Most of us will be familiar with the cinematic line: “We’re off to see the wizard, the wonderful wizard of Oz” from the classic film, The Wizard of Oz. For those of you a touch younger than I, the premise of the movie is that the Wizard of Oz is the only being with the power to send Dorothy home. Much to our disappointment when we finally meet the wizard it turns out he was just a grumpy old man with no special skills.
In the capital we have our own Wizard of Oz. It’s unlikely you have heard of him, and you’re even less likely to have met him. This month we chat about what and who have influenced the way we sell real estate in the capital and unpack some common mistruths. Apologies for the out-of-towners, this one is Wellington centric, but an interesting refection none the less!
The Wellington Wizard
In our own fairy tale, the person behind the curtain is none other than Rob Garlick. Now if you’ve started searching, don’t. You won’t find this man on Instagram or Facebook, and you certainly won’t hear him promoting what a truly inspirational career he has had. But the facts speak for themselves. Rob has a formidable reputation as one of the deepest thinking real estate minds in the country and he has built a business to a scale that few, if any, have managed to replicate.
Back in the 1980’s Rob set up the company, which is now known as Ray White, although it has also traded under the brands ‘Leaders’ and ‘Remax’. Up until 1998 real estate in Wellington was sold in a much more simplistic way utilising an asking price, a method known as Price by Negotiation and by Auction. Yes, you heard it right, Wellington was in fact was an Auction town and Rob’s business reigned supreme in this space. Roll around the 2000’s and in response to a rapidly changing market, Rob introduced a method previously unseen in the Real Estate realm, the Tender! Yes, Rob is solely responsible for introducing the concept of ‘tendering’ for property to Wellington. A method which, due to the sheer size of the company at the time, became the primary way real estate is sold in the capital.
So, while you might hear the old adage “Auctions don’t work here, Wellington is a tender town”, that’s not necessarily correct. The Auction has been around as a method of sale since ancient Greece in 500BC, it is the most popular method of sale in Australasia, and it is as successful in Wellington as it is in every other part of the country. The simple reason Tender outnumbered this method was because of Rob and the significant historical market share he has held in the region.
The Top Three
In the capital three companies hold the overwhelming market share of real estate sales. These are Ray White, Tommy’s and Lowe & Co. What may not be as widely known is that the agents responsible for those very companies, Tommy Heptinstall and Craig Lowe, learnt the trade under Rob Garlick. So while the colour of the brand may look different to the untrained eye, the underlying approach is very much the same.
No Right or Wrongs, Just Trade Off’s
Just as Rob did in the early 2000’s, and in response to the rapidly changing post covid market in which buyers failed to respond to Tender in the same way as they once had, we started to seek other ways in which to achieve the results our vendors deserved. This thinking coincided with a vendor’s request to run an auction for their property. After a devastating 2022, having 19 unconditional buyers turn up to bid on a three-million-dollar property was almost unbelievable. And so began our Auction journey.
While the change of approach flew under the radar for a while, the success started to catch the attention of other industry players. Many of whom visited our offices and observed the success of our Auction events for themselves. This in turn has led to some strongly worded defensive statements along the lines of, you guessed it, ‘Auctions don’t work here, Wellington is a Tender town”. We understand this, because they need to defend their position. That, and the fact that our two major competitors cannot quickly or easily follow suit.
As I mention to any potential client, there is no one perfect method of sale or way to sell real estate. If there was, everyone would do it. A method is simply about getting your market to perform in a certain way. With over 1000 sales under our belt (the vast majority of those Tender or Deadline) I can now say the only method of sale which requires a high level of skill and significantly increased workload is auction. When you run an Auction our ability to generate interest, and competition, are on display in a very public forum. A failed Tender comes and goes and no one is any the wiser, but an Auction with no bidders is on display for all to see. Here are the facts. Below you can see we have collated the sale rate of properties by 90 days on the market using Auction vs. other sales methods for the past 12 and 3 month periods respectively.
| Sales Method | Clearance rate at 90 days in previous 12-month period | Days on Market in previous 12 month period | Clearance rate at 90 days in previous 3 month period | Days on Market in previous 3 month period |
| Auction | 84 | 28 | 73 | 33 |
| Other methods | 62 | 40 | 47 | 41 |
Market Strong or Strategic Approach
Just like the New Zealand economy has been described as a cork in the economic ocean, so too is the general approach to the sale of real estate. When times are good agents claim the glory of the amazing results, yet when times are bad, they blame the market. This is a market approach to selling, you just rise and fall with economic movements. A strategic approach is one where you implement a plan that responds to current market conditions. And while you can’t change those market conditions you can improve your odds of selling. And with an over 25% better chance of success within 90 days via Auction, those are pretty good odds.
The Wellington Market
It’s been a tough few months in the capital with the war cry ‘survive until ‘25’ echoing around the empty city streets. For those fortunate enough to be able to buy in this market, prices are in line with the market of 2018, and so we believe the time to be brave is now. At an open home a few weeks back, I was checking in a buyer who commented that we have been calling him a bit often with property options.
My response “if agents are calling you then you know it’s a good time to buy, it’s when we aren’t calling you that you need to be worried.”
Wellington Market Quick Stats
What’s on in Welly?
We Will Rock You, 15 Aug – 1 Sep 2024
The world’s favourite rock musical hits Wellington for the very first time in 2024. Featuring 24 of Queen’s greatest hits, ‘We Will Rock You’ rivals the scale and spectacle of the band’s legendary live performances. Endorsed by Queen’s own Roger Taylor and Brian May, it is one of the most successful musicals in West End history. Its 12-year run in London played to 6 million people. It has also found unprecedented popularity around the world, playing to a global audience of 20 million across 28 countries.
Click here to purchase your tickets
Whānau Mārama: New Zealand International Film Festival, 31 Jul – 11 Aug
Screened across four cities, Whānau Mārama: New Zealand International Film Festival (NZIFF) brings global films to local cinemas. A highlight of the winter event calendar, the festival kicks off in Wellington in late July. It then travels to Auckland, Dunedin, and Christchurch through August.
Covering a wide variety of genres and formats, the festival also brings Q&A discussions, panels and a few surprises. Directors and producers from around the world often take to the stage to introduce and speak about their work. This is the biggest event in the New Zealand film-lovers calendar.
Click here for more information
World of Wearable Arts Show, 26 Sep – 13 Oct
The magic and spectacle of the World of WearableArt (WOW) Show returns in 2024. Journey to a world-between-worlds when the show brings the TSB Arena to life this September.
This year’s WOW Show ‘DREAM AWAKE’ will take you through six awe-inspiring ‘realms’. Imagination becomes reality as you navigate worlds spun by the mysterious and magical Dream Maker.
Meet the Ben Stevens & the Team
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 happy to help.
