Category: Blog

Before putting your house on the market, it is essential to understand the different methods of selling property. Choosing the most suitable method can significantly impact the success of your sale. In New Zealand, there are several methods of sale that each offer unique benefits. We explore them below.

 

Auction

Selling by auction is one of the most common methods of selling property in New Zealand. During an auction, a property is listed for public sale and is sold to the highest bidder. It’s a fast-paced process that can take place in person or online. The reserved price is not advertised, but sellers can choose to accept an offer before auction day.

Homeowners choose to sell by auction for many reasons. Its appeal lies in the ability to increase buyer competition. The nature of an auction creates a sense of urgency and competitiveness amongst prospective buyers, leading to potentially higher bids. If the property is sold at auction, the purchaser pays the deposit that day and the property is sold unconditionally.

Your success at selling your property on auction day will depend on the competency of your real estate salesperson, the valuation of your property, your location, and the turnout of potential bidders. And as with any method of sale, it will also depend on current market rates and trends. Your salesperson will provide market feedback to help you set a realistic reserved price for your property.

 

Negotiation

In a negotiation sale, the seller puts their property on the market with no fixed price. Prospective buyers can make offers based on what they think the property is worth.

This method of selling property is ideal for sellers uncertain about their property’s market price. Selling by negotiation has no deadline, giving sellers the time to consider various offers before making a final decision.

Negotiation sales are often high profile, offering sellers an excellent opportunity to gain market exposure. This method of sale also tends to draw in a wide range of buyers, providing the seller with various options.

 

Tender

A tender is when prospective buyers make confidential written offers for a property before a specified deadline. The seller has five working days after the deadline closes to accept any offers.

Tenders provide many advantages to sellers. Like an auction, this method of selling property fuels a sense of urgency amongst potential buyers. As there is a deadline for when the tender closes, those interested in the property may feel pushed to act fast and make an offer. However, once the tender closes, the seller does not have to accept the offer and can choose to negotiate.

 

Fixed Price

A fixed-price sale is when the seller lists a property at an asking price to both conditional and non-conditional buyers. This method of selling property is a great option if you only want to attract buyers willing to meet your asking price. However, while this method has its advantages, it also has some limitations.

When you sell your home at a fixed price, you risk setting a price that is too high or too low. This method may lead you to either undersell your property or not sell it at all. And since there is no set deadline, like in an auction or tender, it removes the time pressure from potential buyers. If there is no sense of urgency amongst your target market, you may wait a long time until your property is sold. However, it’s certainly not impossible. Like any method of sale, selling your home at a fixed price can be a viable strategy once you have an accomplished salesperson by your side.

 

Sell Your Property with Team Sue Hall

Want to sell your property but not sure which method of sale is best for you? Team Sue Hall is a licensed real estate salesperson in Hamilton with years of experience selling a range of properties. Get in touch with us today for expert tips on selling your home.

