Wow!
How would you like to be working under a new Act of Parliament where part of the act says:
" A charge of misconduct or unsatisfactory conduct may be brought and dealt with despite the charge not being based on a breach of any specific rule"
Buyers, sellers, agents' competitors, and their own colleagues are not just encouraged to file a complaint, but LEGALLY OBLIGED to do so ...if they have "reasonable grounds" for believing unsatisfactory conduct has occurred. Life could be busy for the tribunal....hmmmm...... reasonable grounds....
I suspect Ill be saying more on this Act, which comes into effect in 2 weeks.
Lots of excitement and heartache to come from this ill thought piece of law.... you heard it first here!
Tuesday, November 3, 2009
Apartment, Or Mansion?Whats Your Fancy?
Viva la Difference!
If we all wanted the same property...well, It would be crowded.
When looking through a 260m2 penthouse recently (lovely, 3 carparks, big harbour views, $3 million) I commented that $3 mill would buy the best house in Mount Victoria!
And here it is! 25 Brougham st. About 440 restored glorious square metres, FOUR car parks. No harbour view, but no body corporate meetings with the other 91 owners in the apartment building either.
Price? be quick...low to mid $2 millions. Be quick! To me...that is a bargain .I want it.
Monday, November 2, 2009
Leasehold Apartment Land Comes To Wellington.
Well it has been here a while.
"Piermont" was the first "modern" developer lease to go through that I know of.
"The Wellingtonian" tried, but it faltered & freehold was offered as an option.
The idea is the apartments are "cheaper" because you don't own a share in the land underneath. But you pay a lease, in modern cases here & Auckland (where all clever ideas come from) to a company set up by the developer.
The reduction in purchase price seems small or non existent, compared to those sold with freehold. This suggests purchasers either don't value, or know the value of the lands freehold.
In the cost of Piermont I understand the first several years lease were pre paid. There is interest in what the first review will bring.
The cost of the leases is related to the value of the land. Since building values tend to go down in real terms ( it is a depreciating asset) and land values go up, this takes away a capital gain advantage from the purchaser.
But a much worse feature is that in boom times, when everyone else is benefiting from rising values, what is happening to these unfortunate leasehold apartment owners?....The value of the land goes up, increasing the cost of their lease. DECREASING the value of their apartment.
There were cases in Auckland I believe where apartments costing $600 000 soon had leases of over $100 000.
There are grumbles already from owners, and murmurings from valuers about the the Piermont lease. I have however never seen one, & would be interested to hear any comments on it.
Another leasehold development is being sold I have been told, as we speak. I will find out if this is the case.
"Piermont" was the first "modern" developer lease to go through that I know of.
"The Wellingtonian" tried, but it faltered & freehold was offered as an option.
The idea is the apartments are "cheaper" because you don't own a share in the land underneath. But you pay a lease, in modern cases here & Auckland (where all clever ideas come from) to a company set up by the developer.
The reduction in purchase price seems small or non existent, compared to those sold with freehold. This suggests purchasers either don't value, or know the value of the lands freehold.
In the cost of Piermont I understand the first several years lease were pre paid. There is interest in what the first review will bring.
The cost of the leases is related to the value of the land. Since building values tend to go down in real terms ( it is a depreciating asset) and land values go up, this takes away a capital gain advantage from the purchaser.
But a much worse feature is that in boom times, when everyone else is benefiting from rising values, what is happening to these unfortunate leasehold apartment owners?....The value of the land goes up, increasing the cost of their lease. DECREASING the value of their apartment.
There were cases in Auckland I believe where apartments costing $600 000 soon had leases of over $100 000.
There are grumbles already from owners, and murmurings from valuers about the the Piermont lease. I have however never seen one, & would be interested to hear any comments on it.
Another leasehold development is being sold I have been told, as we speak. I will find out if this is the case.
Saturday, October 24, 2009
the Statistics On Selling a House Privately in NZ
This is based on thoughts coming from some surveying I did, a while ago.
In Wellington, about 7% of ads were private sale. At that time only 4% of sales were private, & that included non market transactions. (That is, selling to the friend that had always wanted it, selling within families etc.) So probably more than 50% of all private sales attempts ended up concluded by a realtor. I don't know if web sales have increased. Anecdotal indications are it doesn't seem to be very widespread
Why do they try? To save a fee, I think. And/or because no agent will take it on at "Their Price".
I think a lot believe their house has only one value to all purchasers, like a car of a certain year and mileage. They think that all that has to happen is put the property in front of the market, and pocket the fee an agent would charge.
They think it is a rational transaction, and that selling is not a skill. Selling is actually the most highly paid skill in the world. Look at Donald Trump and Richard Branston.
So what seems to happen?
There are several flaws to sellers pocketing $10 to $20 000.
