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How to choose the right lawyer when selling or buying an apartment

Posted in Apartment Buying, Blog, Buying, Not A Property, Selling, Things To Know About Apartments, Video.

Summary:

Don’t go for a choice of lawyer upon a recommendation from someone you know. Unless it is a lawyer that has expertise in the sale and purchase of apartments. Apartments are different to houses and can be complicated in terms of regulations and inspections of not just the property you are purchasing but the entire building too. If you require further information in regards to finding the appropriate lawyer to aid your purchase and sale, we can assist at Apartment Specialists.

TRANSCRIPTION:

Choose your lawyer on their expertise, not because of friends or you have used them before. Choose them on what they are good at. Now, I am talking obviously about lawyers that you can use when you buy or sell an apartment. And I do not mean it by saying in bad terms towards other lawyers. I am talking it in the same sense that, if you asked to sell your house in Papakura or in Wellington or Christchurch, I am not the best man for the job, if you ask me to sell your apartment; the same thing goes with lawyers.

Good day, it is Andrew Murray from Apartment Specialists. I will be talking about the importance of making sure a good lawyer who has expertise in apartments is looking after you when you are buying or selling. I have seen this mistake cost people tens of thousands of dollars, either through when they are purchasing an apartment. Not picking up particular issues or when they are selling deals.

What sparked this podcast was recently, I just had a lawyer and I was almost going to settle. It was about three days before settlement and the lawyer who was acting for the vendor rang back and said, “I don’t know what to do.” I rang back and go and had a conversation with him. We spoke about them and basically gave them the gist of how to convey the property. It was a lease on an apartment, so it was more complicated than normal.

The person said, “Look, I’m down in Hamilton,” which is a city in Central North Island. “There aren’t any apartments down here. We haven’t dealt with this and I literally don’t know what to do.” And I said, “Look, can you please tell me this so then I can tell my vendor.” Just be straight with them, and say, “Look, you’re not the best person for the job.” They can get another lawyer who is. Obviously, it happened but it should have never happened. Another reason is when someone is purchasing and I have had lawyers who are asking all the wrong questions.

Even though, in most of the cases, the buildings are fine, because I have to disclose them yet. They are asking questions that are completely irrelevant to apartments or they do not understand the Unit Titles Act and the due diligence. What they are doing, on behalf of the purchaser, is not the best due diligence. What I am saying is, before you choose your lawyer, make sure they have expertise in apartments and unit titles. How many have they actually done before? And if they are in a town or a city where there is no apartments, you can pretty much almost guarantee they have not dealt with them before.

Again, this is not putting down the law community. It is the same reason why a lawyer specialises in family law or a lawyer specialises in commercial law. You are good at what you specialise at. Anyway, I hope that helps and please follow this advice whether you are purchasing or selling. Especially when you are looking for a lawyer.

Thank you. Cheers!

What is the cost of owning a house vs an apartment

Posted in Apartment Buying, Blog, Body Corporate, Buying, Imageless, Not A Property, Things To Know About Apartments.

SUMMARY: 

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.

TRANSCRIPTION:

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, andrew@apartmentspecialists.co.nz.

Cheers.

What hidden costs are there when selling an Auckland apartment?

Posted in Apartment Marketing, Apartment Selling, Blog, Imageless, Not A Property, Selling, Things To Know About Apartments, Value Updates.

Summary:

Owners are often under the assumption when selling, that the only costs involved are marketing and the agents commission however, there are hidden costs that most are not aware of.

You need to be aware of a pre-contractual disclosure coast – sometimes a Body Corporate wont charge you for this and others can charge upwards to $350. This is mandatory to get and the agent cannot sell an apartment to you without one. If requested through us at Apartment Specialists we can potentially save you that fee.

While requesting the Body Corporate minutes might only be small fee of around $25, be aware there is a fee for these.

Lawyers fees need to be taken into account too, these can be anywhere from around $1000 up to around $1400.

Today’s podcast shares information about hidden charges that Auckland Apartment sellers are not aware of. Find out what surprise costs can disrupt the process of selling your apartment quickly, and frustrate the heck out of you.

You need to budget for a potential loss of income as a seller if your tenant vacates the property prior to the settlement date.

Be aware of the 15% GST you will be charged on top of your commission costs. This is important to factor in so as not to be surprised or disappointed.

TRANSCRIPTION:

Good day, my name is Andrew Murray from the Apartment Specialists. Today, I’m talking about hidden costs in selling Auckland apartments that you need to be aware of.

