The Dunedin property market continues its steady upwards trajectory with QV statistics showing the average sale price in August was $338,791. This is great news for the local property market and the economy, and we are seeing a steady stream of first home buyers getting on the property ladder. In a busy market like this, characterised by high demand, we are seeing sales by auction, by negotiation, and deadline treaty becoming more common. Here is an overview of these sale types and what we think you should be aware of.
Due to the current high levels of demand a large number of properties are being sold by auction. Vendors can be keen to use this sales method because in auction rooms filled with interested bidders, emotions can run high which sometimes leads to bidding wars that drive sale prices up. Going to an auction with a firm plan about what amount you are prepared to pay for a property is wise and we strongly recommend investing in a current market valuation before the auction. If you need a valuation after the fall of the hammer and we’ve had some notice, we can often turn around a report within 24 hours with our urgent valuation service.
By negotiation listings are unpriced, which can make it difficult for buyers to know what to offer. It’s important to school yourself on the market, especially recent local sales. A good starting point and cost effective way to obtain some handy information is by downloading the free QVhomeguide App or going to www.qv.co.nz for a range of free and paid information and insights on the market.
Deadline treaties are becoming more common as they are less restrictive than auctions because the seller doesn't prescribe the terms and conditions to apply to the sale. The deadline encourages buyers to put their best foot forward as competition is strong in Dunedin at the moment. This does not mean you should put your pre-approved mortgage amount down on the dotted line. We suggest taking the advice of a trusted professional like a valuer or local real estate agent in these situations.
After the sale
Congratulations - Your offer has been accepted! At this stage you may need a valuation to secure the finance on your new home. FYI: Valuation reports typically take two-three working days to complete for a standard residential valuation and prices start from $610 incl GST.
Give us a call at any stage during your purchasing or selling process for a chat to discuss your options or requirements.