Body corporate owners of multiple properties need to be united about what result they expect when considering selling “as is where is”.
Courtney Doig, an investment specialist at Colliers International, said she had successfully negotiated several as is where is sales with a combined value of about $19 million.
She said most owners wanted to sell to avoid the challenges of carrying out repairs or rebuilding with a set of owners with differing views.
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In one case at 226 Salisbury St, Doig dealt with 68 owners in different situations including some whose apartments had been demolished.
Many owners have only settled with insurers recently or are still in the process of doing so, six years after the earthquakes.
Doig said a common concern among some owners was deciding on the best sales process for the best result.
It was vital to have a transparent sales process where all owners were kept informed, she said.
There was still keen appetite for them as is where is multi units, according to Doig.
As an example, the apartments in a multi-unit block at 388 Montreal St sold as is where is for approximately $200,000 each, which compares with the previous unrepaired rateable value of about $500,000 each. The buyer assessed the cost of repair in coming to the final purchase price.
One of the latest such offerings to come to the market is a 15-unit complex at 77 Carlton Mill Rd in Merivale.
The proof of the market will be demonstrated at its May 16 auction.
The two and three bedroom apartments were built in 2006 and sit on land area of 1672 square metres.
The property is within the school zoning area for Christchurch Boys’ and Girls’ High Schools, Elmwood Primary, and Heaton Intermediate.
Doig expected the complex would be popular among prospective buyers because of its strong holding income, position in sought after Carlton Mill Rd, and opportunity to repair them.
Doig said owners needed to agree parameters before going to market. The main factor in making the process run smoothly was to ensure all owners were in agreement.