Blog
- Show all categories
- Market Update
- Real in the Community
- Commercial
- Buying
- Selling
- Finance
- News
Jul 16, 2023
The importance of insuring your home for the right value
When it comes to insuring your home it is important to ensure you have considered all the costs that need to be covered. Many insurance companies changed from replacing and rebuilding homes to paying out up to a maximum of the amount of the replacement value figure they are charging their premiums upon. This makes it critical to ensure your replacement value figure is up to date. This is not the fair market value of the property nor is it the value produced by Quotable Value that Council uses to apportion rates to property owners across the district as discussed in the previous article. This is a value calculated for the total rebuild of your property including any built improvements such as fences, buildings and retaining walls. It is also important to include the estimated cost of removing any damaged buildings from the site in the figure insured. Lastly there may be other costs such as compliance, soil remediation etc. Remember that generally these policies exclude coverage for chattels so a valuation and policy for these is usually completed separately. Talk to your insurance broker about the value your home is insured for and if in doubt, contact a registered valuer to complete a full replacement valuation for insurance purposes.
Jul 16, 2023
Market Update: July 2023
With positive news of more buyers entering the housing market in our major cities, this winter could be an opportune time to make your next property move while prices are still lower. Many of the forces that have held the property market at bay are set to change direction. Mortgages are set to be easier to obtain on the back of proposed relaxation of loan-to-value ratios. Banks are very keen to get back to lending after a period of low activity. With interest rates levelling out and net migration at high levels, many are expecting a turnaround in the market this Spring/Summer and a significant increase in activity across the country. Over the past month we have seen a rise in the number of first home buyers, some who are remote workers moving from the city, making enquiries, and coming to our open homes. We have also seen a pick-up in interest in some higher end properties that have been on the market for some time. People who have their ducks in a row with finance are in the best position to take advantage of this window of opportunity to be ahead of the pack. Navigating the lending environment can be a minefield and getting expert help from a broker can save a lot of headaches. (See below for links to our local brokers or the latest market update from economist Tony Alexander) Another problem facing entry level buyers is that there are still relatively low stock levels in the lower and mid-price brackets. There are 100 homes priced over $1 million on the market and 68 under $1million. Only 15 under $700,000 where most entry level buyers are searching, so there is less of a choice. However, that is a lot more choice than was available 2 years ago when the market was hot. Many sellers simply do not appreciate the advantages of having their houses on the market in winter. They wait until Spring when the gardens look perfect, and the sun is shining. The flaw to this reasoning is that the property market is subject to the same principles of supply and demand as any other market. When people hold off from listing, the supply increases all at once, which means lower pressure on buyers. Our experience shows that buyers are searching steadily all year around except for the slow down over the Xmas holiday period and the boost in February March when people return from their breaks. In summary, to attract the most buyers, it is better to sell when there is less competition – and that’s often in winter. Here are some top tips for selling in winter: Make sure your home is warm for viewings. Nothing puts people off more than a cold home. Keep your home ventilated. First impressions are important, and the musty smell of a damp home is sure to send buyers off to their next choice. Pleasant smells can work in your favour. The smell of coffee or fresh baking or light up some of your favourite scented candles. Empty houses feel quite stark, particularly in winter. Staging can provide a feeling of homeliness. The important thing is to be there when others are not. Higher demand and lower supply is the best situation for vendors. Local Mortgage Brokers: Sarah Curtis Mortgages Quantum
Jul 16, 2023
The scoop on what’s happening with rates
Property owners should have received their latest Council rating valuations for their properties from Quotable Value in late May. We are often asked by people whether they should contest these valuations. Any objections should have been filed with Quotable Value by 30th June. A major portion of your rate payment is the General rate and these are proportional to Land Values (LVs). In most cases, the bottom line is that the higher the LV of your property has increased compared to the average increase of LVs across the district, the higher your increase in the General rate will be. Those with a lower-than-average increase in their LV may see a decrease in the General rate. Council’s website has a handy tool for calculating rates for individual properties. As usual, these valuations have prompted questions and concerns about the impact these changes are likely to have on buyers’ perception of market value. It is important to remember these valuations are a snapshot in time and are often based on comparable sales completed prior to October 2022. Changes in market conditions since this time are not considered nor are any renovations or improvements that are not recorded on Council’s records. Therefore these changes are not likely to be represented in Quotable Value’s valuation algorithms unless they have been invited on-site through the contestation process. A more accurate representation of fair market value involves an on-site inspection of the property inside and out such as a recent assessment by an Independent Valuer or a recent market appraisal from a qualified real estate agent. In the last two months, house sales prices have completed around 3 to 5% below the October 2022 valuation. Of course, these differences can vary on a case-by-case basis and will undoubtedly change as time goes on. In addition, Far North District councillors have agreed to increase the district’s total rates take for 2023/24 by 6.78 per cent, less than the 8.63 per cent increase initially proposed in the Annual Plan. The 6.78 per cent rates increase applies to the total amount of rates the council requires for operational expenditure. This increase comes on top of any effects on your property as a direct result of the recent rating valuations. Here is a link to Council’s website with more information.
