HBT - A Guide To Buying & Selling Your Home 2017

Guide to

Your

2017

PROPERTY BROKERS Hawke’s Bay’s Largest Real Estate Company Contact your local branch!

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Welcome

Guide to

BUYING &

W

hether you’re looking to buy your first ever home, are seasoned home buyers, or are thinking of selling, we hope that you find something of interest to help guide your decision making process.

Buying a house, especially for first home buyers, is a complex and stressful process so we’ve articles about finance, the buying process, and presenting your home and garden in tip top condition to help you along the way.

Contents

Your

REINZ regional commentary ...................................................................................... 3

2017

Glad to get out of Auckland ...................................................................................... 4 Why a Mortgage Adviser?.......................................................................................... 5 Residential property market, local highlights .............................................................. 6 Selling by tender........................................................................................................ 8 How can we help you? .............................................................................................. 9 Home buying-the basic process .............................................................................. 10 Home staging.......................................................................................................... 13 Treat your home and garden to a facelift .................................................................. 14

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REINZ regional commentary

O

"

verall, the Hawke’s Bay market has been relatively slow in September with many buyers and sellers waiting for certainty after elections, however, we believe things will improve in the coming months. Last month the region experienced record median prices, so it’s no surprise that vendor price expectations have risen around 10% compared to August 2017. There are around 30% fewer first time buyers in the market than the previous month, suggesting that price expectations are starting to impact this group.”

Bindi Norwell REINZ Chief Executive Officer

The median price rose $60,500 (+18%) compared to September 2016. Prices rose 28% in Napier, and 11% in Hastings. The median price decreased $13,000 (-3%) compared to August, with prices rising 20% in Central Hawke’s Bay but falling 6% in Hastings. On a seasonally adjusted basis the median increased 1% compared to August, indicating that the decrease in median price was not as large a decrease in median price as expected at this time of year.

Sales volumes in Hawke’s Bay fell 22% compared to September, with sales rising 70% in Central Hawke’s Bay but falling 29% in Napier and 23% in Hastings.

Compared to August sales, volumes decreased 15%, with sales falling 26% in Napier and 6% in Central Hawke’s Bay. There were no sales in Wairoa District this month. On a seasonally adjusted basis, sales for September fell 8% compared to August indicating that the decrease in sales count was larger than expected for September.

The median number of days to sell improved by two days compared to August, from 30 days in August to 28 days in September. The number of days to sell improved by two days compared to September 2016. Over the past 10 years the median number of days to sell for the Hawke’s Bay region in September has been 43 days. The region has the second lowest level of inventory across New Zealand with just eight weeks of supply, two weeks less than in September 2016.

Guide to

BUYING &

Your 2017

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Buying & Selling Your Home 2017 | 3

Guide to

BUYING &

Your 2017

“We’re just glad to get out of Auckland.”

T

he lifestyle of Callum Ross, his wife Elspeth and their two children, Amelia and Fergus, has changed considerably over the last six months.

Callum was educated in Napier more recently studying an MBA in Auckland and has a large extended family living in the Bay so returning to be closer to them was a key driver in their decision to move house.

A job vacancy in Havelock North attracted Callum’s attention and soon the family of three was packed and ready to start a new life, and Callum has a new job as Technical Manager with the executive team at Rockit Global in Havelock North. Amelia, five-months-old now, was born two weeks later.

Although they had been looking to buy a house in Auckland during the peak of the market they were never successful.

Open homes attracted so many people it was extremely competitive, Callum says.

Commute times for many are sometimes several hours a day.

The buying process is so much easier here, plus there are options to buy in good areas.

4 | Buying & Selling Your Home 2017

The Ross family: Elspeth and Callum with Amelia and Fergus.

There’s good schooling and sections are two or three times larger than in Auckland.

Locally homes are much more affordable compared with Auckland and the family has very recently had an offer accepted on a family home, with three bedrooms and a large section, in Parkvale. They feel fortunate to have found a house at a good price and plan to renovate it over time. Fergus can continue to attend Lumsden Kindergarten, which is an added bonus.

