Tips on Buying & Selling

The process of buying a home may seem complicated, but if you take things step by step, you will soon be holding the keys to your own home!  

10 Steps to Successful Home Buying

1. Figure out how much you can afford. Talk to a mortgage broker or bank so you know how much you can afford to borrow, as well as in repayments; this depends on your income, current monthly expenses, deposit and the current interest rates. Use a mortgage calculator for a guideline, but don't forget to take extra expenses needed to cover moving, insurance, etc into account. It is also a good idea to do your homework and talk to several lenders to compare costs and interest rates and perhaps negotiate to get a better deal.
2. Make a 'wish list' of what you're looking for in your new home. Break your list into "must have's" and "nice to have's". For example: Must have...three bedrooms and a study, and be close to good schools - and Nice to have...fully fenced, with a view.
3. Research areas and prices. Use the internet (e.g. www.reinz.co.nz), local papers and real estate publications to investigate prices and housing styles in different areas. The internet is particularly useful if you are moving between towns.
4. Decide where you wish to purchase. This will be based on what you can afford, transport, schools and family lifestyle. It is important to be flexible with your area selection.
5. Property Title. Once you find a home you like, check what type of title the property has: freehold, leasehold, unit title or cross lease. With leasehold properties, check how long the lease has to run and what the annual land rent is. With apartments or terraced complexes, check whether the property has a body corporate or other associated fees.
6. Specialist Inspections. If you are serious about a property, but unsure of structural issues, you should arrange for a building inspection by a building inspector or qualified tradesperson.
7. Buying at an auction? Register your interest with the real estate agent in advance. Also, get pre-approved finance, because if you are the successful bidder, the contract will be unconditional. Make sure you also have the funds available to pay a deposit on auction day. Carry out any necessary checks before the auction.
8. Making an offer. When you make an offer on a property, make sure a copy of the contract is sent to your solicitors and follow their advice. If the seller counters your offer, you may need to negotiate until you both agree on the terms of the sale.
9. Deposit. When you have reached an agreement with the seller of the property, a deposit will be payable. This is usually around 10% of the purchase price. Deposits are held in the real estate agent or lawyer's trust account for a minimum of ten working days; and
10. Final inspection. You have right to make a final inspection of the property prior to settlement to ensure it is in the same condition as when you first inspected it. This can be arranged through the real estate agent.