Speaker 1: You're listening to the Weekend Collective podcast from News Talks.
Speaker 2: I'd be I'll tell you what we are going to
Speaker 2: talk about, and we want your calls on eight hundred
Speaker 2: eighty ten eighty in text on nine two nine two,
Speaker 2: because it's the time for you to participate as well,
Speaker 2: in conjunction with our guest. Now, there are there are
Speaker 2: different methods going around obviously all the time. When you
Speaker 2: come to buy and sell your property. You can choose
Speaker 2: to give it together for an auction. You can choose
Speaker 2: to just have a fixed price sale or tender or
Speaker 2: just the sort of asking price, and people go back
Speaker 2: and forth on that, and often the start the way
Speaker 2: you sell your house possibly is dictated by how hot
Speaker 2: the market is, because I remember back in the days
Speaker 2: when the market just seem to be rock and unrolling
Speaker 2: all the time, that it would be almost a no brainer.
Speaker 2: I was always surprised when I'd see people actually list
Speaker 2: their price. But there are also methods of sales that
Speaker 2: turn buyers off. So how did you sell your house
Speaker 2: and did you were you happy with the method that
Speaker 2: you used? But also if you're a buyer, is there
Speaker 2: a type of is there a method of sale that
Speaker 2: either one attracts you because you're comfortable with that sort
Speaker 2: of process and you like it. An example might be
Speaker 2: there are people who love people naming a price, saying, look,
Speaker 2: this is for sale, the asking prices I know, five
Speaker 2: hundred thousand or a million or whatever, and you like
Speaker 2: it because it gives you something to work with, Whereas
Speaker 2: I think for me, there's a method of sale called
Speaker 2: tender where you basically put in your best offer. And
Speaker 2: I must say, I kind of think if there was
Speaker 2: another property to look at, then that would be that
Speaker 2: would be a turn off for me with the tender.
Speaker 2: So what is the method of selling that you're attracted
Speaker 2: to as either a buyer or a seller? And I
Speaker 2: think we've got Ashley on now as should we got
Speaker 2: you there?
Speaker 3: Oh, been here the whole time I have?
Speaker 2: Do you go, oh, that's right. Sorry, we just had
Speaker 2: a little bit of a under shoot. Hey, you've bought
Speaker 2: and sold a few houses?
Speaker 3: Yeah?
Speaker 2: Have you used different sale methods?
Speaker 3: I have, and I have my preferred ones, I guess
Speaker 3: like everybody does so for me, And it's probably also
Speaker 3: a reflection of how I prove while I'm looking forward,
Speaker 3: I'm looking to buy a property I like the idea
Speaker 3: of having a range. But this is sort of a
Speaker 3: range between such and such and such and such, which
Speaker 3: is represented by real estate agents in different different ways.
Speaker 3: Some of them will talk about buyers price over or
Speaker 3: buyers off or over.
Speaker 2: Are you talking as a seller or a buyer here.
Speaker 3: Well, I'm talking about both because for me they're the
Speaker 3: same thing. So whether I'm buying, whether I'm selling, I
Speaker 3: generally want to have some idea of what the range
Speaker 3: is so that people have got some sort of indication.
Speaker 3: There's a range of reasons real estate agents when they're
Speaker 3: selling don't do that because they're in a kind they're
Speaker 3: kind of in a conflicted position because on the one hand,
Speaker 3: they want to get as many people as possible to
Speaker 3: come through and have a look at the place. On
Speaker 3: the other hand, they want to maximize the price that
Speaker 3: they can get for their their vendor. And what they
Speaker 3: don't want to do is miss out on that somebody
Speaker 3: who's going to come along and pay, you know, one
Speaker 3: hundred grand over the odds because they love the place
Speaker 3: so so this which is why so while it's frustrating
Speaker 3: for us when we're buying, that's why they do it.
Speaker 3: They're they're they're on the one hand, they want to
Speaker 3: get you to come and have a look. On the
Speaker 3: other hand, they don't want to sort of constrain themselves
Speaker 3: to to something which may not be as much as
Speaker 3: you might otherwise have been prepared to pay. But for me,
Speaker 3: if I'm if I'm selling, generally, I would probably want
Speaker 3: to give some sort of indication. Keeping in mind, for
Speaker 3: based on what I just said, I'd still want so
Speaker 3: I'd still want there to be enough flexibility in what
Speaker 3: the agent did to take account of somebody who might
Speaker 3: be prepared to pay a bit more if I'm buying.
Speaker 3: One of my pet hates is is those sites that
Speaker 3: give no indication whatsoever what the prices of the property.
Speaker 2: Actually, I'm so relieved to hear you say that because
Speaker 2: I I mean, I guess so you're a you're an
Speaker 2: experienced property investor and participant in the market, and because
Speaker 2: the argument obviously sometimes against what you've just said. A
Speaker 2: real estate agent would say, well, if serious bars will
Speaker 2: get a handle on what a property's worth, but I
Speaker 2: do like to know what the expectations.
Speaker 3: Are, and you know that's that's a silly comment. And
Speaker 3: to be honest, if somebody says that they're in anexperienced agent,
Speaker 3: because it's actually not true. But there is one caveat
Speaker 3: to what I just said, and that is that in
Speaker 3: theory and all this stuff's good in theory. In theory,
Speaker 3: all of the major search engines a one roof and
Speaker 3: its competitors. When you go in and have a look,
Speaker 3: you fill out certain search criteria, of which one is
Speaker 3: likely to be the price range that you're looking at.
Speaker 3: So in theory, if it shows you a property, that
Speaker 3: property is within that price range. So that's the theory.
Speaker 3: So even though it doesn't tell you what it is,
Speaker 3: in theory, it should be within the range that you
Speaker 3: actually gave to the search engine. The problem I've got
Speaker 3: with that, though, is I think from time to time
Speaker 3: those search engines expand that range a little bit. So
Speaker 3: although you might have said, you know, eight hundred to
Speaker 3: a million, it will show you properties at one point
Speaker 3: one on one point too, because it thinks, you know,
Speaker 3: we all lie and we've actually got a little bit
Speaker 3: more flexibility to spend more than we said we would.