You see when the owner comes to sell an apartment, they are given the cost i.e. commission and marketing. That’s pretty much it. There are actually quite a few other costs involved and that can be really, really frustrating for an owner when they try to budget, figure out what they need to sell the apartment for and all those kinds of things. Nobody wants surprises.

So we have come up with basically five topics. One being pre-contractual disclosure or 418. Number two, being extra information on the apartment or complex. Three, lawyers fees. Four, being around rent income and missed rent income. And five, being GST and tax components which often aren’t included or aren’t thought about until after the fact.

Okay, I just thought I would go through things pretty quickly. Now, number one, pre-contractual disclosure. This is something that, as an agent, we cannot sell your apartment without. This is something that’s only for either titles or apartments, which when you sell your apartment, it’s basically saying “Have there been any issues? Have there been any claims maintenance?”, that kind of thing about your apartment. This has been made compulsory since the Act came in in May 2010 – The New Zealand Titles Act.

The reason why it’s compulsory is because too many purchasers were purchasing apartments without being aware of what they were purchasing. So you can understand it’s very important. But it comes with a cost. This document is charged to you by the body corporate, and the fees range from – some don’t charge anything and some up to about $350. Now, if you went with a specialist, they can actually create a 418 for you and give you all that information. And you can contact your body corporate but not actually have to pay that fee. But most agents won’t do that. However, just ask us and we can help you with that. There’s still a little work on your part but hey, you are saving $300.

Again, number two, extra information.  Now, a lot of real estate agents who maybe don’t specialise will need each information and will need body corporate minutes. Now, you may have a copy of them.  You are often going to be charged for extra copies by the body corporate – $25 here and there, three of them for $75 right there.  So that’s often something the owners are not aware of. So you’ve got to include that in your budget.

Number three, lawyers fees. Be aware of conveyancing. It’s what it is called when you sell your apartment. And re title, basically, it is being charged over to the purchaser, and that is around $1,000 including GST.  Now, if you’ve got a mortgage on your property when you sell it, there’s going to be an added component to lessen that mortgage which adds around about $300.  So I’d probably budget around $1,300 for your conveyancing costs.  So that’s something that a lot of owners forget about. It’s not something that I like to charge, but that is something that a lot of owners don’t take into account when they are going to sell their apartment.

Number four, missed renter income. Often, a purchaser will want it to be vacant. This vacancy will happen, maybe a week, two weeks, three weeks before it actually settles. That’s income that you were getting, and then all of sudden, you weren’t. You may not have budgeted for that. Be aware that you may need to budget for a loss of rental income when you’re selling your apartment, maybe for a couple of weeks. Generally, there’s a change over.  Often, it can be made so it doesn’t occur. But it does happen, especially with people who don’t specialise in apartments.

Now number five, it’s not calculating the GST component. Now, obviously you have commission in selling your apartment. That’s what we do, that’s how we get our money, and how we get paid. But the commission amount is not just the commission amount. You’ve got GST. A GST component of 15% in New Zealand and then it gets added on to that commission amount. For example, let us say the commission is $11,500. It’s approximately going to be just over $14,000. It’s what you’ll be charged. So, be aware of that GST component, and put that into the sum when calculating what the costs are when you’re going to sell your apartment.

I hope that helps. Just to round it up again, make sure that you’re aware that a pre-contract for disclosure is going to be needed and you’ll get charged that around $350. Number two, extra promotion on your apartment, or complex, can range up to $100 if you’re dealing with an agent who doesn’t specialise in apartments. Number three, lawyers fees, about up to $1300 if you’ve got a mortgage, $1000 without. Number four, rental income and that change over, maybe one or two weeks. Number five, not calculating GST component on a commission when you’ve signed your property.

I hope that helps you get a full picture and gives you information, or allows you to form the information you need to figure out what’s best for you moving forward.

Thank you and good day. Cheers!

geting the highest price through conjunctional agreements

Getting the highest price through conjunctional agreements

Posted in Blog, Body Corporate, Imageless, Not A Property, Selling, Things To Know About Apartments.

Summary:

If you are listed with an agent, you either wonder if another agent can get you a better price or you find out that could you need to know what you can do about that.

Unfortunately, in this situation it is very difficult to do so, this is due to policies agencies have in place to stop this happening.

If the agency does allow a conjunctional it can mean a reduced commission for the agent you have signed with and this may end up costing all involved more.

