If you're buying or selling, you need to know about today's unusual market conditions, says NZ Property Investor.
Unusual market conditions are making it difficult for both buyers and sellers, says Maryann Lemon in the latest NZ Property Investor magazine.
She describes it as a ‘split market', divided into houses that are ‘hot' and quickly sell, and those that languish for months without any real interest from buyers.
Faced with the prospect of taking a long time to sell or having to accept a lower offer, many sellers are pulling their homes from the market and choosing instead to renovate and stay put, says Gary Brunsdon, of Sheldons, registered valuers.
This trend is showing up all over the country, although there are patches where areas are higher-performing than their neighbouring suburbs, for example, near the central business districts of the metropolitan centres.
In areas like Tauranga, for example, values are flat generally and only good quality homes in affordable price brackets are selling. In Dunedin, properties with maintenance issues are suffering more than others, and have to be heavily discounted to sell.
With the right price and good presentation, homes will sell, say agents, but it's crucial not to overprice, as sellers get only one shot at being fresh on the market, and buyers are waiting to pounce.
For buyers, the message is to get in quick to take advantage of homes new to the market that are reasonably priced and offer good yields, or take a punt at a low offer for a home that has been on the market some time in case the owners are becoming desperate.
The June issue of NZ Property Investor also offers tips from the experts on how to get a great deal. Among the tips in this market are being able to act quickly by having all your research done, making the deal clean, and dealing only with the listing agent, who has the power to work with the owner first-hand.