Jun 16, 2023
Considering Property Staging?
Presentation is important when selling a property. From the moment potential buyers step foot inside the door, they need to be able to visualise themselves living there. A well-staged home helps to achieve this. Real sat down with Marita from Still Life Staging to answer all your questions about property staging. What is house staging and why should I consider it when selling my home? Staging is where we carefully select and position furniture, furnishings, plants and artworks to accentuate your home and property's style, creating an inviting and inspiring environment especially for your target market. Staging optimises your property value, increases interest engagement and sells it faster. An investment in us gives a higher return to you. Full and partial staging are separate options depending on your situation. Full staging is for an empty home, partial is where we come in and help set your home up to look its best using your belongings, by decluttering, minimising and shifting things around. What sort of difference does a staged house make to an empty one? A staged home is much more appealing and inviting than an empty one to a buyer, it helps them imagine how the space can be arranged, what style of furniture fits and gives them a feel for the potential lifestyle experience at your property. Do you stage every room in the house? It is entirely up to you. We are happy to stage as much or as little as you like depending on your budget, recommendations of your agent and the key spaces of your home. Our free tailored quote would give you a range of options to consider. Is it possible to have a staging consult where you suggest a few touches for me to enhance my current decor? Absolutely. We offer free consultation and a tailored quote for your consideration, detailing the specifics of what we've discussed. Maybe it's just some contemporary artwork you need, or some fresh linen curtains, we're open to help however we can. Why shouldn’t I stage it myself? Fresh eyes make a big difference in how you arrange a space, we work together with the agent to determine a target market for your home; selecting from our quality collection of notable designer pieces to attract the attention of the right people. You're welcome to give it a go, but it's a big investment to buy everything you need to stage! Can I choose the style that you stage it in? We'll discuss the style and colour palette we think will work in your home during consultation, but we don't have a huge warehouse of stock. Our collection is inspired by the celebrated history of design, we're fond of clean lines, natural materials, quality made products and classic comfy minimalism. We like to use a mix of new and vintage, to help it feel welcoming and pre loved. Can you stage a house that we are currently living in? Yes. A partial staging option would suit you, where we can come in and help set your place up to look it's inspiring best using what you already have. If you require some furniture we can discuss this, generally our furniture is considered display only though - to maximise its staging life and our investment. Will you hang artwork? Yes, we will be considerate of your walls though, selecting spots where things have been hung previously, or can fill holes if necessary when we deinstall. If you have a new build with no holes in the walls we can use Command 3M strips to ensure no damage is made. How long do I keep the staging for? We'll quote for a 5 week term. We offer weekly extension hireage after that time period. We'll pop in at the halfway mark to refresh the vases and water our plants. What is your go-to styling tip? Have a long term vision of style, materials and colour palette that fits your home, personality and lifestyle. Choose what makes you feel good in line with your vision and slowly build your collection over time. Try not to be lured by fast interiors fashion as it often promotes poorly made highly wasteful products. Always choose quality over quantity (less is more!), and support our local creatives. What would you say your styling approach is? As an experienced practicing visual artist my approach is compositional. I think of staging like an artwork, playing around with the positions and relationships between colour, form and line in a space; seeking to stimulate an emotive impact and generate a conversation. How is your business different from other stagers? We offer a full comprehensive garden to gate service, including property preparation work in addition to staging. We're low waste advocates, using real plants, and quality products that last. We have a low carbon impact, buying locally made or second hand first, plus our furniture truck is hybrid. We have a unique style and collection to help your property stand out in the crowd. [gallery ids="8827857,8827858,8827859"]
Jun 12, 2023
Tips for Selling in the current climate
