Steve Koerber's Old Blog

Remuera's house sold name since 1998 – 021864166

July 2008 Newsletter

Posted by Steve Koerber on July 24, 2008

I’ve experienced so much success in 2008 that I feel a bit uneasy when people ask me “so how’s business?  Despite a constant stream of negative financial news, I sincerely hope you’re managing to avoid the turbulence.  I’m not at all qualified to offer advice in this arena, but I sense that “debt reduction/avoidance” could be more important today than at any other time in recent history.  I suspect that only time will tell.

I’m telling you the following story to demonstrate why and how people sell in the current market.  Many people think now would be a bad time to sell, but is that really the case?   Clients of mine in Koraha Street were keen for a “tree-change” after I sold their home by auction last month.  The day after their auction (with two bidders) they reluctantly dropped and sold $60,000 (or 7.5%) below their expectations.  Realistically, they sold about 13% below what they might have achieved 12 months earlier.

Armed with a lighter bank balance than anticipated, they were understandably nervous about their ability to find and fund a more expensive home.  Before long they found a dream opportunity in semi-rural Riverhead.  They negotiated well and secured a very special property about 15% below vendor’s expectations.  Realistically, they bought about 20% below a figure the market would have supported 12 months earlier.

If the market was rising I could understand people’s hesitancy to sell at a price they weren’t happy with.  In a flat or falling market, if you’re buying again, it’s a great time to sell.  Until next time, thank you for your ongoing support.  If I can help you or anyone you know, please let me know. 

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