Almost everything you want to know about Steve Koerber’s Listings

 Ref 423259     3/22 Clonbern Road, Remuera

  

     

• For Sale :  Auction 16th December 2009 (will not be sold prior) 
• Auction Documents :  coming soon
• City Rooms Map
• Tips for Buying at Auction
• Area of Land: 1/6 share of 1798sqm
•  Floor Area:  150 sqm approximately
• Bedrooms:   3
• Bathrooms:  2
• Built:  1990
• Garaging:  Double with internal access and off street parking
• Title
• LIM
• Legal description, council rates, land area, 2008 Capital Value ($710,000): click here
• Aerial View:  click here
• School Zones:  Remuera Primary, Remuera Intermediate, Auckland Grammar, Epsom Girls Grammar
• Sales Statistics:  Aug 09   Sept 09  October 09
• Rental:  Unofficial estimate $650 pw
• More Info:  After a major refurbishment this excellent townhouse is finally available for sale.  There are so many good things about living in such a central sought after location.  Although you’ll see similar sized (150sqm) townhouses on the market, ask yourself these questions:  Is it in GZ, is it elevated and north facing, is it “as-new”, was it constructed pre 1991 before the majority of ’leaky homes’?  If you can find better, you should definitely buy it!  
• Please Note :  Conservatory does not have a permit.
•  Viewing:  First Open Home this Saturday 12 – 12.30pm, Wednesday 2nd December 1 – 1.30pm. Flexible and easy to view on other days.  

 

Ref 422082     70 Market Road, Epsom

 

 

      

• For Sale :  Auction 02 December 2009 (unless sold prior) 
• Auction Documents :  coming soon
• Map – Auction Rooms
• Tips for Buying at Auction
• Area of Land: Undivided 1/2 share of 834sqm more or less (freehold – crosslease) 
• Floor Area:  144 sqm approximately
• Bedrooms:  3 or 4 (or 3 plus study)
• Bathrooms:  2.5 (includes 1 ensuite)
• Garaging:  Single Carport with OSP for 2
• Title
• LIM
• Legal description, council rates, land area, 2008 Capital Value ($750,000): click here
• Aerial View:  click here
• School Zones:  Cornwall Park School, Remuera Intermediate, Auckland Grammar, Epsom Girls Grammar
• Sales Statistics:  Recently sold 46 Omahu Rd Remuera $855,000,  110 Market Rd Epsom $768,000, 13A Warborough Ave Epsom $717,000, 141 market Rd Epsom $868,000, 40 Dunkerron Ave $841,000, 225 Gillies Ave Epsom $790,000
• Rental:  Unofficial estimate $700pw
• More Info:  A fabulous townhouse alternative, this smart character bungalow has been recently updated and enjoys modern bathrooms and a pleasant layout.  A great Grammar Zone entry level opportunity.
• Viewing:  Saturday/Sunday 2 – 2.45pm.  Flexible and easy to view on other days.

Ref 422379     54 Clonbern Road, Remuera

 

     

• For Sale :  Auction on site 6pm 9th December 2009 (unless sold prior) 
• Auction Documents :  coming soon
• City Rooms Map
• Tips for Buying at Auction
• Area of Land: 700sqm (freehold)
•  Floor Area:  154 sqm approximately
• Bedrooms:   4
• Bathrooms:  2
• Garaging:  Plenty of off street parking and room for a garage
• Title
• LIM
• Legal description, council rates, land area, 2008 Capital Value ($900,000): click here
• Aerial View:  click here
• School Zones:  Remuera Primary, Remuera Intermediate, Auckland Grammar, Epsom Girls Grammar
• Sales Statistics:  Aug 09   Sept 09  October 09.  Relevant sales in the immediate vicinity include 2 Ohinerau St $990,000, 34 Ohinerau St $1,000,000, 4 Rothesay St $966,500, 52 Clonbern Rd $1,210,000, 16 Ohinerau St $1,250,000.  Until I have solid feedback these sales are my price guidance.
• Rental:  Unofficial estimate $800pw
• More Info:  On the school walking-bus route for Remuera Primary School and Remuera Intermediate, the Grammar bus also stops just outside.  People who live around here love the easy stroll to the shops to grab the newspaper and the convenience of an easy commute to the City.  Five people bid on the home next door at no.52 mid year, obviously a popular location with curretn GZ buyers.
• Viewing:  Saturday / Sunday3 – 3.30pm.  Flexible and easy to view on other days. 

