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In the hands of Divinity or a Real Estate Agent – which one would you chose?

You’ve been searching for a property for weeks and finally you have found the perfect home – come hell or high water, you want this property! You do your due diligence and get a Builder’s report in advance, you speak with your Solicitor and you ensure that the bank will release your funds in time to make a cash offer. Then you put together your Sale and Purchase Agreement, you check in with your Solicitor, and then you submit your offer at the advertised time and date. Simple as that! You then get down on your bended knees and you pray that your offer is the winning offer. You pray that if there is any negotiating to do that your offer will be the one negotiated with. I once undertook a Tender presentation where all the offers were almost exactly the same. That’s right, price, deposit, no conditions. So how did the Vendors know which offer to accept or which offer to work with? Divine intervention? What about this situation? Two Purchasers put in a Tender for a property, one of...
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Bank or Broker?

I’ve been banking with this bank for years and they turned me down for a mortgage! Money might be ‘cheap’ right now but getting a mortgage isn’t all that easy. I know people seeking to purchase another property who have been turned down for a Mortgage by their bank. Banks are tending to put those seeking a mortgage through the hoops, yes, heaps of loan applications and it doesn’t matter if you have been banking with them for years. Despite loyalty and tenure, there is absolutely no guarantee that you will get a mortgage from your bank. That’s where a Mortgage Broker comes in. They tend to be skilled in acquiring you an affordable loan. That’s because they have the knowledge, skills and the know how to understand where to acquire a loan that best suits your needs. Under normal lending circumstances Mortgage Brokers don’t usually charge you for their advice as they charge the banks or lending institutes a commission percentage based on the loan you are taking out. It is always best to un...
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The consequences of not getting your finances right

I’ve seen it and I’m seeing it. You have a 30-year relationship with your bank. “Yeah, no worries they will lend to me”. That’s exactly what was spoken to me last week by a couple who put an offer on a property without securing their finances. They have a long-standing relationship with their bank, and have heaps of equity in their property, so what was the problem? They confidently put an offer on a property without checking with their bank. Unfortunately, their offer failed, as without confirmed finances it gave no assurance to the property owner that the purchasers finances were secure. Time wasting, disappointing and heart wrenching for that purchaser. In this market, you have to have all your ducks lined up. You are putting yourself in a disappointing situation if you haven’t had a discussion with your bank or mortgage broker before placing an offer. Long standing relationships don’t cut it with banks’ any longer. The greatest asset you can have is your ability and security to rep...
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Want to be the biggest loser – then go ahead and sell your house privately

When it comes to losing weight, being the biggest loser is something we all strive for, but when you lose money on property in a market where sellers are nothing but winners, there is seriously something wrong. Many homeowners think that selling their house privately saves them paying commission to a real estate agent. Well facts speak louder than assumptions. Local research recently undertaken by Phillip Boustridge shows us clearly that private sales in Havelock and Hastings are reaping 11% less than house sales sold through a real estate agent. Yes, that’s a whopping 11%! Let me convince you, let’s do the math: If you sell your property for $1million, potentially a real estate agent could sell your property for $1,100,000. That’s $100,000 more that you can achieve through selling privately. Then even if you paid 3.25% on the sale of $1,100,000 to the Real Estate Agent, you are still left with $1,064,250 So go ahead and be the biggest loser, but don’t sell your house yourself until yo...
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Street appeal affects sale price

I don’t need to go into all the things that you can do to make the presentation of your house perfect for sale. However, if you are serious about maximising value in your property, you may need to understand the psychology of cognitive bias and recognise that you, the property owner, can influence this bias to help achieve a fabulous sale price. This bias is termed the halo effect. This is typically understood as, “the more positive impressions in one area, positively influences our thinking and feelings in another area.” When you pull up outside a property for sale that has street appeal, it is likely that you will go inside and view that property. When a property has this external appeal, you attribute positive attributes to that property, and when you go inside you look for further positives to affirm your positive feelings. This effect is perceived at a subconscious level, meaning that the buyer has no conscious understanding of it. If you are choosing to spend money on your ...
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What’s wrong with my furniture, why do I need to stage my property?

Well, clearly there is nothing wrong with your furniture, after all you have enjoyed it for years. However, you aren’t purchasing your own house and to increase the appeal of your property, and ultimately increase the sale price, a real estate agent needs to make your house attractive to the buyer audiences that they are appealing too. Staging and styling is a critical way to do this. There is, however, a little more to staging your house. Staging, when done right can influence the buyer’s decision to purchase your property. There is actually a psychology behind it termed the psychology of emotions. This is where a physiological stimulus (the staging) causes the autonomic nervous system to react and create an emotion in the viewer; an emotion which can be either positive or negative dependent upon what the viewer is viewing. The impact of staging can manifest in multiple ways, for example, I’m sure you know someone in your circle of friends who created a shopping list of exactly what t...
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So, you think you should save on real estate fees and sell your property yourself.

“It’s easy selling houses isn’t it? Houses are in short supply right now and they are flying out the door?” Well, so it would appear, but sometimes perception and reality don’t quite match. There are certain houses that are in high demand, such as those with all the modern conveniences. In contrast, houses with complications such as non-compliant issues or those located in a less desirable area, unfortunately, even in this market, can take a bit longer to sell. According to The Real Estate Institute of New Zealand, houses are currently taking on average 23 days to sell in Hastings and Havelock North. They’re not quite flying out the door! To the outside observer, this perception of houses selling quickly makes it look like there is easy money to be made in real estate; and sure, just about anyone who can pass the real estate exams can work in real estate. However, you might have read my last blog where I suggest that ‘not all real estate agents are created equal’. Like any industry, yo...
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