When selling your apartment, did you know there are more than just commission costs? We know, at Apartment Specialists, that, at the end of the day, you want to know how much you’ll be getting in your back pocket when your apartment has sold. You might be surprised to know that you may even get money back. We’ll help you to get a broader picture of what these other expenses are, understand ALL the costs when selling your apartment, so you can take them into account.
The knowledge of what costs you will incur during the process of selling is so important and it is more than just the agent’s commission.
The costs involved are more than just the commission. There are several others involved but don’t let that deter your choice to sell.
Marketing costs generally are around $600 when a property is selling for under a million and around $2300 for property over and above that price.
Lawyer’s fees can range from anywhere between $800 and $1000 for a property with no mortgage and up towards $1300 for a property with a mortgage. Where there is a sale that is more complicated for example a building that may need more due diligence due to building issues these lawyers’ fees may be upwards to $2000.
Lastly, a cost that is overseen when your property is tenanted during the decision of sale being made, your tenants may leave before settlement date leaving you with no income for several weeks. This is where you need to ensure you are prepared for this and/or bring the settlement date forward if able to.
And the good news; you may sometimes be eligible for money back. If you have covered your Body Corporate fees for the year and sell part way through the year you will receive the overpaid amount back upon settlement. Rates are the same deal and will be reimbursed if any are overpaid.
What is the difference being a specialist for you, an apartment owner looking to sell? With thousands of apartments in the Auckland CBD and surrounding suburbs and at least 100-150 apartments selling every month, you need the right information so you can make the best decisions for you.
Apartment specialists looks at the value of apartments, not just in your building, but of those in the surrounding buildings as well. The apartment market moves all the time and we make sure we’re aware of it when valuing your apartment.
There are over 26,500 apartments in the Auckland CBD and fringes and around 400 buildings which will become up to 450 in the coming years. Each month there are 100 to 150 sales of apartments.
We know this by understanding our market well. This is done by constantly keeping up to date and being in the know. It is not just about being an agent but about being a specialist in the market.
We look at apartments that are the same, these are usually in the same building and look at other buildings that are similar to help us gauge the real market value of your property. Calculating size, carparks, level and so on are all important factors to consider when valuing a property as well as record prices in the building and recent sales in both your building and other that are alike.
By being well informed, we can help you make the best decision that works for you and selling your property.
Different apartments will attract different tenants and this is an important factor to consider when choosing an apartment to rent out. Depending on size, area and cost of rent will determine the type of tenant your apartment will attract.
At Apartment Specialists we can assist you making this decision. We know our buildings well and what types of people they attract. So whether you are looking for long term tenants, students, times when the property may be vacant to use for other purposes or some other reason, are all important factors to consider before purchasing an apartment.
Damage is caused more often in smaller apartment with a lower rent as well as higher turnover in tenancy rates.
University students will only want to rent the duration of the study year.
Having apartments closer to amenities i.e. supermarkets, bus stops and so on may be more attractive for tenants to pay more in rent.
Bigger and more upmarket apartments usually attract a different type of tenants where there is less likely to be damage and more likely to have long term tenancies.
Andrew Murray here from the Apartment Specialists talking about how different apartments attract different types of tenants. And how that is actually very, very important when you’re looking at buying an apartment.
Now, a lot of people might be thinking “Okay, I’m going to be an owner occupier. Well that doesn’t matter to me, because I’m not going to be renting it.” What actually it’s just as important, if not more important, because you’re actually predicting who your neighbours are going to be.
You don’t want to be having students next door, for example. So basically, when looking at an apartment you can get an idea of what kind of people are living in that complex, and some of the reasons why this is so important is because that different types of tenants will give you different kinds of, I suppose, either issues or advantages.
For example, vacancy rights. You have, for example, got a building that is very oriental or came from Asia. Often you have huge vacancy rates over November, December, and January period. Because a lot of them come for international education and they come for University, or I suppose, the language schools. Afterwards they go back home to see their families. So it’s often very hard to rent those apartments in that, sort of, December-January period, which means your apartment can be left vacant for long periods.
