Selling a property privately in Auckland

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heavenlywild

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#280545 22-Dec-2020 09:26

With the market white hot at the moment in Auckland, I am considering selling my investment property in the new year. It's being built at the moment and due for completion in March. I don't mind doing the negotiation and I would like to think I have a fair understanding of the S&P agreement.

I don't want this thread to be about whether the market is going up or down in 2021, however, keen to hear from others who have sold in Auckland privately your experience.

My initial question is, would you start advertising before the house is fully complete, or start the marketing in a couple of months prior to completion as the demand picks up?

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#2625302 22-Dec-2020 09:48

I think you should chance your arm while it's being built, but be aware that there's likely to be more interest once people can actually go inside it and imagine themselves living there...

Edit: Terrible spellingsness

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Jase2985

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#2625339 22-Dec-2020 09:59

December/January are historically pretty slow for real estate.

heavenlywild

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#2625376 22-Dec-2020 10:38

Handsomedan:
I think you should chance your arm while it's being built, but be aware that there's likely to be more interest once people can actually go inside it and imagine themselves living there...

Edit: Terrible spellingsness

Yes agreed. Although I'm thinking it would be good to list before the agencies start posting in late Jan.

I'm also going to put up an asking price, which is rare in this market. Hope that attracts buyers that don't want auctions.

esawers

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#2625389 22-Dec-2020 10:54

I'm assuming as it is a new build, and an investment property, that you will be subject to the brightline test and will need to pay tax on any profits.

heavenlywild

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#2625393 22-Dec-2020 11:00

Yes, and in this market I'd still be making a healthy profit.

BlinkyBill

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#2625411 22-Dec-2020 11:38

heavenlywild:

...

I'm also going to put up an asking price, which is rare in this market. Hope that attracts buyers that don't want auctions.

In the current market, I reckon you’ll be leaving money on the table specifying an asking price. What about a closed tender - that way you will get the best price buyers are willing to pay. You don’t have to accept any tender if all are below your asking price.

Closed tender is better than auction in this regard also.

duckDecoy

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#2625417 22-Dec-2020 11:51

BlinkyBill:

In the current market, I reckon you’ll be leaving money on the table specifying an asking price. What about a closed tender - that way you will get the best price buyers are willing to pay. You don’t have to accept any tender if all are below your asking price.

Closed tender is better than auction in this regard also.

They are fairly rare in Auckland so you could well limit the market.

A set price is pretty rare in Auckland now and I think it would attract a lot of interest/offers given how much dissatisfaction there is out there for mising out again and again at auction (assuming the set price is reasonable of course).

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timbosan

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#2625419 22-Dec-2020 11:55

BlinkyBill:

heavenlywild:

...

I'm also going to put up an asking price, which is rare in this market. Hope that attracts buyers that don't want auctions.

In the current market, I reckon you’ll be leaving money on the table specifying an asking price. What about a closed tender - that way you will get the best price buyers are willing to pay. You don’t have to accept any tender if all are below your asking price.

Closed tender is better than auction in this regard also.

It's only better for the seller - having just been through the house buying process in Auckland, it's SO HARD to gauge a price when nearly all sales are either auction or tender. As a buyer I would far prefer an asking price being listed. And in the current market you have a good chance of selling over asking anyway.

Handsomedan

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#2625420 22-Dec-2020 11:55

duckDecoy:

BlinkyBill:

In the current market, I reckon you’ll be leaving money on the table specifying an asking price. What about a closed tender - that way you will get the best price buyers are willing to pay. You don’t have to accept any tender if all are below your asking price.

Closed tender is better than auction in this regard also.

They are fairly rare in Auckland so you could well limit the market.

A set price is pretty rare in Auckland now and I think it would attract a lot of interest/offers given how much dissatisfaction there is out there for mising out again and again at auction (assuming the set price is reasonable of course).

