Buying a House in NZ: Exploring Buying Options

1.      Advertised Price/Negotiation

"Priced to Sell" doesn't mean no wiggle room! Negotiate that offer (with or without conditions) but be quick in a hot market, as there could be multiple offers!

The seller has a set price in mind for this place, but that doesn't mean you can't haggle! You can always make a lower offer (throw out a number!), and the seller might come back with a counteroffer (their response).

Here's the thing: if the market is hot (lots of people want to buy), someone might offer the asking price with no strings attached (unconditional offer). This can lead to a bidding war ("multi-offer") where the seller picks the deal that suits them best. This could be the highest offer, but it could also be the one with the fastest closing date or fewer conditions (like not needing a loan approval first).

So, the key is to be prepared to act quickly if you really want the place. You can make an offer with or without conditions (depending on your situation), but be aware that there might be competition, especially in a hot market.

2.      Private Sale

Selling privately (no agent)? Save on fees but grab a lawyer! They'll sort the contract and negotiations and protect your interests.

Selling a house without a real estate agent, is called a private sale. It can save both the seller and the buyer money on commission fees. But remember, there's no real estate agent to guide you through the process.  Here's the key: getting a lawyer involved. They'll help you understand the sales agreement and negotiate the terms with the seller to make sure everything is fair and legal.  Think of them as the expert on your buying team!

3.     Deadline Sale

Act Fast! Sellers set a firm offer date for a quick sale! Don't miss out - be ready with your offer.

This sale has a time limit! The seller wants offers by a specific date (the "dead drop" date) normally to speed up the sale process. This can be good or bad news for you, depending on how eager you are.

Good news: There's a chance other buyers might hold off on making an offer, hoping for a price drop closer to the deadline. This could give you an edge if you act quickly!

Bad news: You might feel pressured to make an offer before you're fully prepared. Take your time to do your research and inspections before putting in an offer. Don't rush into something you might regret.

4.      Tender

Mystery Offer! Submit your best written offer by deadline. Seller picks the best fit, not always the highest price!

This sale is a bit different. Instead of going back and forth with the seller, everyone submits their best offer in writing by a certain date (like a secret competition!). Here's what you need to know:

The seller picks the winner: The seller gets to choose the offer that works best for them, not necessarily the highest price. This could be because of a faster closing date, fewer conditions in the offer, or maybe they just like you better (okay, probably not that last one).

Think about your offer: Price is important, but so are other things. Can you offer a faster closing date or fewer conditions in your offer to make yours stand out?

No guarantees: The seller isn't obligated to pick anyone, so they might reject all offers and try again later.

5.      Auction

Auction Day! Do your homework! Unconditional bids only. Get finance & legal advice beforehand.

An auction is basically a public bidding war - everyone there will be trying to outbid each other for the property. Here's the rundown for buyers:

Do your homework first: This is super important. Get the property inspected, check with your mortgage advisor (have you got finances approved - to what level, will the bank support the purchase of this particular property), and talk to a lawyer before the auction. You don't want surprises!

Be prepared to move fast: Decisions happen quickly at auctions, so know your limit and be ready to bid if you really want the house.

There's a secret minimum price: The seller has a minimum price they'll accept, called the reserve price. Bids below that won't win.

Come ready to pay: If you win, you'll usually need to put down a deposit of around 10% right then and there.

No second chances: Auctions are typically unconditional, so be sure you're 100% committed, have your finance in place and the property has been bank- approved, before raising your paddle to make a bid!