At Apartment Specialists we don’t agree with this policy and allow other agents to sell the apartments as well as we believe that we can get the highest price and owners are getting the most out of the market. This allows you to be in control.

TRANSCRIPTION:

Andrew Murray, Apartment Specialists, talking about the Auckland apartment market and what happens when you are an owner and you list with an agent but in the back of your mind you’re thinking, I wonder if that other agent can get a higher price?

Let’s be honest. There’s a lot of different agents and agencies out there especially in the Auckland apartment market. So what happens if another agent can get a higher price when you are listed with another agent?

Unfortunately, the situation is, that other agent, in most cases, will not be able to take a buyer through. Or if they do, it’s made very difficult or financially inviable.  And what I mean by that is, in this market there are agencies that have policies where they will not do conjunctional agreements with other agents. Or at best, it will be referral and it’s another agency who will do conjunctionals. But it will be at a reduced commission. Maybe it’s 30%, maybe it’s 40%, maybe it’s 20%. What happens there with an agent who has a good buyer, they are going to be put off. And who loses out? The vendor. This is really, really important.

Now, what we have done to sort of change this problem is – what we do is – we basically say that any agent from any agency can sell your apartment with equal commission. It doesn’t matter if it’s auctioned, it doesn’t matter if it’s listing with a price or tender. Any agent in the whole of Auckland or New Zealand can sell your apartment. We do that so you as owners know that you’re getting the most out of the market. The thing is, a lot of these agencies will – this is their policy that they don’t – they have certain policies that restrict agents from other agencies selling the apartment. But what you can do is as an owner is take charge. And if you choose to go with an agent where their agency policy is like that, ask them to change it. Ask “Can you please let other agents from other agencies also sell this apartment if they come across a good buyer, and if you do, give them equal commissions splits after expenses. And can you put that in the ad so agents know.” An agent should do that. I don’t see why they won’t because it is in the best interest of the client. What I’m saying here is, as an owner, take control because you are the boss. You are employing an agent. You’ve got to put these terms to them if they don’t put them to you and put you in control. Hope that helps.

Anyway, next time I’m going to be talking about what method of sale should you choose to sell you apartment and how do you make that choice and what I mean by that is, auction, tender or listing with a price.

Cheers.

owners negotiate commission selling apartment

Should owners negotiate commission when selling an apartment?

Posted in Apartment Marketing, Blog, Imageless, Not A Property, Property Value, Selling, Things To Know About Apartments.

SUMMARY:

This isn’t a straight forward yes or no answer but it is a tool that can be used as an owner.

A strange concept coming from an agent we know, however use the commission as a negotiating tool when choosing an agent. Letting the agent know your goal price for the apartment and then working it out from their may work in your favour in terms of increasing what you make. There is a point though where you have to be fair and ensure both parties are happy with the deal being made. Ensure this is all write in up formally to avoid any upsets in the process.

TRANSCRIPTION:

Andrew Murray, Apartment Specialists. Today I’m talking about a really interesting question. Should you negotiate the commission you are being charged when selling your apartment?

Now, this isn’t really a yes or no answer but I definitely would use it as tool. Now this is a very interesting question. And obviously a very interesting answer coming from a real estate agent. Because obviously, I don’t want you to take down the commission. But what I’m saying is it is a tool for you as an owner. And if you look at a commission, it’s like a carrot. The carrot and the donkey. The donkey goes for the carrot because the donkey wants the carrot. In the same way, the real estate agent wants the commission because he wants to get paid. Now, that commission is an attraction. So if a real estate agent in the agency lets other agents from different agencies have an equal commission split, then the commission amount is very important because all the other agents are also trying to look for buyers for your apartment, not just the agent you have employed to work for you. So, by reducing that commission, it is less attractive to other agents.

For example, if they have a very good buyer they want to get paid. Because, I mean let’s be honest, that is the nature of the business. Agents want to get paid. They will direct their buyers to properties where there is a normal commission. If you reduce the commission, and especially heavily, that will often turn away agents. And often agents won’t work as hard for you. I mean, it’s not something that I want to admit to you but it’s something that’s actually the case. Because I’ve seen it with many agents. In that case, what I would do – I’m thinking if it was myself – is I have a goal. And the goal I want to achieve price wise. And then I’d use that commission as a tool. So when it comes to the agents bringing you offers and they are working for you – and if they’re not getting you the numbers you want, I’d use that commission as a tool and say for example, “If this is the best you can do, I clearly told you I wanted x, y, and z. And, this hasn’t been delivered. There’s only one way I’d even start to look at this number.  And that would be if you reduce the commission. And that way, it is actually lifting the price for you.”

