So you've found your dream home and you think you’re ready to make an offer. Before embarking on this process, it’s important to know what you might be in for.
If you haven't already consulted a broker or a property lawyer, then you're going to want to use this chance to get on top of that. We'd recommend having at least a few of the moving parts in place before you make an offer; if your offer is accepted, the process of buying your home essentially kicks off.
As soon as you think you might be ready to make an offer, you should send a copy of the sale and purchase agreement to your lawyer and your broker. Your lawyer will be able to look up the title of the property and let you know about any glaring issues, and they'll also tell you more about the conditions in the agreement. A lot of these conditions can be heavy with jargon, so it's important to get an expert's opinion.
It's also important to send a copy of the sale and purchase agreement to your broker. If you're applying for a KiwiSaver first home withdrawal, then most providers will require that you give them this information to proceed with your application. Your broker might need to make sure that any discrepancies on the property's title are checked out - they could affect your ability to borrow, or at least the maximum amount that you can borrow.
Once both your broker and your lawyer have provided you with the necessary advice and you've asked them the relevant questions, you can proceed with putting in an offer. Most of the time, this will be done through your lawyer, who will have gone through any necessary conditions with you.
If this is a transaction in the early stages where the vendor has indicated that they're open to negotiation on asking prices, you can also make this process a little shorter by signing a copy of the sale and purchase agreement with the real estate agent after specifying your preferred price and checking with your lawyer.
Regardless of how your offer gets to the vendor, your lawyer will have advised you on adding some of the following conditions. These are all common in the scheme of property purchases, and serve to give you (the buyer) more protection. Some conditions may also be required by your lender.
Builders report (5-10 working days)
Get a builder to inspect the property and note any problems with the dwelling
Finance (5-10 working days)
This gives you time to apply for your loan with the bank
LIM report (5-10 working days)
This will inform you of the land the property is built on e.g. a quake zone or a flood plain
Valuation (5-10 working days)
This is required if you have less than a 20% deposit. Banks will only lend you up to 90% of the total value of the house, not the price you might want to pay for it.
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