Home buyers must do their homework
When it comes to buying a house, don't take everything at rateable value.
Hamilton couple Jasmin Steiner and Michael Nooyen say they happily paid $150,000 above the council valuation for their home - and would have gone even higher.
Inside an hour last week the pair headed out, spent $600,000 outbidding eight others for their dream house, and were back and "into the bubbles".
The pair said research was the key to their purchase, and credit the home's underdone rateable value for knocking out a cluster of early bidders whose price expectations proved well over $100,000 off the final selling price.
Records legwork by Mr Nooyen revealed some critical information was not finalised on council files, meaning the latest valuation was undercooked.
"We believed the property's CV was well under, it had major renovations done to it some years ago, and consent had never been finalised," he said.
"It's quite an exclusive property on river reserve, a full section, swimming pool, three bed and an office and within a ten-dollar taxi ride of the CBD.
"It's everything we want in a home, and for a young family," he added.
"We think that it's the best house in the best street. There were nine active bidders, and I think it worked to our advantage because some of them would have taken the CV into account in where their pricing was at.
"It's one of those properties where if you don't buy it, you'll never get it again. We were below our maximum, we still had some left in the tank," he said.
Bidding began at $300,000, but quickly reached $580,000 with only the couple and one other bidder left. The other bidder gave up at $595,000.
"We're not Rototuna people, and we had researched this particular street, and the highest sold for $1.5 million, and the lowest $200,000," said Ms Steiner.
She said her partner was "bang on the money" in his estimate of what the property would go for, which showed the importance of buyers doing their homework rather than listening to agents or judging on CV.
"We're really pleased with our purchase and couldn't be happier," she said.
The pair, with their five-month-old baby, are moving in for Christmas.