Another one, for example, is tenants not paying their rent. If you’re in a complex say, that has 300, 400 apartments and say they’re, for example, below 40 square meters, two bedrooms, they’re generally going to be the tenants that are, generally, going to be the male demographic. More likely they’re going to have issues with money or simply just skip out and leave damage and unpaid rent with them.
Now, nothing is damaged, obviously, if you’ve got an upper class tenant. They’re less likely to damage the apartment and do as much wear and tear, because people who are, say for example, executive tenants, will look after their place better because they have to take back clients, or whatever.
The other one is length of tenancy. So, a tenant that’s in there for two or three years is ideal. One that’s constantly changing means you’ve got to constantly be improving the apartment. You’ve got to be changing things, maintenance, have advertising, have pads which are vacant one or two weeks.
If you’ve got a large apartment that suits a family in a good location, then there is an example of one that is ideal compared to say students, which are only going to be there for the length of the university year.
Another one is rent fluctuation, and this is not so much I suppose a type of tenant, but the location is really important. If it’s right next to university, or if it’s right next to the CBD.
For example, right on Queen Street, you’re not going to have as many issues because we all know there’s more apartments being built. And with more apartments there’s more supply, but if the location of the complex you’re buying into is very central to whatever purpose it’s next to, you’re going to be in a very good position to always charge the highest rents, and have the least amount of vacancy.
I hope that helps and it enables you to think when you’re looking at an apartment, it’s not just about what the rent that comes in and the expenses that go out. It’s about the clientele, or the people, I suppose the tenants, that will be providing that income. If your apartment is left vacant for a month or six weeks, well that takes the return down and the value of your apartment down hugely. Hope that helps, Andrew Murray, Apartment Specialists.
If you have any questions, flick me an email at firstname.lastname@example.org or call +6421 424 892 and I’ll be happy to help you with your queries.
Private sales don’t come under the fair Trade Act so the owner selling doesn’t need to disclose any knowledge of what may be wrong or need doing in the apartment or building.
Often private sales will come along where they are cheaper than market rate and this may be because owners rely on sales statistics and this may not be giving them an accurate worth of their apartment. In the apartment market you can’t predict this, only a specialist can. This is because some buildings move in the market more so than others and owners may not be aware of this.
When private sales come along they don’t come under the Fair Trading Act and the owner has autonomy on what they would like to do with their sale- this means that extra due diligence needs to be done. An owner doesn’t need to disclose what is happening or what may be wrong in the building and so on.
An agent’s biggest fear would be to lose their license, so they are not likely to misinterpret information or withhold information and will be up to speed on the market and what is happening in particular apartment buildings.
Good day, Andrew Murray here from Apartment Specialist and I’ll be talking about buying an apartment privately. I’ve seen some great deals come up in the market, and this is because owners who are selling their apartments privately, don’t have a lot of sales statistics. We all know that sales statistics, especially in a moving market, are not very transparent. The open apartment market is probably one of the most untransparent markets around.
When it comes to residential property, and it’s because one building may have moved with the market where the other one hasn’t yet, often, private sellers will come on at a price that’s a lot cheaper. In other cases, they might be more expensive, but I’ve seen a lot of great deals achieved through buying privately. I would still look at these listings when they come up.
What happened was – as I like to jump so many new hoops, I have to go through resource consent. Everything had changed since then in regards to all the rules and regulations around bedrooms. It’s about $20,000 later and probably about 100 hours of my time, and I end up getting it to a residential. So, at the end of the day, the deal wasn’t worth it. And I wish I’d never done it.
The key thing here is, when buying through a private listing or a private seller. You need to check if they are not actually covered by the Fair Trading Act. So, they sort of play dumb, in a way. The interesting part is I found out that my offer wasn’t the highest offer. It was the unconditional one, and so I’m assuming – I can’t, obviously, point fingers. I don’t have any solid proof, but their lawyer advised them to take the unconditional offer, even though mine was much less. And why? Because if you actually sifted through all of the documents and went really deep – this is where much lawyers don’t even go to, and you’d find this issue that I came across.
The big thing with private sellers is – they can kind of do what they want to a degree and you can’t rely on them. Where purchasing through a real estate agent, there’s no commission, and I don’t care how big it is. Is it worth losing your license over? You’ve got a governing body which you can complain to. So the thing is, yes, there are some deals out there that are private sellers, but make sure you do your due diligence even more thoroughly than you normally would.
