JGillies - How to buy when you have a house to sell

Buying or Selling first ?

Avoiding costly mistakes and strategies to make it a profitable move!

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The Ins and Outs of Buying (Subject to Sale) A “subject to the sale” offer

Your offer is accepted with a clause stating that the offer on the property you are buying becomes unconditional when

� your current property sells ie you accept an offer on it and it

goes unconditional

� you elect to confirm in writing to the seller of your dream home that the condition has been satisfied

There are two basic versions of this, 1 which states:

o If the vendor receives an unconditional offer they deem preferable

from another interested party they will give you (generally) 3 working days to confirm your offer on the property

o If the vendor receives an offer (it doesn’t need to be unconditional, just preferable in their eyes) from another interested party, they will give you (generally) 3 working days to confirm your offer on the property

In both escape clauses you have first right of refusal at the price you had previously negotiated, ie your offer of $450,000 is accepted and an offer is later accepted by the vendor at $470,000 from another buyer exercising the escape clause. If you chose to confirm your offer during the (3) working days and make it unconditional ie state to the vendor that you will buy it, it would still be at the $450,000 price and with the same chattels and settlement date.



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Scenario You find that dream home, congratulations; Chances are you will pay a good price to secure the property you intend to live in for the next 5-10 years and to encourage a seller to accept a sale contingent on the sale of another one. You will quite likely be required to have an escape clause in the contract. QA The next step is to put your house on the market initially, spending 2-3 weeks getting it market ready to ensure you get a good price & meantime the photographs and marketing is prepared. Subsequently There will be 2-6 weeks of marketing. (median days on the market in Upper Hutt over the last 24 months has ranged from 26 to 74 days) Warning In the meantime the great property you discovered is now drawing plenty of interest from other buyers in the market place and an offer comes in from one of these buyers “exercising the escape clause” in the contract you have purchasing your next home. Your options

1. Go unconditional on your dream home in the hopes yours sells quickly. Beware you may end up owning two homes

2. There may be an offer on your home, Accept this offer thought it may potentially be lower than market value, in order to secure your dream home. So there is the potential you pay a slightly higher price for your next home while accepting a slightly lower one for your current property.

3. You give up on your dream home and continue marketing in the hopes of finding another

4. You withdraw the property from the market and go through a similar set of circumstances again the next time you discover your dream property. Only this time you have already withdrawn from sale once and will be unlikely to want to do it a second time. So you may end up choosing options 1 or 2.



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Strategies to avoid a costly mistake!

a. Sell first on a long settlement.

a. Secure the best possible price for your own property and then aggressively enter the market for you next property. Subsequent to the sale you could:

b. Rent temporarily c. Organise bridging finance for a worse case scenario

d. Or you could begin looking for you next property aggressively while

Jamie is actively marketing your property. You are already 4 weeks ahead of the scenario on page one.

b. Buy your next property on a long settlement giving you plenty of time to sell your current property.

a. You run the risk of owning two properties again

c. Pre-package your property’s marketing campaign. What this means is:

a. you begin preparing your house for sale

b. you engage Jamie as your agent, this allows him to:

i. to prepare the paper work, writing of the advertisements, booking of photography and informing our team of 20 plus sales consultants of a great new property coming to the market when we find your next property

ii. Allows Jamie to run a “Coming Soon Campaign” targeting existing buyers and telling new buyers entering the market of a home that may be suitable (when you are ready for buyer inspections)



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What’s Great about a “Coming Soon Campaign”

1. The home isn’t “actively” marketed until you are ready so if we do secure a buyer we are getting them through prior to the main market. This can allow us to negotiate a stronger outcome for you because the buyer will not want to miss out to other buyers once advertising commences.

2. You don’t have to accept an offer if you haven’t found the next home. Yu also don’t need to fear your property has been over exposed, sitting in the papers week after week affecting buyers perception of the property, ie why hasn’t the property sold

3. Meanwhile you may go out into the market and find that perfect home. You make an offer. That night you ring Jamie to push the green button. The next morning your property goes live on our extensive range of websites and through the Professionals agents buyer networks (which account for 1 in 2 of every sale made in Upper Hutt each month). You are already 3-4 weeks ahead of where you would have been had you waited until you had found the next home before engaging Jamie to sell yours

You can see from the first scenario that sometimes

Time can = price

Give Jamie the opportunity to generate you the best possible outcome and to help you and your family navigate the market place for the optimum result.



