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  • Yet more innovation in the marketing of property for sale — Properazzi
    I found one example online to remind me of how nauseating they are that sense of vertigo they create as you seem rooted to the spot as the property spins uncontrollably around you You can sense my dislike So when I first heard of 3 D virtual tours I recoiled in horror at the concept of these nauseating images but with 3 D glasses How wrong I was as it turned out and what a surprise I got I first came across 3 D virtual tours at the annual real estate tech start up competition called FWD Innovation Summit organised by Realogy The largest global franchise real estate company Inaugurated last year this competition offers the winners US 25 000 in an attempt to stimulate innovation and ideas focused on real estate This years winner at the event held in June was Matterport the makers of a new camera technology that creates a true walk through experience for any space but clearly of great value for home viewings The Matterport camera costs US 4 500 and is more a data analysing device than a traditional camera You simply place the camera on a tripod in various points around the home and it absorbs the images from all around and then stitches them together to create a complete smooth immersive walk through of the property No 3 D glasses no headsets and importantly no nauseating virtual tour this is a self managed drive through so the term 3 D Virtual Tour is actually incorrect it is a self guided remote viewing for a home bit of a mouthful As ever the proof is in the pudding or in this case the viewing so to get a sense of the power of this technology have a look at this real example of

    Original URL path: http://properazzi.co.nz/opinion/yet-more-innovation-in-the-marketing-of-property-for-sale (2016-04-27)
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  • Is virtual reality a disruptive technology for real estate? — Properazzi
    and could it in anyway advance Facebook s role in the industry In short I don t think so I know there will be those who hold the view that property viewings could become an immersive experience through this type of device whilst sitting on the couch with the added benefit of being able to create alternative decor and style to a property for sale This will certainly be within the capability of the technology I have no doubt However I sense that being able to have people walk though a recreated virtual version of a home will be of greater value to interior designers architects and make over services than to real estate agents The virtual reality experience is merely to real estate another version of the photo portfolio another optional version to complement virtual tours and video tours The fact is that property inspections in person at an open home are the only true way to experience a property before making that hard and tortuous decision to invest in a property I would therefore urge real estate agents and companies to save their tech funds and not rush out to start creating virtual reality portfolios of their listings

    Original URL path: http://properazzi.co.nz/opinion/is-virtual-reality-a-disruptive-technology-for-real-estate (2016-04-27)
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  • Real estate is massively inefficient — Properazzi
    massively inefficient There are just too many agents tripping over each other fighting one another stabbing each other in the back to get a listing and from there to conclude a sale and ultimately earn a commission That commission is very alluring the median house price in NZ last month was 382 000 the average commission charged by real estate companies to sell a house of this value is around 16 000 Gst The listings agent will receive on average between 50 and 60 of the commission charged to the vendor that s around 9 000 So if you could list and sell just one property a month then you could earn 100 000 per annum Just one property a month That would seem to a lot of people a simple task 22 working days to find a property and sell it The fact is that on average each agent in NZ sold only 8 properties in the whole of 2012 So in theory they could take 4 months off and sell a single property a month for 8 months and earn 72 000 How can this be the numbers don t seem right The numbers are right but only make sense when you look into the workload of an average real estate agent I have spoken to quite a few agents to ascertain the time component of their work and what I have found did not surprise me but may come as a surprise to many Just shy of two thirds of the working time of real estate agents 64 is spent prospecting for new work The productive time spent on behalf of their clients in facilitating the sale of a house represents less than 25 of their working week Yet their income from vendors supports their full working week This is where the inefficiency shows itself 9 300 agents spending nearly two thirds of their working week prospecting for future work A massive 230 000 hours of working time each week spent by the industry to list just 2 300 properties That means that the industry collectively spends 100 hours a week prospecting for every listing The bizarre thing is that a single listing that collectively the industry spent 100 hours chasing was going to happen anyway That vendor wanted to put their house on the market The industry just fought tooth and nail to get that listing or at least one agent beat the others to it There has to be a better solution Technology should be able to play a better part in the process Vendors want to sell they want the best agent that knows the market for their type of property in their area there must be a better way of evaluating agents and allowing them to pitch their proposal Agents must want to be more efficient However a more efficient real estate industry would be a massively smaller industry If a more efficient process could be implemented to allow a vendor to choose

    Original URL path: http://properazzi.co.nz/insights/real-estate-is-massively-inefficient (2016-04-27)
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  • Trade Me makes a radical change to real estate agent fees — Properazzi
    Me are very clear As far as they are concerned this fee per listing should be passed on to the vendor as a cost to market a property on Trade Me After all a private listing costs 349 399 inc GST so 159 GST 182 85 is almost half the cost of a private listing In the communication being sent to real estate agents Trade Me detail that the recommended price agents should charge vendors is 199 GST 228 85 this allows a 20 commission margin for agents The Real Estate Agents Act is very clear in detailing that in terms of advertising costs that the vendor pays for the listing agent must stipulate if there is a commission earned for selling any advertising At the time the Act came into force in 2009 the industry were very clear that they in the main passed on advertising costs without a commission Now there is nothing wrong with agents earning a commission selling advertising it is just interesting that Trade Me are so explicit with it in their communication This is certainly a bold and aggressive move by Trade In terms of marketing a property for sale advertising on Trade Me is the essential part of any campaign and when compared to c 1 000 for a full page in a single property magazine or many thousands of dollars for a picture in a newspaper spending 200 for a listing on Trade Me is cheap Will the vendors accept this re charge Since the start of Trade Me as a legitimate website for property for agents back in 2005 most agents have not charged their clients to have their property on Trade Me just as they have not charged for Realestate co nz or their own website They started back then

