How much of the hype about the property market is true?

How hard is it really to buy a house in Auckland?

The overheated residential property market has long been a fashionable topic of discussion in Auckland. Those lucky enough to own a slice of this city are quietly relieved even while they rue the fact their children are unlikely to be able to afford to "get on the property ladder".

We blame investors, immigrants, interest rates, local authorities, non-resident buyers, politicians, speculators and the media for a shortage of houses that is sending prices spiraling out of control. Seldom does a day pass when we are not served up a reminder of our so called "runaway house market".

Just this week there was a report about a "modest West Auckland house" which jumped $153,000 in 13 weeks as it was sold four times. Once again the angle was that first-time home buyers lost out thanks to "rampant property speculation".

So when the house in which we'd lived for 19 years was put on the market last December, I, as one of the trustees charged with selling the property, looked forward with great excitement - perhaps even with cartoonish dollar signs in my eyes - to the fight that would erupt as multiple investors and speculators sought to purchase my old home. We put it on the market at almost the same time it was reported that "Auckland house values rise at 'eye-watering' pace". We braced ourselves for the onslaught.

In fact, what transpired was efficient and functional but also underwhelming. There weren't multiple enthusiastic offers. I'm pretty sure no deep-pocketed Chinese people even viewed the property. The details of the sale-and-purchase agreement were not breathlessly recounted in a newspaper report. This sale would not enter local folklore for the astronomical price it attracted. Instead, rather prosaically, we were offered a satisfactory price. It met our expectations and we accepted it.

The experience made me wonder how much of the hype about the property market is true. It made me think that for every report of an ultra-inflated sale price there might be 99 other transactions that are bog standard, unremarkable, downright ordinary. Perhaps those well-publicised through-the-roof prices are skewing our sense of reality and giving vendors false hopes when they sell their homes.

Because our particular property was placed on the market in December, many of our decisions were made with the aim of achieving a fast sale. We didn't relish trying to sell in January when many Aucklanders are supposedly away on holiday. Upon reflection, speed rather than an especially high price was most important to us. For the record, here is how we chose to handle the sale process. Happily, an agreement was reached with a purchaser in a little over two weeks.

No auction: The auction process normally extends over several weeks. We did not want to draw it out for that long a period. Also, to obtain higher than the bargain basement reserve price, an auction requires a minimum of two keen would-be purchasers yet there's no guarantee that there will be competing bidders. Because auctions seem to be devised to get the vendors to reveal the lowest possible price they would accept, we felt this method of sale wasn't in our best interests.

No open homes: Keen to keep away tyre-kickers, nosey neighbours and people with too much time on their hands, we eschewed open homes. Instead, the agent showed qualified purchasers through by appointment only.

No advertising expenses: Anyone in the market for a new home is almost certain to search on a handful of key real estate websites. There is no longer any need for the vendor to pay real estate agencies lump sums for glossy brochures and advertising.

No sign: I would not have minded a sign outside the property (since often the primary members of your target market are already roaming the neighbourhood) but our agent seemed to think it was unnecessary in the age of the internet.

No national real estate chain: Instead of going with a big chain, we chose a boutique real estate agency that specialised in residential sales in our particular area. It was a potentially risky move but we felt that it paid off. Importantly, the real estate agent here held the same philosophy as us about how best to approach the sale.

Included an asking price from the outset: The one drawback in setting a realistic price is that you're not able to take advantage of that (perhaps mythical, definitely elusive) purchaser who is prepared to make an insanely exorbitant offer because he or she is unfamiliar with the local market. But specifying a figure helps prospective purchasers in their search and sends the signal that the vendors are serious in their intent to sell. It's probably a good idea.

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