I have been a Real Estate salesman since 1998, based in Property
Brokers Ltd, Havelock North.

Local Knowledge

I have lived in Hawkes Bay since 1962 and have a wide network of people in the area.

Qualifications

Seller's Market
In a seller's market there is a high demand for properties. Values increase, properties sell more quickly, and buyers have fewer properties to chose from. The negotiating power rests more with the seller.

Buyer's Market
In a buyer's market, there is less demand for properties. Buyers have more properties to chose from, values are stable or may even decline, and sellers have to compete with each other to attract buyers. In this market property will often take longer to sell and the negotiating power usually rests with the buyer.

Balanced Market
In a balanced market, neither buyers nor sellers have a noticeable advantage. This is the current state of the market in early 2005.

Sellers set the price for their home but buyers determine the value. Buyers don't care what a seller wants/needs to get. A property is only worth what a buyer is willing to pay and a seller is prepared to accept after negotiations are complete and a sale is confirmed.

To help you make an informed decision on the current market value of your property I will supply you with facts about properties that have recently sold in your area and also advise you regarding properties currently on the market with which you will be competing.

The period shortly after a property comes on the market is usually the time of greatest interest and most inquiry, and it is critical that a property be correctly priced when it is first listed. Houses that sell quickly, and usually for their optimum value, are those that have been priced correctly at the beginning of the marketing campaign. It is no good saying "lets try it at a higher price initially and then come down if it doesn't sell". Good buyers could be lost, maybe forever. If you miss this initial opportunity you not only run the risk of being overlooked by future buyers who may be concerned about why your house hasn't sold, but also run the risk of having to sell further down the track at a price below the true market value.

It is known that some real estate agents promise to get a high price for your home – this is known as buying the listing. Unfortunately this can be a disservice to vendors because if the property does not sell buyers become aware of the lengthy market exposure and usually attribute it to over pricing. Buyers educate themselves with market comparables. They avoid over priced homes and look elsewhere.

Government valuations are intended to value the city for rating purposes and are now known as Rating Valuations or 'Rateable Value'. They are not marketing valuations. They are carried out at three yearly intervals and are based on average values for your street.

Banks usually have more invested in a home than the owner and if a buyer needs a high loan to purchase the property, the sale could be in jeopardy if the Bank's valuation does not match the purchase price.

Real estate sales people get paid only when they sell houses. If a property is considered to be over priced (and unlikely to sell) it may get lower exposure to potential buyers – or, and worse, it may highlight that another property represents better value for money.

- Reduces advertising response

- Loses genuinely interested and qualified buyers

- Attracts the wrong prospects

- Helps sell competitive properties

- Reduces offers

- Property takes longer to sell

- Reduces interest of sales consultants

FACTORS WHICH DO NOT AFFECT THE VALUE OF YOUR PROPERTY

- Your original cost

- The cost of building or replacement

- Your investment in improvements

- Your personal attachment to the property

Also known as a Sole Agency. The property is listed exclusively with one real estate company. It cannot be sold during the sole agency period by any other company, or by the owner, without the sole agent being entitled to a fee. However, Property Brokers will consider conjunctional sales with other companies to protect the interests of the vendor.

An exclusive agency is a vital part of our marketing strategy for the sale of most properties. An asking price is usually quoted as a guide but special properties are often marketed without a price to test the market without preconditioning buyers with vendor expectations.

TENDER

Sale by tender is form of Exclusive Agency which enables the vendors to test the open market without disclosing the price. The buyers have shown an increased resistance to marketing without a price, and although the notes below describe the process, at the moment Patrick is advising marketing in a zone such as; 'around $400,000'.

The Psychology behind a Tender.

THE TENDER PROCESS - NOTES FOR BUYERS

1. A Tender is an offer made on a property that a buyer wishes to purchase

2. A Date is set by the vendor as to when he will open all of the tender documents (this is called the tender date).

3. Closed Tenders - no offers will be accepted before the tender date, and the offers will remain confidential and in a secure tender box until that date.