Speaker 3: So so that the theory doesn't necessarily meet the reality.
Speaker 2: And what circumstances have you or would you go by auction?
Speaker 3: So I have a love hate relationship with actions and auctions,
Speaker 3: So in real estate agents will have me for saying this,
Speaker 3: and every time I do you probably get complaints from
Speaker 3: some of them. I think real estate agents are a
Speaker 3: fantastic tool and a hot market, so when the market's
Speaker 3: going really.
Speaker 2: Well, sorry auctions, Yes, sorry, what did I say? You said?
Speaker 2: Real estate agents are good on a hot.
Speaker 3: When when the market's going really well, and options are
Speaker 3: good because the whole point of an auction is to
Speaker 3: maximize competition. It's to get all the people that are
Speaker 3: interested in and get one of them to pay the
Speaker 3: most possible. And the way you do that is by
Speaker 3: having them in a room where're hearing other people offering
Speaker 3: other amounts and they can decide whether or not they can.
Speaker 2: Pay more than that.
Speaker 3: So in a hot market where things are going really well,
Speaker 3: in auction and theory should actually be a really good
Speaker 3: tool because it maximizes the you to get the best
Speaker 3: price possible from the people who are there prepared to
Speaker 3: actually buy your property. In a flat market or a
Speaker 3: declining market, I think they're a dog. And the reason
Speaker 3: I think they are a dog is because the I've
Speaker 3: always seen their sole purpose as being an opportunity for
Speaker 3: the real estate agent basically to whack you around the
Speaker 3: head and get your expectations of what the price the
Speaker 3: property is going to be down, by which I mean
Speaker 3: you go into that room, there's only one person there.
Speaker 3: They may or may not be prepared to put an
Speaker 3: off a forward that that offer could be two hundred
Speaker 3: grand less than your expectations. The agent then goes comes
Speaker 3: back to you and says, well, look, the market's spoken,
Speaker 3: therefore that's what the property's worth. And so I've always
Speaker 3: been quite cynical about the use of them in a
Speaker 3: flat market. Having said that, I've actually had an experience
Speaker 3: in the last twelve months where, and obviously it's been
Speaker 3: a flat market, where I did sell a property and
Speaker 3: there was only one buyer and they were actually able
Speaker 3: to maximize it, not because there was competition in the
Speaker 3: room on the day, but because the fact that they
Speaker 3: had that person in the room meant that they then
Speaker 3: had something that they could follow up afterward and eventually
Speaker 3: get a deal out of. So there are circumstances when
Speaker 3: they can work. But I'm much more cynical about them
Speaker 3: in flat markets than i am in hot markets.
Speaker 2: Yeah, but we have had In the course of the
Speaker 2: one Roufradier show, we have had auctioneers on and the
Speaker 2: argument is like, well, if you are looking to sell
Speaker 2: your house, then you will find out where the market
Speaker 2: is at. But I tend to agree with you that
Speaker 2: they are Yeah, that I tend to agree with you
Speaker 2: as a non expert, But if somebody has had a
Speaker 2: lot of conversations about it, at least that the vibe
Speaker 2: I get is that they're a great tool for real
Speaker 2: estate agents to put pressure on the seller to go
Speaker 2: ahead with something and therefore realize their commission. And isn't
Speaker 2: that very cynical because they might be real estate agents
Speaker 2: listening going I don't like what you've said there, but
Speaker 2: I just feel like that, yeah.
Speaker 3: And to be fair, I mean it implies a little
Speaker 3: real estate agents are cynical and all they're out there
Speaker 3: to do is beat their client down, which is not true.
Speaker 3: Sometimes it's about basically creating some sort of reality. So
Speaker 3: you might have somebody who remembers it the property in
Speaker 3: twenty twenty one was worth one point five and it's
Speaker 3: now worth one point one, and they need some sort
Speaker 3: of reality check to actually make very clear to them
Speaker 3: that that change and it's value has taken place, and
Speaker 3: an auctions are great to do that. There are other
Speaker 3: ways to achieve it, So you know, it's not always
Speaker 3: used for cynical purposes, but I think sometimes it is,
Speaker 3: particularly by perhaps new or lazy agents.
Speaker 2: What are the circumstances tender? That's the one I don't understand.
Speaker 2: I mean, I think I've seen tenders when there's a
Speaker 2: property where people maybe don't want the sort of high
Speaker 2: profile auction type of thing, and the property is incredibly
Speaker 2: expensive and they're just looking for, you know, people who
Speaker 2: have got the money to make a serious offer in
Speaker 2: a way, you go but tend anyway. That's my very crude,
Speaker 2: very crude and simplistic take on tenders. But I just
Speaker 2: don't understand why anyone will go for a tender.
Speaker 3: Well, there are circumstances where tenders work. I suppose the
Speaker 3: cynicism I've got about tenders, and I'm going to contradict
Speaker 3: this in a second, because I do work.
Speaker 2: I love it when you disagree with yourself, because.
Speaker 3: It's at least the cynicism I've got about them is
Speaker 3: that tenders, by nature, if you think about where you
Speaker 3: use tenders and other areas of life other than real estate.
Speaker 3: They tend to be a way of reducing the price
Speaker 3: and getting the price down. And in fact, the exact
Speaker 3: reality of that is that if you bid on a
Speaker 3: property at tender, and this is one of the good
Speaker 3: things about it, it gives you the opportunity to put
Speaker 3: a cheeky price in that you may not put or
Speaker 3: may not be accepted by an agent if you will
Speaker 3: putting that to them face to face. So, for example,
Speaker 3: in theory, a real estate agent is supposed to present
Speaker 3: every offer to a client, but if you win with
Speaker 3: a really cheeky offer, a client will find a way
Speaker 3: of dissuading you from putting that offer on paper because
Speaker 3: they'll say that it's unfair of the client and they're
Speaker 3: not going to present it. Whereas with a tender you
Speaker 3: can do that cheeky offer and it may well be
Speaker 3: that the client accepts it. So on those circumstances it
Speaker 3: has some value to a buyer, but not necessarily to
Speaker 3: the purchaser. The flip side of that is that's a
Speaker 3: quick way of getting a sort of an indication of
Speaker 3: where the market's at on a particular day, So rather
Speaker 3: than waiting around for a long period of time when
Speaker 3: the market's slow. A tender forces people to say, okay,
Speaker 3: if I'm going to by it, this is what I'm
Speaker 3: prepared to spend. So it does get a decision much
Speaker 3: more quickly than you might expect in a market otherwise.