Ref 422072     19 Shore Road, Remuera

  

 

• For Sale  By Auction Wednesday 02 December 2009 (unless sold prior)
• Auction Documents click here
• Map – Auction Rooms
• Tips for Buying at Auction
• Area of Land:  An undivided 1/2 share 890sqm more or less
• Floor Area:  196 sqm approximately
• Bedrooms: 4 double bedrooms
• Bathrooms: 2.5
• Title:  click here
• LIM: click here
• Building Report available on request by email.  s.koerber@barfoot.co.nz.  This report (a positive report) was commissioned by the client.  Because it was constructed during the 1991 – 2003 at risk period I insist you obtain your own independent building inspection prior to purchase.
• School zones & aerial view:  click here
• Legal description, council rates, land area, 2008 Capital Value ($1,140,000):  click here
• Sales Statistics:  Appraisal stats are available in the $900,000 to $1,100,000 range.  A relevant recent sale of a comparable home occurred at 18 Komaru St Remuera for $980,000.  Another at 39A Victoria Ave sold for $1,020,000.
• Unofficial Rent Estimate:  $800 per week
• More Info:  An excellent executive home in a wonderful central location.  Masses of off-street parking and a short commute to the City and Hospital/University.  Well respected architects and builder.
• Viewing  Open home Saturday 2 – 2.30pm.  Flexible and easy to view on other days.  

Ref 421479     65 Lingarth Street, Remuera  

 

 

  

      

• For Sale:  By Negotiation CV $$2,020,000 
• Auction Documents:  click here
• Map – Auction Rooms
• Tips for Buying at Auction
• Area of Land: 620sqm (freehold)
• Floor Area:  300 sqm approximately
• Bedrooms:  4 or 5 (or 4 plus study)
• Bathrooms:  3 (2 ensuites)
• Garaging:  Double with internal access plus Off Street Parking
• Architect’s Plans
• Title
• LIM 
• Legal description, council rates, land area, 2008 Capital Value ($2,020,000): click here
• Aerial View:  click here
• School Zones:  Victoria Avenue Primary School, Remuera Intermediate, Auckland Grammar, Epsom Girls Grammar
•  Rental:  $1500pw
• More Info:  This is a stunning executive home in the heart of Remuera’s northern slopes.  You won’t find many like this.  Register your interest to avoid losing it to a pre-auction offer.
• Viewing: Final open home Saturday 1 – 1.30pm.

 Ref 421261     13 Clonbern Road, Remuera

 

 

 

   

• For Sale  $1,450,000
• Auction Documents click here
• Auction Room Map
• Tips for Buying at Auction
• Area of Land:  925sqm (freehold – zone 6a = 1 per 375sqm)
• Floor Area:  195 sqm approximately
• Bedrooms: 5 double bedrooms
• Bathrooms: 2
• Title:  click here
• LIM:  click here
• Auction Documents:  coming soon
• School zones & aerial view:  click here
• Legal description, council rates, land area, 2008 Capital Value ($1,150,000):  click here
• Sales Statistics:  Aug 09  Sept 09  October 09.  Recent sales of similar large homes on potentially sub-dividable sites are few and far between.  A non GZ smaller bungalow sold last month at 12 Rotomahana Tce for $1,005,000.  A GZ family home on similar size land but not sub-dividable sold in Te Kowhai Pl last month for $1,300,000.  Two years ago a smaller family home on a non-subdividable site in a similar location at 28 Norana Ave sold for $1,300,000.
• Unofficial Rent Estimate:  $900 per week
• More Info:  This is a fantastic opportunity for families young and old.  Trade up to a bigger home or buy and landbank.  Register your interest to avoid losing this one to a pre-auction offer.
• Viewing  Final open home Saturday 1 – 1.30pm.  Flexible and easy to view on other days.

 Ref 421385    19a Grand View Road, Remuera      SOLD AT AUCTION

 

 

 

 

• For sale by:  Auction 11am November 25th 2009
• Auction Documents:  click here
• Map – Auction Rooms
• Tips for Buying at Auction
• Area of Land:  1/2 share of 1014m2 (freehold – crosslease)
• Floor Area:  146 sqm approximately
• Bedrooms:  3 or 4 doubles
• Bathrooms:  2 (1 ensuite)
• Title:  click here
• LIM:  click here
• Auction Documents:  coming soon
• School zones & aerial view:  click here
• Legal description, council rates, land area, 2008 Capital Value ($730,000):  click here
• ARC Rates:  click here
• Sales Statistics:  Aug 09  Sept 09  October 09.  17 Grand View Rd sold last month for $626,500. 2 Derby Downs Ellerslie sold this month for $720,000.
• Unofficial Rent Estimate:  $650 per week
• More Info:  Single level brick homes like this are as rare as hen’s teeth.  Register your interest early for this hotcake.  My client has advised that their expectations could be below the general market level.  This must be a sure seller – a really good investment.   
• Viewing:  Final open home Saturday12 – 12.30pm.  Flexible and easy to view on other days.

