Home Inspection News – Issue 29

August Real Estate Activity 

Lower sales across New Zealand, 6.1% lower than August last year. The lowest number of sales for 7 months were:

Southland –33.2% 62 less sales
Hawkes Bay –18.4% 42 less sales
Taranaki –16.6% 31 less sales

Sales were up in the following areas:
Tasman +12.3%
Bay of Plenty +7.7%
Nelson +2.9%

The main reason for the fall is the lowest number of new listings for the last 3 consecutive months since 2007.

Prices

Median prices in New Zealand from August 2018 – August 2019 are up 5.5% to a national median of $580,000, up from $550,000 in August 2018.

4 regions saw new record prices.
Southland was up 29.2% to $310,000.

Manawatu / Wanganui was up 25.6% to $390,000

Hawkes Bay was up 12.4% to $500,000

Northland was up 10.8% to $507,500

Days to sell

Nationally the time to sell was up 2 days compared to August 2018. It took an average of 39 days to sell. In Auckland the average time to sell was 44 days. In August 2019 nationally there were 5959 properties sold.

Here are the numbers: Over $1,000,000 there were 802 sold = 13.5%. $750,000 – $999,999 there were 992 sold = 16.6%. $500,000 – $749,999 there were 1917 sold = 32.2%. Under $500,000 there were 2248 sold = 37.7%. 

Selling or Buying a Property? 

Then get professional Real Estate help, it certainly pays off. A professional real estate sales person (agent) can be worth much more than their
commission.

The seller (vendor) usually pays for the real estate agents services – marketing the property, negotiating the sale and attending to all the matters that entails.

This can include staging the home, photography, advertising (online and other media), signs, brochures, videos, open homes, valuers, LIM reports, building inspections and so on.

The commission is usually around 2-3% of the sale price which can amount to many thousands of dollars. A good sales agent will frequently get the vendor a better price than the seller themselves could achieve.

This is because they are marketing and negotiating experts. The better price often not only covers the commission but also leaves the vendor with a higher net price from the sale.

Most sellers know this to be true and over 90% of all sales in New Zealand use a real estate agent.

So What About the Buyer?

The real estate salesperson helps the buyer too. They provide a lot of information and assist them in making a buying decision.

Typical information might include zoning, what the neighbourhood is like, schools, transport, recent sales data and so on. Even though the salesperson is paid by the vendor they have to abide by a strict code of conduct as set out by the REA (real estate authority), a government legal body.

The agent’s dealings must be honest and fair. They must disclose to the purchaser any significant information that may impact on the buyers decision. For example if the salesperson is aware a property has a significant defect (eg weathertightness) they must disclose this to the buyer.

Even if the sales person is not aware of for example a weathertightness problem they are obliged to recommend that the purchaser have the property checked (by a building inspector) if the property is regarded as high risk.

The salesperson is deemed a professional and needs to be aware of what constitutes a high risk. It is not a defence for the salesperson to say “I did not know there was a problem”. The REA can discipline the salesperson and his/her agency and fine both tens of thousands of dollars.

For deliberate unprofessional conduct the REA can cancel a salespersons licence and remove their livelihood. Buying and selling a home is a very large financial and often emotional decision. A professional real estate salesperson helps both the vendor and purchaser providing a much smoother process.