Speaker 2: Are there, okay, are there methods of sale that are
Speaker 2: more applicable to different circumstances. So you've mentioned the obvious
Speaker 2: one obviously is in a hot market, you know you've
Speaker 2: got a lot of interest there, then probably why wouldn't
Speaker 2: you go for an auction because you get everyone in
Speaker 2: the same room and you're going to squeeze them through
Speaker 2: everything sent you can get. But for instance, if you
Speaker 2: are in straightened circumstances, it's or the soft market, or
Speaker 2: you're desperate to sell, but you don't want to sell
Speaker 2: for you know, some people are selling it a loss
Speaker 2: these days. I think ten percent of the property sales
Speaker 2: are at a loss. What would your advice be under
Speaker 2: those sort of circumstances.
Speaker 3: Oh, so, relative to what you just said. So in
Speaker 3: a hot market, generally you can't go too far past
Speaker 3: an auction. It's just a maximizing competition and getting people
Speaker 3: into a room. So when the market's going you know,
Speaker 3: gang busters get into an auction room and see what's
Speaker 3: your cheap, probably get a bit more than you might
Speaker 3: have through any other method in a flat market or
Speaker 3: a market that's only just starting to climb again. I
Speaker 3: tend to be led a little bit like that by
Speaker 3: the advice of the agent, because it's not just different
Speaker 3: methods at work. It's also different methods work in different areas.
Speaker 3: So it's stranger as it might sound. There are different
Speaker 3: ways that sell that work in some areas and not others.
Speaker 3: And so you know, we're tender. We just talked about
Speaker 3: tender or buyers and quarry those and I can't give
Speaker 3: you specific examples, but I know there's parts of the
Speaker 3: country where and it's probably because you've got two or
Speaker 3: three agents who've used them really effectively for a long time,
Speaker 3: but they just become kind of like the default, and
Speaker 3: whereas there'll be other methods that you might use in
Speaker 3: another part of the country that won't work at all.
Speaker 3: So I tend to be led by the agent and
Speaker 3: sort of maximize their advice on how to do those things.
Speaker 3: There is also an element of what's in fashion, and
Speaker 3: by which I mean that there are methods of selling
Speaker 3: now that didn't exist five years ago.
Speaker 2: What are they? Because I come up off the top
Speaker 2: of my head with a few basic ways of selling.
Speaker 2: You've got tender, You've got by negotiation, You've got asking price,
Speaker 2: which is negotiation.
Speaker 4: Quarry.
Speaker 3: Ye, there's a arrange them. I haven't got a list
Speaker 3: of them in front of me. There's probably about ten
Speaker 3: of them if you had them all up and and
Speaker 3: although to be fear of those ten, probably some of
Speaker 3: them are different words to describe the same thing. So
Speaker 3: when you actually get down to the real basics, there's probably.
Speaker 2: Ah the other one. Actually, we're going to go to
Speaker 2: a call in a second. We've got some calls coming in.
Speaker 2: But deadline sale as well well.
Speaker 3: A deadline sale is not much different to a tender,
Speaker 3: to be honest, because of it effectively it does the
Speaker 3: same thing. A deadline sale is basically a way of saying,
Speaker 3: you've got to get your offer in by such on
Speaker 3: such a date. The only difference between the deadline sale
Speaker 3: and a tender is a tender is basically a closed
Speaker 3: sealed envelope arrangement, whereas a deadline sales basically just getting
Speaker 3: your offer in on time. But the principle is the
Speaker 3: same in terms of getting somebody to the market within
Speaker 3: a specified time period.
Speaker 2: Okay, we're going to take some calls on this. How
Speaker 2: should you sell your house? And are there different methods
Speaker 2: of auction for different types of market? And it has actually suggested.
Speaker 2: I do remember when I was in Australia, and I
Speaker 2: can't remember which town was which that there was. I
Speaker 2: think there was a predilection for auctions in one town
Speaker 2: that I was in, and then in another place it
Speaker 2: was all sort of sale by private treaty or asking price.
Speaker 2: And there are regional differences because it's just what people
Speaker 2: are used to. So we want your cause on this
Speaker 2: eight hundred and eighty ten eighty how should you buy
Speaker 2: or sell your house? Also you can throw in are
Speaker 2: there tactics you use as a seller or a buyer
Speaker 2: to make sure it gets done? Not just the method
Speaker 2: of sale, but for instance, you get the aggressive buyer
Speaker 2: who goes listen, I'll give you an extra hundred thousand
Speaker 2: dollars on your asking price. And it's current till five
Speaker 2: o'clock in the afternoon. I don't know if you really
Speaker 2: want to get the deal done. Eight hundred eighty ten
Speaker 2: eighty is the number right, let's get into it, Tony High.
Speaker 4: Good afternoon, Joable. I just want to make a quick option.
Speaker 4: I think a lot of the time they're a great
Speaker 4: way to get exposure for property. But really in theory
Speaker 4: you're supposed to almost have the money and the bank
Speaker 4: buy or really because you have to be a cash
Speaker 4: and conditionable fly to even certain Now, I've been to
Speaker 4: a lot of options and quite often they don't actually
Speaker 4: waste the boundersploy it. Sometimes buyers can actually negotiate well
Speaker 4: after the option if they if they can, you know,
Speaker 4: basically put it up. We're a subject for finance. So
Speaker 4: I just made the small point about auctions. I think
Speaker 4: there waiting good exposure, especially in these doops that they've
Speaker 4: seen laking in Auckland where you get a lot of
Speaker 4: the deals putting against themselves. There's been a few out
Speaker 4: manu Era I think once the other day, and all
Speaker 4: those sort of areas do I stay they were quite
Speaker 4: well and that as well as well as desirable.
