Uninsured

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

‘As is’ market builds momentum

As Is Blog PostIt would be fair to say that the “as is where is” market is continuing to build momentum as the practice has simply become an accepted option when considering which way forward with a quake damaged property. Since late last year we have noted that competition for these perceived bargain properties has moved up a level.

Broader cross section of buyers
No longer is it only investors that are seizing these “opportunities” as high yielding rentals; we are now seeing a much broader buyer profile following this niche market. Active participants include builders and those in the construction industry who have the necessary skills and technology to appropriately remediate and return the property back to an insurable level. Also in the mix are parents assisting children into their first home and we now even have a good following for these properties being secured as the family home.

Filling gap of affordable housing
I’ve quoted this before, but in an unusual but positive way the ‘as is, where is’ market is providing a viable solution for affordable housing in Christchurch. Quite frankly I can understand why people say “at this price we can live with a crack in the floor slab or settlement of between 50 – 120mm”. While it is important to make a well-considered decision, take advice and to check over the reports in detail, unquestionably a large percentage of these homes are structurally sound.

Credibility
My team and I have been have taken a consistent approach to insisting on professional reports and in making those readily available to the prospective purchasers when marketing these properties. This I believe has helped bring transparency and ultimately credibility to this emerging market, housing that we believe in most instances will be around for some time yet.

Subscribe to our notifications
As leaders of the “as is where is” marketplace and now with 87 properties sold through utilising our skills and proven marketing programme you can subscribe to our e-notifications in order to be advised when Team Griff’s new listings first come online. Click here to subscribe.

I look forward to meeting you on the street in the marketplace and do feel free to make direct contact with one of my team or read more at Griff.net.nz.

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.

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.

“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.

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