Preparing to Sell

Before you open your home up to potential buyers, you need to consider both the presentation of your home and how you would like to present your property through marketing material. Buyers don’t always get past the initial look, and might not take the time to see the true potential of your property. 

 

Preparing Your Home For Sale

Here’s a list of some of the areas buyers may be looking at when they walk around your home, all of which can be easily fixed:

  • Paint work – is it marked, old, or chipping in some areas? Sometimes a lick of fresh paint can make a room look brand new
  • Carpet – although more expensive to change outright, if it’s looking dirty or tired consider getting it professionally cleaned.
  • Garden and lawns – a poorly maintained garden and overgrown lawns can give an impression of the property being neglected.
  • Doors and windows – this might seem trivial, but a lot of people will open most doors throughout the house to see what’s behind them, and even open some windows. Make sure they aren’t sticking or damaged in any way.
  • General cleanliness, especially through the kitchen and bathrooms, and including animal hair – some buyers will get turned off if they see that a place hasn’t been looked after well as they want to try and picture themselves living there. Before an open home make sure you scrub the bathroom/s and kitchen, take a duster round the living areas and vacuum the floors. You may also want to consider cleaning any windows.
  • General clutter – if you have a lot of stuff and it’s cluttering up your house, try to tidy it up or put it away before anyone comes around. By doing this you may help to give a room spacious more spacious feel, and you might be able to highlight storage solutions in your home, which is always beneficial.
  • Smells – it seems simple but bad smells can put a buyer off and it might not even relate to your property. Make sure any rubbish is put out and anything that may potentially create a bad smell cleaned up. Even things like avoiding cooking particularly smelly food right before someone views the property can help.

 

Marketing your property

Whether you sell privately or through an agent, deciding on what kind of advertising and marketing you want to do will can affect the audience you reach and of course the cost.

  • Print advertising. Print advertising can come in various forms but some of the more commons ones include Property Press magazine and local papers. However, you have to remember that:
    • It can be expensive depending on your needs, ie how often the ad features and the size of the ad
    • It only captures your immediate, local audience, which is beneficial if you want to target your area but limiting if you want to attract a wider range of buyers
  • Online advertising. Online advertising has become more important in today’s real estate space, with sites such as Trade Me Property and Open2view becoming very popular. Online advertising can offer:
    • Cheaper advertising space, although your ad can end up being one of many in a long list
    • A wider audience reach - although this can also mean you end up with a lot of views of your ad but with no real leads, as people are just browsing
  • Property signage - Regardless of whether you choose print or online advertising, or both, another common form of marketing is a ‘For Sale’ sign. This is usually positioned out the front of your property. It’s an easy way to let passersby know your house is on the market and it also highlights your house to people trying to find it after seeing it in advertisements elsewhere.

Each option needs to assessed as to the number of potential buyers you can attract through it, and whether they’re the right buyers for your property. The cost also needs to be looked at, but this can be weighed up against whether that method attracted your buyer. More often a combination of different advertising and marketing will be suitable, and if you are using a real estate agent they will advise and help you with this process.


Latest News & Articles

This monthly report created by the CoreLogic NZ Research Team covers the main economic factors that influence the housing market, and then looks at sales volumes, values, and active buyer types in both the national and main centre housing markets.
 
 
Some highlights of the June - July 2017 report:
 