Speaker 2: Are you what's your preferred actually to Tony, by the way,
Speaker 2: your receptions kind of marginal. If you've got an idea then,
Speaker 2: because it's amazing how much of the difference when I
Speaker 2: say to people switch is and they goes out there
Speaker 2: and I go ahead, amazingly, what's your preferred method of sale,
Speaker 2: Tony or buying?
Speaker 4: Well, I've always basically put it an asking price, and
Speaker 4: that's actually what I want from I don't get off.
Speaker 4: And I was in a situation once I made then
Speaker 4: said they wanted more, so I walked away with the
Speaker 4: whole deal, you know. Yeah, the decisive.
Speaker 2: Just sorry, just dropping out of it there to actually
Speaker 2: jump in there to.
Speaker 3: Pick up on on on a comment Tony made which
Speaker 3: I should have made earlier, because he's quite right, and
Speaker 3: I'm I'm kind of familiar with these figures for the
Speaker 3: Auckland market. They might be different for the rest of
Speaker 3: the country. A somebody from the Auckland might want to
Speaker 3: ran correct the stuff I'm wrong, but yeah, he's quite
Speaker 3: right with the clearance rates. On clearance rates being how
Speaker 3: many sell is, I think currently it's sort of a third.
Speaker 3: Don't about a third seal it option and the other
Speaker 3: third sell after the option, So which is interesting because
Speaker 3: because it means that the action itself isn't necessarily where
Speaker 3: you're going to sell the property, but it's going to
Speaker 3: give you to use Tony's word that exposure, which is
Speaker 3: actually going to get you a sale beyond it. The
Speaker 3: other point you made, which is an interesting one, is
Speaker 3: with regard to having to have your money pre arranged.
Speaker 3: And so the technically is correct, but often first time
Speaker 3: buyers in particular, we'll say to an agent, look, I
Speaker 3: want to buy, we haven't got our finance arrange, and
Speaker 3: often the agent will say, will look, come along anyway.
Speaker 3: And the reason they'll do that because I know that
Speaker 3: there's a chance that that's going to be passed in
Speaker 3: at the auction, but there's an opportunity to purchase later
Speaker 3: on where you can still get your pre approval in place.
Speaker 3: So he's technically correct, but there are circumstances where that's
Speaker 3: a little bit different.
Speaker 2: Actually, I think we sometimes you can be in danger
Speaker 2: of having a crack at real estate agents, but it's
Speaker 2: always worth remembering that they are working for the seller
Speaker 2: as well. And that's just something that I think because
Speaker 2: you know, obviously, I think good real estate agents treat
Speaker 2: both buyers and sellers well because guess what, that buyer
Speaker 2: is going to come back as a seller one day,
Speaker 2: and you want their business, don't you, So.
Speaker 3: You're right it is a truism to say they're working
Speaker 3: for the seller. I think it's probably a little bit
Speaker 3: too blunt though in terms of the reality, I think
Speaker 3: there is as you say, is that there is sort
Speaker 3: of a bit of a flux there and so they
Speaker 3: do tend to try and do the beast buy. Certainly
Speaker 3: the good ones try to do the best by both parties.
Speaker 2: Well, yeah, I think they work. You could say that
Speaker 2: more generously, they work for the buy when it comes
Speaker 2: to finding them a property. But in terms of if
Speaker 2: you've got a particular price you're prepared to go for
Speaker 2: you and you want to keep that to yourself, then
Speaker 2: you should keep it to yourself and not share it
Speaker 2: with your best mate the real estate agent. Be like,
Speaker 2: funnily enough, we've just found nut to do a deal
Speaker 2: for just that price. Anyway, Yeah, anyway, we actually we
Speaker 2: need to take a break. Weook take a moment and
Speaker 2: come back. We're with Ashley Church. How have you sold
Speaker 2: your home? Did you regret it? What method is the
Speaker 2: one to go for? Do you think? And at the
Speaker 2: moment we are talking in the context of maybe a
Speaker 2: softer market than it has been anticipated, But it's the
Speaker 2: big question for anyone who's getting in the who's wanting
Speaker 2: to buy or sell our houses? The methods of sale
Speaker 2: that either attract or repel you O eight one hundred
Speaker 2: and eighty ten eighty twenty six Past four News Talks
Speaker 2: at b with Tim Beveris. We're talking about the method
Speaker 2: of sale. My guest is Ashley Church on us the
Speaker 2: One Roof radio show, Don't Forget Properly. The week will
Speaker 2: be coming up around ten to five. But let's take
Speaker 2: your calls on how you sell your house.
Speaker 5: Peter get A, a friend of mine, asked me his advice.
Speaker 5: His condition was no expense, not brochures, no sign and
Speaker 5: I was most to put it on Facebook market place
Speaker 5: for the price and sold it.
Speaker 6: Yeah.
Speaker 5: People say, tell your neighbors that you're thinking selling, They
Speaker 5: might know someone.
Speaker 2: I selling and avoiding the costs of sale.
Speaker 5: Yeah, yeah, well you never know, and then doing it
Speaker 5: yourself you sort of get the feedback. And doing open homes,
Speaker 5: I think it's critical. Some people might just drive past
Speaker 5: to see and needs short hope open homes. I don't
Speaker 5: like those ideas at all. And someone said when they
Speaker 5: had difficultly selling something, they just did a permanent sign
Speaker 5: out open home. All the time, and eventually they sold it.
Speaker 2: Did you do you sell property that way or to
Speaker 2: use an agent.