Are you thinking of buying a home in Hamilton? Hamilton real estate has something for everyone, from character-style housing to modern townhouses. But what are the best suburbs in Hamilton, and what makes them unique? If you can’t decide on the best location, explore some of our favourite Hamilton suburbs below. Hamilton East Hamilton East is one of Hamilton’s oldest suburbs. The region is well known for its beautiful bungalows and villas constructed in the early 20th century. These houses are full of character but feature modern amenities to satisfy new homebuyers. There is much to do and see in this historic town and the surrounding neighbourhoods. Most notably, it is home to Hamilton Gardens, and the River Trails both being famous attractions. Rototuna Rototuna is experiencing rapid growth. It boasts an excellent selection of shopping centres, fantastic playgrounds, restaurants, and supermarkets, with plans for further community development. Plenty of schooling options are also available for kids of all ages, making Rototuna a great place for young families to settle down. Frankton Frankton is a popular railway suburb in central Hamilton, home to excellent eateries and shopping. The suburb blends the old with the new, offering a great mix of new townhouses and ancient cottages. Frankton has a great selection of restaurants, cafes, and markets that keep locals entertained. The Frankton Market is a popular weekend activity for those seeking a lively atmosphere and a memorable cultural experience. The market features a range of cultural performances and live entertainment, along with food, clothing, and arts and crafts stalls. Hillcrest Hillcrest is among the best suburbs in Hamilton for University students, families, and working professionals. The popular southwestern suburb is close to Waikato University, schools, and research facilities, including the Ruakura Research Station. Properties in Hillcrest range from 1960s vintage-style homes to new dwellings. Melville Located in Southern Hamilton, Melville is one of Hamilton’s largest suburbs for residential housing stock. Most houses in the region were built between 1960-1969, and many of its schools were founded between 1924-1964. There are plenty of gorgeous properties for sale in this area, whether you’re a first-home buyer or looking to upgrade your family home. Melville sits near Hamilton CBD, Hamilton Airport, and Waikato Hospital. Popular Hamilton attractions like Hamilton Gardens are just a short drive from the suburb. Claudelands Situated across the Waikato River, Claudelands is close to Hamilton CBD, offering residents easy access to supermarkets and retail stores. The popular Hamilton suburb offers a range of local attractions and is a short distance from sporting facilities in Hamilton East. Period homes from the early 1900s characterise the region, bringing a unique history. Find Hamilton Properties for Sale with Team Sue Hall Ready to start your home-buying journey? Team Sue Hall has successfully been selling properties in Hamilton for over 24 years. View our houses for sale in Hamilton today to find your dream home. Check out our suburb profile to learn more about the best suburbs in Hamilton and find details about house pricing, demographics, and more. Get in touch today!

Even in our modern era, sourcing the most accurate valuation for your property can feel like an overwhelming task. Nonetheless, finding the best valuation will allow you to tap into the equity within your house and get an idea of what your finances will look like when buying your next investment property.

From online valuations to real estate agent appraisals, there are different ways to get a house valuation in New Zealand. But which is the best option for you? Find out how to get a house valuation and the benefits of each method below.

Online Valuation

If you’re looking for an immediate valuation, online models are quick and easy to use. However, online valuations do not have the accurate information and knowledge of real estate consultants. Online valuations are overly broad and do not consider the condition of your property or flag areas that could be easily improved. While it is a cost-effective way to get a general glance of where your property sits in the market, it is the least precise option available.

 

Real Estate Appraisal

When considering how to get a house valuation, we recommend talking to an industry expert. An experienced real estate salesperson can offer an appraisal based on their intimate knowledge of the local property market. In opposition to online valuations, a real estate salesperson can walk through your property and identify the unique selling points of your household. They can also detail any parts of the home that may need work to bring the value up. Not only are you getting a valuation – you are also getting expert advice. Our licenced real estate salespeople at Team Sue Hall specialise in Hamilton real estate. We can compare similar households within the area and have a real presence amongst buyers and sellers within the community. Talk to one of our salespeople to uncover the true potential value of your home in the current market.

 

A Formal Independent Valuation from a Property Valuer

If you have more money to spare, you can opt for an independent property valuation from a registered property valuer. This is the most formal property valuation you can complete and is usually only considered when seriously looking to sell and more commonly is what a purchaser would be asked by their lender to secure which is normally something that is obtained through an online booking panel. An immense amount of detail goes into this report and can be an effective way of justifying the price.

 

Get a Free Current Market Appraisal from an Expert

Need more information on how to get a house valuation? At Team Sue Hall, we are true experts in Hamilton real estate and can give you a FREE current market appraisal, so you have confidence in knowing how much your house is worth. Once you know the value of your property, we can help you in the next steps if you’d like to sell. Our team’s impressive expertise can make buying and selling your property a stress-free process. Browse our website to see houses for sale in Hamilton and testimonials from our clients.

The city of Hamilton currently has around five months of housing stock listed for sale on the market. This compares to around five weeks of stock just one year ago.

