BAYLEYS REAL ESTATE LTD. MREINZ

mid May 2011

WHAT IS HAPPENING IN OUR LOCAL PROPERTY MARKET?

NEW LISTINGS

LATEST SALES

EXPLODING THE MYTH: “Auctions cost more.”

STRATEGIES TO BID & BUY AT AUCTION

FEATURE COMMENT

TESTIMONIALS Ingrid & Ashley Cooper

We met Jeremy three years ago while house-hunting. He was friendly, no pressure, always available, honest, and sympathetic with our relocating emotions. He is knowledgeable and businesslike without pretence or stuffiness, and to top it all, he's just a nice guy! Alison and Philip Innes-McLiesh

We've known Jeremy professionally for more than seven years and have consulted him about property matters on a number of occasions. We've found that he's knowledgeable of real es-tate within our region and always pleasant and cheerful. He provides an optimistic yet very real-istic appraisal of property valuations and listens carefully to our needs, concerns and expectations. Rosemary and Phillipe Gauthier

Jeremy has proved himself to be reliable, honest and knowledgeable. He has helped us find and purchase a beautiful prop-erty while making the process straightforward and pleasant. We wouldn't hesitate to use him as our agent again. Raefe Murray

Jeremy's service is exemplary. He is naturally courteous and personable, but I particularly appreciated his honest and candid approach, his integrity and professionalism. Everything I asked of Jeremy was done in a timely manner, with a positive attitude and thus I found him very easy to work with. I have no hesitation in recommending his services to others.

Jeremy Matthews ph: 03 546 9455 mob: 0274 379 485 e: jeremy.matthews@bayleys.co.nz

W e here at Bayleys Nelson believe the local market is stabilising relative to recent downward trends and that it is slowly preparing itself to change gear as economic indicators continue

to improve, albeit slowly. Measurable facts are sales and listings for each month. So far this year both lines show a steady incline. This is a genuine, though modest improvement in a market envi-ronment which saw regional sales numbers drop by 70% in the last quarter of 2010. However, Bayleys’ sales in April have been almost on a par with March which was our best month in five years! Winter traditionally sees a slow-down in local real estate activity. Yet life respects none of that with people making, or wanting to make changes going forward. Last years 70% drop in sales numbers has produced a knock-on effect the flow-on of which we are witnessing now. Caution has been the watchword for months among buyers, yet there is a growing confidence that with interest rates now at an all time low and rises on the way, with banks relaxing their lending criteria and openly courting home buyers, with well-priced new stock coming on and previously over-priced stock com-ing down, and with the sense that staying just ahead of the heard is where the benefits lie, the market has ceased its cooling and ’green shoots’ are beginning to appear already. Buyers should be aware. This has all the hallmarks of a steady im-provement in the local market with price rises almost certainly following-on. ...at your place is the newsletter of Jeremy Matthews Licensed Real Estate Agent REA-Act 2008 Disclaimer: Whilst all care has been taken to ensure accuracy in the preparation of the particulars contained herein, no warranty can be given for the above information.

Jeremy Matthews Residential Sales Specialist & Auctioneer ph: 03 546 9455 mob: 0274 379 485 email: jeremy.matthews@bayleys.co.nz

“Local prices stabilise. Change imminent but gradual.”

“Busy sales and Listings boards herald market change going forward.”

“All ingredients present for sustainable market improvement.”

SOLD

At last! A generously renovated beautifully presented combination high on the sunny side of Quebec Road just three minutes from the central city. A big private tree-fringed site on a quiet lane with sweeping northern vistas across Trafalgar Park the Upper Haven and around to the Western Ranges. A welcoming, relaxed yet deftly stylish three double-bedroom 1950’s stucco classic with polished timbers, a new granite-topped gourmet kitchen, a crackling new free-standing wood-burner and alfresco dining above an 11 metre in-ground con-crete pool. For guests there is separate off-lane parking plus a tandem basement garage with enormous storage capacity, and to complete the ensemble a crisp fully self-contained one double bedroom cottage with its own access for income or additional family accommodation. For more info on this property click here

SUNNY CITY-FRINGE HOME & INCOME — 46 QUEBEC

Auction 5.30pm Tuesday 17 May 2011 288 Trafalgar St. Nelson (Unless sold prior)

