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The
Real Estate market |
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The
real estate market is no different from any other
commercial market. It responds to supply and demand
and is affected by many factors, including interest
rates, the economy, business confidence, the level
of employment/unemployment, political stability
and immigration.
In a sellers market there is high demand for properties. Values
increase, properties sell more quickly, and buyers have fewer properties
to choose from. The negotiating power usually rests more with the
seller.
In a buyers market, there is less demand for properties. Buyers
have more properties to choose from, values are stable or may even
decline, and sellers have to be more competitive to attract buyers.
In a buyers market property often takes longer to sell and the
negotiating power rests more with the buyer.
In a balanced market, neither buyers nor sellers have a noticeable
advantage.
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Market
Value |
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Correct
pricing and presentation are critical to selling
a property. The best price for a piece of real estate
is what the buyer is willing to pay and the seller
is willing to accept when both parties are knowledgable
about the property and neither is under any pressure
to buy or sell.
To help you make an informed decision on the current
market value of your property we will prepare a current
market analysis (also known as a CMA).
This analysis uses information about comparable properties
that are currently for sale or that have sold recently.
Local and national trends and market conditions must
also be evaluated. By comparing comparable properties
and market conditions, agents, valuers and lenders
can come pretty close to the maximum price that buyers
would be willing to pay for the property.
The period after a property comes on the market is
usually the time of greatest interest and inquiry.
It is critical that a property is correctly priced
when it is first listed. Houses that sell for their
optimum value are those that have been priced correctly
at the beginning of the marketing campaign. It's no
good saying "lets try it at a higher price initially,
and then come down if it doesn't sell". Good
buyers could be lost, maybe forever. |
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Negotiating
Sales |
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Selling
a home is one of the most complex transactions that
most people are ever involved in. Finding a buyer
is often the easy part! When you find someone who
wants your home and has the money to buy it it's still
a long way to settling the sale and changing ownership
of the property. You must first negotiate a contract
that covers not only the price but also all the terms
of the agreement. These terms can include the sale
of another house, the raising of the necessary finance,
a building inspection, a LIM report from the Kapiti
Coast District Council, and the settlement date. How
much deposit will the buyer put down? Having a good
agent to handle the process after agreement is reached
can make the difference between a successful transaction
or a failure. Buyers sometimes suffer remorse and
want to get out of the deal. The buyer may need to
have finance approved and the lenders valuer will
have to agree with the sale price. |
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Evaluating
Multi Offers |
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In
a buoyant market often multiple offers are received
for the same property. How do you choose the right
one? As your agents, we can help you compare and contrast
the terms of each proposal. First there is the price.
Is the requested date for moving (settlement date)
suitable? How "clean" is each offer - Do
the buyers have another property to sell before they
can confirm their offer on yours? Have the buyers
had preliminary discussions with their bank, or with
a mortgage broker, and can give a reasonable assurance
that they will be able to qualify for any financing
they may need. We can advise you on the merits of
each offer so that you can weigh them up and accept,
or counter offer, the best one (and maybe line up
another as a possible back up offer in case the chosen
one does not confirm). |
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Selling
your own home |
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The
concept of "do it yourself" is a favourite
for many New Zealanders. While this approach can sometimes
pay dividends, it can cost sellers unnecessary time
and money when they try to sell their own home. The
overwhelming majority of homes (over 90%) that are
sold are sold through a real estate agent. Most people
who try to sell their own home are trying to save
the commission but people who try to buy homes that
are "For sale by Owner" also want to save
and want a share of the sellers saving. Rarely does
anyone actually save money by selling their own home.
By listing your home with an agent you will save the
cost of advertising your home, the inconvenience of
showing your home to strangers, and all the time you
spend talking to people who wouldn't qualify for a
loan.
Some buyers shop the market on their own but most
save time and money by using the services of real
estate sales professionals like us. People buy homes
by comparing those available on the market. Private
sellers have only one property to show - agents can
show comparables. Agents can get you the top dollar
for your home and are trained to deal with multi offer
situations if possible. |
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Government
Valuations |
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Government
Valuations (GV) are also known as Rating Valuations
but people still refer to them as GVs. They are meant
to value the city for rating purposes. They are not
market valuations. On the Kapiti Coast they are carried
out at three yearly intervals and are based on sales
in the area and on average values for the street.
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Time
for the Big Move |
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The
mere thought of moving house is enough to make most
of us wish we were a thousand miles away lying on
a beach enjoying the sunshine. But like most things,
preparation is the key to a successful operation.
No one said that moving house is easy but you can
make the shift less stressful for you and your family.
As soon as you know your moving date you should book a furniture
mover. Some people choose to move furniture themselves, which is
fine if
they have a suitable vehicle and have the time to carefully pack
all the furniture and household items, but most people prefer to
leave it to the movers. You also need to decide whether you want
professional packers to do everything, including the packing of crockery,
clothing and linen. Naturally you save money if you do the job yourself,
but sometimes their expertise is worth paying for in the long run.
Remember to check you insurance policy to be sure that you are covered
if anything is lost or damaged in transit.
It is wise to give the contractor a list of things that are to be
left behind and it will help if you label each piece of furniture
being move to which room it is to be placed in at your new home.
Sometimes in the heat of the moment people forget
about things they will need during the shift, and
while they are waiting for everything to be unpacked
at their new home. It is always a stressful time for
the children, leaving friends and familiar things
behind. Consider keeping a special toy and other items
that may be needed in the interim period separate
so that they don't end up on the removal truck as
well. At the end of a long, tiring and stressful day
you don't want to find that you have no pyjamas, no
toothbrush, and no bedding. |
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Open
Homes |
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Open
homes are an increasingly good source of home buyers.
Sure a lot of nosey neighbours and other tyre kickers
may come along but they may know someone who wants
to move into the street. Remember we only need to
find one buyer. The following comments on the presentation
of your property may be helpful. Remember that most
buyers look for homes that are well cared for and
bright. |
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impressions are lasting: An inviting exterior
gives you a good start. Check from the roadside.
Do the lawns need mowing and the edges need trimming?
Is the yard tidy? Do the leaves need raking? Are
the flower beds tidy? Is the front porch tidy? |
A
sparkling home attracts buyers: Give
it a thorough clean and you'll greatly enhance
its appeal to buyers. Ask the children to pick
up their toys and tidy their rooms.
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| Repairs
can make a difference: Loose knobs, sticking
doors and windows, and other flaws detract from a
home's value in the eyes of the buyer. Fix dripping
taps - water discolours sinks and draws attention
to faulty plumbing. |
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Kitchen: A well presented kitchen adds
appeal to a house. The kitchen bench must be tidy
and the sink spotless. |
| Check
the bathroom: Bright and clean bathrooms
add greatly to the appeal of homes. They are one
of the key rooms in the house. |
| For
the "rest" of your life: Bedrooms
can look as though "they have just been slept
in" or they can have the clinical coldness
you sometimes see in a hotel room. Try to achieve
the happy medium. |
| Can
you see the light or feel the warmth? Turn
the lights on if the day is dull or overcast. Open
the blinds, curtains and drapes. A cold home on a
cold day is less appealing. Have the temperature of
your home at a comfortable level. Turn the heaters
on or light the fire if you have one. |
| Background
music: Consider having soft music playing.
Either the stereo or the radio on low volume -
but not different stations in each room. |
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Pets:
Please keep them out of the way where possible. Your
pet may be an unwelcome intrusion to buyers intent
on inspecting their future home. |
Security:
Each visitor will be asked to sign a register. Please
make sure valuables have not been left in the open.
Check with your insurer whether theft by someone
invited into
your home is covered by your insurance policy. |