Ref 419694       1 Ohinerau  Street, Remuera 

  

 

       

• For Sale:  $1,250,000
• Area of Land: 684sqm (freehold)
• Floor Area:  173 sqm approximately
• Bedrooms:  3 in the main house, 4th or sleepout out the back behind garage & office
• Bathrooms:  2 (1 ensuite)
• Office/Study:  Behind garage
• Garaging:  A large single garage plus off street parking for 2 or 3 cars
• Title
• LIM
• Residential Zone:  5
• Legal description, council rates, land area, 2008 Capital Value ($1,050,000):  click here
• ARC Rates
• Aerial View:  click here
• School Zones:  Remuera Primary, Remuera Intermediate, Auckland Grammar, Epsom Girls Grammar
• Sales Stats:  October 09   Sept 09  Aug 09.  Note 52 Clonbern Rd earlier this year for $1,210,000 and 52 St Vincent Ave last year for $1,080,500.  The last sale recorded for the neighbouring villa at 3 Ohinerau St was $1,410,000 in June 2007 (nicely renovated).
• Unofficial Rent Estimate: $750pw
• More Info : If you’re looking for a long term family haven with plenty of potential for improvement, this is probably one of best opportunities available on today’s market in this fabulous central location.  The school walking bus will pick your kids up from the front gate and take them to Remuera Primary.  Remuera’s supermarket, cafes, shops and restaurants are a few minutes leisurely stroll up Clonbern Rd.  This is a very special home.
• Viewing  Viewing by appointment.  Please call or text me on 021864166 to arrange a viewing time.

Ref 419857       39 Armadale Road, Remuera

 

 

• For Sale :  By Negotiation (CV $1,120,000) See price guide below.
• Area of Land  885sqm (freehold) Zoned 6A = 1 per 375sqm
• Floor Area   217 sqm approximately
• Bedrooms  5 – 4 double, 1 single (could be 6 bedrooms)
• Bathrooms  2
• Garaging  single plus off street parking for 2 cars
• Title
• LIM
• Legal description, council rates, land area, 2008 Capital Value  click here
• ARC Rates
• Sales Stats October 09   Sept 09  Aug 09
• Unofficial Rent Estimate $900pw
• More Info  It’s not unusual to find a family home just around the corner from Remuera Primary School, but it’s a bonus that your kids won’t have to cross any streets to get there.  How safe is that?  It is unusual to find a home with such a flexible floor plan that suits families young and old.  Whether you have tots or teens, lots of guests or you like the freedom to be able to spread out, you’ll love this home.  Significant capital gain is possible with minor improvements if you wish.  How much will the vendor’s accept?  The CV is our guide and the short answer is  that similar homes in the area have sold bewteen $1,050,000 and $1,250,000.  For additional recent sales in this vicinity visit this blog page as well.
• Viewing  Open home this Sunday 1 – 1.30pm.  Or by appointment other days preferably before 5pm.

Ref 417637    35 Lillington Road Remuera (SOLD)

  

  

 

 

•    

• Asking price  Mid/High $700,000s
• Area of Land  660sqm (freehold)
• Floor Area  110 sqm approximately
• Bedrooms  3
• Bathrooms  1
• Garaging  single with downstairs workshop/hobby room
• Title here
• LIM available from Auckland City Council
• Schools click here
• Details of Transit NZ’s Motorway Noise Barrier
•  Legal description, council rates, land area, 2008 Capital Value  click here
• Sales Stats Aug 09   July 09  June 09
• Unofficial Rent Estimate $650 per week
• More Info  The current owners bought this solid home from the original owner.  Since 2004 they have modernised, refurbished and improved.  They’ve added significant value.  You’ll love the new kitchen and modern bathroom.  There’s room for further improvement, but for the time being, all you need to do is move in and enjoy.  Won’t last, so be quick for this one.
• Viewing  By Appointment

 Ref 396150      78 Upland Rd Remuera

• Price By Negotiation
• Floor Area Approx 950sqm
• Bedrooms 6+
• Bathrooms 4
• Garaging Triple garage plus off street parking
• Google Street View click here
• Legal description, council rates, land area, 2008  Capital Value click here
• Sales Stats $3mil to $5mil comparables here:  Upland-78
• More Info Landmark home on 2757sqm of prime land.  21 generous rooms spread over two levels with internal swimming pool, spa and sauna.  Built in the 1960s and designed by “The Group” Architects, originally used as a convent and converted to a family home in the 1980s.
• Viewing is by appointment.  Flexible and easy to get through most days.

Ref 413365   85 & 89 Panorama Road, Mt Wellington

• For Sale by negotiation around $3,000,000
• Description 12 x 3 bedroom brick & weatherboard residential investment flats in 2 separate side by side blocks.  Each unit is spacious and tidy and has its own carport.
• Land Area 675sqm each title (2 titles must be bought together)
• Legal Description, Council Rates etc for 85 Panorama Road click here
• Legal Description, Council Rates etc for 89 Panorama Road click here
• Titles Panorama Rd 85 Title Panorama Rd 89 Title
• Google Maps Street View click here
• Zoodle Aerial View 85 Panorama click here
• Zoodle Aerial View 89 Panorama click here
• Rental Return 6 years of 100% documented occupancy at $3840 per week or $320.00 per unit per week.
• More Information Sensational Residential Investment 4 minutes from Sylvia Park. Secure your financial future by investing in this recognised growth belt where potential capital gains are on everyone’s lips.  On offer are twelve low maintenance three bedroom units that have enjoyed virtually 100% occupancy over the last 6 years. Approximate weekly rental from this cash cow has been $3840.  Multiply that by 52 and you get $199,680 per annum.  For your reference the ASB offers approx 6% on a $3,000,000 term deposit – this would earn you $180,000 per annum.  Do the sums, pick up the phone and nut out a deal.
• Viewing  By appointment

Ref 412582  Middleton Rd, Remuera

• For Sale $498,500 (Lot 3 – section only)
• Land Area 459sqm
• Site Plan  Subdivision Plan
• Legal Description Lot 2 DP 193357
• Certificate of Title To be issued on completion of subdivision
• Agent comment All services provided to site including driveway, will be fully excavated and retained to provide level building platform.  Concept plans available for a 4 bedroom 2 bathroom approx 196sqm modern home (pictured).
• Viewing Due to on site earth works there are NO on-site visits without agent/owner in attendance.  Sorry!  Please contact me on 021864166 for viewing/more information.  

