Buying property is an expensive and often difficult task, so how do you get the best deal?
Ed McKnight of Opes Partners joined Jack Tame to offer up some tips and tricks to get the best deal when dealing with the property market.
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Speaker 1 (00:07):
You're listening to the Saturday Morning with Jack team podcast
from News Talks.
Speaker 2 (00:11):
That'd be right now sixteen to eleven, in time to
catch up with our money Guy, resident economists at Opie's partners,
Ed McKnight is with us this morning.
Speaker 1 (00:19):
Go to Ed get a Jack. Nice to speak to you, Yeah, nice.
Speaker 2 (00:23):
To be speaking to you. You've got tips for us
this morning on getting the best deal when buying a property.
And given for most of us is the largest store,
the single most substantial purchase we will make in our
entire lives. This is one of those times you really
want to make sure you get the best deal available.
So let's start off with like a negotiation. What would
(00:44):
you say people need to think about if they're going
into a negotiation to buy a property.
Speaker 1 (00:50):
Well, the first thing is if you really want to
get a good deal and you're negotiating, you need to
be prepared to walk away. What I see happens far
too many times with people who want to buy a
house is they turn up to the open home, they
fall in love with the property. One partner says to
the other one, I really want that, and then that
weekends the overall negotiating positions because then you're saying, actually,
(01:11):
we're just going to We're willing to keep increasing our
bid or increasing our offer to be able to get
the house without being prepared to walk away. And I
think that falling in love with the house kind of syndrome,
if I can call it that, jack. It leads people
to say, I'm only going to look at this one house,
and there's not going to be anything else that's perfect
for me. And in fact, it's funny that we should
(01:32):
be talking about this today because right now I'm parked
up in Mission Bay. I've got my family and the car.
We're off to look at open homes. And what I
keep reminding my fiance is there are lots of houses
out there. If we fall in love with one and
we don't get the price that we want, we've got
to be willing to walk away. And I'll tell you
one other story, which actually starts well before the negotiation,
(01:54):
and it's a good reminder from when I was about
twelve years old. I remember my mother selling her house
down in Harward in South Tutanaki, and she's talking to
a local real estate agent. Now this is back when
houses like two hundred and fifty thousand dollars back in
South Tabnunkey, and the agent said to the mother, how
much do you want for the house, and she said, oh,
(02:14):
I'm seeing other houses being advertised around that two hundred
and fifty thousand dollar. Bark and Carroll, the real estate agent, said,
don't compare your house to what's on the market. Compare
it to what's sold. Now. This is a really important
lesson for home buyers because it's very easy to go
on to grade me, to go onto one roof, to
Conto real Estate dot code dot nz and get a
(02:37):
little bit disheartened when you see these really high asking
prices and cvs. And I've been doing this myself recently,
so this is a do as I do, not just
as I say, but go on to one roof, go
on to homes dot code dot nz and there are
these really interesting map features where you can just look
at not what's on the market, but what has recently sold.
(02:59):
So I would go through individually looking at the houses
that are selling, looking at the sales prices and saying
would I be happy with that price, because then you
get a sense of not what vendors are wanting, but
actually what is selling. And one other thing that's fascinating
is just letting yourself ignore the CV sometimes. So that's
the council value, our capital valuation, or the GV. Now
(03:22):
remember in Auckland, those gvs were set back in June
twenty twenty one, so they are over three years old
now and at the moment, on average, properties across Auckland
are selling about ten percent under CV. But in some
of the suburbs that I'm looking at right now, there
are some properties that are selling thirty three percent under GV,
and there are some that are selling at GV. Now
(03:44):
that doesn't mean that there are some people who are
negotiating spectacular deals, but it can also mean that those
gvs are way off. So when you go on out
and you're looking to buy a property, don't just look
at the GV, don't just look at the arson price.
Change your map, filters on one roof, or trade me
your homes or credit and said, look at what properties
are selling for, because then you're an informed consumer.
Speaker 2 (04:07):
Yeah, that is such such good advice. I'll tell you what, though,
it's easier said than done, Like, don't fall in love
with the property. I think we've all been there. You
walk through the front gate and you're like, oh my god,
I'll do anything for this place, like There'll never be
a house as perfect as this. What about conditions? Are
there any conditions that you should be attaching to your offer?
Do you think?
Speaker 1 (04:24):
Well, the main thing that we always say is if
you want a low price, and price is one of
your most important factors when you are looking to buy
the property. In that mindset, then the best thing to
do was have a very very clean deal. So before
you put in that offer, if you can tick off
the Limb report, if you can tick off solicitor's approval
of the contract, if you can tack off finance and
(04:47):
say I'm going to make my offer subject to lawyer's
approval and nothing else, then you're going to be in
a really strong position because then the seller is going
to say, I've got lots of confidence that this deal
is going to go ahead. And in fact, my sister
in law, who's sitting in the back of the car
was selling your house. Well probably I'm just about a
year or two ago. She had two offers. One was
(05:08):
a cleaner offer that was a lower price, very few
conditions on it. Then there was one that was fifty
thousand dollars more, but had a couple more conditions. You know,
somebody needed to sell their house, Somebody needs to go
to the lawyers, somebody needed to get finance, all of
those things. She took the lover offer because she had
more confidence that that deal was going to go ahead
and she's going to be able to move on.
Speaker 2 (05:29):
Yeah, that is such good advice. Thank you, Ed, and
good luck in your search. Let's just hope that when
you do find that dream house, of course one, that
you would still be willing to walk away from that.
The vendors have been listening to you this morning, so
they know that you are willing to walk away and
you're going to be a tough negotiator. Ed McKnight, now,
resident economist at Opie's Partners, Thank you so much.