When it comes down to that, if the agent hasn’t done the job or hasn’t brought you the figures that they said they would or that you wanted, that is a very, very powerful position for you, as an owner, to be in. So what I would do is I’d use the commission as a negotiating tool. Because you can. A lot of owners think, “Okay, just because I put on the listing form that that is what the commission is, it has to stay like that.” That is not the case, you are still in control, you are still the boss. So remember that. Use that commission as a negotiating tool.

What I’m going to talk about next is I see a lot of owners – okay, I see a lot of apartments marketed very poorly, and I think in my head and I speak to my colleagues and I go, “How does the owner accept that?” And, it’s obvious that the owner doesn’t know. He doesn’t know what platform or what website their apartment’s being advertised on or marketed on. What I am asking is, “How can an owner check that their apartment is being marketed correctly?” Because there are a lot out there that I look at and go, “Wow, if the owners see that, they won’t be happy.” That is what I am talking about next time. Hopefully, that will help you hold the agent that you employ accountable to how they are selling your property.

Talk soon, cheers!

six reveals finding best auckland apartment agent

Six Secrets to Finding the Best Auckland Apartment Agent

Posted in Apartment Marketing, Blog, Imageless, Not A Property, Selling, Things To Know About Apartments.

Selling an apartment is an action that involves deep consideration. Many sellers, especially those who are selling for the first time, realise this once they enter the process of looking for buyers. There are six revealing truths to selling an Auckland apartment and if you act on them, the process becomes a whole lot easier.

Apartments For Sale Auckland | Apartment Specialists

Choosing the right Auckland apartment agent will make a big difference not only in the process but also in the price you will get for your apartment.

So if you are selling, especially in the very competitive Auckland apartment market, how do you choose the best real estate agent? What do you have to consider when determining if an agent is right for you?

Secret #1 Look for Sales with Record Prices

There are agents who are only concerned about closing sales without regard to getting the best price for the owner. There are also those who are giving a stellar performance in order to get record prices. As a seller, it is important to do your own homework and look into the sales records made by the real estate agent. Are the sales above or below market value? Is he/she doing any due diligence to access the right information? That way, you can determine whether the agent is the best person to entrust selling your Auckland apartment.

Secret #2 Insist on a Competitive Method of Sale

The apartment market is different from the housing market. Within the apartment market there is a whole range of apartment complexes.  Apartments come in all different types, layouts and sizes. Depending on the buyers’ demographic, the sales method to achieve the highest price varies. How do you know the best sales method to use? Ask to see the record prices in your complex and ask what sales method achieved them. That will give you your answer. If the agent is pitching something other than this, you need to insist on the winning method.

Secret #3 Make Sure all Agents get a Look In

Quite often, another agent will have a buyer that will pay a higher price than the buyer your agent has found. What happens then? You need to make sure that you are in control so that you get the best offer from the whole market.  Make sure your agent not only lets other agents through but that they share commission equally. They should state their intentions to other agents in the ad so that any agent will be motivated to come forward with a buyer.  20%, 30% or even 40% commission is not enough. To get the right buyers through the door all agents must be offered the full buyers’ share of 50%. This way you know 100% that you will get the best offer from the market.

Secret #4 Don’t get Tied Down with an Exclusivity Agreement

New Houses For Sale Auckland | Apartment Specialists NZ

The purpose of an exclusivity agreement is to lock you in for a certain period of time. However, is this really necessary? If the agent works hard and delivers an excellent service that brings in lots of buyers and the best possible price for your apartment, do they need to lock you in? The answer is a resounding no!

If the agent is confident that she/he will be able to deliver the service required, then there is no need to lock you in. If during the process of selling your apartment your agent doesn’t perform, you need to get out of the contract. You should never be tied to an agent who does not deliver top quality service.

Secret #5 Expect a Stress Free Process

Selling an apartment can be stressful especially when you do not know the ins and outs of real estate. Think of the paperwork, the prep, the liaison and negotiation with buyers, and the closing of sales. If you want to hire the best apartment agent, find out if they have a team that advocates a streamline process.

Secret #6 Seek Specialist Expertise

There are agents who specialise in apartments and there are agents who specialise in houses. An agent must be knowledgeable in order to determine the right price for a house or an apartment. An apartment agent must know the history of the building, how the building is being maintained and the valuation and assessment ratings. He/she must be good at liaising with tenants and understanding how to properly market an apartment.  This ensures that the agent conveys the right information and shows the apartment in the best possible light to the buyers to achieve the best price.

