Home Inspection News – Issue 49

April property Sales 2021

April 2021 saw the highest level of property sales for a April month for the past 5 years. There were 7218 sales.

The median house price in NZ is now $810,000 which is 19.1% higher than April 2020. For
Auckland the median price is now $1,125,000 which is 21.6% higher than 12 months ago.

The days to sell continues to fall. For NZ it took 5 days less on average at 29 days. Auckland was down 3 days to 31 days. These figures are compared to April 2020.

The stock of houses for sale continues to push up prices. April 2021 saw the lowest number of
houses for sale in an April month since records began.

Compared to April last year there were 3864 fewer houses for sale.

What price range they sold in
Apr-21 Apr-20
Over $1,000,000 33.70% 21.50%
$750,000 – $999,999 23.30% 20.10%
$500,000 – $749,000 27.50% 28.10%
Under $500,000 15.60% 30.40%

12 months ago close to 1 in 3 properties sold for under $500,000. In April 2021 it was less than 1 in 6.

9 Regions across New Zealand recorded new record median sales prices, they were:

Region New Record Price % Increase in 12 months
Auckland $1,125,000.00 21.6
Waikato $730,000.00 37.7
Gisborne $690,000.00 72.5
Taranaki $540,000.00 42.1
Hawkes Bay $770,000.00 17.6
Manawatu/Wanganui $580,000.00 46.8
Nelson $743,000.00 15.1
Marlborough $672,000.00 46.1
Otago $710,000.00 58.8

Should Sellers get a Home Inspection? 

Most house sales involve a home inspection. It’s the buyer who normally obtains and pays for it. If you plan to put your home on the market consider getting a professional home inspection done and include it with your pre-sale documents.

It is easy for the seller to overlook some of the wear and tear and while familiar flaws may feel normal to you, they may not to a potential buyer. Six reason you should get a House Inspection before you list your home.

  1. It will probably save you money
    It may seem that making repairs before you list is an expensive option but it can save you a lot of money in the long run. If issues show up in a buyers inspection report, the buyer will probably ask for a price reduction or have you fix the issues before they go ahead.Should there be significant issues the buyer may cancel the agreement. Buyers frequently insist on significant price reductions that are much more than the repair costs.
  1. It could lead to a faster settlement
    Getting a home inspection and fixing any issues before the sale can speed up the whole sales process.
  1. It can give you a completive advantage
    A professional home inspection can be used to promote your property above the competition. It can give potential buyers confidence in you as a honest and serious seller. Prices can not easily be reduced by potential buyers due to repairs if you made the necessary fixes ahead of time.

What Else?

  1. Definitely fix the deal breakers
    These are certain issues that may show up in a home inspection that are deal breakers to most buyers. These are: Foundation issues, Weathertightness, Mould, Roof problems, Leaky plumbing and Unpermitted additions /
    alterations.
  1. Is there a downside to a professional home inspection?
    You pay the cost of the inspection instead of the buyer but that’s it. You won’t be hit with nasty surprises from a buyers home inspection report and either loose the sale or be up for big price reductions during re-negotiations.
  1. Bottom line
    Waiting for the buyer to obtain an independent home inspection can cause the sale to fall through. Even if you agree to fix a problem they are not expecting, nervous buyers can get cold feet and be hesitant to proceed.

A professional home inspection can put a nervous seller at ease and give you a better chance of a conditional agreement becoming an actual sale, faster and easier.

All A Buyer’s Choice Home Inspectors are professionally trained as home inspectors (not just builders), members of InterNACHI (International Association of Certified Home Inspectors) and carry professional Indemnity Insurance as home inspectors.