Speaker 1 (05:48):
For more from Saturday Morning with Jack Tame. Listen live
to News Talks d B from nine am Saturday, or
follow the podcast on iHeartRadio.
You're listening to the Saturday Morning with Jack team podcast
from News Talks.
Speaker 2 (00:11):
That'd be right now sixteen to eleven, in time to
catch up with our money Guy, resident economists at Opie's partners,
Ed McKnight is with us this morning.
Speaker 1 (00:19):
Go to Ed get a Jack. Nice to speak to you, Yeah, nice.
Speaker 2 (00:23):
To be speaking to you. You've got tips for us
this morning on getting the best deal when buying a property.
And given for most of us is the largest store,
the single most substantial purchase we will make in our
entire lives. This is one of those times you really
want to make sure you get the best deal available.
So let's start off with like a negotiation. What would
(00:44):
you say people need to think about if they're going
into a negotiation to buy a property.
Speaker 1 (00:50):
Well, the first thing is if you really want to
get a good deal and you're negotiating, you need to
be prepared to walk away. What I see happens far
too many times with people who want to buy a
house is they turn up to the open home, they
fall in love with the property. One partner says to
the other one, I really want that, and then that
weekends the overall negotiating positions because then you're saying, actually,
(01:11):
we're just going to We're willing to keep increasing our
bid or increasing our offer to be able to get
the house without being prepared to walk away. And I
think that falling in love with the house kind of syndrome,
if I can call it that, jack. It leads people
to say, I'm only going to look at this one house,
and there's not going to be anything else that's perfect
for me. And in fact, it's funny that we should
(01:32):
be talking about this today because right now I'm parked
up in Mission Bay. I've got my family and the car.
We're off to look at open homes. And what I
keep reminding my fiance is there are lots of houses
out there. If we fall in love with one and
we don't get the price that we want, we've got
to be willing to walk away. And I'll tell you
one other story, which actually starts well before the negotiation,
(01:54):
and it's a good reminder from when I was about
twelve years old. I remember my mother selling her house
down in Harward in South Tutanaki, and she's talking to
a local real estate agent. Now this is back when
houses like two hundred and fifty thousand dollars back in
South Tabnunkey, and the agent said to the mother, how
much do you want for the house, and she said, oh,
(02:14):
I'm seeing other houses being advertised around that two hundred
and fifty thousand dollar. Bark and Carroll, the real estate agent, said,
don't compare your house to what's on the market. Compare
it to what's sold. Now. This is a really important
lesson for home buyers because it's very easy to go
on to grade me, to go onto one roof, to
Conto real Estate dot code dot nz and get a
(02:37):
little bit disheartened when you see these really high asking
prices and cvs. And I've been doing this myself recently,
so this is a do as I do, not just
as I say, but go on to one roof, go
on to homes dot code dot nz and there are
these really interesting map features where you can just look
at not what's on the market, but what has recently sold.
(02:59):
So I would go through individually looking at the houses
that are selling, looking at the sales prices and saying
would I be happy with that price, because then you
get a sense of not what vendors are wanting, but
actually what is selling. And one other thing that's fascinating
is just letting yourself ignore the CV sometimes. So that's
the council value, our capital valuation, or the GV. Now
(03:22):
remember in Auckland, those gvs were set back in June
twenty twenty one, so they are over three years old
now and at the moment, on average, properties across Auckland
are selling about ten percent under CV. But in some
of the suburbs that I'm looking at right now, there
are some properties that are selling thirty three percent under GV,
and there are some that are selling at GV. Now
(03:44):
that doesn't mean that there are some people who are
negotiating spectacular deals, but it can also mean that those
gvs are way off. So when you go on out
and you're looking to buy a property, don't just look
at the GV, don't just look at the arson price.
Change your map, filters on one roof, or trade me
your homes or credit and said, look at what properties
are selling for, because then you're an informed consumer.
Speaker 2 (04:07):
Yeah, that is such such good advice. I'll tell you what, though,
it's easier said than done, Like, don't fall in love
with the property. I think we've all been there. You
walk through the front gate and you're like, oh my god,
I'll do anything for this place, like There'll never be
a house as perfect as this. What about conditions? Are
there any conditions that you should be attaching to your offer?
Do you think?
Speaker 1 (04:24):
Well, the main thing that we always say is if
you want a low price, and price is one of
your most important factors when you are looking to buy
the property. In that mindset, then the best thing to
do was have a very very clean deal. So before
you put in that offer, if you can tick off
the Limb report, if you can tick off solicitor's approval
of the contract, if you can tack off finance and
(04:47):
say I'm going to make my offer subject to lawyer's
approval and nothing else, then you're going to be in
a really strong position because then the seller is going
to say, I've got lots of confidence that this deal
is going to go ahead. And in fact, my sister
in law, who's sitting in the back of the car
was selling your house. Well probably I'm just about a
year or two ago. She had two offers. One was
(05:08):
a cleaner offer that was a lower price, very few
conditions on it. Then there was one that was fifty
thousand dollars more, but had a couple more conditions. You know,
somebody needed to sell their house, Somebody needs to go
to the lawyers, somebody needed to get finance, all of
those things. She took the lover offer because she had
more confidence that that deal was going to go ahead
and she's going to be able to move on.
Speaker 2 (05:29):
Yeah, that is such good advice. Thank you, Ed, and
good luck in your search. Let's just hope that when
you do find that dream house, of course one, that
you would still be willing to walk away from that.
The vendors have been listening to you this morning, so
they know that you are willing to walk away and
you're going to be a tough negotiator. Ed McKnight, now,
resident economist at Opie's Partners, Thank you so much.
Speaker 1 (05:48):
For more from Saturday Morning with Jack Tame. Listen live
to News Talks d B from nine am Saturday, or
follow the podcast on iHeartRadio.
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