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Things to prepare Dont be surprised if one of the first homes you inspect ie “the one”. It drew your attention & interest for a reason.

1. Book an appointment with Jamie to appraise your house even if you have had

a recent assessment of value from another company. This will ensure your price expectations are in line with the market. You wouldn’t want to discover you have been searching for a home in a price bracket above or below what you can afford.

2. Speak to a financial advisor to discuss a deposit for your next property as well as the ins and outs of bridging finance short term should you require it.

3. Consult with Jamie regarding preparing your property for sale to ensure you maximise your homes value, through presentation

4. Obtain a Market Report from Jamie on your desired location. This will

detail the last 6 months of sales and market trends. This will ensure you are well informed for when that dream home comes up assisting you in buying right.

5. Obtain Jamie’s Booklet:

90 tips for preparing your property for sale

& becoming a fast mover



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Make this a profitable move by avoiding costly mistakes!

1. Clearly determine what it is you want to achieve from this next move ie is it: a. another bedroom or an additional living area b. a certain type of lifestyle, ie more free time with a smaller low

maintenance property 2. Take into account the condition of the property, note:

a. when will it need to be repainted next? b. how much time or money will be involved in the up keep of the

grounds? c. what age is the water heater? d. is it future proofed, ie is it double glazed, does it have a modern

heating system such as a heat pump, or modern wood burner? 3. Accurately determine your own financial position and the repayments on your

next property, always including mortgage repayments, rates and insurance 4. Obtain a builders report on any property you are considering 5. Ensure that an offer you accept on your own property (if it is subject to the

sale) has an escape clause in it for you. 6. Maximize your opportunity for a great price by utilizing Jamies “Coming Soon

Campaign” 7. Invest in marketing to ensure your own property is exposed to the widest

possible selection of buyers. A well run and effective marketing campaign targets both:

a. active buyers which the Professionals buyer network will tap into immediately and more comprehensively than any other company in Upper Hutt

b. Passive or what we like to call our “heart buyers”. These are potential buyers who would move if the right property came onto the market but who may not be actively working with an agent. They love the house they are currently in but would move for the right home. The great thing about this buyer is that often they will pay a little more because they are moving for a particular home and not comparing your property across everything else on the market. Make sure your marketing campaign targets both of these essential buyer segments.



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Your go forward plan

Step 1

Call Jamie on 04 527 2822 to book a Wants & Needs analysis on your

buying requirements. This way we can clearly determine the best

possible outcome with you

Step 2

Obtain a neutral opinion of market value from Jamie on your own

property

Step 3

Obtain a market report on your desired location/type of property you

wish to buy.

Step 4

Ensure you have all of the information you need, such as:

Decide on the course of action now you have all of the important

information.

1. your own propertys value,

2. the type & value of property you wish to buy

3. the timeframes you have to work within

4. the overall goal you wish to achieve with this next move.

5. then decide on a course of action



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About Jamie Gillies

Old fashioned as it may be, a solid work

ethic and zeal for life have seen Jamie

condense a careers worth of experience into

his 10+ years of Real Estate. It’s his attention

to detail and the commitment to those

clients he takes on, that ensures the high

level of service which produces such

commendable results.

In the past, many clients who have worked

with Jamie have identified his focus and

intensity as two of the key factors that

contributed to their success.

Some words from Jamie…

“Like someone selling their property, a Salesperson also has a choice to make on the

company they feel has values that are in line with their own and who would add the

most to their potential, and their ability to meet the needs of their Vendors.

Working with the Professionals team also has a feel good factor that comes with its

community focused support. A portion of all sales go back into the areas where we

live and work through ongoing sponsorship of the Child Cancer Foundation, the Toys

For Trees Christmas Appeal and a host of other community and sports groups”.

Recent Awards

Sales, Professionals

National Awards

Units, Professionals

National Awards

Recieving 2nd Runner up for the Wellington

region award for sales from Professionals

Owner Malcolm Gillies .09



About Professionals Gillies and Mark Professionals, Gillies and Mark Real Estate Ltd bring a tradition of excellence and

achievement to the real estate industry. Having worked to service the needs of clients

for over 35 years, Gillies and Mark has been consistently recognised as a leader, both

within their own business group, the Professionals, and within the region amongst all

agencies. They were a finalist in the Wellington Gold awards for professional services.

They have also been recognised as the Professionals Top Office and Top Company

nationally.

