- Lorraine Burns
The 4th biggest mistake you can make when buying a house in New Zealand
Pay more than the property is worth.
It is difficult for buyers to establish the value of a property. Unless you view all the properties in the area that are listed with a price, it is difficult to get a feel for what a property is worth.
Properties that are sold by tender, auction or deadline sale are advertised without a price. Real estate agents will often recommend the property is promoted without a price regardless of the method of sale, when they believe that the seller’s price expectations are unrealistic.
The objective of the Real Estate Agent that advertises a property is to get you to pay the highest price possible for the benefit of their client – the Seller.
The CV (Capital Value) or RV (Rateable Value) of a house is usually arrived at by a valuation service on behalf of the local authority (Council) to establish the rates to be charged. It is calculated every three years based on the general value of houses in the area and some key house statistics. They do not visit all properties or take into account the condition of the property or the renovations that have been undertaken. You cannot rely on this valuation to guide the price you offer as sales can vary from well under to well over RV.
Like RV’s, online automated valuations, can also vary. Estimated valuations can be obtained from oneroof.co.nz/estimate and homes.co.nz and this will give you a price indication.
You can pay to have the property valued by a registered valuer who will visit the property and provide you with a written report. However, this is not a guarantee that the seller will accept that price. Registered valuations are based on historic data and may not reflect recent market fluctuations.
When you engage Exclusive Buyers Agency you receive a comprehensive report on the property you are considering. This includes details of:
Similar properties recently sold nearby
Similar properties currently for sale nearby
Statistics of sales of properties in that area
Sales and listing history of the property considered
We use the due diligence information gathered about the property as leverage over the price. We negotiate hard for the benefit of the buyer.
Exclusive Buyers Agency will never try to sell you a home. We provide you with all the information (good and bad) to enable you to make an informed buying decision.
When you need experts, who are on your side and committed to helping you get what you want call me directly on +64 21 468 828.
Discover the 5th biggest mistake you can make when buying a house in New Zealand.
Lorraine Burns
Licensed Buyers Agent (REAA 2008)
Managing Director & Buyers Agent
Exclusive Buyers Agency Ltd
Mobile +64 21 468828
DISCLAIMER: The information contained is not intended to form professional legal advice or legal opinion on any particular matter. The opinions expressed in the material are not necessarily those of IFPNZ Ltd (Licensed REAA 2008). IFPNZ Ltd and Exclusive Buyers Agency Ltd make no representation or warranty as to the accuracy or completeness of the material. Exclusive Buyers Agency Ltd & IFPNZ Ltd accepts no liability for any loss, damage or consequence, resulting directly or indirectly from the use of the material.