Latest / That Home Loan Hub / Stop Using RV To Price Your Offer

Transcript

Stop Using RV To Price Your Offer · That Home Loan Hub

• 0:10
  SPEAKER_00: If you're looking to buy a house and don't know how much to offer, this is the episode for you.
• 0:14
  SPEAKER_00: I've got Megan Love from Hartcourt's Real Estate here today with me and we're gonna dive into some tips and tricks for you guys to implement next time you're looking to put an offer.
• 0:24
  SPEAKER_00: Hello, Megan.
• 0:25
  SPEAKER_00: Hello, long time no see.
• 0:26
  SPEAKER_01: I know, it's been great.
• 0:28
  SPEAKER_00: Thank you so much for coming back.
• 0:30
  SPEAKER_00: And you've got a very spicy why did I say it's been great?
• 0:33
  SPEAKER_00: I don't know.
• 0:33
  SPEAKER_00: Going on.
• 0:36
  SPEAKER_01: It's been great to see you again today.
• 0:40
  SPEAKER_00: Love it.
• 0:40
  SPEAKER_00: Love it.
• 0:41
  SPEAKER_00: All right.
• 0:42
  SPEAKER_00: So it's been great for Megan not to see me for a while.
• 0:44
  SPEAKER_00: I feel a little bit.
• 0:47
  SPEAKER_00: I know what you mean.
• 0:48
  SPEAKER_01: I got that so wrong.
• 0:50
  SPEAKER_01: Yes.
• 0:50
  SPEAKER_00: So for people that are looking to buy a house these days, it's really interesting, especially in Carpeti Region.
• 0:57
  SPEAKER_00: We've had some statistics that April Yes, that April, and we're now at the beginning of June.
• 1:04
  SPEAKER_01: So for anyone that is looking at past data stats, we're waiting for the next ones to come out, and that's usually around the 15th.
• 1:13
  SPEAKER_01: So there's just some kind of we were talking earlier about like where to find recent data, and it wouldn't be the June stats.
• 1:22
  SPEAKER_00: Yeah.
• 1:23
  SPEAKER_00: Because the the problem is these days, what I'm finding is clients will ring up and they're like, Oh, I want to put an offer, the RV is one million.
• 1:30
  SPEAKER_00: I'm looking to put an offer below RV because the houses are selling below RV.
• 1:35
  SPEAKER_00: For some reason, people think that each house has its RV and then this is what you make an offer on based on RV.
• 1:42
  SPEAKER_01: Yeah, some people think that's actually what it's worth.
• 1:45
  SPEAKER_01: But is it?
• 1:46
  SPEAKER_01: No.
• 1:47
  unknown: No.
• 1:48
  SPEAKER_01: Part of the problem is the RVs were done by the council and they were sight unseen.
• 1:52
  SPEAKER_01: So they just put an arbitrary figure on each house.
• 1:56
  SPEAKER_01: Like they didn't go through and assess it and say, oh, you've added double glazing or you've put a conservatory on or your garden's really nice.
• 2:03
  SPEAKER_01: And they did that back in October 2023.
• 2:06
  SPEAKER_00: Wait, almost three years ago.
• 2:07
  SPEAKER_00: Yeah.
• 2:08
  SPEAKER_00: So we're basing our decision today based on three years ago.
• 2:11
  SPEAKER_01: Three years ago.
• 2:12
  SPEAKER_01: And if you think about the market three years ago, it was totally different.
• 2:15
  SPEAKER_00: Totally different.
• 2:15
  SPEAKER_00: And RV, just for those that are listening and don't know, it stands for rateable value.
• 2:19
  SPEAKER_00: Yes.
• 2:20
  SPEAKER_00: Not to be confused with RV registered valuation that we require for the banks.
• 2:24
  SPEAKER_01: Yes, actually, that's very tricky, isn't it?
• 2:27
  SPEAKER_00: Yes.
• 2:27
  SPEAKER_00: A lot of people get confused because there's also CV.
• 2:29
  SPEAKER_01: Yes, C V council valuation.
• 2:32
  SPEAKER_00: Which is basically rateable valuation.
• 2:35
  SPEAKER_00: So CV and RV for the council is.
• 2:38
  SPEAKER_00: And then there's also G V.