Ref 417956    C34B Monteith Crescent, Remuera

            

• Floor Area:  128 sqm approx
• For Sale By:  Negotiation
• Bedrooms:  3 + Study
• Bathrooms:  2
• Garaging:  2 x singles/both with internal access 
• Title
• LIM
• Documentation:  Building Consent Outline Spec Part 1  Building Consent Outline Spec Part 2   Building Consent Outline Spec Part 3  Building Consent Outline Spec Part 4  
• Body Corporation Information:  Rules   AGM 2008 minutes   AGM 2009 minutes  Body Corp Levy
•  Aerial View and Schools:  click here
• Legal desc, rates, 2008  Capital Value:  click here
• Sales Stats:  Monteith Cres
• Unofficial Rent Estimate (repaired): $550.00 per week
• Herald on Sunday article 27th Sep 09:  here
• More Info:  Not your usual investment opportunity, this leaky terraced home is not for the faint hearted.  This property is no longer listed with Barfoot & Thompson but I’ve left it on my blog as a favour to help the owners sell.  
• Viewing  By Appointment with the owners on Louis 0212754885 or Vera 0211248722.

 

How much is that house?

You’ll find my tips to help you navigate the pricing maze here.

Please treat the sales stats range (above) as price guidance.  The 2008 Capital Value (CV) can be used as a rough guide for listings without prices.  Most homes sell either side of their CV but unfortunately there is no accurate formula you can use to calculate an exact value.

For auctions, especially because many owners don’t really know how much they would accept when it comes to the crunch, it’s best to let me know your price range.  If you do this by emailing me at s.koerber@barfoot.co.nz I should be able to advise whether or not you should view the property you have enquired about.

 

Downloads:

Some downloads (especially LIM reports) may be slow; please give them time to download.

I hope you find my weblog useful and informative.

NOTE: Details are provided in good faith and by third parties for your assistance in obtaining information about properties for sale.  No responsibility is accepted for the accuracy of the whole or any part of the information provided and interested parties should make their own enquiries to satisfy themselves in every respect.

In real estate, everybody loves a bargain

Ever wondered why some people seem to have a real knack for picking up real estate bargains and finding unique opportunities before the masses?

During my real estate career I’ve learnt quite a lot about how clever property speculators become wealthy.  Have I followed their lead and jumped into opportunities myself?  Mostly not, but occassionally I’ve done ok, nothing spectacular.  For obvious reasons, laws make it quite difficult for real estate salespeople to make quick profits from property speculation.

The major lesson I’ve learnt is that successful property speculators and investors work just as hard as successful people in other walks of life.  They study, read, learn, research, etc.  Often, after many failures, small wins eventually turn into bigger wins and the rest is history. 

A friend told me a few years ago about their friend who had flown to Canberra days after many homes in its outer suburbs had been burnt down by bushfires.  An extreme event like that caused a short-lived but extreme imbalance in property prices in the affected areas.  This person bought at extreme discounts and made extreme profits within 6 to 12 months when emotions returned to normal.

I’ve written this post because I have a hunch about an opportunity I’ve seen.  Of course I can’t guarantee any results and I will also disclose that I have a vested interest in the area affected – Remuera near the motorway between Market Rd and Greenlane roundabout.  I list and sell more homes in this area than any other real estate salesperson.

Transit New Zealand is in the process of building a concrete noise barrier behind the houses that border the motorway along Lillington Rd.  When the noise barrier is completed it is likely to reduce noise in the area between Lillington Rd/Clonbern Rd and Remuera Rd.

If the noise reduction is significant, there could be a positive affect on the relative value of many of the homes within this area. 

How good is this opportunity?  Time will tell.  One thing’s for sure though, at the time of writing this blog post, a decrease in motorway noise has not been factored into the purchase price of any of the homes in this area.  Until now, I haven’t spoken to any potential purchasers who’ve mentioned the noise barrier.

The barrier is currently being constructed.  Here is a link to the only information I have.  I have requested more information and will add it here as it comes to hand.

Here is some info about the motorway widening to 4 lanes.

Frustrated with auctions? Want to know what the vendor’s are expecting?

Have you ever been to an open home and asked the question “What are the vendor’s expecting?”

In New Zealand we bring so many homes to the market that have no pricing, it’s no wonder frustrated potential buyers are always asking the same question.  

