Talking Real Estate
Hello again, this week I’m going to address some questions raised recently regarding the Buyer Enquiry Over (BEO) method of selling property. As some of you may be aware there was a Wellington real estate salesperson who was taken to court by the Commerce Commission last year suggesting that the BEO method was a breach of the Fair Trading Act, simply put, A low asking price was offered but the actual selling price could be considerably above the asking. The outcome of the case was that the judge sided with the salesperson citing Australian practise that it was acceptable to work within a 10% range.
After my last column where I was extolling the many virtues of Upper Hutt I have to confess to being very happy with all things real estate and the property market in general especially with Spring arriving and the imminent extended daylight savings just around the corner. I rather hoped anyone reading it would be feeling as confident as I am. Since then a number of finance companies have been put into receivership. It appears that the effect of the first couple of finance companies going into receivership has affected further finance companies rate of reinvestments and trying to get new investors joining them.
People Not Property
There are a couple of questions I am frequently asked, one is “Steve, what’s happening to the property market? “ The other is “what’s going to happen to the property market?” I guess the reason for asking either of these is simply that the rate of growth in property prices we have seen over the last 3-4 years has been massively surprising to the majority of people.
In answer to the 1st question, the local market place is acting the same as it does every year at this time, there are less properties on the market and therefore less sales. People are less inclined to sell in the winter months for a variety of reasons, the property may not look so good on an overcast day, its cold and people tend to “nest” over the winter months. The most common reason is that people want to wait for spring, gardens look more colourful and people simply feel better. Not long to go now thank goodness!
The 2nd question is a lot harder to answer. It’s fairly apparent the economists don’t know, after all for the last 3 years comments have abounded about the market overheating and prices coming down. If you had taken their advice and not bought that property for $265,000 18 months ago, you would now be paying in excess of $300,000 and with higher interest rates to boot.
Hi all and welcome to my first column in an ongoing series regarding the local property market and real estate in general.
People Not Property
Hello and may I be the first to wish you a very happy Christmas!