AUCTION

The sun’s earliest rays, peeping over a low rolling ridge softly colour an incoming tide. The bay is flat and calm, the air crisp and clear. In this stillness Terns are heard squabbling out on the Boulder Bank, even from up here at 64 Paremata St high on the grassy slopes of early-Atawhai. This family home is bright clean and fresh. Its spacious interiors face the winter sun through sweeping 180 vistas. At every turn the fittings and fixtures are or the highest quality features while all along the front of this lovely two storey winner a full-length in-ground pool spa and al fresco deck turn Atawhai’s well known sun and views into pure unrivalled luxury. Four double bedrooms, three bathrooms (ensuite), two offices, two double garages (one is internal) formal and family living, gourmet kitchen, separate boat trailer truck or campervan parking with easy turning. Screened on her 2,182m2 sunny site this secluded property suffers no road noise whatsoever instead basks at the beginning of Atawhai’s safe and popular cycle-way. The central city is mere moments away so your children can ride bikes to schools and colleges. Here is a home where a family may enjoy all the best the region has to offer whilst maintaining a quiet re-serve. For more information click here

SPELL-BINDING IN ATAWHAI - 64 PAREMATA St. OFFERS OVER $950,000

This 1.7 ha home offers space on a grand scale on the northern edge of Richmond, where the privacy is absolute. Simply imagine long summer afternoons at the edge of the pool, or on a winter’s afternoon, bathing in sunshine in front of the large windows while you snuggle up to a hot drink and a good book. Privacy, space and sun drenched outdoor living areas will be yours to enjoy in this unique slice of para-dise. Here is the permanent blend of nature, quality and style existing in total harmony. This home was built, (and more recently extended and renovated), with quality in mind in tune with its environment. Features include three car garaging, a Large shed for the boat or other hobbies, five bedrooms and two bathrooms plus master ensuite, multiple separate living spaces and the safety and freedom for your children to take full advantage of this very private and tranquil home. In both location and style this su-perb lifestyle home is a cut above the rest. For more information click here

“THE BIRCHES” - 3D HILL STREET. RICHMOND DEADLINE SALE

This stunning, two level home, with its clean elegant lines, subtle colour palette and numerous glass doors and full-length windows, reflects the architectural style of Frank Lloyd Wright.

Tucked into an Atawhai rise, on 934m² of low maintenance gardens and well established trees, with extensive decks and a patio, the very private, north-northwest facing property has been positioned to maximize sun and views.

The unobstructed outlook sweeps across the Haven, Boulder Bank and lighthouse to the wide expanse of Tasman Bay and the sea beyond. Built in 1993 to a generous scale, the 358m² home, including decks comprises a remote controlled, internally accessed double garage, an office, wine cellar, laundry and open plan studio, work shop and games room on the ground floor.

The upper level contains the living, family and dining rooms, kitchen, a second office, master suite, two double bedrooms and the family bathroom. For more information click here:

VIEWS, ELEGANCE AND POTENTIAL - 4 ELLENDALE ST OFFERS OVER $750,000

Tuesday 10th May 2011: Quotable Value

Research Director Jonno Ingerson

SOLD

Jeremy Matthews Residential Sales Specialist & Auctioneer ph: 03 546 9455 mob: 0274 379 485 email: jeremy.matthews@bayleys.co.nz

Property values continue to stabilise

R esidential property values remain relatively stable at a na-tional level according to the QV indices for April.

“Nationwide property values have now been relatively stable for several months after falling slightly throughout most of

2010. Values are now 1.9 percent lower than the same time last year, and 5.8 percent below the market peak of late 2007” said QV.co.nz Research Director, Jonno Ingerson.

“The levelling of nationwide values was initially due to a flattening of values in the Auckland market, but there are now increasing signs of values stabilising in many other areas also” said Ingerson.

“In the Auckland area values have moved within a narrow band for most of the last 18 months. In recent months values have been slightly variable, but there is little evidence at this stage of values mov-ing significantly up or down. Currently values in Auckland are 0.5 per-cent below the same time last year” said Ingerson

“Values in Hamilton are 3.5 percent below the same time last year, but in recent months values appear to be flattening off. In Tauranga values are 1.7 percent below last year, but also appear to be flatten-ing in recent months. The Wellington area is 3.4 percent below last year, with most of this drop coming in 2010, while over the past six months values have been moving within a narrow band. Values in Dunedin have dropped more over the past year than the other main centres, but may also be stabilising in recent months” said Ingerson. “There was an increase in sales activity in March and the first half of April, but this appears to have dropped away following the Easter and school holiday break. Sales activity typically tends to slow from now through until spring” said Ingerson.

“Market sentiment remains patchy with some areas lacking quality listings to satisfy buyer demand, while other areas have little buyer demand despite plenty of houses for sale. In general properties with desirable attributes, or those that represent good value, are still sell-ing well” said Ingerson.

