Feeling nervous about purchasing your first property is completely normal. The process, new terminology, and important decisions can feel like a lot to handle.

What is the first step to buying a house?#

The first step is organising your finances. Before you start looking at properties, you need to know your budget.

If you need a home loan (mortgage), you'll need to get pre-approval from a bank or other lender. Pre-approval gives you a clear understanding of how much you can borrow and shows sellers and agents that you are a serious buyer. To get pre-approved, you will need to provide information about your income, expenses, and deposit.

How much deposit do I need?#

Most lenders in New Zealand require a deposit of at least 20% of the property’s purchase price. However, some banks may accept a lower deposit, and government-backed schemes like the First Home Loan may allow you to purchase with a deposit as low as 5%. Your mortgage advisor or bank will be able to advise you on this.

What does a real estate agent do?#

A real estate agent facilitates the property transaction between a buyer and a seller. While the agent is contracted by the seller, they have a duty to treat buyers fairly. Their work is regulated by the Real Estate Agents Act 2008. An agent's responsibilities include marketing the property, providing information, facilitating viewings, and presenting offers.

Do I need an agreement with an agent to buy?#

You do not need a formal written agreement to have an agent help you find a property. However, the seller must have a signed agency agreement with their agent for the agent to market the property and claim a commission. Before you sign any documents, such as a sale and purchase agreement, the agent must provide you with a copy of the New Zealand Residential Property Agency Agreement Guide.

How is a property offer made?#

Making an offer usually involves signing a formal Sale and Purchase Agreement. This is a legally binding document, so you should always get legal advice before signing. You can make your offer conditional on certain things, such as a satisfactory builder's report, securing finance, or time for due diligence. The most common ways to buy a property are by negotiation, auction, or tender.

What is the difference between a conditional and unconditional offer?#

A conditional offer has specific conditions that must be met for the sale to proceed, such as securing finance or a satisfactory building report. An unconditional offer has no such conditions and is legally binding as soon as it is accepted.

What happens to my deposit?#

When you sign a Sale and Purchase Agreement, you will likely need to pay a deposit. By law, this money must be held in an independent trust account by the real estate agency for at least 10 working days. The deposit cannot be released to the seller until specific conditions are met, such as the agreement becoming unconditional.

What legal checks are essential before buying?#

It’s important to engage a lawyer early in the process to guide you through these checks. Key reports to consider include a LIM Report from the local council, a Builder’s Report from an independent inspector, and a Property Title Check, which will be performed by your lawyer.

What is due diligence?#

Due diligence is the process of researching a property before you buy it. It includes reviewing legal documents, arranging inspections, and seeking professional advice to ensure the property is right for you.

You can request a Due Diligence clause in a Sale and Purchase agreement, which will give you an agreed number of days to do the necessary checks before the contract becomes unconditional.

Think of due diligence as your opportunity to thoroughly investigate a home before it's too late.

How long does the buying process take?#

The home buying process can take anywhere from a few weeks to several months, depending on your circumstances, individual property terms, and the market.

Once your offer is accepted, the settlement date is agreed between the buyer and seller and recorded in the sale and purchase agreement.

What is a settlement day?#

Settlement day is when the ownership of the property officially transfers to you. On this day, the purchaser pays the remaining balance of the purchase price, and your lawyer will register you as the new owner. You will then receive the keys to your new home.

Ready to buy?#

Your next step is to assemble a team of qualified professionals. These experts can provide personalised guidance for your situation.

• Mortgage adviser or bank specialist: They will help you understand your borrowing capacity and assist with loan pre-approval.
• Solicitor or conveyancer: They will manage the legal requirements, from checking the property title to finalising the settlement.
• Licensed real estate agent: They can provide insight into the local market and guide you through the process of viewing properties and making offers.

You can use our find an agent tool to search for a licensed real estate agent in your area. 

When you are ready to explore the possibilities, realestate.co.nz has the most property listings in New Zealand to help you find the life you are meant to live.

Want more property insights? #

• Market Insights: Search by suburb to see median sale prices, popular property types and trends over time. 
• Switch your search to Sold to browse all residential properties that have sold - not just recent sales. See the most recent sale price and estimated current market value.