Do you want to know how much your apartment is worth right now? The answer is 5 easy steps away. Get your free valuation.

average period to sell an auckland apartment

Average Period to Sell an Auckland Apartment

Posted in Apartment Marketing, Blog, Imageless, Not A Property, Selling, Things To Know About Apartments, Value Updates.


Apartment Specialists Podcast No: 42

Summary:

The average time period to sell an Auckland apartment and the factors affecting the period of sales.

TRANSCRIPTION:

Good day. Andrew Murray from Apartment Specialists. Today, I am going to talk about how long it takes to sell an Auckland apartment.

Now, looking at the average of our last 25 sales, I can say, on average, it took 27 days per apartment for it to go on the market and then get sold. You can say the average time to sell an Auckland apartment in the current market is a month.

Why do some apartments sell in a day and others take up to three months, sometimes four? Well, it comes down to three reasons: one being the actual property. How suitable is the property? Is it a property that’s favourable? For example, if it is not an owner-occupier property and it doesn’t get very much light, it’s going to take longer to sell.

Does the property have anything that is not going for it? For example, maybe there are a few issues in the complex and they need to be resolved. Well, that’s going to turn off a lot of buyers and make it again, difficult to sell.

Another one is access and that’s huge. Which is very different in this market than with houses. Because most of this market has tenants. If the tenants aren’t giving you access, that can make it difficult to sell again. But at the end of the day, it all generally comes down to one thing which is the owner’s situation.

If they needed to move quickly, price is the one thing that eventually holds it up. If the apartment is priced very well, it will go out of the door. If it’s priced not very well, it will last a long time. If the apartment is priced very well, it would probably go in generally, about a month and if not, it can take a lot longer.

It comes down to the client’s situation. If they want a very high price for the apartment, it takes longer. Hopefully, the ideal client will give us that time to be able to try to achieve that for them. Through the whole time, you are giving them feedback and often, if it is priced too high, the market tells you that, and we give that information to the owner, and they adjust it accordingly.

To recap on this one. Basically, on average, it takes 27 days or around about a month to sell an Auckland apartment. I hope that helps. In the next podcast, I will talk about how much it costs to market an Auckland apartment.

Cheers.

 

how to use a feature ad to sell your auckland apartment

How a feature ad can sell your apartment?

Posted in Apartment Marketing, Blog, Imageless, Not A Property, Selling, Things To Know About Apartments.

Apartment Specialists Podcast No: 30

Summary:

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.

TRANSCRIPTION:

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.

Cheers!

staging auckland apartment look absolute best online

Staging your apartment to look its absolute best online

Posted in Apartment Marketing, Blog, Imageless, Not A Property, Property Value, Selling, Things To Know About Apartments.

SUMMARY:

Staging is an important part of your marketing campaign. Having stagers come in to your property prior to photos will ensure your apartment looks at its best for the photos that go online.

We understand that often you are selling a property that may be tenanted and with it not being their own place the furnishings often don’t fit certain areas or the aesthetically it may need freshening up.

We offer this as a free service and come in and clean, tidy and present it to a high standard. For further information, contact Apartment Specialists and we will be happy to help.

TRANSCRIPTION:

Andrew Murray, Apartment Specialists. “How do I sell my apartment?” The question I get asked most often.

Now, it is all about having your apartment looking its absolute best online. So that is about using professional photography. And what I’m taking about today is  not about you just paying for professional photography – it is having your Auckland apartment looking in its best light before the photographer gets there because otherwise it is a waste of time.

So, looking at the list of things that I’ve just come up in the last two days – rather than comparing my own and all that kind of thing – I wanted to look at two apartments that are very similar and can actually be really compared. So again here, you’ve got one in Harvard and one in Zest. They are investor apartments. They are the ones that a lot of people have difficulty with with tenants.

And now that is not an excuse. You can create a relationship with a tenant. And you will see that, as in regards to the results of professional photography. So both have used professional photography here.

Freehold, two bedrooms, the apartment in Harvard. Eleven photos. Two bedrooms, one bathroom. Two bedrooms, one bathroom. Both exactly the same size. Very similar. Both listed at exactly the same time. So you’ve got here, Freehold, two bedroom apartment, and the photography- it’s professional photography. I mean, the appearance could look better but it doesn’t look bad. It’s showing the apartment in good light. And how many views has it got? 396.