Also, be aware that a private seller can be selling because they know of information which is not known or not in the minutes yet and can be quite dangerous. Where a real estate agent is far more likely to notice this. If they specialise in apartments, then they know the market and the buildings. They often hear about stuff coming out before it actually does come out.
I had to announce how to buy an apartment privately. Cheers. Bye!
What do you need to know about buying an apartment privately? How do you get the best deals? Download our Buyers Guide to get much sought after insights. You can also email email@example.com or call +6421 424 892 to get the best Auckland apartment expert to help you.
This is dependent on what your outcome of living or buying in the CBD is. Whether it be a student apartment, an investment or a lifestyle choice. Read on in the bio or watch the blog for further information.
The Auckland CBD is becoming a very desirable place to live.
The central hub is where most owner occupiers take residence, this is where there is a cultural district, supermarkets, Britomart and many views. This area is all freehold.
Viaduct Basin, Princes Wharf and parts of the Ngati Whatua land and is probably the most desirable places to live, these are all Leasehold which is a lifestyle decision.
The university district is surrounded by all the university and has many students in this area along with many handy amenities. The university apartments tend to be much smaller and serve the purpose perfectly for people attending university.
There is an area where there are apartments that are predominantly owned by investors and 90% of properties are rented out and this the area around Hobson St.
Down by Victoria Park has a high owner/occupier area and is still on the city fringe.
Check out the map within the blog to better guide you where these areas are.
Good day, Andrew Murray here from the Apartment Specialists. Auckland C.B.D. is becoming a great place to live in. But like any other area or suburb there are the good parts, and there is the parts that are more suitable for different purposes. What I have done is the map of the Auckland C.B.D. in front of you and I’ve highlighted different areas that are suitable for different purposes.
If we start out with the ‘T’ in the very middle; this is where your best owner occupy stock. This is where the best owner occupy stock is, and this is where your Metropolis is. Also, this is where your Quay West is. This is where your Precinct building is and your CityLife – your Heritage.
The reason for this is you have got your central hub. This is where the power of New Zealand is. In this area you have got your top law firms and top accountancy firms, all that kind of thing. Obviously, Shortland Street is a key street there. Coming down to Queen Street you have got your retail and your cultural district. In this area you have got everything at your fingertips. You have got three supermarkets, shopping malls, Britomart in front, so this is a great place right for owner-occupiers.
What is the actual best place to live? If we forget about being freehold, because obviously this ‘T’ junction here is all freehold land. That would be the Viaduct Basin and you have got Princes Wharf and parts of your Ngati Whatua land. This is all leasehold land, so this is purely a lifestyle decision and it is a great place. You have got your walks, restaurants, very high end apartments with great views and are very spacious.
Then you have got your University district and University land. The Auckland University right here and Auckland University of Technology which is another University here as well which actually has a lot of, I suppose, it has the university campuses which have students who are living on site. You will also see this blue area here where, this light blue are complexes that have very small units, and have been built specifically for the student demographic. So, it’s about student life and their apartments are as small as nine square meters for one bedrooms, which is extremely small and two bedrooms; 30/35 square meters.
You have got this little black area here, and this is where a lot of box apartments are being built by investors. That’s where investors buy for return and It’s probably about 90/95 percent of this whole area is investor. It’s not owned by the person who is in the apartment and it is rented out. This is something that’s not going to be encouraged moving into the future.
What is really exciting is all these areas I have not marked? You have got K Road and Victoria Quarter, which is exciting because it is yet to blossom. If you are going to use that word. It is about what the Council does here and is this going to become more commercial? What’s going to be put here? It all comes down to – the future looks really bright, because the Council is starting to really look after the future of Auckland. As we can see, what they have already done with Wynyard Quarter and Britomart.
You also have the area that I have included here, which is your other end of Victoria Park. It is where you got some great complexes and I see as being part of the C.B.D., because it is on the other side of Victoria Park. This is your bone rock quarter, quite a few apartments here and a great owner-occupier area. Obviously, the majority of all of this around here is all your new fringes, where you have got scattered apartment complexes, which are also very popular.
