How Auckland real estate agents can identify new clients and generate potential listings from their existing database.
By Brent Clode
Article 3 in our ongoing series for real estate professionals on cross leases, property values, subdivision law and marketing opportunities.
1. The opportunity hiding in your database
Auckland has approximately 99,000 cross lease titles, representing a significant and often overlooked opportunity for real estate agents and their clients.
Many of these properties involve just two dwellings on a single underlying parcel of land, with each owner holding a cross lease title.
For agents, the opportunity is not just to identify an existing cross lease owner. It is to establish relationships with both owners and discuss the potential benefits of converting their properties to fee simple.
One existing client could lead to another client, two potential conversions and two future listings.
2. Try this simple PropertySmarts search
Many Auckland real estate agents use PropertySmarts for property research, appraisals and prospecting.
Here's a simple exercise worth trying in your farming area or existing client database.
Open PropertySmarts and set BOTH land-area search filters to 0 m².
This can help identify properties recorded without an individual land area, including potential cross lease properties.
Review the search results and confirm the title type of the properties identified.
Now compare these properties with the contacts already held in your agency database.
You may be surprised how many cross lease owners you already know.
3. Your existing client may know the neighbouring owner
Let's assume your search identifies a typical two-dwelling cross lease property.
You discover that one of the owners is already in your database, perhaps from a previous sale, appraisal or enquiry.
That existing client may already have the neighbouring cross lease owner's name and contact details.
Cross lease owners frequently know each other because of shared driveways, maintenance arrangements, insurance matters or other common property interests.
Rather than relying entirely on cold calling or door-knocking, ask your existing client whether they would be happy to introduce you to their neighbour.
You now have a natural reason to discuss something that could benefit both property owners.
Converting both cross lease titles to fee simple may improve the marketability and potential value of their respective properties.
And neither owner needs to be considering an immediate sale.
4. Generate a customised conversion quotation before making contact
This is where the opportunity becomes particularly practical.
Visit https://www.crossleaseconverter.nz/ and generate a customised cross lease to fee simple conversion quotation for the property.
The quotation provides property-specific information, including:
This gives agents something substantial to present to their existing client and, through an appropriate introduction, the neighbouring owner.
Rather than simply suggesting that conversion might add value, you can present a customised quotation explaining the proposed process and cost.
The quotation can also be included in an appraisal or marketing information memorandum.
You have moved from a general conversation about property value to a specific proposal for the owners' properties.
5. Two owners — two potential future listings
The commercial opportunity for agents is straightforward.
Your existing database contact becomes the starting point for two possible future client relationships.
The first owner already knows you.
The second owner may be introduced by their neighbour.
Both owners may have an interest in understanding the advantages of conversion.
Both may benefit from independent appraisals showing how their properties could be marketed as fee simple.
And both may eventually become vendors.
Even if neither owner intends to sell immediately, the agent has provided useful information and established a reason to maintain contact.
Consider the potential outcome:
One database search.
One existing client.
One neighbouring owner.
Two potential fee simple conversions.
Two possible future sale listings.
This is an opportunity that could already exist in your client database.
6. What does conversion cost?
Cross Lease Converter specializes in converting existing, lawfully established cross lease properties to fee simple.
For qualifying standard conversions where no alterations to the existing lawful dwellings, drainage or driveways are required, our published fixed price is:
$19,900 plus GST per flat/new title.
We also offer an accelerated process under which suitable properties can be market-ready for sale as fee simple in approximately five working days, with settlement on the new titles issuing.
Actual eligibility, requirements and timing depend on the individual property.
Importantly, converting an existing cross lease does not necessarily require the construction of additional dwellings or major physical changes to the property.
7. Take action — start with PropertySmarts today
Here is your prospecting opportunity:
Remember: You don't need to wait for an owner to decide to sell before starting the conversation about increasing their property's value.
A little research today could generate your next two listings.
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