Home buyers will soon go cold

Selling hopes will fade with daylight saving's end. Photo / NZ Herald

With just two weeks until daylight saving ends, the race is on for homeowners wanting to sell before the winter market freeze - without losing their shirt in the process.

Progressively tightening bank lending criteria and rising unemployment will further brake customarily slow winter sales, ANZ chief economist Cameron Bagrie expects.

Price and presentation are the keys to clinching that sale before the window closes, Simon Shreeve of home staging company Home Base says.

Start by getting a registered valuation, says Kent Leicester, director of property investment strategy company Polaris Group - it should be no older than three months - to gauge the true worth of the property in the current market.

Present it to prospective buyers along with all the other information they need to make a timely decision, such as rental assessments.

"Build a relationship with the buyer and point out twists to the property that could add value - a large garage that could be converted to a flat, for example."

If it needs renovations, go the extra mile and provide some quotes, Leicester says, or build it in to the purchase price and choose the colours with the purchaser.

Preparing a home for sale is "dealing in an emotional, psychological arena", Shreeve says. "We're turning houses into homes and showing people how to use spaces." Buyers will pay more for a three-bedroom home than for a two-bedroom home with a study, so reorganise accordingly.

Think outside the square when selling privately, Leicester says. Offer a long settlement term, leave some chattels in the house to sweeten a deal or even find out if the purchaser has a lesser value property to trade along with the cash difference.

Trading is becoming a popular and viable means of selling a property in this market where there are fewer cash buyers, says Greg Clinch of www.tradetime.co.nz.

While more of a stepping stone "rather than a process which is going to deliver you your dream home", Clinch says trading can be an opportunity to swap under-utilised, non income-producing assets for property.

He recently negotiated a transaction where a two-bedroom Auckland CBD apartment with a carpark worth $370,000 was traded for a Porsche, a Jaguar, a section in Rotorua and $200,000 cash.

An alternative option for those struggling to sell is to set up a lease option on the property, says Grant Clifton of Rent 2 Own. This widens the pool of prospective buyers presently locked out by tight finance criteria.

A lease option, often called a rent-to-buy agreement, allows a buyer to move in as a rent-paying tenant, with some of the rent going towards buying the house.

After a fixed period, they have the opportunity to buy the property at a price agreed when they first moved in - usually the valuation amount, with no real estate agent commission to be deducted. This gives the seller landlord more rent than they would get for a standard tenancy, enabling them to cover the mortgage.

PROPERTY PRESENTATION TIPS

Clean: It costs no money. Clear clutter - people want to buy space and light. Cleaning window exteriors instantly lets more light in.

Update: A coat of paint brings things up cheaply. Consider replacing handles on cabinetry, dying carpets or better light fittings.

Check street appeal: Waterblast the paths, paint fences and replace the letter box. In a potential buyer's eyes, things like old shoes at the front door are instant turn-offs.