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Here's how they sell homes in New Zealand. Different from here!

By
Real Estate Agent with Coldwell Banker Colorado Rockies Real Estate

Pricing your home properly is the number one thing that you can do to help it sell.  At least, that is my opinion. That is why I was surprised to find that in New Zealand, where I am visiting right now, many homes are listed for sale with no price attached to them at all.  When you look at the ads of homes for sale, there seem to be three main ways they are listed.  One of the most popular is to auction the property off.  That takes a lot of marketing to get the word out about the auction. Million Dollar New Zealand home Typically, in addition to what the Seller pays the agent for selling the home, they also pay about 1% of the selling price upfront for marketing expenses.  A second way is to list the way we sell homes in the US, with a suggested  price and  potential Buyers making offers until a price is negotiated and agreed upon.  A third way is with no price listed at all and potential Buyers making a "tender" which is a blind offer.  All tenders are opened on the same day the the highest one gets the property.  How does one know what to offer when there is no price listed?  I have seen some listings were the "certified valuation" or appraisal is  listed, but others where you have no idea at all what a property might list for.  In fact, the house we are renting for the month is for sale, and it does not have a price listed either.  I suspect it is $1-1.2M, based on other list prices in the area. 

Real estate in New Zealand is expensive.  The average family income here is about $68,000 and I have seen few homes priced under $400,000.  It really seems to be very similar to Summit County, with many second homes near the beaches.  We are staying at a small beach area with about 50 homes and only 5 of them are occupied full time.  The rest are second homes.  We have decided that it must be the land that costs so much money as the homes would not be expensive to build.  Most are built on pilings or cinderblock foundations.  The windows are all single panes of glass, and there are lots of them, which is really nice!  Walls are 2x4s studs and roofs are not required to bear any snow load, so don't need to be as strong.Electric outlet with switches  There is little, if any, insulation in the walls and not many electric outlets.  Bathrooms in this home, which is not old, have no outlets.  The outlets are all switched though, so you can turn each one off individually.  Most newer homes are very contemporary looking, with the kitchens and baths seeming rather sparse by American standards.  In the rural areas, water is collected from the roof and gutters all drain into a tank.  It supplies all the water used in the home.   The drinking water is filtered, but the pollution levels here are low and the water is clean and usable.  Few homes have wells.  It rains often enough that the tank seldom needs to be filled by a commercial water hauler. Million dollar views

 

 

 

This photograph was taken from the deck, overlooking the ocean at Buckleton Beach. 

All in all, New Zealand is a wonderful place to live.  I was born here, so am a bit biased,  but the weather is wonderful, it rains often enough that everything is green and the wildlife is fabulous.  We are really enjoying ourselves, even though there is no skiing!

Stanton Homes
Stanton Homes - New Home Builder - Raleigh, NC
Design/Build Custom Home Builder in North Carolina
With the drought conditions in many parts of the US, I can see more buyers becoming interested in water systems like the one you described.  Wonder what it would take for the public to become more aware of alternatives like that?
Dec 02, 2007 08:49 PM
Susie Roscoe
Signature Realty Associates - Brandon, FL
Real Estate Specialist | Brandon, FL
Joanne - I thought you were on vacation in New Zealand and here you are posting about their real estate cutlture!  Wow!!  Now you've got me wondering how people there making $68k are affording homes over $400k!  They must have 60 year mortgages there or something!  (or really good mortgage brokers)
Dec 02, 2007 09:14 PM
Missy Caulk
Missy Caulk TEAM - Ann Arbor, MI
Savvy Realtor - Ann Arbor Real Estate
Beautiful views, oh my. Have fun !!
Dec 02, 2007 09:47 PM
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher
Joanne, I hope you are having a wonderful time there, it sounds like it and I loved that you shared those pictures with us.  I'm sure we'd all love to see more, I know I would!
Dec 03, 2007 01:47 AM
Don Fabrizio-Garcia
Fab Real Estate - Danbury, CT
Owner/Broker/Trainer - Fab Real Estate

Joanne, Former sellers of mine relocated to New Zealand.  They shared this same info with me when they were buying a home there.  One other issue they came across was that agents only work single towns.  Since they were looking in several adjoining towns, they had to work with several agents.

I don't know if that's the norm, but that's what they had to deal with (this was in 2003 or 2004).

They have that water containment system for all their water needs.  They say it works great.  Hey, if we can get our water from the ground, then why not get it from the sky?

Enjoy your time in New Zealand.  We're still waiting for the kids to grow up to be old enough to make that flight...then we're going, too!

Dec 03, 2007 02:25 AM
Chris Tesch
RE/MAX Bryan-College Station - College Station, TX
College Station, Texas Real Estate

Wow, how real estaste can dffer between countries!  Enjoy your time there and keep us posted...I'd love to know other differences as well such as how they decorate there and how large the houses are!!!