SOLD

“There has been a significant slowdown is sales activity in Christ-church since the February earthquake, and this lack of sales means that we have not generated an index for Christchurch. Local valuers in Christchurch are seeing plenty of interest in quality properties in rela-tively unaffected areas, and prices have been generally holding. There is still a great deal of uncertainty in the market, particularly driven by concerns over job security” said Ingerson.

While unrelated to the QV index, and a less reliable measure of value change, the average New Zealand sales price over the last three months is $405,310 up from the $400,656 reported last month.

Despite values levelling in recent months in many provincial areas, none currently have values above the same time last year. This recent levelling of values, coupled with declining values last year, means that the gap between this year and last year is closing in many areas. Whangarei (-5.2), Gisborne (-4.6), New Plymouth (-4.5) Palmerston North (-3.7) and Invercargill (-3.9) have the greatest gap compared to last year. Rotorua (-1.0), Hastings (-1.4), Napier and Wanganui (-2.4) and Queenstown Lakes (-1.3) all have values slightly below last year.

In Nelson values have been relatively stable since January 2010 and as a result the gap between last year and this year is only -0.7 %

SOLD

Jeremy Matthews Residential Sales Specialist & Auctioneer ph: 03 546 9455 mob: 0274 379 485 email: jeremy.matthews@bayleys.co.nz

“Auctions cost more.”

A part from the auctioneers ‘Call Fee’ there are no extra costs to a Bayleys auction.

The ’Call Fee’ is usually $500 which is about the same as the cost of 41 packets of cigarettes, or 30 bottles of average

wine, or 45 Big Mac combo’s. This, for a unique and proven advantage that can ad tens of thousands of extra dollars to a sale price in a matter of minutes.

Whether using Deadline Sale, Tender, or Auction all 3-5 week high-impact campaigns have very similar marketing budgets usually running between $2,800 and $3,800 excl gst But an Auction has a definite date when cash buyers must meet to openly compete against each other for ownership.

The first three weeks on the market are critical for any property. I call it ‘The Bloom’ because houses are like roses and bread… BEST WHEN FRESH. It is when a new property receives its first flush of interest from serious cash buyers, giving rise to the old adage “The first offer you get is usually the best offer you get.”.

Auction properties are therefore “High-Profile” campaigners. They are a breed apart. They target their marketing budget to coincide with those first three golden weeks on the market then follow-up with 2-3 weeks of post-auction marketing with a price based on real market feed-back, not guess-work.

Auction ads are big and fresh each week. Auction ads attract more visitors to their Open Homes. Auction agents know how to assist interested Open Home visitors to become active bidders on the night. Auction campaigns deliberately embrace the markets premium cash buyers by “grabbing the best buyers first”. And their results are undeniable with 93% of all Bayleys auction vendors being presented with an opportunity to sell within those first 3-5 weeks.

Auction was invented over 4,000 years ago in Babylon and has been described as “The fairest and finest method of sale ever devised.”

Auctions are no more expensive….just a lot more effective.

SOLD!!

E xciting and intensive… the simplest way to buy property is through an auction. However, much like everything in life, preparation is the key to success and long lasting satis-faction.

When you bid and buy at auction, the deal is ‘cash’ so it’s important that when you see the house of your dreams, that you complete all your research on the property before putting your hand up on auction day.

This includes having independent advice on the contract of sale, checking the title, as well as obtaining any professional reports. Determine how much you want to pay or bid to, so arrange a pre-approval on a mortgage from your bank.

Real estate auctions require a 10 percent deposit on the fall of the hammer. If you don’t have a cheque book, sometimes you can pay by other means but only if this is arranged with the seller before-hand. Check that the settlement date suits you.

The auction itself is a relatively short process of around 10 to 15 minutes. Plan to arrive a little early. Usually the auctioneer will run through the legal description, chattels and the conduct of auction and say a few nice words about the home. Then he or she will ask for an opening bid. Don’t be afraid to start the bidding off at whatever amount you feel comfortable with. The most important thing about bidding is that you appear confident and strong from the start, without hesi-tation. Having a bidding strategy and a few tactics up your sleeve can help you win the day. The real estate salesperson can advise you on this before the auction, or attend a few auctions yourself and observe other buyers for ideas.

The vendor will have set a confidential reserve price with the auc-tioneer. The bidding needs to reach this price before the house will sell. If the auction does not reach the reserve and is passed in there is no automatic special right for the highest bidder to negotiate unless it is offered by the auctioneer during the auction. However, if bidding does reach the reserve, the auctioneer will use words such as “it’s on the market” or “we are selling” to indicate that this has happened. Most importantly, remember that an auction is the only race where the person who comes last wins!

Jeremy Matthews Residential Sales Specialist & Auctioneer ph: 03 546 9455 mob: 0274 379 485 email: jeremy.matthews@bayleys.co.nz