What's happening with the property market?
by Adam Smith
There’s a lot media speculation on what our property market is doing at the moment, some positive, some very negative. If you saw the recent piece on Campbell Live, Auckland auctions certainly looked dire – footage of empty auction rooms and highly publicised homes not selling. While on the other hand, reports say that property is still rising by almost $100 a day at least in the region. Hard to equate which tale is the truth
In reality, there’s not a disappointed owner behind every FOR SALE sign. Over 2014 we, like other real estate companies, are still seeing many homes selling, and selling for good prices too. So why are there no offers on the table for some vendors, yet unconditional sales for others at the moment?
We believe it now takes a bit more marketing and negotiation skill rather than just the ‘cookie cutter’ style of marketing used with auctions. In the heat of a crazy market it seems very easy to throw a few dozen people in an auction room and see what happens… now, in particular, it takes a little more strategy. At the end of the day it comes down to the right marketing, and ultimately, the right price.
The right price comes down to expectations – buyers went all out last year, paying big money for property that to some didn’t have quite the shine that you’d expect from a six to seven figure price tag. Balancing your expectations with reality can sometimes be a challenge, especially after the countless pot-of-gold stories in the last year. Remember though, the outlandish prices seen in the media were definitely not the norm, but there was still good capital gain throughout the market. There’s a little more restraint in the air from buyers, though a well-priced home that ticks all the boxes can still command a good price, especially with a good negotiator on hand.
Well-priced. What does that mean? It means an honest price – having a finger on the pulse of the market, knowing what comparable homes are selling for, and being realistic about expectations. An honest appraisal from a good real estate agent will give you a very sound idea. Make sure you see comparable sales figures in your area though, so you know you’re getting the truth. It’s very easy for agents to tell you what you want to hear (ie. a high price), but then fail to deliver when it comes to the crunch.
This is why we guarantee our price when we list a property for sale. We back our ability enough to cover all marketing costs whether your home sells or not – so it makes sense for us to give you a price we know will do well for you in the market.
And we believe your home could do very well in the current market. There’s resilience there for homes to keep selling, and selling well. Particularly when the property for sale is marketed well and your real estate agent has solid negotiation skills.
So, if you’re looking to sell, why not get an honest opinion on what your home is likely to sell for on today’s market – get in touch for an obligation-free appraisal.
