1 00:00:07,173 --> 00:00:10,453 Speaker 1: You're listening to the Saturday Morning with Jack team podcast 2 00:00:10,613 --> 00:00:11,453 Speaker 1: from News Talks. 3 00:00:11,453 --> 00:00:14,453 Speaker 2: That'd be right now sixteen to eleven, in time to 4 00:00:14,493 --> 00:00:17,533 Speaker 2: catch up with our money Guy, resident economists at Opie's partners, 5 00:00:17,773 --> 00:00:19,373 Speaker 2: Ed McKnight is with us this morning. 6 00:00:19,413 --> 00:00:23,773 Speaker 1: Go to Ed get a Jack. Nice to speak to you, Yeah, nice. 7 00:00:23,653 --> 00:00:25,693 Speaker 2: To be speaking to you. You've got tips for us 8 00:00:25,733 --> 00:00:29,133 Speaker 2: this morning on getting the best deal when buying a property. 9 00:00:29,173 --> 00:00:32,893 Speaker 2: And given for most of us is the largest store, 10 00:00:33,013 --> 00:00:35,613 Speaker 2: the single most substantial purchase we will make in our 11 00:00:35,813 --> 00:00:38,613 Speaker 2: entire lives. This is one of those times you really 12 00:00:38,653 --> 00:00:41,693 Speaker 2: want to make sure you get the best deal available. 13 00:00:41,733 --> 00:00:44,453 Speaker 2: So let's start off with like a negotiation. What would 14 00:00:44,453 --> 00:00:47,573 Speaker 2: you say people need to think about if they're going 15 00:00:47,613 --> 00:00:49,333 Speaker 2: into a negotiation to buy a property. 16 00:00:50,133 --> 00:00:51,933 Speaker 1: Well, the first thing is if you really want to 17 00:00:51,933 --> 00:00:54,733 Speaker 1: get a good deal and you're negotiating, you need to 18 00:00:54,773 --> 00:00:57,173 Speaker 1: be prepared to walk away. What I see happens far 19 00:00:57,253 --> 00:00:58,973 Speaker 1: too many times with people who want to buy a 20 00:00:58,973 --> 00:01:01,573 Speaker 1: house is they turn up to the open home, they 21 00:01:01,653 --> 00:01:04,293 Speaker 1: fall in love with the property. One partner says to 22 00:01:04,333 --> 00:01:07,133 Speaker 1: the other one, I really want that, and then that 23 00:01:07,213 --> 00:01:11,173 Speaker 1: weekends the overall negotiating positions because then you're saying, actually, 24 00:01:11,213 --> 00:01:13,853 Speaker 1: we're just going to We're willing to keep increasing our 25 00:01:13,933 --> 00:01:16,173 Speaker 1: bid or increasing our offer to be able to get 26 00:01:16,213 --> 00:01:19,293 Speaker 1: the house without being prepared to walk away. And I 27 00:01:19,333 --> 00:01:22,413 Speaker 1: think that falling in love with the house kind of syndrome, 28 00:01:22,453 --> 00:01:26,453 Speaker 1: if I can call it that, jack. It leads people 29 00:01:26,573 --> 00:01:28,773 Speaker 1: to say, I'm only going to look at this one house, 30 00:01:28,813 --> 00:01:30,933 Speaker 1: and there's not going to be anything else that's perfect 31 00:01:30,973 --> 00:01:32,773 Speaker 1: for me. And in fact, it's funny that we should 32 00:01:32,773 --> 00:01:35,373 Speaker 1: be talking about this today because right now I'm parked 33 00:01:35,453 --> 00:01:37,413 Speaker 1: up in Mission Bay. I've got my family and the car. 34 00:01:37,493 --> 00:01:39,653 Speaker 1: We're off to look at open homes. And what I 35 00:01:39,733 --> 00:01:43,293 Speaker 1: keep reminding my fiance is there are lots of houses 36 00:01:43,333 --> 00:01:45,213 Speaker 1: out there. If we fall in love with one and 37 00:01:45,253 --> 00:01:47,813 Speaker 1: we don't get the price that we want, we've got 38 00:01:47,813 --> 00:01:50,213 Speaker 1: to be willing to walk away. And I'll tell you 39 00:01:50,253 --> 00:01:53,773 Speaker 1: one other story, which actually starts well before the negotiation, 40 00:01:54,133 --> 00:01:57,333 Speaker 1: and it's a good reminder from when I was about 41 00:01:57,373 --> 00:01:59,933 Speaker 1: twelve years old. I remember my mother selling her house 42 00:02:00,093 --> 00:02:03,813 Speaker 1: down in Harward in South Tutanaki, and she's talking to 43 00:02:03,813 --> 00:02:05,973 Speaker 1: a local real estate agent. Now this is back when 44 00:02:06,013 --> 00:02:08,493 Speaker 1: houses like two hundred and fifty thousand dollars back in 45 00:02:08,533 --> 00:02:12,773 Speaker 1: South Tabnunkey, and the agent said to the mother, how 46 00:02:12,853 --> 00:02:14,653 Speaker 1: much do you want for the house, and she said, oh, 47 00:02:14,733 --> 00:02:18,813 Speaker 1: I'm seeing other houses being advertised around that two hundred 48 00:02:18,813 --> 00:02:22,493 Speaker 1: and fifty thousand dollar. Bark and Carroll, the real estate agent, said, 49 00:02:22,573 --> 00:02:26,053 Speaker 1: don't compare your house to what's on the market. Compare 50 00:02:26,053 --> 00:02:29,013 Speaker 1: it to what's sold. Now. This is a really important 51 00:02:29,093 --> 00:02:32,933 Speaker 1: lesson for home buyers because it's very easy to go 52 00:02:32,973 --> 00:02:34,653 Speaker 1: on to grade me, to go onto one roof, to 53 00:02:34,653 --> 00:02:37,333 Speaker 1: Conto real Estate dot code dot nz and get a 54 00:02:37,373 --> 00:02:40,653 Speaker 1: little bit disheartened when you see these really high asking 55 00:02:40,773 --> 00:02:45,293 Speaker 1: prices and cvs. And I've been doing this myself recently, 56 00:02:45,333 --> 00:02:48,013 Speaker 1: so this is a do as I do, not just 57 00:02:48,053 --> 00:02:50,533 Speaker 1: as I say, but go on to one roof, go 58 00:02:50,613 --> 00:02:52,453 Speaker 1: on to homes dot code dot nz and there are 59 00:02:52,453 --> 00:02:55,773 Speaker 1: these really interesting map features where you can just look 60 00:02:55,813 --> 00:02:58,893 Speaker 1: at not what's on the market, but what has recently sold. 61 00:02:59,053 --> 00:03:02,213 Speaker 1: So I would go through individually looking at the houses 62 00:03:02,213 --> 00:03:06,013 Speaker 1: that are selling, looking at the sales prices and saying 63 00:03:06,573 --> 00:03:08,733 Speaker 1: would I be happy with that price, because then you 64 00:03:08,773 --> 00:03:11,413 Speaker 1: get a sense of not what vendors are wanting, but 65 00:03:11,693 --> 00:03:14,933 Speaker 1: actually what is selling. And one other thing that's fascinating 66 00:03:15,293 --> 00:03:18,293 Speaker 1: is just letting yourself ignore the CV sometimes. So that's 67 00:03:18,293 --> 00:03:22,013 Speaker 1: the council value, our capital valuation, or the GV. Now 68 00:03:22,173 --> 00:03:25,973 Speaker 1: remember in Auckland, those gvs were set back in June 69 00:03:26,253 --> 00:03:28,733 Speaker 1: twenty twenty one, so they are over three years old 70 00:03:28,773 --> 00:03:32,933 Speaker 1: now and at the moment, on average, properties across Auckland 71 00:03:32,933 --> 00:03:35,773 Speaker 1: are selling about ten percent under CV. But in some 72 00:03:35,853 --> 00:03:37,733 Speaker 1: of the suburbs that I'm looking at right now, there 73 00:03:37,733 --> 00:03:41,213 Speaker 1: are some properties that are selling thirty three percent under GV, 74 00:03:41,613 --> 00:03:44,493 Speaker 1: and there are some that are selling at GV. Now 75 00:03:44,493 --> 00:03:46,333 Speaker 1: that doesn't mean that there are some people who are 76 00:03:46,413 --> 00:03:50,173 Speaker 1: negotiating spectacular deals, but it can also mean that those 77 00:03:50,213 --> 00:03:52,653 Speaker 1: gvs are way off. So when you go on out 78 00:03:52,693 --> 00:03:55,173 Speaker 1: and you're looking to buy a property, don't just look 79 00:03:55,213 --> 00:03:57,533 Speaker 1: at the GV, don't just look at the arson price. 80 00:03:57,933 --> 00:04:00,293 Speaker 1: Change your map, filters on one roof, or trade me 81 00:04:00,333 --> 00:04:02,933 Speaker 1: your homes or credit and said, look at what properties 82 00:04:02,933 --> 00:04:06,293 Speaker 1: are selling for, because then you're an informed consumer. 