Real Estate Magic: Ben’s Barometer July 2018
Real Estate Magic
Growing up, there was nothing more exciting than a televised David Copperfield event. We all watched him walk through the Great Wall of China and escape from a strait jacket while submerged in a tank of water. Was he really magic or was it all an illusion? It’s amazing, what we buy into as humans when we want to believe something is true.
This month, we look at the reality behind a few common ‘Real Estate illusions’. This will ensure when it comes to deciding on which agent to represent your biggest asset, you can see the real estate ‘magic’ for what it really is.
1.‘We have cash buyers on our books’
Every agent can find a buyer for your property. But is that buyer going to offer you the best price? Selling is hard. You have to invest money in preparation and advertising, keep your home showroom perfect and allow strangers to visit on mass or at the drop of a hat.
So we understand that sourcing a one-off buyer could seem very appealing. But all that glitters is not gold. And from an agent’s perspective, this is an age-old trick used to win your business. In some cases these cashed up, off-market bidders will materialise. But it is equally common for those buyers to disappear as soon as the ink is dry on your contract which means you’re likely to be going to the market regardless.
2. ‘I’ll get you top dollar’
Anyone who has undergone the arduous task of interviewing multiple agents is likely to have heard conflicting claims regarding the title of ‘best negotiator in town’. Probe a little further and you may be regaled with tales of buyers come tender day who have to answer to the ‘bad cop’ agent who has been sent in to extract every last dollar.
This strategy may have had some merit in the hay day of 1980’s real estate. But these days, trust-based selling starts from the first enquiry. This trust gains momentum over the course of the campaign and culminates in buyers submitting an offer based on being supported through a process. No one responds well to being strong-armed, especially when it is by someone they have never met. This very strategy may be the one which costs you come deadline day.
3. ‘Your home is worth way more than you think!’
Although home owners are unlikely to admit it, most have a good gut feel on where their property sits in the market. So when faced with an appraisal range from an agent, which sits way in excess of expectations, it can be easy to buy into the promise of that magical result. As agents, we are required to provide potential vendors with a range of recent comparable sales and an explanation as to what makes these comparable.
So, when faced with a vast range ask the agent: Which sale do you think is the most comparable to my property? or What makes these properties comparable to mine? These days it is not enough to conduct a radius search of sales in the area. You need good quality information to support you in making informed decisions come deadline day.
4. Number one
Real estate is an industry which loves to dish out awards. Just last month I was appraising in competition with an agent who claimed to be number one for his company in a certain area for the month of May. The reality is, is there can be only one Number 1 agent for each company.
And the benefit of this title? Purely the reassurance that you are likely to be dealing with a hardworking, experienced agent with the ability to negotiate a sale to completion.
The Wellington Market
Amanda tends to feel that my market reports each month could do with some variation. But from my perspective, it just highlights the fact that we have entered a balanced market. We are still experiencing really strong numbers and results in the entry level of the market, but as we move up the scale properties are taking just a bit longer to sell.
Looking forward I feel like inflation is just around the corner. A few months ago, the governor of the Reserve Bank said he expected interest rates to remain unchanged. But as I understand it they are key to controlling inflation so it’s worth keeping an eye on.
WELLINGTON MARKET QUICK FACTS
Average sale price by Ward:
Matariki Fun Facts
On Saturday 7th July 2018 on the Wellington Waterfront, rounding out the Matariki celebrations, will be the Wellington Sky Show. This landmark event sees the Wellington harbour light up with a spectacular fireworks display.
Why we celebrate Matariki:
- The star cluster Matariki (also known as the Pleiades) reappears in the dawn sky above Aotearoa New Zealand in late May or early June.
- The new moon following the rising of Matariki signals the Māori New Year. Customarily, this was a time to remember the deceased of the past year and to plan for the next year.
- Today, Matariki has been revived as a celebration of people, culture, language, spirituality, and history. It is a time for whānau (family) and friends to come together to reflect on the past 12 months and look towards the year ahead.
If you or anyone you know could benefit from a considered market assessment by Wellington’s only licensed agent and registered property valuer, please do not hesitate to call. We are always very happy to help.