As you can see, there is also dots here. There is red dots, black dots, blue dots here, and it is indicating that this is not a rule of thumb. In this ‘T’ junction you got a few student apartment complexes in this area here, which is closer to your shoe box apartments. Some great owner-occupier complexes. It’s not a rule of thumb, but it’s a general theme that within this lovely City of ours, it is like little suburbs where there are different parts of the City that suit different purposes.
I hope that educates you a bit on apartment life for Auckland and talk soon.
Did you know that the cost to run an apartment as opposed to the cost of running a house is much less? It costs a significant amount more to run a house vs an apartment. Not just in what you have to pay to purchase but because of the time and money you spend maintaining a house. For example, when owning apartments all you have to do is pay the Body Corporate fees and your utilities.
Body Corporate fees are a really efficient way of having to do very little because if you think about it, how many hours would you spend a year looking after your home? At an hourly rate, what would that be? Would you not much rather be enjoying yourself? Having more time with friends and family.
I think people really need to realise that a Body Corporate fee is actually a positive rather than a negative, because it takes out so many other costs that are associated with owning a home and having a garden and added maintenance.
Did you know that the cost to run an apartment as to the cost to run a house is much, much less. It costs so much more to run a house vs apartment. Not just in what you have to pay but because of the timing you spend maintaining a house. For example, owning apartments and all you have to do is to pay the body corporate fees. You would also pay the power and water as well as to make sure that’s tidy inside of your apartment.
Now when you think about a house. I have to take the rubbish out on a particular day. Now, that used to do my head in and I always forget. Also, I need to sweep the driveway. My dad always made me do that. Cleaning out the gutters and it is just endless stuff. Mowing the lawn and doing the garden. Making sure the house is clean and painting the house every 10 or so years. I also need to take care of the roof and plumbing.
What people do not realize is that they think that the body corporate fee is the a cost for owning an apartment. It is actually a really efficient way of you having to do nothing because if you think about it, how many hours would you spend a year looking after your home? At an hourly rate, what would that be? Would you not much rather be enjoying yourself? Free time with friends and family and all that kind of thing.
Not only does an apartment save a lot of time in traffic because of location, but also so much in maintenance. I think people really need to realise that a body corporate fee is actually a positive rather than a negative, because it takes out so many costs. There is less accounting and so much less stuff to do.
Anyway, I hope that helps you just have a little bit of a different perception on body corporate fees and I hope that helps. Anyway, if you have any questions, firstname.lastname@example.org.
An IEP report and an earthquake rating are basically the same thing.
Something that’s very prominent regarding character buildings and because of what happened down in Christchurch. An IEP rating which is an Initial Evaluation Procedure and is what comes out as a figure or gives you a percentage of what is called a New Building Standard.
An IEP rating comes out with a percentage which is compared against what the standard of a new building that is built today. For example, if it comes out at 75%, that means it is as strong as a new building that was built today.
At the moment, the law is at 33% which is the cut off for being a safe building that will be covered by insurance. If you come in at 33% or lower, you are going to have to strengthen your apartment within 15 years. If it is a character apartment you have 25 years. That means you have to be 34% or higher to pass.
From very good sources within the council that it is not going to be changing in Auckland. We can’t promise that, but every single percent it goes up costs the country at least 700 million dollars.
What is an IEP report, and what is an earthquake rating?
Basically, they are the same thing. Good day, it is Andrew Murray here from Apartment Specialists, talking about earthquake ratings. Something that’s very prominent at the moment regarding character buildings, and because of what happened down in Christchurch. An IEP rating, which is called as you can see here, I’ve got one in front of us, which is an Initial Evaluation Procedure. Hence IEP, which is what comes out as a figure, gives you a percentage of what iscalled a New Building Standard.
An IEP rating comes out with a percentage, which is compared against what the standard of a new building that is built today, in regards to earthquakes. For example, if it comes out at 75%, let us say in a building that was built 50 years ago, there is 75%, but it’s 75% as strong as a new building that was built today.
I said I would show you one. This one was done by Fraser Thomas Engineers. It was done for a heritage building built in 1917 – The Regency. Obviously done here, which is the Initial Evaluation Procedure, IEP, and they go through and they actually come in and look at how the building was built.