Speaker 5: I've only sold property with an agent, but I had
Speaker 5: one agent where I could sell privately and the person
Speaker 5: buying privately would only go up if the agents buyer
Speaker 5: went up. So if the competition like an optional or whatever,
Speaker 5: you know, it's sometimes useful, but I think agents with
Speaker 5: their networks, Like I bought a property that I had
Speaker 5: no idea it was on the market, and the agent
Speaker 5: and this thing he said, I said, oh what, It
Speaker 5: gave me the address and I said, okay, when can
Speaker 5: I and he said ah, an hour before the option,
Speaker 5: which is tomorrow. I said okay, and I bought it
Speaker 5: an option.
Speaker 2: And yeah again Yeah. Now I'll bring an Ashley Church
Speaker 2: on this. I always think selling on your own is
Speaker 2: sounds like a bit of Ashley, a little bit of
Speaker 2: a false economy.
Speaker 3: Yeah, there was there was probably a time in my
Speaker 3: life where I would have probably been more of a
Speaker 3: fan of it. I've never tried it, but I think
Speaker 3: when I was younger, it's probably something I would have
Speaker 3: considered giving a go if the circumstances had arisen. I
Speaker 3: think as I've got older and I've recognized that the
Speaker 3: value that a real estate agent a good real estate agent,
Speaker 3: because they're not all good, but that a good real
Speaker 3: estate agent brings to the sale process. I've come to
Speaker 3: realize that it's it's pretty much the only way to go.
Speaker 3: It's the you know, it's the old axiom about fall
Speaker 3: in his client when you're talking.
Speaker 2: About lot's a it's a lawyer who acts for himself
Speaker 2: has a full for a client.
Speaker 3: Yes, to be fair, I think the same thing probably
Speaker 3: applies here. That doesn't guarantee you always find a good agent,
Speaker 3: but when you do find a good one, I think
Speaker 3: you come away feeling pretty good about the transaction.
Speaker 2: Okay, hey, thanks for your call, Peter. Actually I've I've
Speaker 2: just got a little bit of a problem with my
Speaker 2: phone box here, so I need to correct it. I've
Speaker 2: just got a technical issue, so just bear with me
Speaker 2: for one second while I read start everything. But while
Speaker 2: we're doing that, Ashley, Yeah, what do you think of
Speaker 2: aggressive offers by buyers when they set you know, because
Speaker 2: they're trying to take the narrative maybe depending on whether
Speaker 2: they think that there might be other interests, and they're
Speaker 2: trying to negate that. What do you even have done
Speaker 2: time limited offers or this offer is. I mean a
Speaker 2: lot of offers actually are time limited, and I think
Speaker 2: for a private treaty, but really aggressive ones like you know,
Speaker 2: I'll offer you an extra fifty grand on you're asking
Speaker 2: price if you do the deal by five o'clock today.
Speaker 3: Yeah, I mean, I think it's a legitimate tactic if
Speaker 3: somebody particularly wants a property, particularly when there's competition. Because again,
Speaker 3: in a flat market, you probably don't need to do
Speaker 3: that because there's not going to be a lot of
Speaker 3: competition around. But in a hot market where there's competition,
Speaker 3: then then that's one way of securing a cell where
Speaker 3: you might otherways have to go through a long process
Speaker 3: of actually haggling over price. One of the things I
Speaker 3: always find interesting you watch those British shows on buying
Speaker 3: and selling property, et cetera, and the Brits seem to
Speaker 3: think that, you know, sort of an extra two thousand
Speaker 3: pounds as being really cheeky, you know, whereas here at
Speaker 3: the deal get sort of ten or fifteen or twenty
Speaker 3: or sometimes more so. So you know, it's all relative,
Speaker 3: and it's not something I've seen a lot, but I've
Speaker 3: seen it from time to time where somebody really wants
Speaker 3: it and they'll just sort of put their foot down
Speaker 3: and say, okay, well I'll offer that, but you've got
Speaker 3: to do it by such and such a time, all
Speaker 3: than all the deals off the table.
Speaker 2: Okay, right, let's take some more calls. Susan, Hello, Thanks.
Speaker 7: How are you good?
Speaker 2: Thanks?
Speaker 7: I'm so real estate in Wellington for over twenty years,
Speaker 7: and I tell you the best way you can buy
Speaker 7: is an option because you end up only having to
Speaker 7: pay a little bit more than the top that the
Speaker 7: person behind you can afford. And as far as tenders
Speaker 7: are concerned, I've had a difference of one hundred and
Speaker 7: sixty thousand dollars from one tender to the one that was,
Speaker 7: you know, the highest behind them. So I think to sell,
Speaker 7: you get the most with a tender, and when you
Speaker 7: and when you buy, you know that you know you're
Speaker 7: paying as little as it possibly tense if you buy
Speaker 7: at auction.
Speaker 3: I would agree with both of those comments, Susan. I
Speaker 3: think you're absolutely right.
Speaker 2: But I guess an auction is it's a bit more
Speaker 2: hated though, isn't it, Susan. I mean, is there?
Speaker 3: But you're thinking about it from the from the seller's perspective, Tim,
Speaker 3: I think, what's what Susan's staying? Is it for the buyer? Basically,
Speaker 3: you know.
Speaker 7: That's it. And the thing is also that it's easier
Speaker 7: for for a an agent to do an auction than
Speaker 7: it is a tender because people come to you, they
Speaker 7: have no idea what they can afford or what they
Speaker 7: want to you know, what they the price should be
Speaker 7: and all of that. So it really is up to
Speaker 7: them what it's work to them, and it's much more
Speaker 7: difficult to deal with that than to get everybody in
Speaker 7: the room.
Speaker 3: And it's interesting, and Susan will probably may not want
Speaker 3: to agree with us if you're still selling. But there's
Speaker 3: an xiom in real estate from they're talking about buyers
Speaker 3: being liars and by which they may.
Speaker 8: They can believe.
Speaker 2: Hang on, Susan, hang on, come in a second, let
Speaker 2: them finish the sentence.