Auction, tender, by negotiation, set sale, expressions of interest, CV$920,000, POA, PBN, etc, etc.

The other day I had a conversation with a lady who came through one of my open homes.  The property was going to auction and she said to me in a very matter-of-fact manner “You’re the local expert, how much do you expect this home to sell for?”

So how does an “expert” answer a perfectly reasonable question like that?

I’ll analyse her question step by step:

Firstly, she was absolutely correct. I am the local expert.  I’ve sold more homes in the area in question than any other agent.  I look inside more homes than any other agent and/or property valuer.  I see more homes than buyers see.  If anyone has a reliable crystal ball I should have the Ferrari of crystal balls!

Secondly, I still have difficulty guessing how much it will sell for.  It is an auction and the market will ultimately decide the home’s fate (and price).  Sure I could have said to her “it should sell in the $1million to $1.1million bracket”.  Why am I reluctant to say that?  For many reasons -

1.  If buyer sentiment changes (due to unforeseen circumstances) between now and the auction most buyers might freeze.  This would affect the value.

2.  If interest rates went up or down between now and the auction some buyers’ ability to buy might improve or get worse.  This would affect the value.

3.  If all similar properties available for sale all of a sudden sold, this would affect the value.  Similarly if the market was suddenly flooded with similar homes, that would affect the value.

4.  If a neighbour who had won lotto decided they need the land to house their new fleet of luxury cars, that would affect the value.

5.  If a motorway extension close by was announced, that would affect the value.

6.  If there was only one bidder, that would affect the value.

7.  If there were 20 bidders, that would affect the value.

The most important reason I would be reluctant to say that it should sell in the $1million to $1.1million range is this:  In case it doesn’t!  If the owner is so realistic that they just want to cut it loose it could sell in the $900,000s.  How would the buyer feel when they call me after the auction, me having said $1mil to $1.1mil and I say it sold for $910,000?

Sure, the same person could come to auction, bid it up to $1,050,000 and then see it sail up to $1.2million.  That could happen, but how much control do I (or they) have over that occurence?  Litttle or none!

The market is the market and the value is the price offered by the highest bidder.  When it comes to guessing or estimating the value, vendor expectations are completely irrelevant.  I understand why buyers ask the question, but hopefully I’ve explained why it can’t and shouldn’t be answered.

One of the most profound things I have learnt (from Tony Robbins) is that the quality of your life is determined by the quality of the questions you ask.  If you ask “what are the vendors expecting”, that’s not a great question.  Most people ask it, I know why they ask it, but it’s not going to help you to buy a home!  If you re-phrase and ask “would the vendors accept $1,000,000?” then you would be asking a very good question and you would be more likely to get a realistic answer.  (If I know the answer to that question  I’ll answer it).

Still not convinced?  Still think I must know what every home is worth?  Give my crystal ball a try…..    

How Steve Koerber adds value to his seller clients by making it easier for people to buy their home

Recently I sold this home at 1/13 Omahu Rd in Remuera.  A very popular auction attracted eight bidders and it sold for a price the owners were very happy with.  Nothing unusual about that!

So here’s the unusual bit.  There were two separate bidders who had arranged to bid by phone.  One was too nervous to come to the auction and, in the end, was the top bidder and bought the house for $1,250,000.  

The other phone bidder lived in the UK and had never been through the house.  This bidder had spotted the house on www.barfoot.co.nz three days before the auction.  Especially since they hadn’t even been through the house you would think it would be a brave decision to phone bid at all.  So how did this person have the confidence to bid from thousands of miles away on a house they hadn’t been through?  I’m glad you asked.

The night before the auction this bidder spoke with me on the phone about the property.  Incredibly (though not surprising) he knew virtually everything he needed to know about the property.  Our chat was mostly about organising his deposit to be paid. 

Before our conversation ended, this is what this buyer said to me: 

“When I sent you an email enquiry about the property 3 days ago I received your very efficient auto-reply email in my inbox straight away.  I linked through to the council website for the CV, rates etc.  Then I linked through to the aerial view and checked the school zoning.  Then I looked at your comprehensive guide to recent local sales.  Then I printed off the LIM report and the title.  The LIM indicated a small defect but you explained on your blog & linked to an email from council that showed that there was no problem at all.  I printed off the Auction contract and had it checked out by my lawyer in NZ.  And I did all of this without needing to speak with you.  I felt totally informed and I must say I have never received this type of service from a real estate agent ever.”

Real estate people are prone to skiting aren’t we.  There, I’ve done it, I’m skiting about my service!  So if you know anyone who is buying or selling, perhaps you could recommend they check out my unique service here.  I’d love to help them and I’d really appreciate your referral.  Thank you.

Tips for buying at auction

Many New Zealander’s seem to be intimidated by the auction process and it’s easy to understand why.  Auctions are very exciting events.  I’ve been in real estate for 13 years and I still get that surge of adrenaline when I bid on a property myself.

But if you avoid auctions because you’re uncomfortable with the process you’re going to miss a lot of good buying opportunities.  It’s usually the best properties that are offered for sale via auction, particularly in Auckland where a culture of auctions is ingrained.

