The Block’s surprise final offers lessons for home buyers

After 12 weeks of hard work, many of The Block New Zealand’s contestants ended up with… well, not a lot.  

Just two of the four Kingsland apartments from New Zealand’s popular renovation show sold under the hammer at the live televised auction, with a third selling post-auction for its reserve price of $1.48 million. 

The disappointing finale has triggered a furious social media response, with many viewers questioning if the outcome was fair. 

More broadly, however, the results bring about the question of mismatched expectations between buyers and sellers in the residential property market. 

 

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Only one of The Block NZ apartments attracted bidding above its reserve price, ultimately selling for $1.34 million and netting its team Lisa and Ribz the series win.

Interesting, this property also had the lowest reserve of all four apartments, having been declared on the market for sale at $1.29 million.   

The reserve price of these apartments is important, and because the bidding on the properties stalled shy of $1.4 million – it indicates that this is where the market see value.  

Positioned to sell for just under $1.5 million, it appears this price point is simply too high for buyers choosing between The Block’s two and three bedroom apartments, or a standalone home. 

For those currently in the market to buy or sell residential property, Canstar recommends doing thorough due diligence, especially in terms of understanding market value.

Investigating the recent sales of comparable properties in your neighbourhood can offer valuable insight in terms of a price indication. 

Once there is a clear understanding of value, making an assessment of your financial situation for the purposes of negotiating your home loan rate becomes that much easier.

 

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