Lodge Real Estate Managing Director Jeremy O’Rourke says the slow market means vendors must change their sales approach. He says there are three things vendors must get right to minimise the number of days to sell.

“There are three considerations vendors need to understand about what it takes to sell a property in a market that has cooled significantly.

“The first thing is you’ve got to have great motivation. There’s no point listing your home today without being confident in exactly what you want to achieve. It’s not the time to list just to see what might happen. Vendors must be realistic and ready to move.

“Secondly, you’ve got to get your price right, and do so within the first three weeks your home is on the market. This short window of time is when buyers will be most cognisant of your property. If you don’t get your price right the first time, you risk being overlooked.

“And third factor is that vendors must get their digital promotion right in this slower market. Trade Me research shows 99% of people looking to buy a home, look online. But what many vendors don’t always understand is that while all house listings are online, not every house listing is easily visible to buyers. You need to be intentional with your promotional plan if you want to be found,” explains O’Rourke.

He says vendors should test their agents to ensure they really understand digital marketing which should include a mix of social media promotion, and features on the major real estate websites.

“As a vendor, you should also be choosing a real estate company that is meeting a lot of buyers. A great way to judge this is to ask how many open homes the company typically has over a weekend. The more open homes, the more buyers those salespeople are meeting, which means more opportunity to bring buyers back over your doorstep,” says O’Rourke.

He also says freshening up a property and considering the use of home staging has become imperative in the current, slower market.

“Smart vendors ensure their home is presented immaculately. Sometimes this means you should use a home staging consultant in order to appeal to buyers and sell more quickly. Or it might mean a freshen up, like repainting a room or adding new curtains.

“Choose a salesperson who’s willing to give you the cold hard truth about how well your property presents, rather than a comforting lie.”

As property sales plummet by 32.5 percent and first home buyers move from a fear of missing out (FOMO) to a fear of paying too much, real estate agents are warning that a lull in the market is the best time to buy.

Lodge Real Estate Director, Jeremy O’Rourke, says Hamilton experienced one of its slowest months in April with only 192 properties changing hands and very few of them to first home buyers. The latest figures from REINZ also show sales have plummeted 32.5 percent annually and monthly prices are down with fewer homes sold in every region of New Zealand.

“First home buyers are listening to the news and the advice of their parents, and they no longer have that urgency or fear of missing out. They’re taking await and see approach, but when there’s a lull in the market, that’s the best time to buy,” says Jeremy.

He says there are four factors interfering with the property market, including changes to the Credit Contracts and Consumer Finance Act which had put the squeeze on first home buyers when obtaining loans.

The other three factors however were likely to see demand for properties increase again as more New Zealanders return home from overseas in coming months, immigration re-starts from August, and rents continued to rise.

“All these people returning to New Zealand will eventually be looking to buy. It’s a good opportunity now for first home buyers to buy without competition. Hamilton is a big city, but they may not have that same opportunity in a few months’ time,” says Jeremy.

The continuing upward pressure on rents is just another reason for those who can get the finance to get into their first home, says Jeremy.

“We understand that first home buyers have gone past the stage of FOMO – the fear of missing out. If they miss out on something today, the attitude is that they will find something tomorrow. In six to eight weeks’ time that may be quite different,” says Jeremy.

Many segments of the residential property market are still performing strongly in Hamilton. Despite overall sales volumes for March being approximately 25% less than March 2021, one Hamilton real estate agent is reminding people that residential property is not a commodity market.

Lodge Real Estate Director, Jeremy O’Rourke, says people need to remember the housing market is comprised of diverse segments and many are still performing very well.

“When you listen to commentators talking about the downturn in the overall housing market across New Zealand, you might conclude it’s all doom and gloom. But what many people don’t realise is housing is not a commodity market. There are many different segments within the market including lifestyle blocks, character homes, entry-level homes, investment properties, townhouses, duplexes and more.

“When you analyse the market in this way, we are finding at a micro economic level there are still many segments attracting strong buyer interest and performing well. Lifestyle properties and character homes are two that remain especially strong in Hamilton,” he says.