  • Migration – We have started to once again experience a net loss of Kiwis to Australia, but this is unlikely to return to previous high levels of loss.
  • Building Consents – These have trended down right across the country in recent months, which is the last thing we need when our housing shortage continues to grow.
  • Consumer confidence – remains positive as people feel good about both current and future economic conditions.
  • Sales volumes – bounced back up from a very low April, but are weaker than last year across the whole country, especially in the North.
  • Market activity – this continues to slide downwards and is now well below the same time last year. This will translate into far fewer active buyers in the market over coming months.
  • Listings – New listings are at normal seasonal levels, but the lack of sales means that the total stock of properties on the market is much higher in Auckland than the same time last year. More choice along with fewer active buyers means far less reason for prices to rise. Meanwhile total listings continue to drop in Wellington and Dunedin which means it is still tough for buyers.
  • Buyer Classification – the share of sales to investors has risen in many areas, but given that the overall number of sales has dropped almost everywhere, sales to investors, particularly those needing a mortgage, has actually dropped dramatically. But this drop in investor activity has come at a cost with first home buyers at record low numbers in Auckland.
  • Values – Auckland and Christchurch values continue to slowly decline, Hamilton is flat, while the rate of increase in Tauranga and Wellington is now much slower than last year.
  • Outlook – Falling demand will lead to falling sales. Meanwhile total listings will rise leading to more buyer choice. With uncertainty about what polices on migration and housing will result from the upcoming election in September, it is likely that the current market weakness will persist through until after the election result is known. Strap yourselves in for a slow winter in the property market!
To download the full report click here.
 
You can also watch the most recent video update below, in which our Head of Research Jonno Ingerson takes you through the latest trends. 
 
 

Kiwis and their assets

Thursday, 15 June 2017

Despite all the talk of affordability, Kiwis still prefer their assets in property form but NZ's listed stocks are the rising star.
 
The value of residential property continues to grow beyond one trillion dollars, dwarfing the value of other asset classes, with residential mortgages secured against 23% of this value. 
 
 
Listed stocks have bounced around in the last couple of months but the overall trend has been upward since the start of the year. They are now only just over 2% below their all-time high of September 2016.
 
Learn more about the latest property trends by downloading your free copy of the CoreLogic May/June Property Market & Economic Update Report, available now. 
 
We’re currently looking at a nationwide downwards slide in sales volumes, a trend that started a year ago.
 
In Auckland, volumes are down 30% year on year, slightly less in Hamilton and Tauranga and less again as you move down South. But the slowdown in sales is definitely nationwide.
 
 
 
Furthermore, the sales slow-down has hit all types of buyers, not just investors. Whilst the share of sales to investors has rebounded, the actual number of investors is well down. Likewise, the share of First Home Buyers in Auckland is steady, but their actual numbers are significantly down. 
 
Learn more about the latest property trends by downloading your free copy of the CoreLogic May/June Property Market & Economic Update Report, available now. 
Jonno Ingerson, Head of Research, CoreLogic NZ Ltd.
 
The latest monthly QV house price index shows that the rate of increase of New Zealand property values is near zero.
 
It is yet another source confirming a widespread slowdown in the housing market - from demand, to sales volumes and of course values.
 
 
First I’ll cover values, then take a look at some of the causes, and end with my perspective on where this is all likely to go.
 
Value increases slow
As always, there are wide variations between cities and regions, but the general pattern is of a marked slowdown in the main cities, especially in the north, accompanied by a distinct slowing in regional areas.
 
To be clear - we aren’t talking about a widespread drop in values. In fact in many areas they are still increasing. It’s just that the rate of that increase is a lot slower than it has been over the past two years.
 
Auckland always tends to get plenty of attention when it comes to house prices, so let’s start there. According to the QV index, values in Auckland have been very gradually sliding since November, and have now dropped 0.7% since then. Digging a little deeper, we can see that values have been dead flat since November in the central city, Manukau and Papakura. The North Shore and Waitakere are both down over 2% since that time. Meanwhile, the old Rodney area in the North has risen 4.5% over the same time, still being pushed up by Aucklanders looking for more affordable housing on the northern fringe. Contrast all this to most of Auckland increasing at about 8% in the six months leading up to November. Quite a change!
 
From about mid-2015 onwards, values began to rise rapidly in most of the other main centres, with the exception of Christchurch. That rate of increase has eased off to varying degrees.
 
In Hamilton, values were increasing as fast as 31.5% in the year to July 2016. Value change in the last six months has been exactly zero. Tauranga was rising 28.5% in mid-2016 and in the last six months only 2.7%. Getting the picture?
 