83 00:04:07,133 --> 00:04:09,733 Speaker 2: Yeah, that is such such good advice. I'll tell you what, though, 84 00:04:09,733 --> 00:04:12,253 Speaker 2: it's easier said than done, Like, don't fall in love 85 00:04:12,293 --> 00:04:14,093 Speaker 2: with the property. I think we've all been there. You 86 00:04:14,133 --> 00:04:15,933 Speaker 2: walk through the front gate and you're like, oh my god, 87 00:04:15,973 --> 00:04:18,173 Speaker 2: I'll do anything for this place, like There'll never be 88 00:04:18,213 --> 00:04:21,333 Speaker 2: a house as perfect as this. What about conditions? Are 89 00:04:21,333 --> 00:04:23,413 Speaker 2: there any conditions that you should be attaching to your offer? 90 00:04:23,413 --> 00:04:23,853 Speaker 2: Do you think? 91 00:04:24,693 --> 00:04:26,733 Speaker 1: Well, the main thing that we always say is if 92 00:04:26,733 --> 00:04:29,573 Speaker 1: you want a low price, and price is one of 93 00:04:29,333 --> 00:04:32,733 Speaker 1: your most important factors when you are looking to buy 94 00:04:32,773 --> 00:04:35,733 Speaker 1: the property. In that mindset, then the best thing to 95 00:04:35,813 --> 00:04:39,573 Speaker 1: do was have a very very clean deal. So before 96 00:04:39,613 --> 00:04:41,693 Speaker 1: you put in that offer, if you can tick off 97 00:04:41,733 --> 00:04:44,653 Speaker 1: the Limb report, if you can tick off solicitor's approval 98 00:04:44,653 --> 00:04:47,133 Speaker 1: of the contract, if you can tack off finance and 99 00:04:47,173 --> 00:04:50,533 Speaker 1: say I'm going to make my offer subject to lawyer's 100 00:04:50,533 --> 00:04:53,333 Speaker 1: approval and nothing else, then you're going to be in 101 00:04:53,373 --> 00:04:55,973 Speaker 1: a really strong position because then the seller is going 102 00:04:56,013 --> 00:04:59,333 Speaker 1: to say, I've got lots of confidence that this deal 103 00:04:59,413 --> 00:05:01,333 Speaker 1: is going to go ahead. And in fact, my sister 104 00:05:01,373 --> 00:05:02,973 Speaker 1: in law, who's sitting in the back of the car 105 00:05:03,133 --> 00:05:05,413 Speaker 1: was selling your house. Well probably I'm just about a 106 00:05:05,453 --> 00:05:08,293 Speaker 1: year or two ago. She had two offers. One was 107 00:05:08,293 --> 00:05:11,133 Speaker 1: a cleaner offer that was a lower price, very few 108 00:05:11,133 --> 00:05:13,413 Speaker 1: conditions on it. Then there was one that was fifty 109 00:05:13,453 --> 00:05:15,973 Speaker 1: thousand dollars more, but had a couple more conditions. You know, 110 00:05:16,053 --> 00:05:18,853 Speaker 1: somebody needed to sell their house, Somebody needs to go 111 00:05:18,853 --> 00:05:20,933 Speaker 1: to the lawyers, somebody needed to get finance, all of 112 00:05:20,973 --> 00:05:23,453 Speaker 1: those things. She took the lover offer because she had 113 00:05:23,493 --> 00:05:26,973 Speaker 1: more confidence that that deal was going to go ahead 114 00:05:27,133 --> 00:05:28,653 Speaker 1: and she's going to be able to move on. 115 00:05:29,613 --> 00:05:31,773 Speaker 2: Yeah, that is such good advice. Thank you, Ed, and 116 00:05:31,813 --> 00:05:34,693 Speaker 2: good luck in your search. Let's just hope that when 117 00:05:34,693 --> 00:05:36,933 Speaker 2: you do find that dream house, of course one, that 118 00:05:36,973 --> 00:05:38,893 Speaker 2: you would still be willing to walk away from that. 119 00:05:38,973 --> 00:05:40,893 Speaker 2: The vendors have been listening to you this morning, so 120 00:05:40,933 --> 00:05:42,773 Speaker 2: they know that you are willing to walk away and 121 00:05:42,813 --> 00:05:45,293 Speaker 2: you're going to be a tough negotiator. Ed McKnight, now, 122 00:05:45,493 --> 00:05:48,013 Speaker 2: resident economist at Opie's Partners, Thank you so much. 123 00:05:48,973 --> 00:05:52,093 Speaker 1: For more from Saturday Morning with Jack Tame. Listen live 124 00:05:52,173 --> 00:05:55,013 Speaker 1: to News Talks d B from nine am Saturday, or 125 00:05:55,093 --> 00:05:56,973 Speaker 1: follow the podcast on iHeartRadio.