Archive | January 2013

Horror homes find favour

What do you do when house prices are relatively flat and the time honoured strategy of buying and holding real estate no longer assures rapid gains?

Well it appears that investors both in New Zealand and Australia are flocking to buy homes that need much more than just cosmetic renovation.

Despite a strong lift in confidence, relatively soft market conditions mean that more value needs to be added to properties by investors looking for fast capital gains.

So, properties that have suffered the effects of flood damage, fire, storms or cyclones are now suddenly much more popular. However, they’re not for the faint hearted or inexperienced – strong organisational and budgeting skills are critical.

All manner of unexpected challenges can arise when renovating ‘disaster homes’ and costs can quickly blow the budget.

First National Real Estate recommends investors have a builder and architect inspect any property they are considering before buying. This will assure a clearer understanding of the scope of works required, the likely budget that will be required, and, most importantly, how long the restoration/renovation process may take.

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Make a splash this summer

starfish
Selling a home in summer can be tricky for some but rewarding for many – it all comes down to getting the details right.

Correctly pricing your property choosing the right marketing method is the key. Real estate agents can make a lot of difference here as they have the necessary knowledge and experience to maximise the value of your property.

When it comes to pricing the property, home-owners need to consider the market and buying conditions. While spring has seen a resurgence in buyer confidence, house prices still have a way to go before they fully recover.

One of the biggest dilemmas summer sellers face is whether to go to auction or sell their house through private treaty (for sale). In making this decision, there are a number of factors that should be considered such as location, style of property, level of demand and timing of the sale.

Private treaty and auctions where both have their advantages and disadvantages. The processes must be carefully weighed against each other.

When it comes to auctions, there are two types to be considered: in-room or on-site.

Again, both are viable options and it comes down to where the vendor sees the biggest advantage.

The soft market of recent times is showing a trend towards private sales over auctions, with sellers more inclined to take that route than what they perceive as the uncertainty of the potential outcome on auction day.

It is advisable to discuss all the options available with a real estate agent.They will help determine which method of sale best suits your individual circumstances and the likely degree of demand for the type of property you’ll be offering the marketplace.