The first IEPs or earthquake ratings are just done off the plans, which are done by the council, which is my brush stroke approach. If you feel that your building has got a higher structural rating than what a council thinks, you can get an external IEP rating by an engineer. That is when they look in more closely, and then often what happens is, that’ll often increase – it could decrease, depending what has been done to the building. In this case increase, so they look at the buildings and they give you a history of the building. What it was built out of, when it was done, for what.
In this case, because it was built in 1917, it had various things done to it. It went from a warehouse office space, then an extension on the top, then it was turned into apartments in 1994. When it comes to an IEP rating, Initial Evaluation Procedure that comes out with an earthquake rating, it is really talking about two things: What they call longitude, which is what happens with the movement up and down, and what they call traverse, which is the movement side to side.
What is the rating? What will happen in an earthquake, if the earthquake movement was up and down, what is that rating? Against if the building was built today. What is the rating if the earthquake’s moving from side to side? Then each one will have a percentage, and then what happens is, they’ll take the lower of the two. And that will be the IEP rating, which is Initial Evaluation Procedure, or what we call the earthquake rating.
If you look down here, so it goes through a lot of stuff, that really you have got to be an engineer to really get into. I can explain some of it, but a lot of it is sort of probably beyond my expertise. Then it comes down to, we have actually come down to the IEP rating. What they have done here, is I think it might be a bit of a typo, but you can see here, you have got the longitude. Which is the up and down, coming at 54, and then the traverse, which is the side to side strength, is 72%. Now take the lower of the two, and it is 55 – I think it is supposed to be 54 there, because generally that’s what they take there. But anyway, you get my drift. That is what they come and look at. They look at the IEP, and they got the lower of the two of movements – this way and that way, and that gives you your IEP rating or earthquake procedure rating.
At the moment, the law is at 33% is the cut off. If you come in at 33 or lower, you are going to have to strengthen your apartment within 15 years. If it is a character apartment, you can have 25. That means you have to be 34% or higher to pass. In different parts of the country, that is higher – Wellington and Christchurch, etc. I have got, from very good sources within the council, that it is not going to be changing in Auckland.
I cannot promise that 100%, but to give you an idea, every single percent that goes up – that’s 33%. If it goes to 34%, on average, they estimate it to be about $700 million dollars that it’s going to cost the country. I’ve spoken to structural engineers, and they are basically telling me they are 100% sure it is not going to change. Obviously, I cannot say that, because I’m not a structural engineer. But that’s what I’ve heard from the industry, which is great news because I actually own character apartments myself.
Anyway, I hope this helps you understand a little bit more about IEP and earthquake ratings. Obviously flick me an email, email@example.com, or off the website, and I’ll talk to you soon.
Third on the series of questions of owners on “How Do I Sell My Apartments?” – aside from professional photography and putting the apartment in the best light possible, you’ve got to use feature ad. How important is it and How to Use a Feature Ad to Sell Your Auckland Apartment is a matter that we will dwell on thoroughly in this podcast.
Hi I’m Andrew Murray, Apartment Specialists. The third part and the question I get asked all the time is “How do I sell my apartment?” Online presence, as I say it each time, is so important to sell your Auckland apartment. So, A. You’ve got to have professional photography; B. The professional photography has to be putting the apartment in the best light; and C. You got to have a feature ad. Now what I mean by that is you pay another $69 on Trade Me. And now that is virtually nothing. And it means that when your apartment is searched for – after those first couple of weeks when it is further down to list – it comes up a lot higher. So it is an absolute must.
It is kind of like – if you don’t have a feature ad – your apartment is going straight to video. As in it is not in the cinemas. No one really knows about it. And the common saying in real estate is that you can’t sell a secret. So I will go straight to the point. What I’ve done is, I have actually got two apartments here that are in the same building. Very similar but one is slightly superior to the other. The slightly superior one is already under contract and it’s gone unconditional – I just put it up on Trade Me just purely to show this. And you will see what I mean.