Further south, in Wellington the value increases didn’t get to the same crazy rates as further north, but having peaked at 21.5% annual change in 2016, that rate has now slowed to 7.4% over the past six months (an equivalent annual rate of 15%).
 
In the South Island, Christchurch and Dunedin are marching to their own beat. Christchurch values have been increasing only very slowly for the past three years, at a rate of between 2% and 4% annually. They are now dropping very slowly at a rate of 1.2% over the past six months. Dunedin has only just begun to slow in the last month. Another standout area worthy of mention is Queenstown. A stellar performer last year, increasing at 32% in the year to November, the last three months have seen a miserable 1.2% increase. Quite some slowdown that.
 
Many of the smaller centres are still increasing in value. Take Central Otago for example, where the overflow from the hot Queenstown market has led to rapid value increases in the likes of Cromwell and Alexandra. There are plenty of other examples, like most of the lower half of the North Island.
 
But I don’t think that growth in many small areas is going to last. More on that later.
 
When demand drops
The reasons behind the slowing market are not new; the Reserve Bank lending restrictions, banks getting even tighter on their lending, mortgage rates rising slightly, the winter season and finally increasing uncertainty about policy changes post-election.
 
These things impact demand first. Our unique measure of demand reflects that, showing an immediate drop from the moment the Reserve Bank changes were announced last July.
 
Sales volumes drop
As demand drops, the number of sales drops a few weeks later. The downward slide in sales volumes shows as the last three months of sales were 31% lower in Auckland than a year earlier, and the month of April was the lowest since 2008 in the depths of the post-GFC recession. This year on year sales decline when you look at the last three months is repeated in Hamilton (28%), Tauranga (23%), Wellington (18%) and Dunedin (16%). In many smaller towns there was a massive increase in sales activity in 2015, up to double the previous year, but that too has now begun to unwind rapidly and volumes are back to where they were three years ago.
 
And then values get hit
When sales volumes drop, values drop a few months later. No hard and fast rules here, but it is usually in the range of four to nine months between a significant drop in sales volumes and a subsequent drop in values. So no surprises to see values changing the way they are.
 
Demand continues to slide
The weeks of the Easter and ANZAC holidays had an expected drop in buyer demand. That demand usually bounces back to pre-Easter levels, but these past few weeks have been unusually low. This drop in demand will almost certainly lead to fewer sales, which in turn will flow through to further weakness in values.
 
The number of listings has an impact too
The number of properties on the market will influence value change. In Auckland a lack of sales combined with a normal level of new listings has meant that our measure of the total number of properties on the market is 50% higher than a year ago. That’s a lot more choice for buyers and takes a good deal of the upward price pressure out. Wellington and Dunedin on the other hand both have even fewer listings than this time last year, making the choice even worse for buyers, and so upward price pressure remains. 
 
My predictions
I would be very surprised to see a rebound in values anytime soon. Previous rounds of Reserve Bank lending restrictions have had only a temporary impact before everything rebounds. This time the signs of a slowdown are much more widespread. I’m still picking it will be post-election before activity picks up again. That is a prediction of human behaviour though, and as we all know that is a notoriously dark art.
 
 

 

Thanks to the way dates fell in the working calendar, the Statutory Holidays of Easter Break and ANZAC weekend were both in close proximity this year. What effect did this have on the property market?
 
Whilst workers rejoiced over the fact that they could take just 5 days of annual leave to get a whopping 12 days off in return, it wasn’t such great news for the property market. 
 
 
With many people taking extended leave in April, it is likely to have impacted on the property market. A slow-down in sales activity is particularly evident in Auckland - over the previous three months we’ve seen a 30% reduction in sales volumes over the same three months the year previous. 
 
Whilst the impact of the slow-down lessens as you move South, it is nevertheless nationwide. This slowing of sales activity follows the drop in demand that we’ve seen and falling sales activity usually means less upward price pressure. 
 
Learn more about the latest property trends by downloading your free copy of the CoreLogic May/June Property Market & Economic Update Report, available now