Buying a property from a private seller has its pros and cons and while it is similar to buying through a real estate agent, you should fully understand the process to protect yourself. You can definitely get a better deal if you purchase direct from a homeowner seeing there aren’t any agent commission fees with more room to negotiate, however, you will not be covered under the Consumer Guarantees Act or the Fair Trading Act. Also, The Real Estate Authority isn’t available to help with an unlicensed seller. So it goes without saying that we highly recommend finding a lawyer to help you along the way!
Our aim at Here’s a House is to make the process effortless for both buyers and people wanting to sell privately. Our user friendly platform guides the sale and purchase of property from beginning to end. Here are the steps to buy your home without any assistance, apart from a lawyer…
Decide what you want in a new home
Before you begin your search, you should have an ideal home in mind and know what things you are willing to compromise on. This preparation will make the search process a whole lot easier.
Sort your finances
Just as important as it is to know what style home you want, is to know what you can afford. If you are serious about buying, visit your bank or a mortgage broker to determine how much of a loan you can take out. It is recommended that you either have a pre-approval letter from the bank or know exactly where the money is going to come from. This way you will place yourself in an advantageous position when it comes to negotiating a price and conditions for the purchase of the property.
Begin your search
The fun part begins! Searching for your ideal home is an exciting time. Here’s a House makes it easy for buyers to search private sales – you can even see how serious a seller is so you can avoid wasting time. There are various search tools out there so check them all to be sure you don’t miss a gem.
Find a lawyer
As mentioned, this is highly recommended to protect yourself and to have that extra support with the sales process, including documentation.
View properties
Viewing properties is even more fun! You usually know straight away if you can envision a home your home. Some viewings may be disappointing, but each home can give you inspiration. Be sure to do a thorough check of the homes you are most interested in and don’t be afraid to ask questions.
Value property
Be sure to check the property value of a home before making an offer to ensure it is both fair & realistic – sometimes you can miss out if your offer is low & there are competing buyers. To check the value of a home, you can check listings online for similar homes in the suburb or head to QV.co.nz for a detailed valuation or a free price range at homes.co.nz
Negotiate
Don’t be afraid to negotiate terms & money – the seller will already have prepared for this! Remember, there is room to do so. Both parties should walk away from this sale happy so keep in mind that things like; price, deposit, dates, contract clauses, etcetera, can always be worked out.
Complete the purchase agreement
A sale and purchase agreement sets out the legal obligations and conditions for both the seller and purchaser of the property. In New Zealand there is a standard Sale and Purchase Agreement put out by the Auckland District Law Society Incorporated (ADLSI). It is recommended that you and the seller use this form when agreeing on the conditions for the sale or purchase of a property and seek the advice of your respective lawyers in doing so. Your lawyer can provide you with this form or alternatively you or the buyer can purchase the form from the ADLSI.
For further guidance on buying property, check our Buyers Guide.