All that said many buyers still perceive them as highly stressful events that lead to spur-of-the-moment decisions based on emotions rather than sensibility.

This only happens when people are unprepared.  Many people forget that pretty much all of the tough choices, such as determining your maximum price, can be pre-planned – thereby reducing the auction itself to merely a forum for executing decisions already made.

Preparing to buy via auction

You can authorise someone else to bid on your behalf.  Choose someone you trust who has auction experience, or even hire a buyer’s agent. 

Alternatively, get ready to do the bidding yourself, if you’re prepared and clued up, it can be great fun and yield a great result – here’s how.

Prior to the event

• Use your research and budget to help you identify a ‘walk-away’ price.   It’s in your interest to keep this a secret from the agent, so they don’t use this information to help the vendor set their reserve.
• Have your finance already in place and attend the auction ready to write a deposit cheque.
• Attend some auctions beforehand to experience the atmosphere and observe different bidding strategies.
• Organise any amendments to the contract, such as a longer settlement period, prior to the auction.  Talk to the agent and get agreement from the vendors in writing.

On the day

• If you’re going to start the bidding, start low.
• Project confidence – make the other bidders think you have no limit.
• Make your bids fast and assertive. Agonising over your next bid is a sign of weakness.
• Call out your offer in full (i.e. say “$350,000” instead of the increments, i.e “$5,000”).
• If it’s going to pass in, make sure you are the highest bidder, as this allows first right to pay the reserve price.
• Stick to your ‘walk-away’ price. It’s better to feel the short-lived disappointment of missing out on a property you love than the long-lasting remorse of paying too much.

Fate can play a hand in these things. If you miss a property at auction, accept that it wasn’t meant to be and look forward to finding something better soon.

Thanks to John McGrath for providing the framework for these tips.  Good luck and enjoy the ride!

The Laws of Negotiating – by Brian Tracy

The Laws of Negotiating are closely related to economics. They are part and parcel of the same process. Both economics and negotiating are based on the fact that each person places different values on different things. Everyone behaves economically in the sense that they always strive to negotiate the very best situation or result for themselves in each situation.

The Universal Law of Negotiating

Everything is negotiable. All prices and terms are set by someone. They can therefore be changed by someone. Prices are a best-guess estimate of what the customer will pay. The cost of manufacturing and marketing a particular product or service often has very little to do with the price that is put on it. Don’t be intimidated by written prices, assume that they are written in pencil and can be easily erased and replaced with something more favorable to you. The key is to ask.

The Law of Futurity

The purpose of negotiation is to enter into an agreement such that both parties have their needs satisfied and are motivated to fulfill their agreements and enter into further negotiations with the same party in the future.

The Law of Win-Win or No Deal

In a successful negotiation, both parties should be fully satisfied with the result and feel that they have each “won” or no deal should be made at all. When you are determined to achieve a win-win solution to a negotiation, and you are open, receptive, and flexible in your discussions, you will often discover a third alternative that neither party had considered initially but that is superior to what either of you might have though of on your own.

The Law of Unlimited Possibilities

You can always get a better deal if you know how. You never need to settle for less or feel dissatisfied with the result of any negotiation. If you want a better deal, ask for it. You will be quite astonished at the better deals you will get by simply asking for a lower price if you’re buying and asking for a higher price if you’re selling.

The Law of Timing

Timing is everything in a negotiation. Whenever possible, you must plan strategically and use the timing of the negotiation to your advantage. If you are in a hurry to close a deal, your ability to negotiate well on your own behalf diminishes dramatically. The person who allows himself or herself to be rushed will bet the worst bargain. You resolve 80 percent of the vital issues of any negotiation in the last 20 percent of the time allocated for the negotiation.

The Law of Terms

The terms of payment can be more important than the price in a negotiation. You can agree to almost any price if you can decide the terms. It is important to never accept the first offer no matter how good it sounds. Act a little disappointed when you hear the first offer, and then ask for time to think about it. Realize that no matter how good the first offer is, it usually means that you can get an even better deal if you are patient.

Action Exercise

Whenever possible, talk to someone who has negotiated the same sort of deal with the same person. Find out what the other person is likely to want and what he or she has agreed to in the past. Forewarned is forearmed!

Should the Government inspect leaky homes? (Update 1)

I quizzed a real estate salesperson about their understanding of how a mandatory Govt building inspection report would effect them listing a potential leaky home.  They said they thought that an inspection should be mandatory, but perhaps not Govt controlled. 

Their concern with a Govt report was that Govt would be liable if the house passed its test today, but was found to be faulty the next time an inspection is done, perhaps a few years later.

That got me thinking.  If I bought an at-risk home today on the basis of a good Govt backed report, that would mean that at the time of my purchase the house would be as per the report. In my case the house would need to be virtually perfect.  How about you?

If my new home developed a leak soon thereafter it would be up to me to fix that leak.  If I didn’t discover the leak for 6 months and my bedroom wall was invaded by 50% moisture – tough!  I knew the risks!  If I owned an old villa and the roof leaked, nobody else would fix it for me, nor pay for it to be fixed.  Buying an old villa is simply less risky.  They were better built than our at-risk homes.

