Good agent never more important
● Monthly Roundup is a Q&A with answers supplied by leaders in the NZ real estate industry.
What’s your best piece of advice for sellers right now?
Daniel Coulson, Chief Operating Officer, Ray White New Zealand: No matter the market conditions, it is important to ensure you have every opportunity to maximise the value of your home. This is even more pronounced at present.
What this means is that you should be deeply selective of the salesperson and agency that represents you and your home, your marketing programme and your method of sale. All of these factors are crucial to ensure you are given quality advice, your home is exposed to the broadest possible audience, and you have the opportunity to create a competitive environment for purchasers looking to secure your property.
Bryan Thomson, Managing Director, Harcourts New Zealand: The best advice for sellers right now matches advice that is consistent across all markets. Select a great agent, that you like and trust, one who demonstrates the ability to communicate in a manner that provides you the ability to make strong confident decisions.
Once you have selected your agent, listen to their advice and recommendations, if you’re unsure, yes challenge them, but always remember they are working in your best interests - so you can decide to take their advice or not select them to represent your property.
Your selected agent will help advise you around the presentation of your property and will work with you to develop an appropriate marketing plan. Remember you will be competing for the best buyers with all other properties available for sale, so you need to firstly attract all the buyers available, both active and passive, and then present your property in its absolute best light.
Finally, regarding price expectations, your selected agent will provide a raft of information, recent sales, current listings competing with you and their professional analysis. This information will prepare you to consider each offer or bid on its own merits and allow you to make wise and informed decisions. The key to this right now is to look at today’s market; not one from previous years; or even for you to feel like you need to guess what the market might be doing tomorrow! Selling today will put you in the position to purchase again in the same market you’re selling in and given the increased choice available right now. Being a cash buyer is a great position to be in.
Peter Thompson, Managing Director, Barfoot & Thompson: Vendors should not be intimidated by the gradual decline in prices. Keep things in perspective. The housing market has experienced and survived challenges in the past and vendors that make rational rather than emotional decisions will make it through in good shape.
For vendors, the key is to be realistic about your expectations as to the value of your property and that it may well take a little longer to sell. Currently, the national and Auckland average time is 43 days. This is about 10 or 11 days longer than in recent times, but still relatively short.
Take advice from your agent as to what prices are doing in your location and what houses similar to yours are achieving.
Be prepared to negotiate on price and be flexible around settlement date or accepting conditions.
I still recommend auctions as the bestselling option, as this brings your home to the attention of the greatest number of buyers yet leaves you with the ability to negotiate if you do not sell under the hammer.
Properties will continue to sell, just not as many as previously. Do everything possible to make your home one of the ones that does sell.
What’s your best piece of advice for buyers right now?
Peter Thompson, Barfoot & Thompson: Now is a good time to buy as prices are edging back, choice is the best it has been for years, and properties are not being snapped up the moment they come on the market.
Traditionally, when prices fall vendors will rather take their property off the market than sell at what they consider too low a price. Negotiating too hard and holding out to achieve the ‘bargain of the century’ may result in you missing out on a well-priced opportunity.
In times of economic downturn, mortgage repayment costs are more important than price, and remember that there has never been a period in the last 70 plus years when house prices have not rapidly recovered after declining.
Time is the homeowner’s best friend in terms of price, and stable employment in terms of meeting mortgage repayments.
Daniel Coulson, Ray White New Zealand: No one rings a bell when the market peaks, and no one does it when it hits the bottom either. You only know we have hit the bottom of the market when it has started going up again; by then, it is too late.
Many factors influence the value of property, but it has for many years proven to be a reliable investment over the long term.
When it comes to your family home, try not to get too caught up in what the market may do next week or next month. If you are going to hold onto it for the medium to long term, you love the home, and you can afford it, then you should probably buy it.
Bryan Thomson, Harcourts New Zealand: Buyers today have more available property to select from than has been available for some years, and this presents a challenge in itself. The greatest risk is you’ll pass on a property that meets all your criteria in the hope that an even better one will pop up tomorrow. History is littered with buyers looking back saying I wish I’d grabbed that property when it was available, and I didn’t! To best prepare yourself to avoid this mistake, there are a few simple steps to take.
Firstly, assess your financial capability. Once you know your financial capacity identifying the critical non negotiables for your next purchase are vital, is it location, school zones, section size or number of bedrooms etc? These decisions are personal and the shorter the list of nonnegotiables you have, the larger selection of properties that will be available to you. Once these two key steps are achieved, it’s time to start actively looking for properties.
Always remember you may find the perfect property in your first week of looking, so be prepared to act. If you are buying a home to live in, the price paid is quickly forgotten when you secure your perfect home. When investing, your time in the market is the key, so if you’re one of those ‘experts’ waiting for the bottom of the market, just remember that nobody rings a bell when it’s reached.