Selling in a cooling market. Sales volumes in 2023 prove that the Kerikeri housing market is slowing down towards a more sedate activity level not seen since the period after the Global Financial Crisis. It’s important to realise that this doesn’t mean houses aren’t selling. It means we are in a market where buyers have more time to plan, are taking more time to sell their own properties and have less money to spend when they finally do sell. With over 20 years of real estate experience in Kerikeri we have been through the ups and downs of the property cycle before. So how do you prepare to sell your home in these quieter conditions? Here are some key things to focus on to ensure you achieve the best outcomes. 1. Present your property to stand out Preparing and presenting your home for sale is a critical factor to achieving the best price no matter what stage of the cycle you are selling in. In the winter of the cycle, it is even more critical for your property to stand out from other properties on the market competing for a smaller pool of buyers who have plenty of options available. Making extra effort to present your property at its absolute best can make all the difference. Your agents should be able to provide you with advice on where to put your efforts to attract the best interest. 2. Realistic pricing It is essential to ensure that you have a realistic price expectation from the outset in the current market environment where buyers have low levels of urgency and a wide range of choice. Your property will be skipped by buyers who assess it as overpriced, and they will move on to purchase properties of better perceived value. This is not the stage of the cycle to pad your pricing for negotiations. Pricing that is not spot on can result in little or no serious interest and lengthy times to sell. Worse, it often results in achieving a lower sales price. Ensure you work with agents who have a proven history of working through a robust appraisal process to fix saleable prices for their vendors. We are coming out of a period where many agents who came into the industry in the last 6 years, have marketed properties for auction, tender or by negotiations without a price. Therefore, many have not had the experience to assess the factors and market conditions that contribute to a competitive price. Always be cautious about the agent who provides a high appraisal, as much as it may seem agreeable at the time, it often leads to ‘chasing the market down’ in a slower market. This is a situation to avoid at all costs. Setting an unrealistic price prior to marketing results in no sale being secured after a period and so the seller adjusts to a more realistic level. In the meantime, market prices have dropped even further so the revised price is still too high, and a sale still cannot be secured. The process continues so that the buyers’ assessment of value is always below the newly reset vendor’s expectations. We have witnessed sellers in the winter of other cycles losing hundreds of thousands of dollars by not being prepared to take our advice on market value. In summary, there is no point in the cycle where it is more important to set the price expectation at a sellable level and pay attention to the advice of your agent or obtain an independent valuation to avoid chasing the market down. 3. Boost your marketing As with presentation, the quality of marketing is always important to achieving the best results regardless of the prevailing market conditions. It becomes even more essential as market conditions cool off. Leveraging marketing strategies to differentiate your home and make it stand out from the myriad of other listings is vital. Your marketing campaign must consider the likely target audience, key messages and images, positioning, and be presented in a variety of media to extend the reach. Open homes are a great method for creating motivation with competing buyers in a hot market. They become less important in a cooling market as they attract mostly passive buyers and can distract good selling agents from spending time showing hot buyers through a range of homes. The latter is particularly important in Kerikeri as buyers are often coming from out of town in the weekend and the best way to understand their needs is to spend quality time with them. Open homes still have their place in campaigns with fixed deadlines or in the first few weeks after launch but otherwise are not a good use of time. Often, they are held to show the vendor that the agent is doing something. The best job a good agent can do for their vendors in a cooling market is to build relations with buyers, understand their motivations to be best prepared to negotiate for their vendors, actively search for solutions for the buyers’ requirements, and work the chain created by a successful transaction. REAL offers a comprehensive core marketing package at our cost but you may want to consider making an investment in additional advertising packages to lift your property above other listings in a slower market. The time to do this is at the beginning of your campaign to attract as many buyers as possible in the first few weeks after the launch. Who hasn’t noticed how a property that has been on the market for a while becomes stale? Soon, we are hearing from buyers “is something wrong with the property” or “is it overpriced”. Giving your property that extra boost at launch time can make all the difference in a slower market and is often money well spent. 4. Select the right agency The slower the market the more important it is to be prudent in your choice of agency. REAL has consistently outsold every agency including the other large national brands for 20 years in the Kerikeri residential market. Creative solutions come from collaboration, working together to solve problems. REAL may not have the largest team in Kerikeri but we have the most dedicated, full-time, effective group of professional agents, period. 