Property Report: Glenda Whitehead - Shortage of quality listings

Properties in popular school zones, such as Auckland Grammar's catchment area, are always in demand. Photo / Herald on Sunday

Opinion

"Lack of quality listings" has featured quite often in residential property market commentary over the past couple of years.

Whether you are a buyer or seller, in the current market there are certain characteristics that are going to either set a property apart from the rest or leave it 'lacking quality'. So, what do we mean by a quality property?

What are buyers actually looking for and what features are always popular that you'll need to bear in mind? If looking to purchase, what about the low-quality properties you can see potential in?

There are many factors that buyers use to class properties as 'quality listings' or not. These include age and design of kitchens and bathrooms, availability of an en suite, the number of living spaces relative to bedrooms, garaging or off-street parking, views and orientation (often wrapped into the location factor), privacy and landscaping, to name a few.

Importantly, buyers want to know what they see is what they get without any post-purchase surprises, or to experience buyer remorse. With all the issues around 'weather-tightness', people are looking for properties built with good solid dependable building materials.Most buyers I come across want to be able to move in and live now, without the need for any major work. In other words enjoy their lifestyle without any property hassles.

In today's market people have a preference for modern interiors and well-maintained exteriors. Indoor-outdoor flow is high on the want list and people need the right space to do this. If buyers are not interested in doing renovations, which is a trend at the moment, then they are certainly not drawn to properties that need some work on them, especially if they have to move walls to create better flow, or to get the living spaces in a place that will catch the sun.

Character is always in demand. Villas and character bungalows always hit the spot, possibly because people are drawn to the romance factor. Looks aside, most offer very spacious rooms.

Properties in popular school zones are always in demand, but in the same sense if you are already based there, you will think twice before wanting to sell. In these suburbs the number of listings that come to the market can be sparse at times; with demand levels usually exceeding supply. This means prices keep firm or rise.

So, is this an opportunity for people to pick up those 'non quality' listings, do them up and potentially make a quick buck?

Possibly. It depends on whether the issues are big or small. Perhaps if you can see the potential, but no one else can, you might get a bargain. But only if you know what you are doing. Some properties are just too hard to fix, or no matter how smart you are, without a rebuild they will never have the X factor.

Cost is the biggest factor. If changes are substantial you are likely to require a building consent, which adds costs and time to the process. Expertise, or access to this, is important to get the end product right. For both complex and seemingly simple issues, such as colour, if not addressed correctly, they can have a major impact on whether you get the end product right or miss the market.

Also, if you own a property that doesn't tick the buyers' boxes you should consider what is not right. Is it simple or complex to repair? Depending on your capabilities, you can either address the issues, or price your property to make it attractive to someone who can fix the issues.

* Glenda Whitehead is QV valuations manager at QV Auckland