Buying Tips
We understand that buying a home is very exciting, and one of life’s highlights. We also realise that buying a home can be a very daunting and stressful experience. We are here to help you find the right property, and to guide you through the process.Choosing a home comes down to knowing what you need, what you can afford, and what is available.
Your requirements
You will know what your needs are, and the lifestyle you are planning for the future. Make a list considering size and space requirements for household numbers, parking and section size. Study the style and type of homes you prefer; contemplate school zones for children; the proximity to local amenities, public transport, and work and leisure activities.
Your budget
Before you go home shopping, speak with your banking consultant or mortgage broker and obtain pre-approval from the lending institution. We can recommend mortgage brokers or arrange referrals if you require assistance with your finance. Besides knowing what you can afford; it places you in a position on strength in negotiations being able to make a cash offer, or to act quickly if the circumstances dictate immediate action.
What’s on the market
To find out what homes are for sale you can browse online www.anneduncan.co.nz, www.trademe.co.nz, or www.realestate.co.nz; look in NZ Herald Homes, Property Press, and other real estate publications; drive around areas you like and look for signboards and open home signs; register for homefinders or to receive our weekly email newsletter.
To save you time viewing unsuitable properties, we suggest choosing a salesperson that you trust and understands your needs to act on your behalf and notify you of new properties and properties that are not officially on the market. It is easier for you to establish a relationship with one salesperson, than deal with lots of agents.
Learning local values
Attending open homes, auctions and staying informed of recent sale prices will give you a good indication of market value. Your salesperson can assist providing sales statistics and keeping you informed of recent sales, so you are in a position to make an informed decision of what to offer when you find a suitable property.
When you find the right property
Properties for Sale by Auction (refer to guide how to buy at auction)
Properties for Sale by Negotiation or with a price:
- Register your interest with your salesperson to ensure you are kept fully informed of all developments and if any offers are made.
- Carry out your due diligence on the property.
- Check the Certificate of Title and LIM Report are acceptable.
- Ensure you are satisfied with any building or structural matters. Obtain any Building Reports or pre purchase inspections.
- We recommend asking your solicitor to peruse the above documentation and reports.
- Please be advised that if you are GST Registered, using the property for taxable supplies; or if you do not intend to use the property as your principal place of residence we will require your GST details under the GST Act. You should also obtain advice from your Accountant/Solicitor regarding your GST status; and seek approval of the Contract.
- Read the approved guide for Sale & Purchase Agreements by the Real Estate Agents Authority.
- For properties on a unit title you will require a pre-contract disclosure statement under section 146 of the Unit Titles Act 2010.
Making an offer
Once you are satisfied with all of the above advise your salesperson that you would like to make an offer. Your offer is written on a Sale and Purchase Agreement which you will sign. Your offer can either be conditional or unconditional. Conditional offers have conditions that need to be satisfied by a specified date. (For example conditional upon finance approval, solicitor approval, and satisfactory LIM or specialist reports.) When the conditions have been satisfied the agreement is declared unconditional, which means sold! If the conditions are not satisfied the contract is at an end. Unconditional offers have no conditions to be satisfied. Your salesperson will discuss the terms and conditions of the contract and how you can be in a position of strength during negotiations. You will need to pay a deposit, the usual amount is 10% of the purchase price; but you can stipulate a different amount. The deposit can be paid by cheque or electronic transfer, and is paid into the Anne Duncan Real Estate Trust Account. Once your offer has been accepted and negotiations are copies of the contract will be sent to your solicitor and yourself.
Multiple offers and avoiding disappointment
In the current market it is not uncommon to have multiple offer situations arise. Some properties attract a lot of interest, and there can be several parties wanting to submit an offer. This means you will have to put your best offer forward, as you may not get another opportunity to negotiate or increase your offer. In this occasion, if you have registered your interest with your salesperson; you will be notified that there has been an offer made and given an opportunity to submit your offer. Your salesperson will explain our multiple offer procedures and you will sign a multiple offer acknowledgement.
Settlement Day
Settlement is when the ownership of the property is transferred to you and financial transactions are completed. Prior to settlement day we recommend you request a pre-settlement inspection of the property to ensure nothing has changed in its status since your purchase and agreed chattels are in place and in working order. Once all settlement procedures have been finalised and we have confirmation from the vendors solicitor, the keys will be released to you. The home is now yours … congratulations!