4. Buyers are free to add their own conditions to the tender document. This should be done in conjunction with your real estate agent and / or lawyer who will advise you on the correct wording and meaning. Remember that adding too many conditions can make the offer unacceptable to the vendor especially when some of those conditions would have been sorted out by the purchases, with the help of your real estate agent or lawyer before making the offer.

5. Because the vendor has not declared what he is prepared to accept, buyers must research the market price for themselves to establish what they consider to be the price they could pay to own the property. This can be done in various ways. Some suggestions would be:

a. obtain a registered valuation.
b. ask your real estate agent to obtain a list of the most recent sales of similar properties in the area.

6. Buyers should make an offer that they consider to be the highest price they would be prepared to pay to own the property. So don't miss our by offering below what you would be willing to pay as there will be competition from other buyers and you don't want them to own the property for a price below what you would have paid.

7. Remember the vendor may -

a. Accept any one of the tenders (this may not necessarily be the highest price by could be the one with least conditions).
b. reject all offers if none are acceptable.
c. negotiate with any one of the tenders.

8. Buyers should make sure that the tender is received at the location and by the date and time on the tender document.

9. REMEMBER THE BENEFITS of a tender to the purchases are:

AUCTION

Sale by Auction is a form of Exclusive Agency which enables vendors to test the open market without disclosing a price. The reserve price is not disclosed until Auction Day, and then only to the Auctioneer.

Auction is a three stage process as described in the following pages. Auction publicity creates greater exposure to the market and promotes the property in the best possible way to attract the maximum number of truly interested buyers. Sales at auction must be unconditional - from cash in hand buyers - although conditional offers may be accepted at Stage 3.

GENERAL (OR OPEN) LISTING

With a general listing more than one Agency has the property for sale. But that's it - many have it listed but no one takes responsibility for it.

Tender and Auction combines the benefits of no price marketing in the first stage, puts pressure on buyers at the second stage, and provides the benefits of a correctly priced Exclusive listing in the third stage

First Stage

The extra advertising at Stage I gives your property a higher profile in the market and attracts the maximum number of potential buyers.

In this first stage no price is put on the property so that buyers have an open mind about price when they look at your home. Buyers are lured by the higher profile advertising and can fall in love with a property, decide that they want it, and then go away to work out how much finance they can raise, without being put off by an asking price.

They respond to the property, not the price.

In this first stage there is pressure on all buyers because there is a deadline, i.e. - the Tender closing date or the Auction day. An unconditional tender offer will always have the edge over a conditional tender, even at a lower price, which can be negotiated after the tender closes. A bid at an auctions is an unconditional bid. I can give buyers every assistance, if neccessary introducing them to financial institutions so that finance can be pre-approved so they can be in a position to make a tender unconditional or safely make a bid at an auction.

You may sell at this stage if it is an auction - it is not just a lead up to the Auction.

Second Stage

By the time the Tender Closing Date or the Auction day arrives you should have a good idea from the feedback on your home as to where the market sees the value of your home.

The closing of the Tender and the Auctions itself are part of the marketing proces. If your property does not sell at this point it is not the end of the World, but it is always great if it does. If this happens it does not reflect on the house itself. It may simply mean that the correct buyer has not yet been attracted to your home.

Third Stage

Should your home not sell in Stage I or Stage II, then Stage III becomes important. We use all the information from Stage I and Stage II to set a positive selling strategy for Stage III. The price you put on your property is important and it is vital that you go over the information gleaned from the market and be objective about setting a price in the third stage.

The initial period straight after the Tender or Auction is important as some buyers may hang back from those two methods.

Advertising is designed to attract buyers so that our sales people can sell real estate.

Experience has shown that some properties will draw more calls than others, so we advertise them more often. We are trying to attract buyers so that we show them properties in their price range that may be of interest. We are just like the retailer who advertises specials to get customers into the shop so that they will be exposed to other merchandise as well.