O’Rourke says there has been downward pressure on prices in segments of the housing market which have been diluted with stock. The townhouse market is one case in point.

“We’ve seen prices on Hamilton townhouses retreat anywhere from 2% to 6% in recent months. This has left some mum and pop investors struggling to realise any real margins on finished builds.

“That’s because many of these investors paid a premium for land to build their townhouse developments when the market was at its peak a few years ago. As townhouse prices decrease, investors’ margins are considerably less than they would have budgeted on,” says Jeremy.

O’Rourke says the Hamilton economy remains strong and that means the housing market will remain resilient, despite mass ‘commodity’ market numbers waning.

“As the Omicron wave passes, Hamilton businesses are preparing to take off again and people are moving back into offices for work. We have a strong economy driving jobs and population growth and those two factors will drive a strong housing market. The city is an incredibly attractive market to buyers,” says Jeremy.

Considerable housing, commercial and industrial developments are underway around the city, which are also contributing to strong buyer demand. As the Credit Contracts and Consumer Finance Act rules relax in the short-term, this will further help to free up finance for many looking to buy, says Jeremy.

New Zealand is experiencing an artificially suppressed housing market. As borders reopen, house prices, alongside with demand, could reignite as those locked out through MIQ restrictions return looking for somewhere to live, says a Hamilton real estate agent.

Lodge Real Estate Managing Director, Jeremy O’Rourke, says New Zealand has been operating in a false market with our borders closed and people hunkered down in a semi-lockdown state as Omicron numbers continue to rise. He believes this is set to change.

“As our borders reopen and tensions increase between Russia and the Ukraine, New Zealanders will be looking to return to safety. Citizens and residents will travel back to New Zealand to reconnect with family, and they will all need somewhere to live.

“We know the Covid-19 crisis is pushing many home. Adding to this, we saw Kiwis return enmasse after major global crises like 9/11 and the global financial crisis, so we believe the Ukrainian conflict may trigger an Antipodean population shift once again,” says Jeremy.

Some economists have predicted a long-term slump in the market on the back of rising interest rates, high inflation, and changes to bank lending rules. QV’s February report found home values dipped in Hamilton for the second month in a row, down 0.4 per cent in February.

But O’Rourke says some dire predictions made by economists are haphazard and misguided, because the market is artificially suppressed.

Around 5000 international students were tipped to return to New Zealand once borders reopened, and around ten percent of those will head to Hamilton. There are only 80 rentals currently available in the city and with 50 percent of those being small studios the impending student influx posed a real challenge, he says.

“We expect the second half of the year will see a renewed vigor from investors as simple supply and demand pressures caused rents to rise, making rental property investments very attractive,” says O’Rourke.

Throughout February there had still been multiple offers made on many quality Hamilton homes, although foot traffic at open homes had been down because of increasing Omicron cases.

The number of homes for sale in Hamilton has nearly doubled compared to the same time last year but the number of rental properties available in the city is at an extreme low says real estate agency Lodge.

Lodge Real Estate Managing Director, Jeremy O’Rourke, says the number of residential properties currently for sale in Hamilton sat at 780 at the end of January, which was a vast improvement on the 410 available on the market at the same time last year.

Lodge City Rentals, Hamilton’s largest property management company by volume, however, has just 75 properties on their books currently, and 55 of those are small studios considered most suitable for students. That leaves only around 20 rentals suitable for families.

“It’s harder than ever for Hamilton renters. Families especially are really struggling to get into homes in the city, with the number of quality rental listings well down,” says Jeremy.

However, for those people putting their homes on the market for sale, most were looking to buy elsewhere in the city. “There’s potential for a few of these homes to enter the rental pool, as investors continue to see value and demand in the Hamilton market. But there is no quick solution to our rental shortage in the city.”

Jeremy points to a shifting market, overall, where buyers can be more discerning because they have more choice as listings increase. However, buyers also face rising interest rates and controls on bank lending under the Credit Contracts and Consumer Finance Act, which was making everyone more cautious, he says.

