The sale process

Fantastic! – you’ve found a house that meets all your requirements and you want to buy it. What happens next?

That depends on whether the house is for auction, for tender or open to offers. Most house sales in New Zealand tend to be sold by auction or will have a price expectation listed.

If the property is for sale at a fixed price you will need to put forward a formal offer in writing – the real estate agent or your lawyer will have a standard form for this.

At this point the purchase is not a certainty and there can be several clauses or conditions to the offer you present, these may include:

An independent evaluation
A title search
A building inspection
A LIM report
Sale of another property
Having finance approved

The deposit

A deposit of about 10% is paid to your lawyer or the estate agent once an offer is accepted. The deposit is held for a set period, usually about 10 days, or until the conditions of the offer have been met.

The contract

Then, finally, a contract is signed. A contract is legally binding and if one of the parties pulls out penalties will be paid. The contract will state a settlement date – when the final payment is made to the seller and the house becomes yours!

Settlement

Settlement may be as little as 3 weeks, or as long as 3-6 months, but more commonly settlement takes 6-8 weeks.

Buying by auction

An auction is a process by which a house is sold to the highest bidder once the owner’s reserve is reached.

When buying by auction:

Register your interest with the estate agent in advance
Do all your homework on the property before the auction - A purchase by auction is unconditional.
Have your finances sorted before the auction and make sure you have enough money to pay the deposit on the day.
Discuss any questions or concerns about the auction process with the estate agent before the auction.

More information about housing in New Zealand

Buying property in New Zealand

Renting in New Zealand