Internet. This is becoming increasingly popular with home buyers. With many buyers doing their initial searching for a new home on the internet. Properties listed exclusively with us can be marketed world wide using the Internet on the following websites:

www.propertybrokers.co.nz
www.realestate.co.nz
www.patrickdingemans.co.nz
www.nzrealtors.co.nz
www.open2view.com ($270)

“The Property Guide” is a local magazine circulated with the HB Today newspaper every Friday and is one of the main sources of buyer inquiry. Property Brokers Ltd form a portion of this magazine to show properties to their best advantage.

"Hastings Leader" Patrick features his own half page advertisement promoting a property listed with him on the first Thursday of each month.

"Village Press" A further source of promotion for Patrick’s listings in the Havelock North vicinity and a source for local buyer inquiry. This fortnightly publication has a promotion for one of his listings in each issue.

"Hastings Mail" Each third week Patrick has a half back page for one of his listings.

"Radio Kidnappers AM 1431" Each Friday afternoon at 1pm, Patrick has a 30 minute slot where he talks about real estate matters and also talks about open homes being held the next day or Sunday. Each segment is interspersed with some music.

Newspaper advertising. Unfortunately our standard fee does not cover the cost of display advertising in the H.B Today, New Zealand Herald, and "Dominion Post" but this can be arranged if you wish to invest in extra advertising to give your home a higher profile in the real estate market.

Immediate listing in our computer system
Immediate advice to each of our agents so that they may contact any unsatisfied buyers on their books – and new buyers as they come along.
Window display in our Hastings and Havelock North offices
Signage on Property Brokers Advertising (as space is available) in
Property Guide
Hastings Leader
Village Press
Hasting Mail
Radio Kidnappers
Listing on the company Internet site
Listing on Patrick’s Internet sites
Discussion at our weekly sales meetings
Mail drops (immediate area and other areas where potential buyers may come from)
Open Homes
Regular feedback to you of buyer comments about your home.

Advertising additional to our standard plan can be tailored to suit special properties. This can include advertising in the HB Today, 1/4 & 1/2 pages in the Property Guide, out of area advertising such as the Dominion Post and the New Zealand Herald, and advertising on (Open2View), and the internet.

This additional advertising is not covered by our normal fee and we look to vendors for a contribution towards the extra marketing involved. The extra advertising depends on the amount of that vendors wish to invest to get the best profile and price for their property.

Costs are:

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1/4 Page in the Property Guide $200
1/2 Page in the Property Guide $400
10 x 2 in the newspapaers $400 - $1000

Local advertising : H B Today Property Guide, Leader, Village Press, Radio Kidnappers, Mail Drops

Regional advertising : Quarterly Company Glossy Magazine

International advertising : Internet, Open2View, RealEnz, Property Stuff

This advertising programme may be tailored to fit the amount that you wish to invest to attract maximum attention to your home.

Although I may list your property for sale, any of our experienced agents may sell it. Our staff are all very experienced at selling properties in Havelock North, Hastings and Flaxmere, and you can be assured that our meticulous attention to following-up on prospective buyers will ensure maximum exposure of your property to the market place.

Please feel free to ring anytime if you have any questions.

Tenants

We can help you select a tenant. We carefully interview people to ensure that they are thoroughly suitable to be your tenant. If you wish, full details will be provided for your approval before the property is let.

Rental Collection

Rental payments are deposited in our Trust Account and paid out monthly or as you require. Any payments made on your behalf (see below) are deducted before we make payment to you. We monitor payments and take immediate collection proceedings if a payment is missed.

Property Inspection

We can provide a complete and regular inspection of your property.

Maintenance

Reliable tradesmen are used to carry out maintenance work on the properties we manage. This can include regular jobs such as lawns and gardens. All work is supervised by us to ensure that it is completed to the required standard.

Financial Administration

We can attend to the payment of rates, insurances and other periodic charges.

Fee

Our fee for managing your property is 8.5 % of the rental received. Or if we find a tenant and you manage the property there is a one off cost of $65.