Firstly the buyer usually deducts the real estate fee before they offer...and 50% of sellers do the same, in their minds too! So the buyer saves the fee, and the seller does the work for nothing!
Security issues, or being unable or willing to show the house at requested times cause some to falter.
Personalities kill the deal. remember this is 15 rounds of the sellers greed vs the buyers fear...a potent battle!
A real estate adage, often true is "to kill a deal, put the seller and buyer in the same room". One reason real estate salespeople are accused of bad conduct, or outcomes, is because one party or the other has been a total pillock, and demanded a totally unreasonable thing be conveyed to the other party! So shoot the messenger! A big part of sales success is keeping the two parties reasonable to each other!
Clever buyers con weak sellers. Self explanatory. I hear these buyers boasts all the time. Of course they try it through agents too!
Private sellers pay very high rates to advertise in newspapers, and cant get into the Real Estate magazines. Trade Me offers more than it delivers, for real estate, in my opinion. The owner doesn't have a pool of existing buyers, or a team of salespeople. So private sales usually get only a small number of inspections. Less inspections, less offers.
Very occasionally sellers underprice. I heard someone recently who claimed to buy a property they said was worth$1.4 million in Oriental Bay privately.They bought it off the first ad, paying the full asking of $1.1m.
Joho Lomu's house in Mirimar was sold privately ( I saw through it at the time) and resold for huge profit soon after. I was told how his manager allegedly handled the sale, by the private buyers. I wont comment on the story!
So my Stats...total guess:
10% of private sales attempts do as well as the best agents could. Often these sellers have sales skills
10% sell for a "normal" price, & save the fee.
20% sell for "normal" less commission..IE do it for nothing.
5% sell for a poor price.
55% attempt, then give it to a professional.
Thats the way I see it.
In Wellington, about 7% of ads were private sale. At that time only 4% of sales were private, & that included non market transactions. (That is, selling to the friend that had always wanted it, selling within families etc.) So probably more than 50% of all private sales attempts ended up concluded by a realtor. I don't know if web sales have increased. Anecdotal indications are it doesn't seem to be very widespread
Why do they try? To save a fee, I think. And/or because no agent will take it on at "Their Price".
I think a lot believe their house has only one value to all purchasers, like a car of a certain year and mileage. They think that all that has to happen is put the property in front of the market, and pocket the fee an agent would charge.
They think it is a rational transaction, and that selling is not a skill. Selling is actually the most highly paid skill in the world. Look at Donald Trump and Richard Branston.
So what seems to happen?
There are several flaws to sellers pocketing $10 to $20 000.
Firstly the buyer usually deducts the real estate fee before they offer...and 50% of sellers do the same, in their minds too! So the buyer saves the fee, and the seller does the work for nothing!
Security issues, or being unable or willing to show the house at requested times cause some to falter.
Personalities kill the deal. remember this is 15 rounds of the sellers greed vs the buyers fear...a potent battle!
A real estate adage, often true is "to kill a deal, put the seller and buyer in the same room". One reason real estate salespeople are accused of bad conduct, or outcomes, is because one party or the other has been a total pillock, and demanded a totally unreasonable thing be conveyed to the other party! So shoot the messenger! A big part of sales success is keeping the two parties reasonable to each other!
Clever buyers con weak sellers. Self explanatory. I hear these buyers boasts all the time. Of course they try it through agents too!
Private sellers pay very high rates to advertise in newspapers, and cant get into the Real Estate magazines. Trade Me offers more than it delivers, for real estate, in my opinion. The owner doesn't have a pool of existing buyers, or a team of salespeople. So private sales usually get only a small number of inspections. Less inspections, less offers.
Very occasionally sellers underprice. I heard someone recently who claimed to buy a property they said was worth$1.4 million in Oriental Bay privately.They bought it off the first ad, paying the full asking of $1.1m.
Joho Lomu's house in Mirimar was sold privately ( I saw through it at the time) and resold for huge profit soon after. I was told how his manager allegedly handled the sale, by the private buyers. I wont comment on the story!
So my Stats...total guess:
10% of private sales attempts do as well as the best agents could. Often these sellers have sales skills
10% sell for a "normal" price, & save the fee.
20% sell for "normal" less commission..IE do it for nothing.
5% sell for a poor price.
55% attempt, then give it to a professional.
Thats the way I see it.
Friday, October 23, 2009
Whats The Impact of Tenders, in a Sellers Market?
Tenders May Be Changing The Wellington Sales Landscape.
The old idea was once a salesperson got an offer of about what a residential property was "worth", the vendor got worked over to be reasonable & take it. Especially with a general agency...where heaven forbid, another company might come along with a higher offer. And it still happens in some companies.
Leaders started tendering , and it has become widespread.