All in all it’s been a good move. “We’re just glad to get out of Auckland. Everyone’s really friendly and it’s easy to get a park.”

Why a Mortgage Adviser?

T

here are many benefits to using a Mortgage Adviser, but since the industry’s heady heights in the late 90s and early 2000s, they’ve become a best known secret. My first stark observation is that the market has generally forgotten what a Mortgage Adviser does.

“I am an intermediary between you (the client) and the lender/bank, therefore I work for you.

I am however remunerated by the lender, which means using my advisory service to arrange your finance does not cost you.

When you engage my services, we agree on what I will do for you in regards to obtaining your finance, based on your specific needs. Once we agree on the Terms of Engagement, identify your specific needs and objectives, analyse your circumstances and devise strategies to meet your objectives, I’ll facilitate the application process for agreed products and services, prepare, present and implement my recommendations, monitor and review, and provide an ongoing service of assisting you in managing the re-fixing of your mortgage facilities.

That’s why more and more people are using the services of a DM Consult

mortgage adviser where the sole focus is the client’s needs.

Using a Mortgage Adviser can be extremely effective, as the banks know we have access to most of the other main lender’s products in the market, therefore if you don’t get what you want from one lender, I can approach another. The point of difference is, we have access to a number of banks’ lending criteria, unlike a banker who can only work with the criteria of the bank they are employed by.

It is my role to look outside the square for you, but work within lenders’ criteria and the regulatory framework the whole industry must adhere to.”

Darrin McCormack has 30 years’ experience in the banking, broker, advisory industry.

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Guide to

BUYING &

Your 2017

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Residential property market, local highlights Guide to

BUYING &

Your 2017

A

ccording to the QV House Price Index statistics for September the average house value in New Zealand is now $646,378, which is an increase of 4.3% over the last year and 1.1% in the last three months. And looking further back, it’s 56% higher than it was when the market last peaked at the end of 2007.

In Auckland the average value is $1,039,066 and of course - Auckland’s sheer size means its influence over the national value figure is significant. However, Auckland is on its own when it comes to size, price and economy.

Outside our main six centres, the pick of the bunch is Napier. Things are still very bright over on the East Coast of the North Island with values continuing to grow at 5.2% quarterly, which is currently the strongest of all cities in NZ.

Average value 9/17

Average value 9/16

Change in value

Hastings

$431,805

$367,227

+ 17.6%

Napier City

$465,943

$393,672

+ 18.4%

Central HB

$285,946

$230,851

+ 23.9%

In the Hastings district 76 dwellings sold in Havelock North with a median of $583,000 which is a 17% increase on capital values which were conducted in August 2016*. Strong sales were reported in Akina (32-median $303,750), Mayfair (28-median $323,000) and Parkvale (23-median $369,000).

In the Napier district 52 dwellings sold in Taradale with a median of $451,500 which is an increase of 39% over the capital value date conducted in September 2014. Sales were also strong in Onekawa (33-median $371,500), and Marewa (30 sales-median $319,000).

6 | Buying & Selling Your Home 2017

In Central Hawke’s Bay Waipukurau had 39 dwelling sales with the median price $230,000 being a 37% increase between capital value which was conducted in September 2015. Sales were strong in Waipawa (16-median $223,250) and Otane 6 sales (median $297,600). *Percentage difference between sale price and capital value for the previous 3 months.

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Buying & Selling Your Home 2017 | 7

Selling by tender

Guide to

BUYING &

Your 2017

A

tender is a form of selling property through advertising media designed to capture the maximum attention of customers within a certain time frame.

This property sales process is a private and confidential means of buying/selling real estate to determine the true market value of the property at that time.

The benefits of selling by tender are: • Selling property by tender produces a result that is both private and confidential.

• Home owners are not put under unnecessary pressure.

• A tender promotion creates a finite timeframe for interested buyers, causing them to act with more urgency.

• Your property gains prominence through high profile marketing over a set period of time.

