In the last few weeks, the seasonal changes have been noticeable as we find ourselves getting out of bed in the mornings in the dark. This is not the start to a day that many would wish for, but it is a fact of life as we transition from summer to autumn. It is also a reminder that winter looms although there will be some respite with daylight saving changes scheduled for early April. Historically, winter has often been known for a ‘slow down’ in real estate activity, but will that be the case this year?
Unlike many large cities, Wellington has a real estate market which is normally stable with a constant flow of home buyers in and out of the Capital City. With the transient home buyers also competing this year with large numbers of potential first home buyers as well as property investors, perhaps any winter slowdown will be offset by a continuation of today’s rampant market. Time will tell but there are still several reasons that justify selling during the coming three, pre-winter months.
- The market is currently flooded with potential first home buyers. Multiple offers continue to drive prices upward, but will this last? If selling is on your agenda there is probably no better time than now.
- Low interest rates are adding to the buying frenzy. Borrowers are committing to large mortgage payments to get onto the property ownership ladder. Home sellers should take advantage of this situation.
- Government has announced their intention to take steps to slow down the price hikes that we are witnessing. How successful will this be, what impact will it have on price trends and when will this kick in?
- Potential investment buyers may reduce in numbers as borrowing tightens for this sector and as changing regulations requiring landlords to raise the minimum standards of rental accommodation take effect.
- Do you want open homes and buyers traipsing through your property in the depths of winter? Probably not, but the good news is there is enough time to avoid this by selling now prior to winter descending on us.
Just one word of caution however! If you are selling and relocating, do not be out of the market for too long. If prices continue to escalate you will still want to be a recipient when the capital gains are handed out in future months and years!
Preparing your home for sale – some quick reminders:
- At the risk of stating the obvious, ensure lawns, gardens and general presentation are at their best. Remove rubbish and de-clutter your home as first impressions do count.
- Some degree of home-staging may enhance the saleability of you home.
- Ensure any improvements that have been carried out have local authority permits and code compliance certificates where necessary. As a home seller you have a statutory responsibility to attend to these matters and to disclose any defects or deficiencies in the property that you are aware of.
- Decide what chattels are staying with the property and where possible, remove from sight any that are not staying. You would be surprised how often chattels become a source of irritation during negotiations – even after settlement takes place they can be the catalyst for disputes and litigation. Chattels are a small but an important part of most home sales.
- Having an up-to-date land information memorandum report (LIM) available on your property assists with a buying decision, as does a builder’s report.
- Obtain a title search for perusal by potential buyers. It is likely however that a buyer’s solicitor will carry out their own independent and up-to-date title search prior to finalising a sale.
There are all sorts of theories among market watchers, market commentators, economists and, not to forget, every property owner about where the market is heading. The truth is that none of us can say with absolute certainty what the market will be in a year’s time or even by the end of 2021. All we can say with confidence is that today, the market is firing and top prices are being paid. Sales records for price, number of sales and time taken to sell have all moved in favour of home sellers in recent months. A trend that seems likely to continue at least in the short term.
Is selling on your agenda? If so, we invite you to contact your Tommy’s agent. We will provide you with a written appraisal containing market data to support our pricing recommendations. We will discuss with you the method of sale that we think is appropriate for your property and we will design a marketing plan specifically for your property. Tommy’s objective is to secure the best possible price for you with the least amount of stress and anxiety.
Whether you’re ready to sell or looking for answers, we’ll guide you with data-driven strategy paired with over 20 years of industry experience.