Due diligence vital in wake of floods
Get the insights into our local property market with real estate expert Wayne Maguire.
ANALYSIS: Auckland, along with Northland and the Coromandel, has taken a battering the likes of which we haven’t seen before.
The devastation to personal contents, homes, commercial property, vehicles and local infrastructure was intense. We were all shaken by the loss of the life and the trauma felt by those families most heavily affected.
In an instant the due diligence needed for buying and selling has been heightened.
No longer will council flood zones be ignored by buyers, and sellers will now be asked how their property fared during the January 2023 floods.
If you’re selling it will be helpful to create a file to cover this period. If you suffered no damage, then any photos showing your property during the flood would be beneficial to retain.
If you were affected by the flooding, then photos of the damage and progress through the repair process, plus a building report once the repairs are completed, would be advantageous.
Buyers will obviously be asking, but please be mindful that your listing salesperson should know about these events. If necessary they should ask for evidence to support your position.
For example, ‘‘we didn’t get flooded’’ could be accompanied with a photo showing it as such.
Finally, if you are party to a concluded contract or an unconditional contract awaiting settlement, you have a clause in your sale and purchase agreement that talks to damage and settlement. I highly recommend you speak to your solicitor no matter whether you are the buyer or the seller, to get specific guidance.
Hopefully the sun is back soon.
Wayne Maguire is the chief executive of Maguire & Associates, which owns several Ray White branches across East Auckland, and he is an award-winning auctioneer. Maguire calls about 400 auctions each year, negotiating and closing about $20m in sales every week. He is
Ray White Auctioneer of the Year and dad to five girls.