When looking to progress your insurance claim, make sure that your insurer provides you with all the options. This may include repairing or rebuilding your home; building a new home on another section; you buying an existing home elsewhere; or cash-settling your claim while you retain your damaged property. Some insurance companies require your home to meet a certain standard if you wish to occupy or on-sell.
Essentially selling as is where is equates to cash settling both your EQC and insurance claims, retaining these funds and then selling your home on the open market without carrying out any significant repairs. Other property may also be sold ‘as is’ where the property was uninsured at the time of the earthquakes.
Whatever option you choose make sure that you receive the offer in writing from your insurer. This is important for your records and proof of your settlement (excluding settlement figures) may be needed when selling.
Before signing anything be sure to have your solicitor approve it prior to proceeding. A couple of words incorrect can have dire consequences and significantly jeopardize your future plans if left unchecked. There are a number of solicitors who have become very well-versed with insurance settlements and their knowledge and experience is often invaluable.
In most instances, once you accept a cash settlement from your insurer, your insurance policy is cancelled.
Without a doubt. ‘As is’ auctions sell quicker and in most instances for better money. When there is a significant pool of cashed up buyers keen for this type of property – why would you sell by any other method? More than 90% of our ‘as is’ auctions are sold on or before auction day.
Due to retaining both EQC and insurance settlements you offer the home to the open market at an attractive price due to property being uninsured. This is normally well below current market value for an equivalent undamaged and fully insured home. The buying public generally perceive this to be an excellent opportunity to secure an affordable property.
You would be surprised. Investors and speculators, Mums and Dads helping the kids getting started, red zoners and EQ refugees. Even families buy them as an affordable family home option. There is a lot of cash around at the moment.
Valid question but you can rest assured that here at Harcourts Kaikoura, we know all the appropriate clauses to enter into the sale and purchase agreement. We also have your solicitor approve the contact prior to a sale, and we have gleaned and updated the clauses with feedback from solicitors and insurers during our experience of selling many as is properties.
Yes it’s essential, as it does two things – it addresses the question in the back of a buyer’s mind of “is this house safe?” and secondly it forms the absolute baseline of representation. The reports we recommend are comprehensive and include scribed floor levels.
It is important that your home is represented with transparency to the open market with an engineer’s report that was completed prior to any improvements. We have found however, that the buying public generally respond more favourably to a home following cosmetic repairs due to the aesthetic appeal. This may include replastering and painting internal wall linings, replacing broken tiles, or sealing cracks in the concrete floor slab.