5. Select the right agent We are coming out of a market where agents have been so focused on getting listings and holding open homes, they have lost focus on doing the hard work required to understand purchasers’ requirements and assisting them to find the right property. It is important to look for a team of agents who support one another, has bench strength and longevity to have navigated the winter of the property cycle before. Anyone can sell in a hot market. Agent selection is even more important in a cool market. At REAL we make that decision easy as you get 7 dedicated agents who are fully vested and engaged with the sale of your home. Our commitment in this challenging market is to be honest with our appraisal even if we think your feelings might be hurt, to provide the most professional advice, to deliver a quality, competitive marketing package with world-wide reach across multiple media channels and to negotiate the best possible outcome. A team you know, experience you trust. Final thoughts The media is portraying the property market as gloomy over recent months. Just because prices are down does not mean this is not a good time to move. If you are buying and selling in the same market, then there is generally little difference when you sell in the cycle, whether winter or summer. In fact, being sold and in a cash-position can often lead to some very good buying in the winter of the cycle. If you are moving to a market that has dropped more than ours, such as Wellington or Auckland, then it might be the best time in decades to make that move. We hope these few ideas will help you to plan and prepare your next move to ensure you achieve the best outcome of the highest price in the shortest timeframe the current market will support. Pop in for a coffee and chat with any of our team about preparing for your next move. We are on standby to help.
Jun 12, 2023
Market Update - June 2023
How’s the market? The property market can be viewed as a cyclical system. Over time it has proven to increase in value by approximately 6 to 7% per year. But that increase does not occur in a linear way. We describe it as fluctuating up and down according to the cycle of seasons shown in the diagram below. We think we are currently in the winter season of the cycle. Typically, in this period, interest rates are higher, loans are harder to get, stock markets are uncertain, and property buyers are fewer. The Property market CycleThe Property Market Cycle What’s happening with house prices? The quarterly median price for a house sold in Kerikeri during the 3 months ending April was $1,080,000. That is up 18% from the same period 1 year ago and up 48% from 3 years ago. It represents a new peak in median price. However, the stats in this case are not telling the full story. The distribution of sales has become skewed to the higher end of the price spectrum as lower price properties are currently not selling as well. A change in the mix of properties sold between one comparison period and another can make apples to apples comparisons challenging. So, we rely on other information to assess how market pricing is being affected. Listing and selling properties at the coal face, we are seeing vendors accept robust appraisal prices more often, reduce their pricing expectations after launch and prepared to negotiate with buyers. As a result, sale prices achieved are between 5 and 10% below the listings price after negotiations. We suspect that our true median price is 5 to 10% below the peak level achieved last year. Older properties may have dropped more than that as newer-built property prices are being propped up by construction costs and replacement values. By comparison Auckland and Wellington regions are down 22% and 20% respectively from their peak values reached in 4th quarter 2021 and have effectively wiped out any price gains since December 2020. What are the market drivers? Negative: Weather related closing of roads has made it difficult for buyers to get here. Residential investors are sitting on the fence awaiting the election and hoping for regulatory changes. Positive: Net migration into New Zealand has increased which usually helps to displace people from the cities to the provinces after a time. The attractiveness of Kerikeri as a place to retire or move to for a better lifestyle How are the number of sales tracking? There were 92 unconditional residential, lifestyle home and bare land sales in the Kerikeri and surrounds area through the end of May 2023. This represents a 30% decrease in sales volume from the 131 sales for the same period last year. Bare land sales are significantly down 70% from 17 through May 2022 to only 5 in the same period this year. There are 6 years of bare land inventory on the market at the current pace of sales. We expect this to impact the number of local building consents and new house starts. Nationally building consents are down 26%. How long is it taking to sell? The average number of days to sell has risen above the 10-year average sitting around 70 and is rising each month. Vendors have to adjust to the reality that their property could take 6 months to a year to sell (in some price brackets longer), especially if they are not competitively priced. How are inventory levels tracking? Inventory levels are up to 285 unique listings for sale on Trade Me in May. This level has been holding steady for most of the year as some owners have withdrawn properties from the market after not having sold making up the difference between the higher number of monthly new listings versus properties sold. *Greater Kerikeri approximated the Kerikeri High School enrolment zone and includes Waipapa, Doves Bay Peninsula, Inlet Road Peninsula, Kapiro, Waimate North Road and branch roads, Wiroa Rd and branch roads, Pungaere Rd and branch roads, Puketotara Rd and branch roads, Waipapa West Road and branch roads, Takou Bay. **We use quarterly moving averages as these mitigate some of the wild monthly variation that occurs when reporting monthly medians on smaller number of sales.
