The Real Estate Appraisal ~ about to be…..

…..about to become the most important thing that you can get from your Real Estate professional?

Why?

Hang in there and read this through……then tell me your thoughts in the comments section.

If what another Voices poster here on this platform said is going to happen, then the NZ Government is about to spend invest a figure approaching $2m on an advertising awareness campaign, so….surely you will be made aware of its importance if you aren’t already………….if you don’t ~ then your neighbour or work colleague, once they ascertain you are about to enter the warp-speed continuum of the “property transaction quadrant”…..well ~ then they surely will.

I’ve hinted before about how I like to get my facts & figures right, so this is really no different than what many of us have already been doing anyway.

Since the new NZ 2008 ACT came into force on Tuesday this past week, there has been an increased, perhaps concentrated could be considered a better term, focus on the “Real Estate Appraisal.”

For me, has always been one of the most important parts of the whole transaction.

From Nov 17th your Real Estate Professional has to complete a satisfactory appraisal on your property, and on the associated acknowledgment form has to indicate a commission amount equivalent to the estimated price. And…….be 100% aware that you cannot sign an Agency Agreement (used to be termed a Listing Authority) until this step, along with your authorising signature, has been completed.

Whew …….. that means last Wednesdays listing didn’t need it……….but this wks Tuesday night one three nights ago did.

It was a learning experience.

Tonight, Friday, its an agency agreement for an overseas agreement ~ at least after our General Manager inquired of the REAA In regards to this………..we have been reliably informed directly from them that we don’t have to physically mail the booklet O/S ~ allowances have been made for the common sense route of providing a LINK so that the O/S person can click and review the whole document from Dubai, Tokyo, London or Vancouver. (Only used those names because that’s my last 4 inquiries in the last few day and yes, not one Kiwi one….?) Has it got to this, ex-pats appreciating what are appreciating areas of NZ, and actually in front of others who physically live here!)

The new ACT stipulates that every property that is signed up to go to market must have an appraisal completed before the new Agency Agreement is signed.

In marked difference to prior times, clients must now acknowledge receipt of this appraisal / estimate form and the relevant commission to be charged, by signing a form stating so. Auctions/Tenders………….lets see some Case Study built here……..

PART II coming up…

2 thoughts on “The Real Estate Appraisal ~ about to be…..

  1. avatarRoss Brader AREINZ

    There still appear to be some who think they can get away with not doing an appraisal! Others believe that an appraisal is not required for an auction or tender campaign.

    Personally I have no problem with the new appraisal requirement and will be making sure that all home owners in my area are fully aware of it.

    These new rules will mean that experienced long term industry operators will have a distinct advantage over those who are relatively new to the industry.

  2. avatarDavid Garratt

    We had a professional opinion from a solicitor well versed in property law that disagreed with the REINZ view of the new Act in terms of appraisals.
    He said that in his interpretation of the Act, an appraisal wasn’t mandatory BUT if you did an apprasial it had to be in writing. Interesting huh.
    As for little ole me, I’m certainly not going to stick my head out and so I will be completing appraisals for all new listings from now on (something I have always done anyway, so no change there). Just thought it was a interesting thought that there are informed people who don’t believe that the REINZ has the true take on the Law.

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