The Process
- Property search
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- Looking for a home is often the hardest part of this process! Finding a home, you love, land you want to build on or an older project to add some value too.
- Viewing
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- Arranging viewings for any home is usually quick and easy, just be sure to ask lots of questions and take pictures when viewing!
- Tell the real estate agent
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- Once you have viewed the property and you want to move forward you inform the agent! From here the agent should provide you with an information pack for the property or a link where to download one.
- We recommend you get in touch with us at this stage! We will be able to walk you through the info pack and suggest any extra questions before the offer.
- Offer
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- Make an offer, this most times happens before you have arranged for the builder’s or LIM report, or have unconditional finance – this is called a “conditional offer”. The real estate agent will walk you through the contract and help with filling out any forms you need to complete.
- Acceptance
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- Wait for the offer to be accepted! If it is not, you can negotiate further or withdraw your offer and look for another property!
- Lawyer
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- Once accepted, this is where we (officially) come in! The solicitor assigned to your matter will go through the legal documents and communicate with you if any issues are raised. Deal with any conditions, help you with your kiwi saver and first home grant. They will also be the “middle-man” when it comes to the money.
- Deposit
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- A deposit, usually 10% of the agreed purchase price (this is negotiable to a lesser amount if your money is tied up in kiwi saver/grants), is paid into the real estate agents trust account (upon becoming unconditional) where it is held for 10 days before sending it to the seller solicitor where it is then used towards settlement.
- Settlement
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- This is typically the day you receive the keys to the house! The lawyer deals with the transferring of the money and the finalisation of all the legal documents to ensure that the property or land is now in your name!
Do you need a lawyer?
We have been made aware that many first home buyers are not aware that they need a lawyer when purchasing a property.
The lawyer’s role in this process involves, ensuring all legal documents are completed and signed, moving the funds from the buyer to the seller, ensuring that the land registry is updated and more.
Lawyers fees can range anywhere from $1,000 to $4,000+ – this can be dependent on how much time your lawyer spends on the conveyancing however, we’ve got a list of our fixed fees here. Most fees are taken on settlement day, so the process is quick and easy!
To learn more about what a lawyer does in this process or to become a client, click here!
KiwiSaver
With almost 3,000,000 kiwis’ in Kiwi saver we feel that it is important you know what you can do with it!
When it comes to buying your home, if you’ve been contributing for at least three years you’ll be eligible to receive most, if not all, of your funds and they can be used to help purchase the home.
You may be eligible for a First Home grant too. The Government could give you up to $5,000 for an existing home or up to $10,000 if you were to build a new home. This is fantastic!!
To find out more about KiwiSaver head to this website – kaingaora.govt.nz
Other Seemingly Hidden Costs
When buying a home, you need to ensure that it is worth what you are paying for it and that it is up to standard. It is therefore recommended (not required) to get a builder’s report, a Land Information Memorandum (LIM) report and often a valuation report done (usually only if required by your bank) before you proceed. The costs of these range generally between $500-$1,500 EACH!
You also need to pay rates. These are usually invoiced annually but due quarterly. The costs of these change depending on the location and size of your house and land – these are paid on settlement!
Lastly, you MUST insure your home. It is your BIGGEST asset. And you cannot receive a mortgage unless it is adequately insured, so your best option is to check out with your insurance company whether they are happy to insure the home and make sure there are no special terms to your insurance.
Happy house purchasing!