So we’ve got the first one. It is bigger than most. And you can see both. If you look through – both professional photography, both the same complexes – but one is a feature and one is not. So let’s go back to the first one. The photos look great. Now this is a tenanted apartment which you’re seeing. We did a lot of work with the tenants and they let us come in. Look around their things. All that kind of thing in order to stage the apartment, it came up great. I won’t go through all the photos and bore you. Anyway, let’s go to the other one. They were basically put up right after each other so exactly the same time, yesterday morning. Let me look at this one. You see this is a superior one, looking fantastic. This one has got a view.
I prefer this one to the other one. Now, this is the one that is actually already sold. Look at it. Let’s look at the views on them both. First one, 374 views. Still very good probably because of the presentation of the photos and it looks really good. Now, second one, 1122. That just says it all. If Trade Me charge $600 to make a feature ad, I would still recommend it purely on those numbers as it’s huge. Thank you for listening to this.
Now I hope you understand how important your online presence is. There’s a lot more factors that go into it, but these are the basic three things. Professional photography of the Auckland apartment in its best light, and it being a feature ad. Thank you.
When selling your Auckland apartment it takes professional looking photos and a little staging to add glitz and glamour to your property. Many apartment owners consider this to be an optional add-on but more and more buyers are making decisions based on what they see online. Many buyers in this market have to do their research online as they don’t live in Auckland. Others would rather gather information online than waste their time driving around and travelling long distances to look for apartments. That’s why it has become a necessity in the Auckland apartment sales market to include quality photos in your online marketing. This will provide buyers with a valuable image of the apartment you are selling.
Why You Need to Market Your Apartment with Quality Photos
There are often many apartments being sold in one building at one time. You need to make sure your apartment presents well and stands out from the rest. A recent successful example of this is:
In one particular building the apartment listed to the right of the one we sold was listed for $250,000 (and it is actually a better unit). It has been listed since April 2013 and at the time of writing this guide it still hasn’t sold. We sold our client’s in under two weeks for $265,000 purely because we made the apartment look it’s very best.
What’s the first thought that comes to mind when marketing your Auckland apartment? Isn’t it that you want to get the highest price for it? What if it’s a rushed sale? Do you have to lower your apartment’s value simply to sell within a given timeframe?
Unless you have to sell your Auckland apartment within days you should always aim for the highest price. However, before asking for this, you have to attract many buyers and hold their interest. You have to excite international buyers via your online photos and you have to make local buyers want to get in their cars and view your apartment. Moreover, when it comes to rushed sales, you don’t have to lower your property’s value simply to sell it off. You need to aim for the highest price and promote your apartment through quality photos. This is what Apartment Specialists is about to show you how to do….
Below is a comparison of a living room in an apartment that we recently sold. These are before and after photos of the same room. The first photo shows you what the room looked like when we arrived. The second shows you what a little bit of staging can achieve.
Which room attracts you more?
A Guide to Flattering and Seductive Apartment Photos
Watch this short video before you start reading our guide as it will provide you with some great examples of the good and the bad.
You now know that photographs can be powerful bait when attracting the interests of buyers and property investors. We have come up with a simple yet powerful guide to help not only Auckland apartment owners but other agents in the Auckland apartment sales market. Use this guide yourself or ask your agent to follow it. You can do the staging yourself or hire a professional photographer.
Pre Photoshoot Preparation
Take Time to Build Relationships with Tenants
This is not related to photography but this is an important step when staging an apartment. Most Auckland apartment owners do not live in their apartment. Their apartment is often under a rental agreement. If a tenant lives in the apartment that you are about to sell and they do not cooperate, the thing is, you won’t get those professional looking photos that you want. They might not even allow you to take any until their lease expires. That’s why it’s important to build a relationship with them. You can then simply talk to them ahead of time, tell them that you want to take photos on this certain date, and if it’s okay, you will move their stuff around and then put everything back.
It’s important that you prepare a staging kit or props beforehand. I’ll be honest and say that some tenants do not have classic and sophisticated tastes when it comes to furniture and accessories. So it is handy to arrive with duvets, throws, pillows, bed sheets – anything that would likely improve the appearance of a room or a view.