Now, we then look at Zest which is very similar. Professional photography as you can see by the wide angle lens. But the presentation is shocking to be honest. I mean, if you were an owner, would you want your apartment to look like that? If you are a buyer, what are you thinking? And this is an example where it just doesn’t create the same amount of enquiries.

So, it is about creating relationships with the tenants. It is coming in and lightly staging with them – and actually talking with them – and that’s a whole conversation in another process. But it is the result that counts. So professional photography is a must. But you are wasting your money if you are taking professional photography of something that does not look good.

So, I guess that is the point that I want to get through today. And you had probably see in the views 286. So from 286 to – how many were there before? Very quickly, my apologies. So, probably about 30% more views. So that’s 30% more buyers looking at your apartment.

Thank you for that, I will be now commenting on the third part of this question, Is it a feature or not a feature?

Cheers!

myth 9 auckland apartment auctions

Myth #9: Auckland Apartment Auctions – Only the Owner and the Agent Know the Reserve

Posted in Apartment Marketing, Blog, Buying, Imageless, Not A Property, Property Value, Selling, Things To Know About Apartments.

Apartment Specialists Podcast No: 26

Summary:

I go in-depth about auction in this particular podcast so you will know what to expect when you’re dealing with an agent. This is another myth that you know about.

TRANSCRIPTION:

Andrew Murray, Apartment Specialists. This is quite a big one. When auctioning your property, only you and the agent have an idea what your reserve is. Now, that is a myth and it shouldn’t be a myth.

Now, I’ll explain to you – I’ve been in two major offices in the open CBD Market for starting my own company. Basically, both did their auctions in the same way. So, what would happen was, you’d have a meeting – you’d have your sales meeting – and those who were auctioning the properties would introduce their property. They’ll ask everybody not what it’s worth, but what would the reserve need to be to guarantee it to sell. And then, the agents would set out the price. Say, that’s worth 200. Say, to guarantee it to sell, it would need to be 180,000. And if it was a 500,000 property, to guarantee it to sell, it needs to be $440,000. Then it would be the agent’s objective to go and try to get that reserve.

The next week in another sales meeting, the agent will report back – different sales meetings or in different agencies at different trends are the ones that I saw – some would go, “What’s reserved?” or “It’s A plus-plus”, which means it’s better than you want it. Or, A-plus means it’s on the money or A, it’s pretty close. B-plus, it’s a little bit far away and B, yes there’s a bit of distance there. Other ones would be going like, “Yes, that’s exactly where you wanted it guys. Go get your buyers” and it’s going to the auction.

Now, it didn’t really sit right with me but that’s sort of how it’s done in the Auckland apartment market when it comes to auction. And what would happen was a whole mentality: that by telling an owner that everybody knows your reserve and knows it’s a low reserve, that’s going to bring in more buyers – it’s going to bring in more competition. Now I disagree with that because it’s bringing in buyers that want a bargain. They’re bringing in buyers who don’t want to pay retail. And so, that’s not the kind of competition you want. Yes, there is an argument that it does make the base of the auction and it can help in that way. But what it does is – it means that your apartment could sell for less than you really want to or what it should be selling for.

So, how to stop this or make sure this doesn’t occur is, why even get the reserves prior to the auction? Why not keep it in your head and you and your partners head? And if the auction gets to the price you wanted to, well then let it sell. If it doesn’t then go from there. Because if you think – put your mind in a bidder or in a buyers mind – you’re bidding for an Auckland apartment – and they already got in mind what they want to pay. If it is a good auction and the other buyer is also emotional – you got two emotional buyers and they’re pushing the prices up. You will at least know that it’s met the reserve. If anything is going to make the buyer say, “Oh, that must be market value”  or “That must be what owner wants. I don’t want to go too much higher.” So how is actually giving the reserve to the buyers an advantage to the vendor? I don’t see the logic – maybe there’s a side that sees it, but if they do please write in a comment or tell me.

That’s a myth. So, when you’re auctioning your property, if you do choose to auction it as a property that is suitable, i.e. not an investor apartment where emotions involved, don’t disclose it. You don’t have to; keep it in in your head. Then, you can make the best decision for you.

I hope that’s helpful. Next month – I’m sorry next week – I’m going to talk about an interesting question. One that you probably wouldn’t expect from me. What’s my opinion on private sales? If you don’t want to use a real estate agent – because a lot of people have had bad experiences with them- how do you sell it privately? And I’ll just do a quick podcast on that.

Cheers. Bye!