Last month I spent just over 24 hours in Melbourne visiting friends. Amanda stayed on a little longer, but with Sunday being open home day, I needed to be back.
Our friends live in a very cool 1960s home about 25 minutes from the CBD, close to the sea. Over a drink, Dan mentioned the house had a few issues, nothing unexpected, and things they knew about when they bought. He said something that really stuck with me: you don’t get to ask for these things to be fixed, because someone else is always happy to buy the house exactly as it is.
Back in Wellington, I mentioned that issues with homes, both big and small, have become a real challenge for sellers. Most of these issues have existed for years, but in the current market the focus has shifted to finding everything that could possibly be wrong with a property.
The Expectation Gap
This month, we’re looking at why cheap is no longer cheap, and what owners can do to prepare for the “new market”.
Traditionally, cheaper properties have come with an unwritten understanding: there is work to be done. This trade-off has allowed many buyers to get into the market when other homes were out of reach. Repairs and upgrades were simply part of the journey.
Today, buyers at the lower end of the market appear to want homes with no issues, but still at a cheaper price point. That expectation shift is creating real tension.
Inspection Evolution
Twenty years ago, a ‘building report’ might have been a builder mate wandering through, poking under the house, tapping a few boards and glancing at the roof. Today, we have thermal imaging, moisture meters, laser levels and every agent’s favourite phrase: “may require further investigation.”
The reality is that building inspectors are paid to find issues. They identify them and then, understandably, disclaim themselves out of any future liability. No one wants to be responsible if something goes wrong later. No house is perfect and cheaper homes are, by nature, less perfect than others..
Risk Over Reason
Banks and insurers are increasingly risk averse. If something in the information doesn’t tick their box, the answer is often no. Their role isn’t to protect you it’s to protect their position if they ever need to recover their money.
Insurance companies love premiums but hate claims. Like banks, they assess the likelihood of having to pay out, and if the risk feels too high, they’ll simply step away.
Preparing for the new normal
Selling in today’s market often requires owners to be more creative.
A recent example was a “cheap home” in a popular inner-city location with original 1920’s piles. We knew banks wouldn’t lend and insurers wouldn’t cover it. The solution was to re-pile the property prior to settlement. It was a big and expensive job, but after six months on the market, it was necessary to lock in the sale. Getting proper quotes is key. Estimates are always higher than real numbers. Show buyers the cost, the process, and the path forward. Clarity reduces fear.
Anyone who has read my Barometers over the past 13 years will know I bang on about maintenance, Why? Because it matters. Maintenance isn’t capital improvement, but neglect will absolutely cost you later. Start now. It’s not fun, but it’s far better than being caught out.
The Wellington Market
The year hasn’t started how we hoped. Listings have surged, but buyer interest hasn’t followed. Open home numbers are down across the board, and the market feels very similar to 2011–2015.
What this means is simple: the average property will take longer to sell. Quiet open homes will be normal. Properties will sell. Good properties will sell well. Difficult properties may not sell at all.
For sellers, the key is giving yourself the best possible shot. It may not happen at the Tender or Auction, but with a quickly implemented and considered Plan B, it can still happen.
Selling in this market is no longer a one-week event. It’s a 60-day process.
Wellington Market Quick Stats
What’s on in Welly?
Teiwa – Rob Ruha with the NZSO – 7 March
Silver Scroll-winning Māori artist Rob Ruha and the New Zealand Symphony Orchestra are joining forces for TEIWA. Here’s your chance to experience everything from waiata you’d hear on the marae to exhilarating stadium anthems.
Newtown Festival – 6 February
The beloved Newtown Festival returns for its 32nd year. This Wellington event calendar highlight delivers Aotearoa’s largest free music festival and street party. Multiple streets are closed off across the inner suburb and opened up to people of all ages. Live music can be found across 16 stages featuring 200 artists across the day. More than 420 stalls deliver food, crafts, clothes, retro finds, and art.
Doubleheader: WHITE FERNS vs. South Africa and BLACKCAPS vs. South Africa – 22 March
BLACKCAPS & WHITE FERNS vs South Africa — double the cricket, double the drama. Back-to-back action, big hits, fierce rivalries and unbeatable summer vibes — all with a single ticket. Don’t miss your chance to see the BLACKCAPS and WHITE FERNS take on the Proteas in a blockbuster double-header..
Meet 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.