• A tender allows you, the seller, to be more flexible with your terms and conditions of sale. For example, you choose the possession date.

• A tender creates potential for a premium price through buyer competition.

• No price marketing means you are never limited by setting an asking price that is too high or too low.

• Extensive use of open homes during a planned timetable allows easy access for buyers.

• Unlike an auction, you are advantaged by having the option of dealing with conditional buyers as well as unconditional buyers.

• Weekly market feedback to assist you in establishing the selling range of your property.

• A tender can be negotiated after it closes, giving you the opportunity to work through any issues and terms you deem unsuitable.

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How can we help you?

A

ny sale and purchase of property should be made with careful consideration, particularly in today’s competitive market where one of the most popular forms of sale is auction. Buying unconditionally at auction makes getting the appropriate advice, and doing your homework on the property, crucial.

Before attending an auction or entering into any agreement to purchase a property you should obtain appropriate advice from your lawyer, as early as possible.

Your lawyer will discuss with you any investigations that should be carried out before committing to buy, or the appropriate conditions to be included in an agreement to provide the opportunity to carry out those investigations after you have signed the agreement.

Just some things to consider are: • the soundness and quality of the building • checking the title to the property and any easements • have there been any alterations to the property and if so have they been done with the appropriate consents?

The other issue, which has been heavily publicised in recent times is meth contamination. Is testing something you need to consider? Your lawyer can discuss all of these matters with you and assist with finding the answers before you commit to buy.

It is also important to speak with a lawyer before you sign an agreement to sell your house. Your lawyer will ensure that you are able to give the warranties and undertakings given in the small print of the agreement and explain any extra terms included by the purchaser before you accept them.

They can also discuss any implications under the Brightline test introduced in October 2015 that the sale may attract.

It’s important to remember that if you sell property, which is not your main home, within two years of the date of purchase you will be subject to tax on any profit made. The twoyear period starts from the date of settlement of the purchase and ends on the date you sign the agreement to sell (not the date of settlement of the sale).

Ultimately a lawyer will take you through the process step by step. To ensure that you get the most from them, contact them early!

Courtesy of Bramwell Bate.

Guide to

BUYING &

Your 2017

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Home buying-the basic process

Guide to

BUYING &

Your 2017

T

here are three basic ways to purchase a home in New Zealandoffer/negotiation, tender and auction. Here we look at the process of buying through offer and negotiation.

Once you have found the home of your dreams, arranged finance and selected a lawyer the next step is to make an offer.

For first home buyers this can be a daunting process so do your homework first to ensure you know exactly what will happen and when. If you don’t have a lawyer ask around see who friends or colleagues recommend or refer to the New Zealand Law Society’s web site.

Sale and Purchase Agreement

Agents must give you a copy of this before you enter into a sale and purchase agreement. Read and understand before signing anything.

A Sale and Purchase Agreement is a legally binding document which sets out all the agreed terms and conditions relating to the offer. Always seek legal advice before signing the Sale and Purchase agreement.

Make an offer

The real estate agent will normally prepare a Sale and Purchase Agreement. You must decide what your first offer will be, and ask that any extra clauses you require be included in the agreement.

Your lawyer will advise which extra clauses should be included. For example, your offer might be conditional on selling your current home, subject to finance or subject to obtaining a LIM report. Other conditions might be subject to a building inspection, a property valuation, and title check.

Other details that are normally included are the amount of deposit, chattels included in the sale and the settlement date.

Your lawyer will search and confirm the title to the property and also assist with making sure all conditions are met.

Negotiate

A house is generally offered for sale at a set price or within a certain price range. You make an offer in writing and then negotiate with the seller until a price and conditions 10 | Buying & Selling Your Home 2017

are agreed on. Your real estate agent will undertake this process for you.

Under contract

Once both parties have agreed on the price and signed the Sale and Purchase Agreement the property is under contract.

At this stage you will start working through each of the conditions.

Unconditional

Once any conditions have been met, the agreement is unconditional.

You will then be required to pay a deposit to the real estate company which secures the purchase of the house. Your lawyer will generally handle this for you. When an agreement becomes unconditional it becomes legally binding and you must purchase the property.