Speaker 3: So so where the buyers will say, look, this is
Speaker 3: my limits and then blow and behold when it comes
Speaker 3: to auction, they pull another couple of hundred thousand out
Speaker 3: of their head. So it's so it's you know, and
Speaker 3: it's so it's frustrating. I guess from an agent's perspective,
Speaker 3: because on the one hand, they're looking in this range,
Speaker 3: and then when they actually.
Speaker 2: To be to be fair just before, Susan, it's probably
Speaker 2: frustrating for the buyers that they've had to pay another
Speaker 2: couple hundred thousand. Susan. Yes, where you go.
Speaker 7: You know everybody else, the real estate agent, what do
Speaker 7: they want? Why are they selling? They tell you what
Speaker 7: they can afford. Everyone lies to the real estate age,
Speaker 7: and so the buyers lie, the sellers lie. So when
Speaker 7: people were asking me, I'm retired now, But when people
Speaker 7: were asking me, I said, I don't know. I'm just
Speaker 7: the real estate agent. No one tells me the truth,
Speaker 7: and they laugh because it's the truth.
Speaker 2: I think to be fair to everyone, Susan, I think
Speaker 2: that people really hurt that that's their limit and they've
Speaker 2: set their limit, but then the facts change and they
Speaker 2: revisit it and then make themselves lies in a way.
Speaker 2: You know what I mean.
Speaker 7: You're absolutely right. It depends on how much they want
Speaker 7: the place, and also what market it is. If there's
Speaker 7: a whole bunch of houses and you're just looking for
Speaker 7: a three bedroom house and you can have your choice,
Speaker 7: that's one thing. But if you zero in on a
Speaker 7: house that you really want and it's unique and all
Speaker 7: of that, then you'll pay as much as you can.
Speaker 7: And you're never, ever, unless you're absolutely nuts, tell anybody
Speaker 7: how much your limit is.
Speaker 2: No, exactly, no, keeping yourself. Hey, Susan, just quickly, would
Speaker 2: you would? How do you if you're a seller personally?
Speaker 2: Is do you have a flat rule on the way
Speaker 2: you like to sell or does it depend on the market?
Speaker 7: I would I would probably do a tender, which is
Speaker 7: a lot more difficult for the agent. But I've seen
Speaker 7: those envelopes open and there are some companies that open
Speaker 7: them before the tender, which is a no no. But
Speaker 7: when you sit down and you start opening those envelopes
Speaker 7: in front of the vendor's it could be like Christmas
Speaker 7: or someone's funeral, but you just never know.
Speaker 2: Actually, does sound quite exciting the way you describe it,
Speaker 2: that's right. Yeah, good on you.
Speaker 7: Thanks. It's fun and it's a negotiation that's fun anyway.
Speaker 2: Yeah, thanks very much for life. Yeah, opening those envelopes,
Speaker 2: I don't even really know how it because you're not
Speaker 2: supposed to open them, are you? Until the tender closes?
Speaker 2: That's right, because that's pretty strict rules about around that. Hey,
Speaker 2: look listen, we're going to be back in just a moment.
Speaker 2: I one hundred and eighty ten eighty. Which method of
Speaker 2: sale do you prefer? Or does that depend on the
Speaker 2: market and the locale and all that sort of stuff.
Speaker 2: We're talking about that because it's a big decision for
Speaker 2: buyers and sellers as to what sort of properties how
Speaker 2: they want to sell. But if you're a buyer, you
Speaker 2: may avoid properties that are selling by certain methods. Give
Speaker 2: us a call eight one hundred and eighty ten eighty.
Speaker 2: We be back with Sarah in just a moment. News
Speaker 2: Talk sa'd b. Yes, welcome back to the one with
Speaker 2: radio show talking about methods to sell or buy and
Speaker 2: my guest is Ashley Church. That's carrying on with the
Speaker 2: call Sarah. Hello, Hello, how are you good? Thanks?
Speaker 7: Good?
Speaker 2: Hey.
Speaker 9: I sold in the latest housing boom I think was
Speaker 9: three odd years ago and I felt by option, which
Speaker 9: i'd never been to, the FloraNT was really amazing, I did,
Speaker 9: you know, really well, and that was exciting. I had
Speaker 9: to sell. My husband has passed away quite young, and
Speaker 9: I did buy again in that same market by option.
Speaker 9: Here's here's the character and you probably know I'm wanting
Speaker 9: to buy again now and sell, and all the houses
Speaker 9: seem to be advertised for option.
Speaker 5: Option.
Speaker 9: Sure, you know, they lose a lot of customers because
Speaker 9: for somebody like me, locking I can't go to an
Speaker 9: option because I'm not kidding. So you know, all the
Speaker 9: money in the bank, you have to bypass all those
Speaker 9: sales of those houses. So I know you know that.
Speaker 9: But that's just a thing. That's quite because some of
Speaker 9: the houses are quite nice. But unless you do it
Speaker 9: the other way round, Yeah.
Speaker 2: The horror selling, I'm buying you that that is a
Speaker 2: tricky equation itself. Ashley Sarah.
Speaker 3: It is actually possible to even if a property is
Speaker 3: listed for option, it's actually possible to put it in
Speaker 3: an offer and have it accepted beforehand. Now, some agencies
Speaker 3: or some agents, and this always frustrates me, will tell
Speaker 3: you they can't do that because it's the law. That's
Speaker 3: complete nonsense. It might be the policy of I've got
Speaker 3: nothing to do with the law. It's just a marketing technique,
Speaker 3: so you can you know, often they'll say no, no,
Speaker 3: the client wants to go through option, and the client's
Speaker 3: entitled to do that. But sometimes the client might say, well,
Speaker 3: what's the offer, and if it's a reasonable offer, they
Speaker 3: might say we'll forego the option, will just go ahead.
Speaker 3: So just because it says by option doesn't necessarily mean that.
Speaker 9: It's all right. Okay, yeah, because I'm sitting here locking
Speaker 9: and it's been my homework to really find it has
Speaker 9: and I'm just firepassing all the options, and haw coorts
Speaker 9: particularly do option, so that's quite I just sort of
Speaker 9: must them all together.