Dec 03, 2007 04:43 AM
Joanne Hanson
Coldwell Banker Colorado Rockies Real Estate - Frisco, CO
Summit County, Colorado Realtor
Chris, the market here has been very good, but they just got a 1% bump in interest rates, which will probably slow it some.  They are forecasting that 2008 will be slower.  It might help first time home buyers who have a terrible time affording anything.  I talked to a new homeowner the other day who said that all their money goes on their mortgage and they can't afford to eat out or do anything extra.  Luckily, most of the fun stuff here is free...it is a very outdoor oriented country.  They are Americans who fell in love with New Zealand when they honeymooned here.  They sold their house in Austin TX and just moved here! 
Dec 03, 2007 04:55 AM
Joanne Hanson
Coldwell Banker Colorado Rockies Real Estate - Frisco, CO
Summit County, Colorado Realtor
Lloyd, the cities have municipal water systems, but you don't need it in this part of the country.  There is plenty of rain. 
Dec 03, 2007 04:57 AM
Joanne Hanson
Coldwell Banker Colorado Rockies Real Estate - Frisco, CO
Summit County, Colorado Realtor
Penny, I can't see it happening in the US as much of the water is already owned by someone before it falls out of the sky!  (at least in the west).  People used to have cisterns in the country and this catchment system is similar. 
Dec 03, 2007 04:59 AM
Joanne Hanson
Coldwell Banker Colorado Rockies Real Estate - Frisco, CO
Summit County, Colorado Realtor

Susie, I am not sure how long the mortgages run.  I will have to find that out.  I know the rates are higher than ours, and are about 9.5% right now with a two year term!  I think the market has been fueled here by second home owners and foreigners and they are probably cash buyers.  I do know that NZ has more debt per capita now than the US does!

Dec 03, 2007 05:01 AM
Joanne Hanson
Coldwell Banker Colorado Rockies Real Estate - Frisco, CO
Summit County, Colorado Realtor
Missy, I am having a great time, thanks!  Getting ready right now to go to my pilates class....
Dec 03, 2007 05:04 AM
Joanne Hanson
Coldwell Banker Colorado Rockies Real Estate - Frisco, CO
Summit County, Colorado Realtor
Carole, I will have more photos when I get back as I need a faster connection.  While I was waiting on one of these to download, I took a shower!  At least I have internet now, when it works.
Dec 03, 2007 05:06 AM
Joanne Hanson
Coldwell Banker Colorado Rockies Real Estate - Frisco, CO
Summit County, Colorado Realtor
Don, it is a beautiful country, and everyone should come here if they get a chance.  The only negative on the water system is that rainwater has no flouride and few minerals.  I didn't realize until I was much older that my teeth suffered from growing up drinking rainwater.  At that time they didn't supplement flouride and we didn't take vitamins.  I have lots of crowns!
Dec 03, 2007 05:11 AM
Dena Stevens
Rocky Mountain Realty - Canon City, CO
Putting The Real Into Realtor Since 2004
What a beautiful beach! And green trees! OK, I know it's Spring/Summer there and I'm going thru with drawl.
Dec 03, 2007 05:15 AM
Joanne Hanson
Coldwell Banker Colorado Rockies Real Estate - Frisco, CO
Summit County, Colorado Realtor
Chris, most homes are small, but a lot of the new ones being built are considerably larger and grander.  The every day home that most of the population lives in is perhaps 1200 sq ft, 3 br and 1 bath.  However, they are as open to the outdoors as possible, and most homes of walls of windows or folding doors that slide open on a track to open up the wall.  No window screens, so we bought mosqito nets.  Decor is minimal for the most part as most people seem to prefer a very clean contemporary look. 
Dec 03, 2007 05:17 AM
Don Fabrizio-Garcia
Fab Real Estate - Danbury, CT
Owner/Broker/Trainer - Fab Real Estate
Joanne - Is that why I have several crowns already?  It was growing up with well water!
:)
Dec 03, 2007 05:25 AM
Mana Tulberg
805 County Real Estate - Camarillo, CA
Real Estate Agent - Camarillo CA
Joanne, You are a realtor undercover!!!!! I love your reports and can't wait to see more pictures, but for now go and have funnnnnn.
Dec 03, 2007 09:52 AM
Joanne Hanson
Coldwell Banker Colorado Rockies Real Estate - Frisco, CO
Summit County, Colorado Realtor

Dena, it is early summer here, and a wonderful time to be here.  Peak season starts when we leave, and when we come back next year, we will do the same time again.  The only downside is that it rains a bit more, which it is doing right now!

Don, well water is ok, because it gets minerals from the ground.  Rainwater has none, and that is the issue...  But you can use that as a reason if you like  ;)

Mana, I am having fun!  My sister is going crazy right now, but I am online and the rain will let up soon...

Dec 04, 2007 12:11 PM
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info
Joanne - how lucky for you to be born in NZ.  We visited there a few years ago and I just loved it - all of it.  It did remind me of Hawaii and lot.  The people were so nice too.
Dec 08, 2007 06:57 PM
Joanne Hanson
Coldwell Banker Colorado Rockies Real Estate - Frisco, CO
Summit County, Colorado Realtor
Hi Georgina, the north part of NZ reminds me of Hawaii too.  It is very lush and green with lots of flowers.  I am back now :( but glad to be home again.  A month is the perfect length of time for vacation!
Dec 19, 2007 04:19 PM