Linda Your property Guardian

“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...

The right method for selling your property is an important question and is one that an agent needs to consider carefully when guiding a property owner. If an agent sticks to one method of sale, it may mean that they haven’t thought through the selling method for your particular house and your particular situation.   Typically, in a hot market when buyer demand outstrips housing supply, you will see the method of selling via Auction spike. Critically you need to understand that Auctions aren’t necessarily suited to all properties and owners, and or all buyers. In the case of the buyer, this is because buyers are required to be in a cashed-up position to purchase a property and need to have done their due diligence on a property e.g. building inspection, prior to bidding at the Auction. Whilst the cost of an Auction can add up for a buyer, it places the owner in a prime position. When the hammer drops the sale is inevitably a cash offer. An Auction also means that the owner CAN’T put...

Typically, when market demand for housing is high and there are few properties available to choose from, the property market favors sellers, and results in sellers ‘achieving outstanding prices. So right now, this is the best market to sell in! Not great for buyers, but perfect for sellers. However, there is a hint of change on the horizon. The economy is doing better than expected, and it is forecasted that there is no need for further stimulation of the market. This hints that interest rates may be increasing in 2020 as opposed to the forecasted increase in 2021. Just this week, the loan to value ratios increased for investors and first home buyers. These changes also see banks insisting on a valuation of many properties before they will approve a loan. So, what does all this mean if you want to sell your property? When there are restrictions in the market like banks requiring a valuation, if the valuation is lower than what a buyer has offered on a property, then the bank ...

The short answer is….” it’s up to you”. There are benefits and disadvantages to selling your house before purchasing a property, or alternatively there are benefits and disadvantages to waiting until you find a property before putting your house on the market. It is advisable that whenever you are faced with such a conundrum, your first call is to discuss your situation with your solicitor. Armed with information, you can then meet with your Real Estate Agent and form a plan to achieve the best outcome for you. Typically, when home owners place their house on the market, and they have not purchased, they include a clause in the Sale and Purchase Agreement stating: …. this offer [on the property] is subject to the owner finding another house within a stated period of time. Should you not find a house in the stated timeframe, then the Sale and Purchase Agreement on your property is at an end. I have found this decision to be an absolute conundrum for many homeowners, and what I do know, ...