    Original URL path: http://properazzi.co.nz/opinion/trade-me-makes-a-radical-change-to-real-estate-agent-fees (2016-04-27)
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  • Trade Me Property continues to struggle — Properazzi
    agent listings This adjustment revised the 92 figure to 83 of all licensed agent listings on Trade Me Property at the end of April The passage of the month of May has resulted in a weaker relative position for Trade Me Property now with just 76 of the listings stock of licensed agents as compared to Realestate co nz close to 1 in 4 of every agents listings is now not being displayed on Trade Me Property A significant drop has been seen over the past month in the inventory of Barfoot Thompson on Trade Me down from 95 to 78 whilst Ray White continue to shows the strongest support slipping just 3 percentage points from 97 to 94 By contrast Harcourts the largest NZ real estate company now has less than 2 of every 3 of their listings on Trade Me Property With the passage of time so the transition of real estate companies to the new subscription regime has progressed my latest insight is telling me that almost all of the major real estate companies are now onto the new subscription plan of a payment of a single fee for every listing rate card 159 GST However unlike the prior monthly subscription fee of an all you can eat model just because a real estate company is on the subscription plan does not mean all of the listings of that company are displayed on Trade Me Property New listings are a more accurate indicator of the level of support for the new pricing model and the data of listing numbers taken from the respective websites shows how the industry is acting in voting with its marketing dollars on behalf of its clients In the month of May Trade Me Property only displayed 3 out of every 4 of

    Original URL path: http://properazzi.co.nz/insights/trade-me-property-continues-to-struggle (2016-04-27)
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  • Property musings on Facebook - 31 October — Properazzi
    the past week short spontaneous insights and observations which I felt needed immediate discussion and didn t warrant long form articles written When Hollywood starts making movies about real estate then you know the market has peaked Post by Properazzi Broadband access impacts home purchase decision Post by Properazzi Searching for your next home don t expect to find the information on your wrist Post by Properazzi Posted on October

    Original URL path: http://properazzi.co.nz/opinion/property-musings-on-facebook-31-october (2016-04-27)
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  • Property musings on Facebook - 24 October — Properazzi
    needed immediate discussion and didn t warrant long form articles written 1st home buyers should look to apartments Post by Properazzi Newspapers seem to have found the perfect advertising solution for real estate Post by Properazzi Online marketing requires close focus on connecting the dots Post by Properazzi Genuine industry support for Realestate co nz Post by Properazzi Barfoot Thompson now gets into the act Post by Properazzi Posted on

    Original URL path: http://properazzi.co.nz/opinion/property-musings-on-facebook-24-october (2016-04-27)
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  • Property statistics can be misleading — Properazzi
    were actually all apartments in that development at the end of the street and all the sales this year were of 4 bedroom properties along the street you get to see the problem with the data This is in my opinion part of the problem we have witnessed over the past few years in the inner city suburbs of Auckland Suburbs that in some cases have seen rises of over 70 in 5 years In these suburbs the properties being sold are in the main traditional 3 or 4 bedroom homes on 400 to 600m2 sections So can we say here that values have risen by 70 in these suburbs as the median price indicates The truth is that rather as in the previous example were the comparison was between houses and apartment in these suburbs the comparison is more likely to be between un renovated properties and renovated properties Look down any street in the inner city suburbs of Auckland and you will see the impact of gentrification and many hundred s of thousands of dollars of renovation costs Here is a simplified summary of what has been going on In 2009 and 2010 smart savvy buyers investors developers and capable homeowners started buying up ex rental properties in these suburbs for prices around the 700 000 to 900 000 range thereby establishing the then median price for the majority of sales in these suburbs Gradually over the past 4 years these properties have been renovated and placed back on the market following renovation projects costing anywhere between 200 000 and 600 000 The properties then have been selling for between 1 250 00 and 1 600 000 making a healthy return for those players in the market and in the end impacting the median sales price driving it up from the 800 000 range to 1 400 00 range a 70 rise These renovated properties whilst in the main are still 3 or 4 bedroom properties on 400 to 600ms sections however they are in many respects new homes as effectively all that remains of the original property is the floors walls and roof These improvements have fundamentally changed the inherent value of the property as you would expect when a renovation costs averaging 400 000 But it is wrong and does not follow that all properties in these streets suburbs are now valued in the range of 1 400 000 Here s a snapshot of inner city renovations of the past few years then and now Further proof if needed of this situation you need not look further than a couple of recent profile articles from the NZ Herald highlighting renovations in the inner city suburbs of Auckland Grey Lynn purchased Oct 2010 604 000 Renovaton new bathroom new kitchen redecoration Sold 2014 835 000 Ponsonby purchased 2002 620 000 Current rating valuation based on QV computer generated valuation model 2011 980 000 Extensive renovation Auction 25 May price expectation around 2 000 000 Now there is

    Original URL path: http://properazzi.co.nz/opinion/property-statistics-can-be-misleading (2016-04-27)
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