Auctions are great for a seller in a sellers market, where there are plenty of buyers. It is the best way to obtain the true market price quickly when dealing with a lot of buyers. It is however more painful for first home buyers, as the property has to be fully checked out before bidding. We thought it might be interesting to look at some figures pulled out of the RPNZ database, in terms of Auctions vs Negotiation sales.
Auctions are still by far the most popular way of selling however in certain parts of Auckland the shift towards selling by negotiation is more dramatic.
There has been quite a few rule changes in the space of two months. Increased deposit requirements for Auckland investors, bright line test if selling within two years and better pathway to permanent residence for some migrants working out of Auckland. We wonder if the below is a trend which is emerging or simply the dust settling.
This article has been written by Hamish Patel, mortgage broker with mortgagesonline.co.nz. Ph: 09 625 4693, Mobile: 021 625 693, hamish@monline.co.nz