Arrange house and contents insurance

You’ll need house and contents insurance from the date of possession.

Settlement and possession day

The sale of the property is finalised.

Your lawyer will transfer the funds to the vendor’s legal representative in exchange for the Transfer of Title. The vendor’s lawyer will then arrange for the Real Estate Agent (if applicable) to release the keys to your new house. You can then move in.

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Home staging

W

hen viewing a property for the first time it takes only a few seconds for the viewers to make up their minds if they are interested in buying or not. It’s essential therefore that you present your home that feels welcoming and has the ‘wow’ factor.

Home staging, house dressing or property doctoring is common overseas and is becoming more popular in New Zealand.

Simply put home staging is the art of professionally preparing a home to sell.

Hawke’s Bay has a number of interior designers and home stagers who can offer a number of services depending on individual preference and budget. Services can range from a walk through with suggestions made as to what can be done to improve the presentation through to partial or full home staging.

For those who don’t have the flair or the time to prepare their home for sale hiring a home stager could be the answer and will increase the probability of your property selling more quickly. Homes can be transformed, de-cluttered, made to look attractive and stand out from the crowd.

Guide to

BUYING &

Following a consultation you might decide on a full package or focus on a few rooms.

Generally you’ll rent furniture from a home stager although some may move your own furniture from one room to another.

House stagers know how to create the perfect look and crate seamless flow from one room to another along with how to maximize space. It could be that your furniture is totally removed or you might focus on lounge furniture, kitchen accessories, soft furnishings or even garden furniture.

Vacant properties can be difficult to sell, presenting as they do a bare shell. This is a good example of how a home stager can be especially useful in showing such a property to good advantage.

Your 2017

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Buying & Selling Your Home 2017 | 13

Treat your home and garden to a facelift Kerb appeal

Guide to

BUYING &

Having an attractive and welcoming property is probably the key element that will encourage prospective buyers to organise a viewing. Many drive-by for a sneak preview and make up their minds within a few seconds whether they like the look of a property or not.

Exterior property grooming is equally, if not more important, as the interior. Here’s a checklist of items to include in your plan to create a fantastic first impression.

Exterior

Your 2017

• Paint the front door and consider new hardware such as a door knocker.

• Buy a new, welcoming door mat.

• Place some greenery or potted trees at the entrance.

• Make sure exterior lights are working.

• Clean the exterior including guttering and windows.

• Clean concrete and pavers of mould and lichen.

• Make sure the letterbox is presentable.

Garden • • • • • • • •

Repair fences and gates.

Plant some colourful, blooming flowers.

Have the lawn in pristine condition.

Keep the garden weed free.

Trim hedges and shrubs.

Spread fresh mulch.

Clean up water features.

Fix any outdoor taps.

Interior

Viewers will want to picture themselves in your house. Present your property in the best possible light - it doesn’t mean spending

a lot of money. It means decluttering and presenting a fresh, clean, tidy home.

General

• Clean walls, paintwork, floors and windows and fill all cracks.

• Clear out all cupboards-kitchen, bathroom, study, lounge etc • Remove over large furniture. The aim is to create an open, clean look.

• Keep décor simple.

• Repair dripping taps, sticking doors and drawers, cracked windows, stained carpet, broken tiles.

• Touch up paint.

• Consider painting over garish or dated wallpaper with something neutral.

• Get rid of offensive smells: cooking and pets.

• Have the carpets cleaned.

• Clean windows inside and out.

• Remove personal items such as family photographs.

• Put children’s toys away.

Kitchen

• Clean and declutter bench tops.

• Pantry and cupboards should be clean and tidy.

• Clear away pet food.

Bathroom

• Clean all surfaces such as bath and shower cubicle, mirrors, taps, grout and tiles.

• Make the bathroom look inviting with new towels, fine soaps.

Bedrooms

• Make the beds.

• Put clean linen on every bed or invest in new duvets.

• Declutter wardrobes and organise nicely.

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