“Finance is really hard to get right now, and it takes longer to be approved so that’s also starting to impact on conditional sale periods which are being pushed out and extended while buyer finance is approved,” says Jeremy.

He says in some cases houses were taking up to one month longer to settle than they normally would as people navigate these new financial challenges.

The Hamilton market still represents good value, with the median house price reported by the Real Estate Institute of NZ for December was sitting at $870,000 which is still below the national median of $905,000.

People are also still moving to the city and the completion of infrastructure like the Waikato Expressway later this year would drive further development and interest in the Waikato region.

“Our farming sector is strong and there are businesses with global growth prospects relocating to Hamilton as our infrastructure improves, so we don’t see the city’s housing market going backwards anytime soon, but we certainly don’t expect to be seeing the freakish growth that we had last year,” says Jeremy.

Developments in the northwest of the city, at Temple View, and north of the city, at Horotiu, were also attracting new buyers.

While January is always a quieter month for house sales, this January’s sales figures were especially low. This was expected as people took a longer break after contending with COVID-19 throughout 2021, Jeremy says.

Real estate agents say some sanity is returning to the Hamilton housing market as they tackle conversations with vendors about their price expectations and buyers face having bank preapprovals removed.

For some, however, November prices may have still felt insane. The Real Estate Institute of NZ reported that Hamilton’s median house price broke another record in November, moving to $881,000 from just $829,000 in October. This compares to Hamilton’s median of $693,000 in November 2020. That’s a 27% jump in 12 months.

But things are changing. Lodge Real Estate Managing Director, Jeremy O’Rourke says a recent auction saw four out of five bidders have their bank preapprovals removed the same day as the auction. He also says fewer homes are selling under the hammer, with prices instead being negotiated after failing to reach set reserves. Only one-third of homes at Lodge’s 8 December auction sold under the hammer.

“There’s still plenty of confidence in the Hamilton real estate market but there is a definite change happening. It’s a tough market to get your head around because there are so many variables in place,” says Jeremy.

Most major banks have removed lending to borrowers with a less than 20 percent deposit, after the Reserve Bank tightened lending restrictions from November 1, meaning only 10 percent of a bank’s total lending can be to borrowers with a less than 20 percent deposit.

Kiwibank was the first to remove preapprovals for home buyers with a less than 20 percent deposit, but since then other banks have followed suit. This was set alongside rising interest rates and an increasing amount of housing stock coming onto the market, giving buyers more choice.

“Banks can only have so much low equity lending and interest rates on term lending have doubled in the last couple of months. There is also about $130 billion in loans due to roll over that will be coming off those low interest rates. The question is, how is that’s going to impact the economy?” says Jeremy.

The market was at a crossroads, he says, and both buyers and sellers were having to adjust their expectations for different reasons.

“While obtaining finance is tough, we’re also finding there is a lot more negotiation happening post auction because vendors’ expectations around their reserve are higher than the market is willing to meet. We’re still seeing good prices, but we certainly expect to see those level off into 2022.”

House listings across New Zealand are some of the highest they have been since 2014 while housing consents to build new homes were also at an all-time high.

In Hamilton the number of homes listed for sale in November sat at 529, up 116 properties compared to the same time last year.

“Hamilton buyers have a lot more choice than they had most of this past year, but Auckland has also been locked out of the local market for the past few months. From mid-December this will change and we expect to see demand rise even further in coming months,” says Jeremy.

He says Hamilton was still an attractive option for buyers, but agents were having to “retool” vendors who were accustomed to setting a reserve price and having it well exceeded at auction.

“It’s a cautious time now and we’re seeing some sanity come back into the market. The huge price rises we’ve seen in Hamilton during 2020 and 2021 will not continue into 2022,” says Jeremy.

The Real Estate Institute of NZ reported there were 316 houses sold in Hamilton by all real estate agents during November, down significantly year-on-year when compared with November 2020 where 413 houses were sold.