• 2:39
  SPEAKER_01: Yes.
• 2:40
  SPEAKER_01: Government valuation.
• 2:41
  SPEAKER_01: Government valuation.
• 2:42
  SPEAKER_01: Which is all the same.
• 2:43
  SPEAKER_01: It's all kind of the same.
• 2:44
  SPEAKER_01: Yeah.
• 2:44
  SPEAKER_01: Yeah.
• 2:44
  SPEAKER_00: So it's all the same, same.
• 2:45
  SPEAKER_00: So you'll hear people talking about G V, C V, R V, and in that sense, they're talking about values that the council has placed on a house.
• 2:54
  SPEAKER_00: And in Carpeti Region case, that was three years ago.
• 2:58
  SPEAKER_01: Yeah.
• 2:58
  SPEAKER_00: And the new ones are due.
• 3:00
  SPEAKER_01: That's right.
• 3:00
  SPEAKER_01: The new ones are due October 2026.
• 3:03
  SPEAKER_01: So we're coming up to that.
• 3:06
  SPEAKER_01: And that also helps the council decide what the rates will be.
• 3:10
  SPEAKER_01: So the homeowners always pay rates.
• 3:12
  SPEAKER_01: So that kind of determines what the rate payments will be.
• 3:15
  SPEAKER_00: Well, we always hope that we're going to pay less rates.
• 3:18
  SPEAKER_01: Never pay less rates.
• 3:19
  SPEAKER_01: We never do.
• 3:20
  SPEAKER_01: They always promise.
• 3:21
  SPEAKER_00: They always promise, but they always go up.
• 3:23
  SPEAKER_01: Yeah.
• 3:24
  SPEAKER_00: And this is due to infrastructure.
• 3:26
  SPEAKER_00: This is due to development that the council has planned for the region.
• 3:31
  SPEAKER_00: So this is where your taxes normally go.
• 3:33
  SPEAKER_00: Now, in regards to the statistics, we looked at some data and we thought that was quite fascinating, wasn't it?
• 3:38
  SPEAKER_00: Do you want to just throw some numbers at me?
• 3:40
  SPEAKER_01: So I've got some suburb statistics here.
• 3:43
  SPEAKER_01: And when I was looking for them, I noticed they were all April 2026.
• 3:48
  SPEAKER_01: So we're already out of date.
• 3:51
  SPEAKER_01: So I actually sent some to a buyer the other day and I said, check back in with me around the 15th, because that's when all the new data comes out.
• 3:58
  SPEAKER_00: So can can clients do that?
• 4:00
  SPEAKER_00: Can they contact real estate agents and get the statistics?
• 4:03
  SPEAKER_01: Yes.
• 4:03
  SPEAKER_01: We actually have an email list of people who like to follow it.
• 4:06
  SPEAKER_01: Even after we've sold them a house, we still keep them on that list.
• 4:09
  SPEAKER_01: Because then you can see it going up and down.
• 4:11
  SPEAKER_01: Average sale above RV.
• 4:13
  SPEAKER_01: I'm going to say RV this time just because that's what I'm used to saying.
• 4:17
  SPEAKER_01: Yep.
• 4:18
  SPEAKER_01: How many sales were in that suburb during the month?
• 4:21
  SPEAKER_01: Average days to sell is also really interesting because if you have a homeowner that has to sell urgently and they have like a 180 days to sell, they might want to need to know that, you know.
• 4:32
  SPEAKER_01: But if things are selling quickly in your suburb, then that's really great news.
• 4:36
  SPEAKER_00: How quickly are the houses selling at the moment in our region?
• 4:39
  SPEAKER_01: So Waikanae, we're just sitting in Waikinae at the moment.
• 4:41
  SPEAKER_01: Waikinae Central, they sold average days to sell 27, but Waikinae Beach was 35.
• 4:48
  SPEAKER_01: So things are taking longer to sell in Waikinae Beach.
• 4:52
  SPEAKER_01: And that's crazy, right?
• 4:53
  SPEAKER_01: Because so close.
• 4:55
  SPEAKER_00: That's quite desirable area as well, I would have thought.
• 4:57
  SPEAKER_00: Yeah.
• 4:57
  SPEAKER_00: But then do you think the prices are more higher?
