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11 February 2020

Wait! Have you held an open home?

There are many temptations in life, none more so than when you have an offer sitting on the table.  Let’s be fair, who doesn’t want to sell their home with minimal effort?

At Lugtons we believe you should make an educated decision before accepting an offer – especially if you haven’t yet held an open home. Join us, as we investigate why!

Know the current market conditions

The current market conditions play a huge role in a house sale. In the Waikato, residential property demand is currently high, and supply is low, which normally causes prices to rise.

People who look to make an offer prior to an open home want to stop one thing: competition. As we settle into a ‘sellers’ market’, it’s important to understand why even attractive pre-emptive offers should be viewed with caution:

  • Did you know in the last week of January, there were only 556 houses on realestate.co.nz? With a decrease in houses on the market, we have an increase in competition for properties
  • Increase in median house price. 2019 finished with a median house price of $620,000, up a staggering 10% on the same period in 2018
  • 2020 market growth. 2020 is going to be a big year, and we expect to see huge growth in residential property values over the next 12 months

Find out more from Claire Lugton, Director of Lugtons Real Estate, in our January 2020 Market Update.

Open homes, what they enable

Open homes make all the difference when it comes to getting buyers to create an emotional attachment to the property. An attachment which could lead to them spending more than they would otherwise. Holding an open home also allows buyers to see the potential if they were to move in and make it their own… it really is a win-win from a psychological perspective.

Multi-offer situations

A multi-offer situation occurs when more than one offer is made in writing on your property. If you were to accept an offer before an open home, you bypass a great opportunity to create competition between potential buyers.

In a multi-offer situation, a seller can choose between the offers and can either go with the most attractive option, for instance a cash offer with no conditions, or the highest sales price. Basically, buyers are encouraged in a multi-offer situation to place their best offer forward, in case they don’t get another opportunity to increase it.

How we can help

Before you decide to accept an offer, make sure you contact an experienced Lugtons salesperson to discuss the current market conditions and give you the latest insights into the property value. We’re here to help you capitalise on your investment.

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