Understanding the Buying Process

Understand The NZ House Buying Process

The NZ House Buying Process

The NZ house buying process leaves the potential home purchaser with a few options to consider. The choices include location, finance and property design. These choices needn't be as confusing as they may appear, simply call or email a specialist at LJ Hooker and begin the home buying process today!

1. Do your Research

Buying a home is a very daunting task that requires a lot of research as it involves an enormous amount of commitment financially. The good thing is, there is a multitude of information out there that can help you learn more about real estate, local inventories offered by real estate firms or companies and homes put up for sale by direct sellers. You can get started on your research by reading newspapers and magazines, looking online, talking to real estate companies and so on. Make a list of homes you’re interested in and make sure to do more research on those. 

2. How much house can you afford?

You need to be realistic. A lot of first time buyers make emotional purchases without considering their financial state. 

Most banks have an online home loan calculator where you can enter your household income and your deposit, it will give you an estimate on the mortgage you should be able to service. For convenience, we also provide a home loan calculator on each property in our inventory.

3. Secure your mortgage

Another important thing you should secure before buying a home is securing a pre-approved mortgage.

Talking to your bank or mortgage broker will give you a better understanding of your financial situation and the amount you’ll be able to borrow from your bank. This can be an intimidating task for first timers as it involves the submission of different forms and documents detailing your income, savings, investments and others.

The results of your credit score will help you determine the house you’ll be able to afford.

4. Get the services of a real estate agent

There’s a reason why we continue to be one of the top selling real estate companies in New Zealand and other neighbouring countries. We have assisted thousands of home buyers to get the dream home they’ve been looking for as well as moving the inventories of companies and individuals selling their houses to potential customers.

Our tenure in the real estate business has given us the necessary knowledge and skills to make all transactions smooth and easy.

Contact LJ Hooker today to utilise our expert services.

5. Make an offer

More houses are listed with a sales price these days, this makes the buying process less stressful, especially for first time buyers. Once you have everything in order, it’s time to make an offer on the house you want to get. Take your time though. Don’t rush the buying process. Work with your real estate agent so you can get the best deal. You should consider making the offer with the condition of passing the building inspection and getting financial approval.

Once the offer is accepted you have time to make sure the property is all in order and all conditions have been met.

6. Get a Thorough House Inspection

Do a thorough house inspection to check the structural integrity of the house you’re purchasing. This is also the best time to get the services of a qualified house inspector that can get a good assessment of your new home’s wet areas and wiring systems, etc.

Make sure you include your real estate agent during this process as you can still renegotiate the price of your offer or completely withdraw without fear of incurring penalties if the inspection conducted reveals significant material or irreparable damage. You will receive reports from the home inspector. 

At this point, negotiations between you and the seller can occur to fix the property before completing the sale. You will have a chance to do a final walk-through to see if everything agreed upon between you and the seller was fulfilled.
 

7. Work with a mortgage banker

Part of what makes the home buying process a complicated one is the need to go through several channels in order to finalise the deal. One of the most important channels you’ll have to go through is your mortgage lender.

There are many types of loans you can avail. But the type of loan you eventually end up with is based on your preference. For some people, keeping their monthly payments down to the bare minimum is what they’re most interested in. For others, a rigid, non-increasing loan is what they’re looking for. And there are also those who want short-term loans in the event that they will have to move within a couple of years after the time of purchase.

8. Get a Proper Appraisal 

Get a proper appraisal to understand the value of the house you’re buying. This is often done by a third party company independent from the seller, but is paid for by the buyer.

The report coming from the appraisers will give the buyer a good estimate of the value of the property involved and assign a fair price for the home.

9. Expect a lot of paperwork

Buying a house requires a lot of paperwork. Titles, deeds, financial documents, property value reports, appraisal reports, inspection reports. These are just some of the paperwork you will have to expect to deal with. This is one of the most complicated steps during the home buying process.

Lucky for you, an expert Real Estate Agent can help you sort through this mess.   

This step basically makes sure that the seller is the owner (or authorized representative of the owner) of the property and you have your financials in order to make the sale a smooth transaction. 

10. Closing the sale

The final step of the buying process is closing the sale. This is when all of the paperwork required, including loan documents, are completed. This is usually completed within a couple of days.

Once the cheque exchanges hands, the house is completely sold.

Congratulations!

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