• 4:59
  SPEAKER_01: In Waikanae Beach, the prices generally are higher.
• 5:02
  SPEAKER_01: So the average sale price was 1 million and 50 in Waikinae Beach and it's 9% over RV.
• 5:08
  SPEAKER_01: But in Waikinae Central, the average price to sell was 760,000 and 1% above RV.
• 5:17
  SPEAKER_01: So yeah, so it's even though it takes longer to sell.
• 5:20
  SPEAKER_01: Hello?
• 5:21
  SPEAKER_01: She's she's filming me.
• 5:24
  SPEAKER_01: Even though it takes longer to sell, you get a higher price.
• 5:26
  SPEAKER_00: Yeah.
• 5:27
  SPEAKER_00: Okay.
• 5:28
  SPEAKER_00: So what about Paraparumu?
• 5:31
  SPEAKER_01: So I happen to have that.
• 5:32
  SPEAKER_00: Because I feel like Waikana sometimes can be a completely different beast to Paraparumu.
• 5:36
  SPEAKER_00: And Paraparum is bigger, there's more families in Paraparumu.
• 5:40
  SPEAKER_00: And then Rao Mighty is a completely different one as well.
• 5:42
  SPEAKER_00: Totally different.
• 5:43
  SPEAKER_00: Yeah.
• 5:43
  SPEAKER_01: So Param, we've got, and this is based again in April 2026.
• 5:49
  SPEAKER_01: So in central paparam, we had a 2% above RV.
• 5:53
  SPEAKER_01: So the average sale was 800,000, which is pretty good.
• 5:57
  SPEAKER_00: Wow.
• 5:57
  SPEAKER_00: Yeah.
• 5:58
  SPEAKER_00: Okay.
• 5:58
  SPEAKER_00: So it's still holding its value.
• 5:59
  SPEAKER_01: It is, yeah.
• 6:00
  SPEAKER_01: And it hasn't always been 800,000.
• 6:02
  SPEAKER_01: Sometimes it dips, sometimes it rises.
• 6:04
  SPEAKER_01: But Paparam Beach, 4% above RV, and 880 is your average sale price.
• 6:11
  SPEAKER_00: So again, Paraparumu Beach is more expensive than Paraparomo.
• 6:15
  SPEAKER_00: So why can I beach Paraperoom?
• 6:18
  SPEAKER_00: I guess it's that costal side.
• 6:20
  SPEAKER_01: The lifestyle.
• 6:21
  SPEAKER_01: Yeah.
• 6:22
  SPEAKER_00: But then the insurances will be more expensive as well.
• 6:24
  SPEAKER_01: Yes, potentially.
• 6:25
  SPEAKER_00: People really need to understand that part too.
• 6:28
  SPEAKER_00: That as we are progressing with nature, global warming, etc., sea rises, the insurance does price you a little bit different compared to, you know, whether you're close to the beach or you're not close.
• 6:40
  SPEAKER_00: But also the rivers.
• 6:42
  SPEAKER_00: If you're close to the river.
• 6:43
  SPEAKER_01: The rivers is another thing that people are starting to ask us about.
• 6:46
  SPEAKER_01: Is there any ponding?
• 6:47
  SPEAKER_01: Is there any rivers?
• 6:48
  SPEAKER_01: Are there any kind of water concerns?
• 6:50
  SPEAKER_01: But also the home maintenance as well.
• 6:52
  SPEAKER_01: Like just the simple things, you have to wash your windows more often after a storm if you live closest to the beach because the salt spray kind of clouds up your windows and makes your home darker.
• 7:01
  SPEAKER_01: So, you know, after a storm, I always wash my windows, especially on the seaward side.
• 7:06
  SPEAKER_01: Weatherboard houses might need a little bit more painting on the seaward side or the sunny side, whereas brick might be a little bit easier for people with like maintenance concerns.
• 7:16
  SPEAKER_00: Yeah.
• 7:17
  SPEAKER_00: I actually did an episode last week with Building Inspector.
• 7:19
  SPEAKER_00: Okay.
• 7:23
  SPEAKER_00: So for those that haven't listened, do listen up to that one because we did talk extensively about buyers and what they should be aware of if they are buying something around the seaside.