I would also expect that, because I bought an official “at risk” home, Govt would not cover me for any further leaks/damage/failures etc, etc.  As the buyer, I would assume complete responsibility for my purchase.  I’d sign away my right to litigate against anyone because I had been warned of the dangers.  As a consumer, I had been well and truly protected! (A chance would be a fine thing)

I can hear the roars of protest from everyone who owns an at-risk home (approx 1991 to 2003 built).  But Steve, you’re making my home un-saleable.  You’re ruining my retirement.  How dare you degrade my home, there’s nothing wrong with it.  Yes, it’s a terribly emotive issue this, isn’t it. 
 
I sympathise with owners of at-risk homes.  PriceWaterhouseCoopers probably has you lumped into their $11.5billion leaky home problem pile.  They know that if you’re home isn’t leaking now, it could in the future, and they’ve made allowance for you.

I sympathise also with people who bought at-risk homes whom have lost all or most of their life savings.  If the Govt report I am advocating was in place years ago, so many lives would be so different today.  Yes, at-risk homeowners would have suffered financially when they sold.  But at-risk homes would have sold for their intrinsic value, not an inflated value.

Govt is fortunate in that it can make amends.  Govt has the power to protect consumers from this point on.  But does Govt have the will, or the guts, to do it?

How it works: 

1. New legislation makes it illegal to list an at-risk property or sell an at-risk property without a comprehensive Department of Building & Housing (DBH) appointed building inspection report.  The report must be attached to the listing agreement and the sale and purchase agreement.
2. The DBH designs a comprehensive building inspection checklist/form to cater for all at-risk homes.
3. Inspectors who wish to carry out pre-listing inspections must be certified by the DBH to do so.
4. Checklist will include full moisture tests.  When unacceptable moisture is found, invasive testing will be mandatory.
5. Before listing, sellers will be able to make repairs, then obtain an updated report, then list their property for sale with the new report attached.
6. Sellers may also choose to sell “as-is”, but with report attached.
7. Not surprisingly, at-risk homes will now sell for their intrinsic value.  They will not sell for inflated values based on hidden or underlying defects.
8. Buyers will assume full responsibility for any future defects and maintenance.  Buyers will accept this because they were fully informed of risks (in report) before purchasing.
9. Government, councils, builders, architects, salespeople will have no further liability for leaky issues after an at-risk property is sold.  These properties will be treated like all other NZ buildings.
10. Government will pay 50% for initial inspection report.  Seller will pay 50% for initial inspection report and 100% for any subsequent reports or updated reports.
11. It will be impossible for Real Estate licensees to mislead consumers about at-risk properties.  Consumers will be fully protected, not partially protected.

 Definition of “intrinsic” = by or in itself, rather than because of its associations or consequences.

Here is one Local Authority’s solution – put a note on the LIM report of every at-risk property!  Proof the Government needs to take charge and provide leadership on this critical issue:  http://www.stuff.co.nz/auckland/local-news/eastern-courier/2410833/Prove-its-not-leaky

Buying your first home in NZ – information for new immigrants

If you’re coming to live in New Zealand (or you’ve recently arrived), chances are you’d like to buy a home.

If that’s you, I recommend you do some research before you buy.  A great place to start is the Immigration New Zealand website.  It’s full of useful advice and further links. 

One important issue affecting home buyers that the Immigration website does NOT draw to your attention is New Zealand’s recent leaky home crisis.  This is a key issue that you should know about.  You’ll get a taste of the issues here.

It is important that you know that leaky homes have adversely affected the lives of thousands of NZ residents.  The NZ Goverment is working to find a solution to the problem, but it is a work in progress at this time.

Anyone who buys a leaky home (or a potentially leaky home) is financially and/or emotionally at risk.  In my opinion New Zealand’s current laws make it far too easy for a new immigrant to fall into the trap of buying an at-risk home. 

For this reason, I have provided the following useful links relating to our leaky home crisis.  If you don’t know much about it, you’re about to become better informed and protected:

Department of Building & Housing media releases

Home Owners & Buyers Association of NZ – Leaky Home Info

Leaky Home Forum New Zealand

Consumer Build – What caused leaky homes

Information about body corporates

This brochure by Harkness Henry provides information and guidance about body corporates.

Body corporates are legislated and must comply with rules set out by the Unit Titles Act 1972.  Click here to access a printable PDF version of the Act.

Some body corporates operate under the above rules without amendments/changes.  Schedules 2 and 3 at the end of the Act show what rules can  be changed and by whom. 

If you are buying a property that has a body corporate make sure you check for any additions/amendments to the standard rules (the Act). 

If you have a pet, make sure the body corporate will allow you to keep it.

My view: A viable solution for New Zealand’s leaky home crisis? (Update)

It’s time to stop beating around the bush and tackle New Zealand’s leaky homes crisis head on.