Gillies and Mark’s success can be attributed to an innovative and dynamic attitude to

everything they do - from sign written cars for their Sales Consultants and

comprehensive radio marketing, to an absolute dedication to ensuring their clients

receive the finest service in real estate. Individual attention with group strength - it’s

not enough to just have a lot of small offices, real strength comes from co-operation

between established and successful companies within the region, and that’s exactly

what you get as a client of the Professionals. Not only that, but with 3,500 Sales

Consultants across Australasia they offer arguably the best referral network available

to Wellington residents.

As a client of Professionals, Gillies and Mark Real Estate you have access to a broader

base of skills and experience. Whether it’s Property Management, Real Estate

Development or Residential Marketing they have the team and the commitment to

provide you with the experience you require.

Committed to Our Community



GLOSSARY OF TERMS

Agent

A licensed person employed to facilitate the sale of property on behalf of the vendor.

Allotment

A section of land subdivided from a larger portion of land.

Appraisal

An opinion of your propertys saleability and estimated market value based on current market conditions and

your property’s characteristics.

Assets

What you own.

Auction

Three to five week programme using a high-profile marketing campaign. The sale of the property goes to

the highest bidder or is passed in if your reserve price is not reached.

Breach of contract

Not fulfilling any terms of the contract.

Bridging finance

A short-term loan, usually at a higher rate of interest, which helps people to cover the purchase of a

property while waiting for theirs to sell. The security is usually over both properties.

Building regulations

These are designed to uphold the standards of public safety, health and construction. These are put in place

by local authorities (usually councils) to control the quality of the buildings.

Capital gain

The monetary gain obtained when you sell a property for more than you paid for it.

Caravan

The agent that is marketing the property takes the rest of the salespeople in the office through the property

so that they can familiarise themselves with the property and market it to their buyers.

Caveat

A Document logged with the titles office, by any person with a legal interest in a property, to ensure the

property is not sold without their knowledge.

Caveat Emptor

Latin for ‘Let the Buyer Beware’. In certain cases, this puts the burden onto the buyers to be satisfied before

purchasing a property.

Certificate of Title

A document which details the ownership of a property along with property dimensions and other details.



Chattels

Any removable items that are sold with a home, typically carpets, light fittings, curtains, dishwasher etc.

CMA

Comparable Market Analysis is the price comparison of your home with others that are currently for sale and

those that are similar in size and location that have sold.

Commission

The fee payable to a real estate agent for selling a property.

Common Property

Areas on a title which have joint ownership with another property, often common with cross-leased, strata-

title and unit-title properties.

Conditional Contract

A contract that is agreed to by the Vendor and the Buyer, but where one or more conditions need to be

met, usually within a specified time period, by either or both parties. For example, it is subject to the

purchaser raising finance within a few days or subject to the lawyers consent of the title etc.

Contract of Sale

A written document that sets out the terms and conditions for the purchase or sale of land, and all

improvements thereon.

Conveyancing

The legal process of transferring the ownership of a property and money, making sure that everything is

legally correct, as the property transfers from one owner to another. This is usually done by your solicitor.

C.T.

Certificate of title. Document that shows the legal owner of a property. All land in New Zealand has a

Certificate of Title.

Covenants

Rules and Regulations governing the use of property.

Cross Lease Title

This gives you ownership of a piece of a larger property with cross lease rights over defined improvements.

You can sell or dispose of your unit as you desire.

Deposit

A defined percentage of the purchase price paid by the purchaser which is held in trust as confirmation of

intention to buy.

Easement

A right held by someone to use the land belonging to someone else for a specific purpose. Mains, drains,

and water pipes are usually covered by an easement.

Encumbrance

An easement, mortgage, or other liability on a property which impedes its use or transfer.

Equity



The value you hold in your home. The total value less any mortgage or other liabilities on a property.

Escape Clause

This allows the Vendors to issue notice to a conditional purchaser that unless that purchaser confirms the

sale as unconditional within a short stipulated time, then the vendor can proceed with another offer from

another party.

Exclusive/Listing Agency

Only the agency appointed has the rights to sell the property.

F.S.B.N.

For Sale by Negotiation. This is a non price marketing strategy where often a price bracket is used to

advertise the property.

General Listing

A listing that is open for sale by multiple agentencies.

Interest-only loans

A loan which on interest only is paid periodically and the principal is paid at the end of the term.

Investment

The purchase of any asset, such as real estate, with the ultimate goal of producing capital gain on the resale

of the asset.

Joint Tenants

Joint tenancy is the equal holding of a property by two or more persons.