Speaker 3: I really need to stress, Sarah. If you ring an
Speaker 3: agent and they say no, no, we can't do that,
Speaker 3: it's the law. That is simply not true. It's not
Speaker 3: the law, it's just the policy of that agency, so
Speaker 3: they can do whatever the a client wants.
Speaker 2: In fact, there's nothing to stop there's nothing to stop
Speaker 2: you presenting an offer anyway and just say here it
Speaker 2: is so anyway.
Speaker 9: But no, oh that's really good. I might try. It's
Speaker 9: been a few I really actually like, so I say,
Speaker 9: oh wow, no, yeah, yeah, anyway, thanks Sarah, Yeah, thank you, okay,
Speaker 9: bye bye.
Speaker 2: Actually, the whole thing about selling to buy and everything,
Speaker 2: the timing of these things, it is quite a headache
Speaker 2: for people, isn't it.
Speaker 3: It is? And I mean the whole industry is designed
Speaker 3: from a real estate agency's perspective. The whole industry is
Speaker 3: designed to create agency. So that's where all this stuff
Speaker 3: comes from. If you understand that, you kind of understand
Speaker 3: all these various different techniques. They're trying to get people
Speaker 3: to make a decision now, and that's easy to do
Speaker 3: in a hot mark, and it's not so easy to
Speaker 3: do when things out's quite.
Speaker 2: So all right, Ben, Hello, gay guys, how are you good?
Speaker 6: Hey? So, just timing two things just to come out
Speaker 6: of that. So I was just wanted to make communes
Speaker 6: a bit of private selling. But just for the record,
Speaker 6: my mine's being Keen. I'm a former real estate agent
Speaker 6: from Hawk's Bay. Just to clarify on that pre auction offer.
Speaker 6: So if the if the campaign is for sale by auction,
Speaker 6: and it says unless sole prior, that means that an
Speaker 6: agent Keen present an offer, but it must be done
Speaker 6: under auction conditions. So effectively, they would bring the auction forward.
Speaker 6: They would call interest amongst any of the the you know,
Speaker 6: the agent's buyers and see if anyone would come to
Speaker 6: the auction. If that happens, the auction would proceed under
Speaker 6: auction conditions, but that it cannot be an offer made
Speaker 6: on a standard terms and condition or by private treaty. Okay,
Speaker 6: So that's the that's the technical side of it. But
Speaker 6: the good news is is what I think you're looking for,
Speaker 6: if this is where the private sale thing comes in,
Speaker 6: is that I've got a brand and Hawke's Bay that
Speaker 6: we've tested over the last five years, which is a
Speaker 6: hybrid online auction process with the service bridges to get
Speaker 6: between a private sale and what a real estate agency does. Now,
Speaker 6: if you're can to imagine a trade the auction but
Speaker 6: designed for property, that's what our service provides. So that
Speaker 6: means people like people like Sue who need to make
Speaker 6: a conditional offer and the person that is cash and
Speaker 6: unconditional can compete for the property and a transparent online process.
Speaker 6: We have a dollar value of the bid is displayed
Speaker 6: in the public listing, but you won't see conditions. So again,
Speaker 6: in that situation, you have like a team of conditions,
Speaker 6: but transparency of an option. Okay, Okay, So that's the
Speaker 6: good news, and there's even more news better news, but
Speaker 6: about bringing the cost to sell down. Now, we would
Speaker 6: love to advertise on one roof and bring our listenings
Speaker 6: on that platform. Would be amazing.
Speaker 2: Well, you Ben, you'd have to call our people after
Speaker 2: ours really, so we can't use your call to make
Speaker 2: a pitch on it. But it sounds like an interesting idea.
Speaker 2: So you should talk to get in touch with Nz
Speaker 2: and me and talk to the people at One Roof
Speaker 2: because it might be into something interesting to have a
Speaker 2: chat about. Any comments, Serioushley.
Speaker 3: No, I would have said just exactly what you did.
Speaker 2: It is twelve and a half minutes to five, Chris, Hello.
Speaker 8: Just on your best myths of transacting property. From my
Speaker 8: United experience, I think the best methods that they are
Speaker 8: really any that don't involve real estate agents?
Speaker 6: Yeah? Why Yeah?
Speaker 8: From my experience, I don't really add a whole lot
Speaker 8: of value. Like I've owned bought three properties and here
Speaker 8: it had won and sold three and of those transactions
Speaker 8: I had real estate agents involved twice, and as I say,
Speaker 8: they don't really add a lot of value. The last
Speaker 8: time I sold the house myself, I had a big
Speaker 8: house in the hills and cashmi across Church and the
Speaker 8: minute I put it on the market myself, I was
Speaker 8: bombarded by real estate agents. I text emails, people tuning
Speaker 8: up at my doorstep all the time to tell me
Speaker 8: the risks I'm taking, Chris, and.
Speaker 2: Just a question of getting the right real estate agent,
Speaker 2: or do you.
Speaker 3: I'd go further too, though, and I'd say that Chris,
Speaker 3: with all doue respect to you, it sounds like you're
Speaker 3: somebody capable of doing that, which is great and kudos
Speaker 3: to you. But for every one of you, there's fifty
Speaker 3: people who couldn't do that and simply wouldn't be for
Speaker 3: the same reason. They couldn't do their own plumbing or this,
Speaker 3: but they're not Sparky's at a whole range of other stuff,
Speaker 3: and you need to use professionals. So I think what
Speaker 3: you're really saying is it's worked for you. Good on you,
Speaker 3: well done. I wouldn't take there as general advice for everyone.
Speaker 8: I honestly, personally, I don't really agree. I don't think
Speaker 8: that it's that that difficult or whiskey selling your own property.
Speaker 2: Well, if you've got a good understanding for the market
Speaker 2: and what you want. I guess Chris, and that sometimes
Speaker 2: things that seem easy to one person can be quite
Speaker 2: complex for another. I actually also, to be honest, Ashley, I,
Speaker 2: as a buyer, would be suspicious of someone who's selling
Speaker 2: it themselves and I don't know why, but I would
Speaker 2: prefer to go with something which is part of the
Speaker 2: sort of real estate market and real estate agents.
