Caveat emptor, YEAH RIGHT
Distrust in sales people spans the centuries. Only the other day we were reading an historical account of salesman hatred dating back to Roman times when, with no way to regulate trade, sales people would say or do just about anything to hock their products and services. This approach to sales has been adopted right through to modern times with the catch cry ‘caveat emptor’ or ‘let the buyer beware’ quickly preceding the realisation that said products or services that don’t quite meet the grade. Although an inherent distrust for sales people still exists, many industries are now much more tightly regulated providing buyers the protection they have long sought.
The introduction of the Real Estate Agent’s Authority 2008 was an excellent step in the right direction for the New Zealand property industry. Legislation regarding the misrepresentation of property and requirements for disclosure of known defects, has led to greater transparency for the transaction of property in New Zealand. That being said, we would always recommend completing your own due diligence on any property you are seriously considering. After all what’s a few hundred dollars up front when hundreds of thousands are at stake?
Here are some cost-effective ways to get the best out of your property hunt
1. Engage the services of a good property lawyer and make contact early. Explain that you would like to acquire their services on an hourly basis prior to securing a property. This way you can tap into their knowledge and seek clarification on any legal terms or procedures prior to making an offer. Some lawyers will quote a fixed fee option which is another great way to limit conveyancing costs. If you decided to head down this route, you will be free to engage with your lawyer knowing that regardless of how many offers it takes to purchase a property, you will never exceed the agreed fee.
2. Ask recommendations for a good building inspector and, like the lawyer, engage their services on an hourly basis. Most properties these days will have a building report supplied. Ask your inspector to review the information provided pointing out areas which may have been missed, and completing a walk-through of the property if necessary. Building reports supplied for the purposes of marketing a property have been commissioned on behalf of the vendor. While these reports can be relied on in most circumstances, taking time to seek the opinion of an independent party will give you the confidence to put your best foot forward when it comes time to offer.
3. Understand the key points of the LIM. Most of the information in a LIM is generic and similar to most properties. The first few pages will indicate anything that the council have on record specific to the subject property. One other area to pay particular attention to is the consents section. This is where any signed off or incomplete consents would be detailed. If something doesn’t seem right, or you would like to seek clarification on any matters, contact your lawyer.
4. Pick the brains of an independent property valuer. Like the lawyer and builder, engage them on an hourly basis and use them as a sounding board for price and potential to add value.
Although the industry has come a long way, it is not normally until a transaction has been completed that costly problems raise their ugly head. It is at that point that, if you have failed to carry out your due diligence, you could be faced with the often very stressful and costly prospect of which path to take to seek compensation. A bit of time and money spent upfront, could save you tens of thousands down the track.
We work with a raft of reliable and skilled professionals across these industries. If you would like the names of people that we trust to do a good job please do not hesitate to contact us. We are happy to help.
The market has finally tipped into a sellers’ market. That means that the majority of properties currently advertised for sale have the ability to create a competitive bidding process. Compared to the rest of the country, Wellington is viewed as good value for money; this will continue to push buyer interest which can only be a good thing after a sustained period of little to no growth in the region.
As we enter into November we are likely to see a lift in listing numbers with a cooling off from around mid-December as we head towards Christmas.
Wellington property quick facts
The average sale price by area for September 2014 and 2015
|September 2014||September 2015|
Average days on the market: 21.8
RWC fun facts – the world cup review in numbers
- There was a total attendance of 2,474,584 across the six-week tournament, which filled 98% of available seats.
- The ticket revenue target of 250 million pounds ($385 million) was exceeded. An estimated 460,000 fans travelled from overseas.
- The final was watched by an estimated audience of 120 million, with record numbers of viewers throughout the tournament in Germany, Brazil, Chile, India, China and the Netherlands.