Puzzled lately by Out of Town buyers?
One particularly noticeable aspect coming out of Nelson /Tasman region in the last few weeks is the amount of out of town buyers fronting up, but not just that….because in a way that’s always been the case……its more telling how far out of kilter their offers have been compared to local buyers.
Its got to be one of two things.
1] Either they think they can get a “steal” in Nelson.
Let me say here….funnily enough we actually do have local buyers too.
or
2] it would, at least on the surface appear that they have suffered in their previous market, selling for either a price lower than they brought, or selling for an amount tens of thousands below what they expected (….could even be as a result of their local agent not being 100% up front about the real selling price?….possibly buying the listing)…..and thought that the idea of reciprocity was timely.
Either way, twice in the last week I have had two out of town buyers miss out to local buyers who are aware of the local market. Why?
If you have read some of my posts here, you should by now know we have one of the most stable markets in NZ, in fact for the last 2-3 years Nelson/Tasman have tracked the closest to the NZ median than any other of the 17 (I think that’s right) NZ regions that REINZ report for.
On top of that, we have a region that for many decades now has been an emotional choice NOT a logical choice.
Whats the difference?
Well as an example many Kiwi’s, even if not directly involved would be aware of family members or friends who have been tempted to visit Auckland or Wellington, the “big smoke”, generally courtesy of vocation choices.
Overall, I ask you, an emotional or a logical choice? Remember selling school 101?
Nelson, well….. many more move here for a lifestyle choice….just like the few extra friends I had over for my 5-O this weekend. One from Oz couldn’t get over the place, and trying to put it into perspective after his worldly travels, likened our town to “Switzerland meets Sydney Harbour.” Obviously I’m not to deny his conclusion, but I’d also love to hear any other parallels that Nelsonians, or even new Nelsonians would term appropriate as well.
So back to my point, to be a successful local property owner, out of town buyers need to be cognizant of the fact that it does sometimes “help their hand” with their property search when a reputable and reliable local agent is “onboard” with them, advising them in advance of new listings, etc.
The other side of this…..well just imagine yourself being the Real Estate agent visiting their vendors with multi-offers and upon breaking the sealed envelopes, finds that one is miles….and I mean miles off the pace…..below a local offer……and who finds this scenario repeating itself on different properties too.
What I am pondering loudly here is that perhaps it should never have even got to the multi-offer stage. After all one or two were genuine offers the other …well….
The law says we have to present the offer. Unfortunately we are usually the messenger/passenger at this early presenting stage (certainly not the same as when it come to the negotiation stage, but hopefully you get my drift here) ….keep in mind we have signed an agreement to do our best for the vendor.
When presenting an offer that is so low….do you think the vendor feels or thinks that we, as the agent, are working for their best interests and conducting ourselves 100% perfectly?
Let me tell you, in 2009 a vendor, and even a Nelson one too, does not take being insulted by such low offers lightly. Perhaps I can ask you, as an out of town buyer, a question?
Would you like to be kept informed and up to date with the latest hot listings relevant to your search in our region?
If your last 2-3 offers have been “low-ball” then do not be surprised that your phone has gone quite, and you no longer seem to be one of the first to be advised of the latest new listings.
May 25 2009 | Buyers and General and Nelson | No Comments »
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