• 7:33
  SPEAKER_00: So that's quite cool.
• 7:34
  SPEAKER_00: Okay, so the statistics are quite interesting in terms of what you can rely on, what you can't.
• 7:39
  SPEAKER_00: Can you just tell me a story you've told me off air about the buyer that rang you up?
• 7:45
  SPEAKER_01: Yeah, so I had a buyer and he'd come through an open home and we always ring people back afterwards to say, Did you like the house?
• 7:51
  SPEAKER_01: Would you like a second viewing?
• 7:53
  SPEAKER_01: Do you want to buy it?
• 7:54
  SPEAKER_01: And then he said, Oh, I'm not quite sure what it would sell for.
• 7:58
  SPEAKER_01: And I said, Oh, you know, what do you know about the market data at the moment with sale prices?
• 8:04
  SPEAKER_01: And he said, Well, I know that everything is selling below RV.
• 8:07
  SPEAKER_01: And I was quite surprised.
• 8:09
  SPEAKER_01: And I said to him, Are you from the city by any chance?
• 8:12
  SPEAKER_01: Because he's going to be out of area if he's got that impression that things are selling below RV.
• 8:17
  SPEAKER_01: Because in general, Carpenter has held value and has generally been selling above RV quite consistently.
• 8:22
  SPEAKER_00: Versus Wellington got quite hit, didn't it?
• 8:24
  SPEAKER_00: I mean, some places even below 27%.
• 8:27
  SPEAKER_01: Yeah, it was really sad for them.
• 8:29
  SPEAKER_01: Yeah.
• 8:29
  SPEAKER_00: Yeah.
• 8:30
  SPEAKER_00: Yeah.
• 8:30
  SPEAKER_00: Okay.
• 8:31
  SPEAKER_00: So he'll he's in a bit of a shock.
• 8:34
  SPEAKER_01: Yeah, he was a little disappointed.
• 8:36
  SPEAKER_01: I sent him the email that we send out every month with the stats on it.
• 8:40
  SPEAKER_01: And I said, hey, have a look at this.
• 8:42
  SPEAKER_01: It's not just my opinion.
• 8:43
  SPEAKER_01: This is data that we collect from Rhines, which is like a central source of information across the whole of New Zealand.
• 8:51
  SPEAKER_00: Ryan's stands for real estate information New Zealand, I believe.
• 8:56
  SPEAKER_00: Yes.
• 8:56
  SPEAKER_00: R-E-I-N-Z.
• 8:58
  SPEAKER_00: That's right.
• 8:59
  SPEAKER_00: For those that want to Google it.
• 9:00
  SPEAKER_01: Yes.
• 9:02
  SPEAKER_01: They're they're independent.
• 9:04
  SPEAKER_01: So they're not like owned by any particular agency or anything like that.
• 9:08
  SPEAKER_01: So and all of the agencies feed the data from sales to them.
• 9:12
  SPEAKER_01: So they collect it and make it available.
• 9:15
  SPEAKER_01: But we, you know, if buyers say to me, can I go on their email list?
• 9:18
  SPEAKER_01: It's yeah, no problem.
• 9:19
  SPEAKER_01: Because we want educated buyers, like we want to help people know what the market is doing.
• 9:24
  SPEAKER_00: And as we discuss again off air, is that at the end of the day, the house is only worth what someone's willing to pay for it and what the vendor is willing to accept.
• 9:31
  SPEAKER_01: That's right.
• 9:32
  SPEAKER_01: Yeah.
• 9:32
  SPEAKER_00: Because everyone's situation is different.
• 9:33
  SPEAKER_00: Some people think the grass is greener on the other side in Australia.
• 9:37
  SPEAKER_00: So a lot of people are selling up now, going to Australia.
• 9:39
  SPEAKER_00: To be honest, I've been talking to some mortgage brokers in Australia and they're saying that grass is not greener.
• 9:44
  SPEAKER_00: They still have the same issues as we have here, you know, the rising cost of living, the interest rates, the house prices.
• 9:50
  SPEAKER_00: So they actually have exactly the same issues over there.
• 9:52
  SPEAKER_00: But for some reason, New Zealanders think that it's much nicer to be on that side.