May 25, 2023
The Power of Paint
Paint. Such a simple element and one we usually take for granted when designing our homes. Most of us succumb to the comfort of not even changing the paint colours when we move to a new house, or will neglect the potential of a house because of easily modified decor choices. However, Painting your walls is a powerful way to transform any space. It can create a sense of freshness and newness, and it can also have a significant impact on your mood and mental health. A fresh coat of paint can make a room feel brighter, warmer, or more calming, depending on the colour you choose. In addition to the aesthetic benefits, painting your walls can also increase the value of your home. If you’re planning on selling your home in the future, a fresh coat of paint can make it more attractive to potential buyers. Another benefit of painting your walls is that it allows you to express your creativity and personal style. Whether you choose a bold colour or a more subdued one, the colour you choose can reflect your personality and make your space feel more uniquely yours. [caption id="attachment_11307" align="aligncenter" width="1024"] Before and after (digitally painted to showcase the difference paint can make.)[/caption] Painting your walls is also a relatively inexpensive way to update a room. Compared to other home improvement projects, painting is a relatively easy and affordable way to make a big impact and the sense of Instant gratification that comes from painting a room is slightly addictive. To see more before and afters of a listing transformation by paint (digitally created) have a look at 144B Landing Road here. Another huge bonus that a coat of paint can add is a cleaner home. Over time, walls can accumulate dust, dirt, scuff marks or even children’s scribbles. By painting your home, your house will instantly appear cleaner and fresher. It also helps protect against damage, especially to the exterior. Paint can help protect your walls against damage caused by moisture, insects, and other environmental factors. This can save you time and money on repairs down the line. Painting is easier than most people think. The key to success lies in the preparation. You’ll need to put some time and effort into filling and sanding any dents or defects to create a nice smooth base for the paint. Your local paint shop will help you choose the right type of paint and happily answer any questions you may have. Try to buy good quality paint and supplies; you’ll find it much easier to work with. Lastly on’t be afraid to make a start – if you make a mistake it is easily fixed! Overall, painting your walls is a simple yet powerful way to transform any space. Whether you’re looking to increase the value of your home, express your creativity, or simply refresh a tired room, a fresh coat of paint can make a big difference. There’s a great article on Stuff about “painting 101” which is a good little resource if you are considering some DIY… (Click Here)
Apr 11, 2023
Helping our local Hospice
Another milestone for Hospice Mid North, today receiving a donation of two defibrillators from their major sponsor REAL Property Kerikeri Ltd. The packs will be installed at both the Hospice Shop on Hobson Ave and at the collection point and shop on Kerikeri Rd. The REAL Team has, since 2021, donated over $200,000 to the Hospice Mid North team. The REAL House Tour last September raised around $30,000 plus $1,000 from every sale has been added to the cause. Steve De Ruiter, co-owner of the company, said the REAL Team is committed to supporting Hospice ongoing and is planning a mid-Winter get together to thank the hard working nurses, management and volunteers for their efforts.