You could even go for the old classic, "Offers considered over $xyz"

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heavenlywild

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#2625458 22-Dec-2020 13:05

Yes I'm thinking we'll do offers over $abc. This tells buyers our minimum and I guess the market can dictate the best price.

Since most of us are holidaying in NZ, I'm thinking those motivated would continue to look at TM. Do you guys think it's a good move to list in early Jan?

mattwnz

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#2625495 22-Dec-2020 14:35

The benefit of advertising now when a house is being built, is that the buyers could have some decisions in how things are finished.

You will likely need someone to negotiate the deal. If it costs about 20k to sell via an agent at 2% (on a million dollar shed) which is what people can negotiate down to with some agents, is it worth the savings of selling privately, when they maybe able to get a lot more than selling privately? I am trying to buy privately at the moment, and expect to pay a bit less due to the savings of the seller not using an agent. I know when selling, that some buyers will try it on to get a good price, as that can be their job to pick up properties cheaply. Would also suggest getting advice from your accountant over whether it is going to be taxed due to it being new etc and never lived in, and over the costs of using an agent vs not using one. In this late 2020 market, houses are selling themselves , although next year as the economy faces some significant challenges, and more people may have trouble paying the mortgages (already signs that this seems to be starting to happen) this could change.

mattwnz

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#2625499 22-Dec-2020 14:42

timbosan:

It's only better for the seller - having just been through the house buying process in Auckland, it's SO HARD to gauge a price when nearly all sales are either auction or tender. As a buyer I would far prefer an asking price being listed. And in the current market you have a good chance of selling over asking anyway.

I remember when tenders weren't common, and the agent told us that a lot of people wouldn't bother to put in tenders, because they don't have any idea what buyers want. . . So you end up losing a lot of potential buyers. Although not sure this is the case so much these days. Now with these online estimate websites, buyers are expecting a percentage above the highest e-value price, which can in some cases be double the RV of just a few years ago But personally I won't ever submit a tender again, never been successful, and it ends up being a waste of may buyers time in researching, especially on a house that is going to get a lot of tender offers. In my area they often use Deadline sales, if not sold prior. All these methods are geared to benefit the seller more than the buyer IMO, as agents are working for the seller, and only have to be 'fair' to the buyer. So agents are working to get the best price for sellers and themselves in commission.

heavenlywild

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#2625502 22-Dec-2020 14:59

My house is in a new development subdivision and so no RV of any sort can be found.

What are your thoughts on when I should list?

timmmay

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#2625509 22-Dec-2020 15:11

Read this. Also, the reserve bank said to prepare for 5 years of housing price increases, if you don't need to sell it now I expect you'd get more for it in a few years. House prices have never gone down, they will eventually but not any time soon I expect.

BlinkyBill

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#2625515 22-Dec-2020 15:22

mattwnz:

timbosan:

It's only better for the seller - having just been through the house buying process in Auckland, it's SO HARD to gauge a price when nearly all sales are either auction or tender. As a buyer I would far prefer an asking price being listed. And in the current market you have a good chance of selling over asking anyway.

I remember when tenders weren't common, and the agent told us that a lot of people wouldn't bother to put in tenders, because they don't have any idea what buyers want. . . So you end up losing a lot of potential buyers. Although not sure this is the case so much these days. Now with these online estimate websites, buyers are expecting a percentage above the highest e-value price, which can in some cases be double the RV of just a few years ago But personally I won't ever submit a tender again, never been successful, and it ends up being a waste of may buyers time in researching, especially on a house that is going to get a lot of tender offers. In my area they often use Deadline sales, if not sold prior. All these methods are geared to benefit the seller more than the buyer IMO, as agents are working for the seller, and only have to be 'fair' to the buyer. So agents are working to get the best price for sellers and themselves in commission.

Well, I’m shocked, shocked, to find out that an agent being paid for by the vendor, would try and get the best possible sale price, for the vendor.

Shocked.

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