• 9:56
  SPEAKER_00: So yeah, so definitely do your research and figure out where you want to live.
• 10:01
  SPEAKER_00: Because again, we're just going back to the basics, right?
• 10:03
  SPEAKER_00: In terms of figure out your non-negotiables.
• 10:06
  SPEAKER_00: Yeah.
• 10:06
  SPEAKER_00: What do you want to have in the house?
• 10:08
  SPEAKER_00: Does it need to have two bedrooms or three bedrooms?
• 10:10
  SPEAKER_00: Does it need to have a fresher kitchen and bathroom, or do you want to renovate it yourself whether you have the funds?
• 10:17
  SPEAKER_00: Do you want a brand new building?
• 10:19
  SPEAKER_00: No, there's so many different things that people need to figure out first.
• 10:22
  SPEAKER_00: And do you need a big yard?
• 10:24
  SPEAKER_00: Are you okay with a smaller yard?
• 10:26
  SPEAKER_00: Maybe you don't need a yard at all.
• 10:28
  SPEAKER_01: Yeah, absolutely.
• 10:28
  SPEAKER_01: Less waiting, less lawns, get your weekends back.
• 10:31
  SPEAKER_01: Yeah.
• 10:31
  SPEAKER_00: Exactly.
• 10:32
  SPEAKER_00: So uh and you know, and you can only figure this out by actually going to open homes.
• 10:36
  SPEAKER_00: Yes.
• 10:36
  SPEAKER_00: That's honestly, that's the best thing I found when I was looking for a house.
• 10:41
  SPEAKER_00: It's just keep looking through the open homes and figure out what feels right, what doesn't feel right.
• 10:45
  SPEAKER_00: Imagine yourself.
• 10:46
  SPEAKER_00: Just stand there for a moment and imagine yourself being there.
• 10:50
  SPEAKER_01: And private viewings is a really good way as well.
• 10:52
  SPEAKER_01: So if you go to the open home, you like the house, but there's a lot of people around the agents there, you can actually book a private viewing free of charge to go back later just with you and a friend or a person that you're buying with, just quietly to just stand in the house and actually look around without less like less people there.
• 11:09
  SPEAKER_01: And you can ask the agent to step out if you'd like, just so you can kind of be in the space and chat with your friend of like, I like this and not so sure about this part of it, or could this work for me?
• 11:18
  SPEAKER_01: Could I adapt it somehow?
• 11:20
  SPEAKER_01: Yeah.
• 11:20
  SPEAKER_00: What's a polite way to ask an agent to step out of the house?
• 11:23
  SPEAKER_01: Just say it.
• 11:24
  SPEAKER_01: We're pretty straightforward people.
• 11:27
  SPEAKER_01: Just say, could you just give me a minute?
• 11:29
  SPEAKER_01: Like, sure, no problem, I'll answer my emails.
• 11:32
  SPEAKER_01: Yeah.
• 11:33
  SPEAKER_00: I love it.
• 11:34
  SPEAKER_01: I'm never offended by that.
• 11:35
  SPEAKER_00: But it could be awkward, right?
• 11:36
  SPEAKER_00: For people that don't know what they're doing for the first time ever.
• 11:39
  SPEAKER_01: Well, that's right.
• 11:40
  SPEAKER_01: I mean, I tend to say, hey, you know, you've been in the house.
• 11:42
  SPEAKER_01: Would you like me to show you around?
• 11:44
  SPEAKER_01: Or you're happy to just take your time and look around.
• 11:46
  SPEAKER_01: And then I kind of park myself nearby so that if they want to ask me something, I'm I'm there, but I'm not like following them and like creeping them out or you know, being too intrusive.
• 11:56
  SPEAKER_01: Yeah.
• 11:57
  SPEAKER_00: Hovering over them.
• 11:58
  SPEAKER_01: Yeah, no, I'm not a hoverer.
• 11:59
  SPEAKER_00: I love it.
• 12:00
  SPEAKER_00: Megan, thank you so, so much.
• 12:02
  SPEAKER_00: Beautiful tips here.
• 12:03
  SPEAKER_00: And I look forward to our next episode.
• 12:05
  SPEAKER_01: Yeah, cool, excellent.
• 12:06
  SPEAKER_01: Thank you.