When doing exterior shots remember to get photographs of the following:
Façade of the apartment building Exterior amenities (i.e. gardens and parking areas) View from inside looking out If there is a coutyard or deck, get photo of these areas View of the street from apartment looking down
Shots of whole room areas including:
Master bedroom Kitchen Dining area Living area Bathroom
Improve on your Auckland Apartment Sales with these Photoshoot Tips
Use Lights to Brighten the Area
When taking exterior photos, make sure you do it in the middle of the day when the sun is up and the sky is blue. The sun’s rays make the view more stunning. If taking interior photos, make sure that all lights are turned on and you use a flash. This will fill in any shadows and even the colours of the images. If you have contrasting colours in the background it makes the colours stand out.
The More Photos the Better
All buyers love to see more than just the façade of an apartment building, the more photos of the apartment the better. This includes all rooms and the interior and exterior views. If the apartment has a spectacular view of the sea, a park, etc then add them as well. They add value and excitement to buyers.
Move Things Around
When taking shots, always remove the clutter like dishes, clothes and all stuff that is not furniture or appliances. Remodel and move furniture and appliances in order to stage the rooms properly. This will make the rooms look larger and attractive.
Remember to Go Pro
If you are hiring a real estate agent or agency to market your Auckland apartment, ask for samples of photographs of apartments that they have sold. Now that you know that they have a huge impact on the value of your apartment you need to see what they can do. If you decide to go pro then there may be an additional cost but this will definitely be well worth the investment.
We would love to hear your feedback on our guide and see your before and after photos. If someone you know is selling their Auckland apartment then email them this guide or even better share it on Facebook.
We will be talking about the Auckland apartment market and how can you determine if your apartment is being undersold to a trader. I will also tackle some of the common myths associated with a trader – All these in this podcast.
Apartment Specialists Podcast No: 25
Andrew Murray, Apartment Specialists. You know, when your Auckland apartment is being undersold to a trader to be resold. That’s a myth. You don’t know. Most of the time, you don’t know.
One tenth – so one out of every ten Auckland apartment sales or apartment transactions on the Auckland apartment market is dealing with the trader. So that means over a hundred owners each year are selling to traders in one suburb in the city centre without even knowing in most cases.
Occasionally, clauses have been used. But these clauses are very misleading and give a completely different picture. So how can you be sure this isn’t happening to you? Everybody thinks, “Oh, I wouldn’t be that stupid to undersell my apartment”. Well, the thing is, you don’t actually know. Because me – being an apartment agent – it took me probably a year, or six months to a year, to actually figure out the values. So you as a vendor, how are you supposed to know when I’m doing this day in and day out? And the reason why – a huge reason – is sales don’t always represent values.
Every apartment is different, every condition is different. It’s a real minefield. So if you even suspect that your apartment’s being sold to a trader, put in the agreement on the vendor side, “Subject to evaluation”. Then you actually know – and just for the sake of that $500 you spend on evaluation – you’ve got peace of mind knowing that you’re not throwing away money.
Probably the best way to ensure that this doesn’t happen from the very start is when you choose the agent to represent you. Create a separate form saying that the agent will ask every prospective buyer – he puts in a contract – the purpose of the purchase. Is it an owner-occupier? Is it an investment for “x” amount of years, or it’s to resell? And through doing that, you can actually ask the agent have they asked the purchaser a question and what is the reason for the purchase. Now, if they say it’s to resale, they have to say it because you’ve actually given them a document or put a clause in for the sole agency saying they have to do so. You’re not flying blind. Because it happens time and time again. And some of the top agents in the Auckland apartment market sell so many apartments to traders and no one has any idea.
I hope that helps and make sure you do put that clause in. If you’re unsure and you feel like you’re in an area where you can’t make an educated decision – because you feel like you’re just relying on the information in front of you – put it subject to evaluation for the vendor and that’s not normally done – but in the Auckland apartment market that needs to be done. Or as I see it – if you can – ask to have that clause in the agreement. You can even say, “I don’t want to receive offers from traders”. And every offer, I would like to know what the purpose of the purchase is. I hope that it’s been helpful.
The next myth I’m going to talk about will help educate you guys is the auction market. An auction is the best method of sale when it’s unique, when it’s going to bring in emotional buyers. I very rarely use this because I can get higher prices through listing with a price. But there are times when auction is the best method. In this market, the sad thing is that’s not the case. And I’ll go through that in my next podcast and how you can ensure that you’re not falling into that category.