If you’ve ever thought about selling your home, you will probably have heard the term ‘appraisal’. But what exactly does an appraisal entail? And what can a first-time seller expect when they ask an agent to come around and appraise their home?

Even if selling your home is a distant, far-off future venture, and you don’t want to start a serious sales talk yet—or commit to anything—a home appraisal is an excellent way to uncover your home’s value in the current market. Knowing this will at the very least help you plan and prioritise any future renovations or improvements.

How does an appraisal work?

Essentially an appraisal is just an informative chat with a licensed real estate agent. An agent will come to your home, at your convenience, and talk you through a few points about your home and its place in the market. This is a great time for you to:

• Find out the value of your home.
• Discover ways to boost its value.
• Learn about the future of your suburb.
• Find out what selling method best suits your property.
• Get all your home selling questions answered.

Lastly, an appraisal is a chance to get to know a local agent and decide if they are someone you could work with in the future.

What information will I be given?

The value of your home

To start off your home appraisal, the agent will provide you with an estimated value of your home. This likely won’t be an exact figure, rather a price range that your home might sell within in the current climate­. This price range is based on comparable properties and relevant market statistics (see below).

Remember: if you aren’t looking to sell immediately, this figure may fluctuate with the changing market.

Comparable properties

The agent will also show you comparable properties that have either recently sold or are currently on the market. These properties will be similar to your own in a number of ways; location, size and condition for instance, and can further guide you on the value of your home.

Market statistics

You’ll also receive property statistics relevant to your area to back-up the information the agent shares with you. This can include:

• Number of homes for sale in your area
• Average sale price for your area
• Auction clearance rates
• Exclusive clearance rates

Different home selling methods explained

Next, the agent will explain the various selling methods to ensure you know what your  options are, should you decided to sell. A few commonly used methods are auctions, tenders and exclusive listings. The agent will discuss the pros and cons of each method and recommend the best one for your property.

How to market your property

Options to market your property may also come up, but if you aren’t close to selling yet, you don’t need to discuss marketing at this stage. The agent may show you some differently priced packages that could suit your home, but don’t feel pressured to make any decisions this early on.

Information about the agency and agent

Lastly, the agent will tell you a little bit about themselves and the agency they work with. You’ll learn what their agency strives for and why they believe they are the best candidate to sell your home. Here at Lodge, we also provide a number of resources to help you get to know us.

Can I ask for advice on how to prepare my home for sale?

Absolutely! In fact, we encourage you to. A home appraisal is an excellent opportunity to ask an agent for help to get your home ready to sell. As an expert on property value, they’ll know the best ways to increase the amount potential buyers are willing pay. Simply ask for some pointers and they will outline areas that could do with some work.

Moreover, in asking these questions at an appraisal, you’ll also have time to implement the recommendations before listing your home on the market.

What other questions should I ask the agent appraising my home ?

Whether you’re a first time or experienced home seller, you’ll always have questions or worries weighing on your mind. Agents are available to address all of these. Remember, there is no such thing as a silly question when it comes to selling a home. It’s best to know all the facts up front, so always ask about any points you are unsure of.

Here are a few questions to get you started:

• What properties have you recently sold?
• Do you specialise in my neighbourhood?
• How will we communicate? And how often?
• How do you handle potential buyers’ questions?
• Do you have any testimonials or reviews from past clients?

What should I do after the appraisal?

You (and any joint owners) should look over the information the agent has shared with you. Consider how you felt about the agent and their approach to your property. If you are ready to sell and feel comfortable with the agent you spoke with, then contact them to discuss the selling process in more detail. Remember, this doesn’t have to be an immediate decision and any good agent will be perfectly happy to give you all the time and space that you need.

Key points to remember:

1. An appraisal is not a commitment and you should come away feeling informed, not pressured.
2. Ask any questions you have, no matter how trivial you think they may be.
3. Take things at your own pace; if you aren’t ready to start the selling process let your agent know you want some space. Good agents work to vendors’ needs and will still be happy to sell your home years down the track.