On solds
Renovated properties coming onto the market in large numbers are a real concern for prospective buyers. Professionals working in the area of offering professional advice, are clearly not undertaking the appropriate due diligence. On Solds are a significant risk to both the purchaser and insurer. Where historical unrepaired damage is found during a future claim, the insurer may void a policy.
As Is Where Is
What is the impact of “As Is Where Is” properties on the overall market? Do these impact property values within Canterbury? Risknet limited is the only company to hold any substantive data in this area. We have been surprised by some of the comments of a few ‘specialists’ working within the property sector who clearly have an alternative agenda. These properties are a big risk to current and all future owners.
Fact versus Fiction
Few people understand the actual numbers of properties sold “As Is Where Is”. The insurance industry does. The data cannot be derived from a simple ‘sales price versus CV’, nor can it be found on the web. We hold that critical data and so do insurers if they have held cover on a property during 2010/2011.
From 2011 to present day we have collected data on properties selling for significant sums, unrelated to their CV. The other misleading generalization is that these properties exist on the fringe of the Red Zone, again this is not the case.
Some renovated properties have been repaired to high standards, many others have not. In fact 1 in 3 we inspect are substandard, and fail our Risknet review.
So how does a prospective purchaser or insurer for that matter, try to ensure the property of interest is indeed sound, and the professional reports stand up to high scrutiny? Start by contacting Risknet before you sign a contract.
Stuart Fletcher
stuart@risknet.co.nz
022 609 6026
www.risknet.co.nz