To start with, New Zealand needs to enact new legislation to protect buyers and sellers of plaster homes.  Until now there has been too much focus on finding people to blame and recovering money lost.  The Weathertight Homes Resolution Services Act 2006 was set up to provide speedy, flexible and cost-effective procedures for resolving leaky home disputes as an alternative to the courts.

The Act might help you if you own a leaky home, but what about the thousands of genuine, unsuspecting people who are out there trying to buy a new home or investment.  What measures were put in place to protect them?  The answer – None!

Most people don’t know/won’t admit the extent of New Zealand’s leaky home problems.  Newspaper reports often try to tally up the current and future cost of cleaning up the problem.  Most estimates talk in the billions of dollars.  That is a big problem.

Most plaster homes are worth less than their (for example) brick equivalents.  This is partly due to stigma and partly due to previous, existing or possible future water ingress.  Not all plaster homes leak.  Many will never leak.  But if you were buying, how would you really know how safe your $500,000 or $1,000,000 investment is? 

Many owners of (broadly speaking) 1991 to 2003 plaster homes think their home might look like other leaky homes, but couldn’t possibly be one.  In my experience, many are sadly mistaken and could suffer emotionally and financially sometime in the future.  If nothing else, the plaster stigma is going to cost them money.  That is sad.

A classic example of what is going on right now is as follows:  A plaster home is listed for sale by an owner who knows their home was built during the “danger’ years.  They don’t have a pre-sale inspection done.  A buyer has a pre-purchase inspection done and fails the house, walks away.  The house is then listed with a new agent (for obvious reasons!).  Another buyer has an inspection done and buys the house.  Two different inspectors, two different buyers, two different agents, two different outcomes.  Too many variables and variations of opinion.  No set rules from Government to adequately protect buyer or seller.  Very much “buyer beware”.  Nobody taking responsibility for the original poor building practices.  Shouldn’t the Government take this responsibility?  I say yes!

I have a big problem with the fact that some new immigrants (and some locals) are being literally stitched up into potentially leaky or (actually) leaky homes.  (Update:  Sometimes sellers know there’s  a problem and hide it from all parties, sometimes they simply don’t know).  Homes built during the at-risk-years are still selling without the buyer approving a building inspection report.

This is where Government must step in to protect the citizens of this country. 

If a house leaks and is bought “eyes shut” by a new immigrant for $1million, the actual value of that house could be, say, $800,000 if the problems had been/were found/known.  If this immigrant stays a few years then sells under the same circumstances (to another buyer) then the problem is hidden again.  The value of the house remains artificially inflated until finally the problem(s) is/are discovered.

This is what Government needs to do:

Legislate that all homes constructed in the danger period (to be defined) cannot be listed for sale or sold without having a Government directed and tightly controlled inspection report attached to the listing agreement and the sale and purchase agreement.

Shock horror this will cost homeowners about $1000 to have done, but that is a cost they will just have to wear.  If Government really wants to help, Government could subsidise this from the funds they will save by generating fewer court cases in the future.

This would then be the scenario when a leaking home is listed for sale (like the $1million one referred to above):  The thorough report (includes invasive tests, moisture readings etc) would be viewed by the buyer.  The buyer would decide to pay about $800,000 due to high moisture readings found in some areas.  The sellers would understand why the buyer is offering such a low figure, after all they had a chance to make repairs but worked out repairs might cost them about $200,000.  If they had done repairs, the house might be worth $1million.  The inspection report would form part of the sale and purchase agreement by law.

Finally, the problems caused by bad building practices in the past are brought into the open and the problem is solved.  More leaky homes would be repaired more quickly than under any other program proposed in the past.

Of course this doesn’t help owners who never intend to sell, but at least it would be a great way to protect consumers buying houses. 

Fast forward twenty one years to the year 2030.  A recently painted and refurbished plaster townhouse comes on the market for the first time since built in 1998.  The listing includes a very comprehensive Government controlled building inspection report that shows serious problems, not the least crumbling timber framing and some walls with 40% moisture content.  The house sells for land value only.

Leaky homes are worth less than non-leaky ones and the sooner these homes find their real value the better.  Now is the time to legislate and protect consumers as described above.

Remuera must be New Zealand’s favourite suburb

According to Alistair Helm. CEO of New Zealand’s most popular real estate web portal www.realestate.co.nz , Remuera is the second most popular suburb searched for on his website.

Because it ranks second to “Auckland City”, I reckon that’s a technical glitch.  People probably search Auckland City from overseas (and home) because they don’t instinctively know which suburb to go to.  So, in my mind, Remuera is definitely numero uno! (See below for a link to the top 20 suburbs searched)

On another note, I would like to congratulate Alistair Helm.  He has impressed me as a creative visionary constantly with his eye on trends that are important to the real estate industry.  Especially technological trends.  It seems that every time he attends the amazing Inman Connect  conference in the USA, he comes back with lots of great ideas to radically transform and challenge our industry.

Real estate agents and salespeople are in a service industry where change and progress is inevitable (and needed).  It is people like Alistair, who embrace and encourage change, whom we so desperately need to gently nudge and encourage us to take small steps forward, headlong into the 21st century.

See if your suburb features in the top 20 here