Selling and buying property is not difficult, but pre-planning and including professionals at certain stages helps for a smooth sales and purchase process. Here is a walkthrough of key considerations and services that can help you successfully sell or purchase a property.
The value they add: A building inspection by a qualified builder helps to give you assurance about the structural integrity of a house or building. A building inspection will let you know the materials used for a build, the condition of these and any remedial work that is required to have the property in a fit and legal state.
When would you use them: Potential buyers often invest in this service before confirming a sales and purchase agreement. Sellers may also benefit from using these services especially if there is work to be undertaken on the house or they are wanting to provide added assurance or background information to a pool of potential buyers.
Approximate cost: Builders' Inspections range from approximately $450 - $1200.
Where to find them: Search Building Inspectors in your area or ask for referrals from friends or other service providers.
The value they add: Lawyers are essential when selling or buying property. They help with explaining and navigating the sales and purchase agreement, ensuring conditions are clearly stated and confirmed, searching and transferring the title, holding the bond, handing over the keys, searching and approving property titles, liaising with banking institutions to discharge existing mortgages or drawing down funds.
When would you use them: We strongly recommend that both sellers and buyers contact and hire a Property or Conveyancing Lawyer if selling or purchasing a property.
Approximate cost: Conveyancing fees for a single property for both a sale and a purchase range from about $600 - $1800.
Where to find them: Search Property Lawyer in your area or ask for referrals from friends or other service providers. The New Zealand Society of Conveyancers (NZSOC) also lists several Property Lawyers throughout New Zealand.
The value they add: While Here’s a House encourages private property sales, we acknowledge that this is not for everyone and that Real Estate Agents can be invaluable in certain circumstances. An Agent will help you through the sales process by advertising your property, dealing with interested parties, helping with open homes and working through the negotiation and signing of a sales and purchase agreement. As a buyer, a Real Estate Agent will work as a conduit between you and the seller. They will provide you with information about the property, answer any further additional questions you may have about the property, take your offer to the seller and liaise with you as you work through the sales and purchase agreement.
When would you use them: As a seller, if removing yourself completely from the process of selling your property is appealing (and you are comfortable paying a slice of your sales fee towards advertising and commission fees) then you may decide to engage with a Real Estate Agent. With Here’s a House you can still advertise your property (for free), and Real Estate Agents can contact you and tell you what they can offer in terms of fees and services.
Approximate cost: The fee varies depending on the agency, the agency’s sales model, the region of New Zealand and the value of the property being sold. In most cases a percentage of the property sales fee goes to the Real Estate Agent. Some figures from Hometopia (2017) which looked at average commission fees across New Zealand listed $12,000 for a property worth $250,000 (4.7%), $20,000 for a property worth $500,000 (4%), $31,000 for a property worth $1,000,000 (3.2%) and $55,000 for a property worth $2,000,000 (2.8%).
Where to find them: Search for Real Estate Agents in your area or ask for referrals from friends or other service providers. Alternatively, you could list (for free) with Here’s a House and have agents contact you thereby saving yourself the hassle of shopping around for a suitable agent.
The value they add: A LIM report is a service purchased through your local council which provides essential information about the property and any buildings on the property such as
• if consents have been granted for any alterations or additions to a building
• the original planning and permitting information for the existing structures
• how the property fits into council zoning
• if there are any council easements or public access ways on to the property
• any plans for the area in terms of roading projects / developments
• other useful information which may include any risks or incidents related to the plot of land i.e., erosion or flooding, location of water supply and drainage.
When would you use them: It is strongly recommended that anyone who is considering purchasing a property obtains a LIM report and considers including a 'satisfactory LIM report' as a condition of the sale. Sellers may also consider obtaining a LIM report and then showing this to potential purchasers to provide assurance of the structures and property or to provide greater transparency around existing issues.
Approximate cost: A LIM Report from your local council ranges from approximately $200 - $500. Some people choose to avoid this cost by visiting their local council and browsing the records of a specific property. Doing this will provide you with much of the same information that you will receive through a LIM report, but it will not provide you with the complete picture.
Where to find them: Visit your local council or council website to request a LIM Report on a specific property.
The value they add: Property valuations help sellers and potential buyers estimate the market value of a property.
When would you use them: A valuation can be especially useful when government values are inaccurate during a heated or downward market and you want to understand the true worth of a property. If you are selling after undertaking significant improvements to the property you may choose to get your property valued so you can show this to potential buyers or clarify your own price expectations. Or, if you already own a property and are seeking funding for the purchase of another property, your lending institution may request a valuation of your existing property before confirming or declining the additional funding.
Approximate cost: Property valuations range from approximately $500 to $900 for a standard property.
Where to find them: If a valuation is needed by a lending institution, then we recommend you check with them first to confirm which valuation companies they will accept valuations from. Otherwise, ask for referrals from friends or other service providers, search a list of Residential Property Valuers in your area. Alternatively, for an inexpensive and convenient way to get an initial feel for what your property is worth you could try these websites:
The value they add: Mortgage Brokers are useful when it comes to gaining pre-approval for finance, negotiating interest rates, arranging insurances, liaising with the banks about your situation and working to get the best mortgage deal on your behalf. Another advantage of using a Mortgage Broker is that they will usually provide you with advice or recommendations about how best to structure your mortgage e.g. whether to fix or float your mortgage and for how long. One potential downside of using a broker is that you can wind up changing banks every so often in order to get the best deal. However, the inconvenience of switching lending providers is usually eased by a cash sweetener and lower interest rates negotiated by the broker.
When would you use them: It is important to know that brokers generally work with a few but not all lending providers and there is nothing stopping you from liaising directly with lending institutions without the help of a broker. However you may consider enlisting the help of a mortgage broker if you want to avoid the hassle of “shopping around” for the best mortgage deal, or you would like the convenience of having someone else acting on your behalf to gain funding approval and a competitive interest rate, or you feel that the help and advice that a broker can offer would assist you in making more informed decisions about your mortgage.
Approximate cost: Brokers usually offer a ‘no-charge service’ as they are paid a commission by the lender if your loan application is accepted and you sign up for the mortgage. However, we do recommend you ask a broker about their fees prior to using their services as some will charge you a small fee for their services.
Where to find them: Search Mortgage Brokers in your area or ask for referrals from friends or other service providers.
The value they Add: Surveyors can assist sellers and buyers who are looking at the developmental opportunities of a property by assessing sub-division possibilities, gaining resource consent, undertaking a property development project or understanding the implications of public works to a property.
When would you use them: A potential buyer could use a Surveyor to assess whether their developmental ideas for a property were feasible. A seller may enlist the help of a Surveyor to help show buyers the development potential of a property or to offer greater transparency about an existing issue.
Approximate cost: Various prices depending on scope of the work, but a free quote is generally provided.
Where to find them: Search Property Surveyors or Land Surveyors in your area or ask for referrals from friends or other service providers.