Purchasing a home is a major milestone – and one of the biggest financial decisions you’ll ever make. But when it comes time to make an offer, things can feel a bit overwhelming. There’s paperwork, price negotiations, conditions, and timelines to think about.
Being informed and well-prepared can make the process far less stressful. Whether you’re buying your first home or your next, here’s a step-by-step guide to help you make a confident and competitive offer.
Get prepared before you make an offer
The journey to home ownership starts well before you walk through the front door at an open home. Getting your finances in order and seeking professional advice early on can put you in a strong position when the right property comes along.
Organise your finance and get pre-approval
Before you start your property search, it’s essential to understand how much you can borrow and – more importantly – what you can comfortably afford to repay.
Speak with your bank or a mortgage adviser to get a home loan pre-approval. This gives you a clear budget and shows sellers you’re serious and ready to act. It also helps speed up the buying process, especially in a competitive market.
If you're a first home buyer, make sure to check your eligibility for government support, such as First Home Grants and KiwiSaver withdrawals. These could make a significant difference to your deposit or help reduce your borrowing needs.
Seek professional support
Buying a property is a legal transaction, so it’s important to get the right advice.
Talk to a lawyer or conveyancer
In New Zealand, you’ll need a lawyer or conveyancer to complete the property transaction. It’s a good idea to engage them early – they’ll review the Sale and Purchase Agreement, advise you on conditions, and make sure your rights are protected.
Your lawyer can also help you request a LIM (Land Information Memorandum) report and review the property's title – both crucial steps before finalising an offer.
Understand your offer conditions
When making an offer, you can do so either conditionally or unconditionally.
Unconditional offer: This means you’re agreeing to buy the property as-is, without any conditions. This is usually required if you're buying at auction or through a tender process.
Conditional offer: This allows you to include certain clauses – such as subject to finance, a satisfactory building inspection, or a LIM report. These conditions give you the option to withdraw if something unexpected arises.
Speak with your lawyer to determine what conditions are appropriate for your situation and ensure they’re clearly written into your offer.
Understand the deposit
Once your offer is accepted and both parties sign the agreement, you’ll usually pay a deposit – often 10% of the purchase price – into the real estate agency’s trust account.
If your agreement is conditional, this is the start of your time to carry out your due diligence before going unconditional. Once the agreement goes unconditional, you’re legally committed to the purchase.
Do your due diligence
Before committing to a property, it’s important to gather all the information you need to make an informed decision.
Get a building inspection to identify any structural issues or hidden problems.
Request a LIM report from the local council to check for zoning, consents, drainage, and other property-related matters.
Review the title to confirm boundaries, easements, or covenants.
If buying a unit or apartment, review the body corporate rules, fees, and long-term maintenance plans.
Your lawyer can help you understand these documents and highlight any red flags.
Ask the right questions
To strengthen your position, ask the real estate agent questions that can guide your offer and negotiation strategy:
- How long has the property been on the market?
- Have there been any price adjustments?
- Why is the owner selling?
- Are there any other offers on the table?
- What interest has there been from other buyers?
These insights can help you decide how quickly to act, how much to offer, and whether you have room to negotiate.
Making the offer
Once you’ve completed your due diligence and are ready to proceed, it’s time to make an offer.
Here’s how to approach it:
Determine your budget – not just your borrowing limit, but also what you can realistically afford after factoring in legal fees, moving costs, and any immediate repairs.
Submit your offer in writing using a Sale and Purchase Agreement. This should clearly state your price and any conditions.
Stay flexible – it’s rare for an initial offer to be accepted immediately. Be prepared to negotiate and work with your lawyer and agent to find the right terms.
Don’t let emotions drive your decision – it can be easy to get caught up in the moment, but it’s important to stick to your budget.
Should you make an early offer?
If a property is listed with an advertised price or is taking offers before an auction, you may consider making an early offer. This can sometimes take the property off the market before the competition heats up.
On the other hand, waiting can give you more time to gather information and gauge interest – but may also increase competition.
Each situation is different, so it’s worth discussing your options with your agent or lawyer.
Step-by-step offer checklist
Here’s a quick summary to guide you through the offer process:
Organise finance – Get pre-approval so you can move quickly when the right home appears.
Talk to a lawyer – Have them review the Sale and Purchase Agreement and other key documents.
Understand your conditions – Know whether your offer will be conditional or unconditional.
Carry out inspections – Arrange building inspections, review the LIM, and check the title.
Ask smart questions – Learn why the property is for sale and how long it’s been listed.
Do your research – Compare recent sales in the area to support your offer.
Set a clear budget – Don’t stretch beyond your means.
Make a clear offer – Put everything in writing, including price and conditions.
Be prepared to negotiate – Keep calm and focused on your goals.
Pay the deposit – Once accepted, pay the deposit and prepare for settlement.
Ready to buy?
Buying property in New Zealand doesn’t have to be stressful. With preparation, professional advice, and the right support, the process can be smooth – and even enjoyable.
Need help taking the next step? The team at LJ Hooker is here to guide you through the journey. With deep knowledge of the New Zealand market and a commitment to delivering great results, our agents are ready to help you find and secure your next home.
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