Speaker 3: And intermediately, I actually think we've got the best of
Speaker 3: both here in New Zealand because you've got the one
Speaker 3: person who x between both parties. I mean, you're going
Speaker 3: to the States and some other parts of the world
Speaker 3: and they have a buyer's agent and a seller's agent
Speaker 3: and it just gets really messy. So so I think,
Speaker 3: you know, it works pretty well here. We've got one
Speaker 3: person who transit, who covers the transaction, and they're covered
Speaker 3: by a whole lot of legislation which that they have
Speaker 3: to comply with. I think, I think we're pretty lucky.
Speaker 2: Yeah, good stuff. But you know, Chris, if you've made
Speaker 2: it work for you, then good on you. Then you
Speaker 2: might have felt you've saved some money. But then again,
Speaker 2: maybe you would have got even more bombarded with office
Speaker 2: if you've been with an agent who knows anyway, Look,
Speaker 2: the one roof properly of the week is next. It's
Speaker 2: ten to five Newstalk, said.
Speaker 1: B the one roof property of the week on the
Speaker 1: weekend Collective.
Speaker 2: Yes, welcome back to the show. My guestsd Ashley Church. Yes,
Speaker 2: the one roof property of the week is it is
Speaker 2: in Have Plenty. It's fifty nine d Western Avenue. You
Speaker 2: can go and look it up on the one roof
Speaker 2: dot co dot nz website. It's it's not it's not
Speaker 2: what you'd call cheap. You might say for six million
Speaker 2: bucks it's not bad because for six million you get
Speaker 2: six bedrooms and you get six bathrooms, so maybe that's
Speaker 2: a million dollars a bedroom. But it is a beautiful property.
Speaker 2: A triple layer se ceedar roof, shingles, copper spouting expanse
Speaker 2: of double blazed windows, creating what's described as a stately
Speaker 2: yet welcoming atmosphere. The thing that grabs me about it
Speaker 2: is it's got a swimming pool, the photos of which
Speaker 2: make the swimming pool look absolutely gorgeous, and a tennis court.
Speaker 2: And I was thinking, what are the things actually, actually
Speaker 2: you'll have had a look at it. What are the
Speaker 2: things about the property that would make you more interested
Speaker 2: than you might otherwise be looking at property? Does the
Speaker 2: swimming pool do it for you?
Speaker 3: Yea would, And it actually felt very familiar, I have
Speaker 3: to say it did. The swimming pool and also the view,
Speaker 3: the outlook of.
Speaker 8: It, it was.
Speaker 3: It's just kind a very sort of open, sort of
Speaker 3: scenic perspective to it. But that was a lovely place.
Speaker 2: When you say familiar, is it because it's like the
Speaker 2: house you live in.
Speaker 3: It's not unlike really, oh goodness, didn't this didn't cost
Speaker 3: anything like that. But yeah, it's just a similar set
Speaker 3: of a plant home.
Speaker 2: It does seem like one of those places that it's
Speaker 2: surrounded by. I think there's a golf course within view
Speaker 2: of it, and it's on Ockero anyway, but it does
Speaker 2: look like the sort of property where if you you'd
Speaker 2: want to host people all the time. It's listen, come
Speaker 2: down to my country state, bring your tennis racket, bring
Speaker 2: your togs, bring the snags or stick them on the barbie.
Speaker 2: That's pretty good.
Speaker 3: Imagine you'd imagine Donald Trump living there.
Speaker 2: Really doesn't quite strike me as a Mara laga. Probably
Speaker 2: a bit ice. That's an interesting take, but you know,
Speaker 2: and it's surrounded with you know, fruit nuts and vines
Speaker 2: and all that does look quite gorgeous. So if you
Speaker 2: want to go and check it out, going to the
Speaker 2: one roof a website One roof dot curd a en
Speaker 2: Z and you can look for the property which is
Speaker 2: fifty nine d Western Avenue in ok.
Speaker 3: So.
Speaker 2: Yeah, beautiful and as I say, every week, taking a
Speaker 2: look at a gorgeous propertly like that, it's almost like
Speaker 2: having just a five minute holiday anyway, Actually just quickly
Speaker 2: before we wrap the show up, with about a minute
Speaker 2: to go. So the OCR announcement will be this week.
Speaker 2: What are you anticipating it'll.
Speaker 3: Drop by point five on Thursday? I think most of
Speaker 3: the banks I see, the Benz and a couple of
Speaker 3: others have already factored in most of that into their rates,
Speaker 3: So I wouldn't expect any further drops or any major
Speaker 3: further drops. But it's a really good trend. It's an
Speaker 3: indication of what's to come, and there'll be more going
Speaker 3: into twenty twenty five, and we'll get back I think
Speaker 3: I've said to you in the past that we should
Speaker 3: get back down to retail rats of about four points
Speaker 3: five percent. I still stand by there.
Speaker 2: Do you think that if they dropped it even further
Speaker 2: that then wouldn't be inclined to do it because it
Speaker 2: might be just a little bit too triggering as a
Speaker 2: dramatic drop in the effort and that's.
Speaker 3: Always the conflict that the Reserve Bank Governor's got. It's
Speaker 3: the conflict between wanting to get us out of this
Speaker 3: pain that we've been in over the last two or
Speaker 3: three years without getting us to a point where we
Speaker 3: suddenly all go silly again and start's been to too
Speaker 3: much on houses. So that's not just in relation to this,
Speaker 3: that's the conflict that he faced all the time.
Speaker 2: Excellent. Hey, thanks so much for your time, Ashley. We'll
Speaker 2: look forward to next time and I really appreciate you
Speaker 2: joining us. You can check out the podcast Weekend Collective.
Speaker 2: We'll be back with the Parents squad As next.
Speaker 1: For more from the Weekend Collective. Listen live to News
Speaker 1: Talks It be weekends from three pm, or follow the
Speaker 1: podcast on iHeartRadio