WHAT SHOULD I KNOW BEFORE BUYING A HOME?

Buying a home is a big milestone, and whether it's your first time, you're upsizing, or investing, the process can feel overwhelming. This practical guide will help you get prepared before you start scrolling listings or going to open homes.

We’ll walk through the key things you need to know and do before making a move.

 

Step 1: Clarify Your Goals and Finances

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Before anything else, it’s important to understand your own “why” and “how much.” Ask yourself:

• Am I buying to live in, rent out, or for the long term?

• What kind of home or location suits my lifestyle and needs?

• How much can I really afford, both upfront and ongoing?
   

Use the tools at Sorted.org.nz to help plan your budget, understand deposit requirements, and see what mortgage repayments might look like. Also consider speaking to a mortgage broker early, they can help you understand what you might be able to borrow, get pre-approval, and compare lenders.

 

Step 2: Understand the Market

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Knowing what the market is doing helps you set realistic expectations. The key is to focus not on what homes are listed for, but on what they have actually sold for. Sale prices tell you the true value the market is willing to pay.

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Look for recent, comparable sales of properties similar to the type you want — in size, style, location, and condition. These are the best benchmarks for what you can expect to pay. If you find that comparable homes are consistently selling above your budget, you may need to adjust your expectations (for example, compromising on size or location) or increase your budget if that’s possible.

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Research:

• What homes are actually selling for in your ideal area

• How fast properties are selling (days on market can show demand)

• What your deposit can realistically get you right now

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Helpful NZ sites:

• Realestate.co.nz

• Trade Me Property

 

You can also talk to a local real estate agent about market trends and recent sales in your desired area or a Comparative Market Analysis (CMA), which pulls together recent, relevant sales to give you a clear picture of the market for the type of property you’re after.

 

Step 3: Build Your Team

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Buying a home involves more than just an agent and a bank.

 

Assemble your support crew:

• Mortgage broker or bank – to arrange pre-approval

• Lawyer or conveyancer – to review Sale & Purchase agreements and LIM reports

• Real estate agent – to help you understand local properties and negotiate

• Building inspector – for independent property assessments
   

Use Settled.govt.nz to understand your rights, responsibilities, and what to expect during the buying process.

 

Step 4: Know the Sale Types and Conditions

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Properties in NZ can be sold by:

• Auction – no price guidance, no conditions once the hammer falls

• Deadline sale – all offers must be submitted by a certain date

• Negotiation – You make an offer, with or without conditions and the negotiation starts there
   

Most first-time or cautious buyers prefer sales where you can attach conditions like:

• Subject to finance

• Subject to builder’s report

• Subject to due diligence
   

A lawyer or agent can help you understand the best approach depending on the property and your financial position.

 

Step 5: Do Your Due Diligence

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Before making an offer:

• Review the LIM report (Local Council info)

• Get a builder’s report

• Review the title (and easements or covenants)

• Understand the property’s history and any disclosures related to it (renovations, claims, etc.)
   

This is where your lawyer becomes essential. They’ll help you avoid surprises and protect your interests.

 

Step 6: Making an Offer and Moving Forward

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Once you’ve found a home you love and done your due diligence, it’s time to make an offer. Your lawyer and agent will help you:

• Draft the offer and attach any conditions

• Negotiate price or terms if needed

• Track condition deadlines (e.g. finance or building reports)
   

When all conditions are met, the sale goes unconditional and you’ll be on your way to settlement day.

 

Final Thoughts

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Buying a home in New Zealand doesn’t need to be intimidating when you’re informed, prepared, and supported by the right team.​