Looking today, on the Leaders website, and searching for 4 plus bedroom houses over $500k, and under$750k found the following for all of Wellington city: 4 under offer or for sale by price. 13 for sale by fixed tender.
Some buyers complain they "keep missing out" or that they "want the chance to negotiate"
Investors say everything is "too dear". What do they mean, & what is happening to sales outcomes?
Wellington continues to be a sellers market. Houses are not an easily duplicated or substituted comodity. There is too much variety & not a big enough pool of stock.
A normal sale is where "a buyer, knowledgeable in the market, motivated, but not under duress to buy, purchases from a vendor, motivated, knowledgebale but not under duress to sell."
But the tender enables the vendor to sell, in every case, to the most highly motivated buyer. So often a half dozen, or dozen, or as in Weka st or Rongatai road this year, two dozen "normally motivated" buyers miss out.
So what does it say that these buyers rely on purchasinig "non tender" listings? Probably that they get them for less than the vendor could have got. Why would owners choose to sell this way, other than ignorance or convenience? I often suggest to these buyers they go troll through private sales for bargains, poor negotiators and the uninformed vendor.
There is a concequence of selling for top prices. all the neighbours of course immediatly expect the same. This sets a line in the sand.
So is the Wellington market, particularly, being underpinned by a strong sellers market combined with a selling system evolved to favour the sellers ( as it should in my opinion?)
Note...the buyers, who most complain about tenders, & the impartial realocation of houses to they who want them most, seem to change their story dramatically when after buying, that they themselves decide to sell!
The old idea was once a salesperson got an offer of about what a residential property was "worth", the vendor got worked over to be reasonable & take it. Especially with a general agency...where heaven forbid, another company might come along with a higher offer. And it still happens in some companies.
Leaders started tendering , and it has become widespread.
Looking today, on the Leaders website, and searching for 4 plus bedroom houses over $500k, and under$750k found the following for all of Wellington city: 4 under offer or for sale by price. 13 for sale by fixed tender.
Some buyers complain they "keep missing out" or that they "want the chance to negotiate"
Investors say everything is "too dear". What do they mean, & what is happening to sales outcomes?
Wellington continues to be a sellers market. Houses are not an easily duplicated or substituted comodity. There is too much variety & not a big enough pool of stock.
A normal sale is where "a buyer, knowledgeable in the market, motivated, but not under duress to buy, purchases from a vendor, motivated, knowledgebale but not under duress to sell."
But the tender enables the vendor to sell, in every case, to the most highly motivated buyer. So often a half dozen, or dozen, or as in Weka st or Rongatai road this year, two dozen "normally motivated" buyers miss out.
So what does it say that these buyers rely on purchasinig "non tender" listings? Probably that they get them for less than the vendor could have got. Why would owners choose to sell this way, other than ignorance or convenience? I often suggest to these buyers they go troll through private sales for bargains, poor negotiators and the uninformed vendor.
There is a concequence of selling for top prices. all the neighbours of course immediatly expect the same. This sets a line in the sand.
So is the Wellington market, particularly, being underpinned by a strong sellers market combined with a selling system evolved to favour the sellers ( as it should in my opinion?)
Note...the buyers, who most complain about tenders, & the impartial realocation of houses to they who want them most, seem to change their story dramatically when after buying, that they themselves decide to sell!
Saturday, October 10, 2009
Too Cool! Two Great Thorndon Townhouses For Sale.
Im selling these 2 New York Loft style townhouses.
20 years in the business...I can tell you there are not many like this in Wellington.
excuse the copy...Im very busy.
Most townhouses are boxes. High beamed ceilings and a huge lounge set these two apart from the crowd. 130m2 each. Ratable values $415 000 and $435 000. In a complex of only 5, set quietly off noisy roads, yet an easy stroll to the CBD, Thorndon pool or the town belt. And handy to the motorway. Great courtyard common area with seating and Petanque court to relax & entertain. Recently refurbished to stringent new council code. Carpark too. I’m often asked for this type of property…but they are virtually never available. Tender closes Oct 22. View Sunday 1 to 2 pm
12 Little George st Thorndon Wellington New Zealand
Thursday, October 8, 2009
Here are Tattoo Apartments
Yes, I love these!
32 Apartments. 5 metre high stud.
32 Apartments. 5 metre high stud.
18 of 32 sold with no advertizing.
Ive got agency to sell the last 14, starting from $308 000.
Abel Smith st opposite the Southern Cross. And boy has that got a great restaurant now.
Its Archaus design. Ive worked with these guys for 15 years...like the detail & flair....link to follow, with purchasing details. this will win awards AND be great to live in ( The two dont always go togeather)
Its Archaus design. Ive worked with these guys for 15 years...like the detail & flair....link to follow, with purchasing details. this will win awards AND be great to live in ( The two dont always go togeather)
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