Let’s say a property is marketed at a particular price – for argument’s sake we’ll call it $500,000. An inexperienced investor will make the automatic assumption that a “deal” is significantly less than the asking price. But that’s not the case. There are plenty of times

I have paid asking or above asking price to secure a great deal as I’ve realised that it’s been marketed low, or I may be aware of something that the listing agent isn’t.

For example, the list price for a current rental property may be worked out on the current yield, but if the rent is low the subsequent calculated list price could be way below market too. Most agents have no idea what the rental market is doing, and therein lies the opportunity. My friends, dumb agents are your friends!

Incorrect Marketing

Opportunities can also arise when some facts about the property are incorrectly marketed. Just this week I snapped up a deal on a property that had been advertised as having a “hobby room”; this means that it is an auxiliary room that is not habitable and cannot be used as a bedroom.

However, when I checked the council file I discovered that it was a fully consented sleepout with a CoC, building consent and resource consent all in place. Bingo, the listing agent had not checked on this and that was an opportunity for me.

‘Most agents have no idea what the rental market is doing, and therein lies the opportunity’

In most cities and towns in New Zealand there will be a few dominant agencies marketing properties, and a lot of the time they have bigger budgets, better market presence and possibly more experienced agents.

There may also be a group of smaller agencies that fly under the radar and this is where I like to look. With less buyer competition and often less experienced agents, there can be opportunities if you look away from where all the masses are looking.

Trade Me: don’t just focus on the new listings, search for the oldest listings you can find! There will be a real mixture here – some of course will be private sellers who have their head in the clouds, but you can also find gold in them there hills.

Off Market Deals

Off-market deals will be presented to you by agents you befriend and do good business with, as well as the contacts you establish. Sometimes buyers want privacy and do not want their house publicly marketed.

You may be able to help a vendor who finds themselves in a difficult situation and needs to move quickly. If you can enter a negotiation with an open mind and a genuine desire to understand the other party’s perspective, you may be able to come to a great win/win outcome.

On the subject of off-market deals, please note that just because something is not on the market officially or is a private sale, it does not guarantee it’s good deal I would say many private sellers have hugely unrealistic expectations and I know of cases where agents have not wanted to market their properties. At least if they are listed with an agency they should have had some market feedback.

I’ve saved the best for last in terms of how to get the best deals presented to you: relationships. Treat all the agents and professionals you deal with well. Build networks as much as possible with other investors. Make your motto “give first” in business. Play the long game and always do the right thing. Whilst it can take a long time to build a good reputation, it can be lost in an instant.

In summary, don’t take all marketing at face value, do your own research and treat people well and then enjoy the rewards.