Land Transfer Office

A Government department where all property records are held and any charges are registered. There are

public records and therefore you can go there and look up any title to a property.

Lease

A document granting possession of a property for a stated period without transferring ownership. The lease

document specified the terms and conditions of occupancy by the tenant, including period of occupancy,

rent payable etc.

Liabilities

The outstanding debts you owe.

LIM

Land Information Memorandum - A report which can be requested from your local authority which provides

information regarding the property - such as consents, rates owing, draining and building plans.

Listing Authority

A contract between the owner of the home and the Real Estate Company selling the house. It is normally

for a set number of days and sets out the commission rate and any additional costs. This states whether it’s

an exclusive, general, tender or auction listing.

Loan Period

The number of years that a home loan is for.



Maturity Date

The last day of the term of the home loan agreement. The home loan must then be paid in full or the home

loan agreement renewed.

Mortgage

The security over the property given to the lender for the repayment of the loan. The lender (Mortgagee)

has the right to take the property if the borrower (Mortgagor) fails to repay the loan.

Mortgagee

One who lends the money for the property.

Mortgagor

One who borrows the money to purchase the property.

MREINZ

Member of the Real Estate Institute of New Zealand. Every real estate agent should be a member. The

Institute provides training for agents and sets the rules and ethics they should operate by.

Negative Gearing

Where your mortgage repayments exceed the income received from a rental property.

Offer to Purchase

A formal offer for a specified price for a specified property, normally made on a sale and purchase

agreement.

Passed in

A property is passed in at auction if the highest bid fails to meet the vendor’s reserve price.

Plan

This shows the house design, elevation of the house, number and size of rooms, kitchen, bathroom and

laundry layout, and the position of the house on the land.

Possession Date

The day the purchasers take occupancy of the home, normally when the ownership of the property transfers

and the balance of the purchase price is paid to the vendor.

Principal

The actual amount of money that has been borrowed to buy a property.

Private Sale

The seller does not engage an estate agent but acts on his own behalf, dealing directly with the buyer and

in preparation of the agreement.

Private Treaty Sale

Sales of a property via an agent through private negotiation and contract.

Property File

Your local authority has a file for every property which contains potentially important information that is not

contained in a LIM



Purchaser

The eventual buyer of the home.

Real Property

Land, with or without improvements.

Reserve Price

The amount below which a home owner will not sell on the day of Auction.

Right of Way

Right of access across a property.

Sale and Purchase Agreement

The contract between the buyer and the seller. Jamie is happy to provide you with a blank agreement if you

would like to read over one.

Security

Property offered as backing for a loan. In the case of a home loan, the property itself usually acts as security.

Semi-detached

Two buildings joined by a common wall.

Settlement

Completion of a sale when the balance of the contract price is paid to the vendor and the buyer is legally

entitled to take possession of the property.

Sole Agency

Only the agency appointed has the rights to sell the property.

Strata Title/Unit Title

Most commonly used for flats and units, this title gives you ownership of a small piece of a larger property

including “air space”. You have sole right to a particular unit and can lease, sell or dispose of your unit as

you desire. You also have an undivided share of the common land and become a member of the Body

Corporate which controls maintenance and has stipulated rules governing occupation.

Stratum Title

This title gives you legal ownership over a piece of property and also a share in the common land of the area

of the flats or units. It does not include “air space”.

Subject to Finance

A condition inserted into a contract, for the benefit of the purchaser. This makes the contract subject to the

purchasers confirming that they have raised finance within a certain amount of time.

Survey

Confirmation of the property boundaries and improvements.

Tender

A Tender is a programme similar to an Auction, with an increased level of marketing. A Tender involves



potential purchasers placing confidential bids for a property. The bids may or may not include conditions,

and any bid can be accepted by the vendor.

Title Search

The process of examining the land title to ensure the vendor has the right to sell and therefore transfer

ownership. It details the names of the owners and other information about the property such as

encumbrances or caveats on the title.

Unconditional Contract

A contract for the sale of a specific property that the vendor and purchaser have agreed upon that has no

conditions, or the conditions have been confirmed as being met, and therefore constitutes a sale.

Vacant Possession

When ownership is transferred from the sale of a property there will be no tenants living in the property, or

leases giving someone else use of the property.

Valuation

Assessment of the value of a property given in a written report, usually by a registered valuer.

Vendor

The person who owns the property for sale, i.e. the seller.

Zoning

Control of the use of land exercised by local authorities or the responsible planning authority.

Documents

JGillies - How to buy when you have a house to sell