When you come to Harcourts in search of your perfect property, your sales consultant looks to establish your goals and set about achieving them for you.
It is their job to listen to what you want and to work for you with care and consideration at all times. Your sales consultant will guide you through the process of buying a house, providing advice on comparable properties, investment potential, finance options and legal requirements.
1. Work out your budget.
Work out a realistic picture of your finances – (your income verses your expenses) plus how much you have saved for your deposit for your home.
For help with your budget, check out www.sorted.org.nz
2. Pre-approval Home Loan.
Before you begin your search, it’s important to find out how much money you can borrow. You can contact a mortgage broker or your bank where they can decide if they can offer you a pre-approval. Getting a pre-approval puts you in a better negotiating position, helps speed up the mortgage documentation process and enables you to bid with confidence at auctions.
3. Finding a solicitor.
We recommend that you get your own independent legal advice before you purchase a property. Your solicitor ensures all legal processes are followed, checks over the property reports (eg: LIM report and title) and manages the settlement process on the purchase of the property.
Title – checking the legal owner, legal description, rights and restrictions registered against the property title such as a mortgage, easement or covenant. Land Information Memorandum (LIM) report – contains all the important current and historical information the local council knows about the land and property.
• Potential erosion, subsidence or slippage, flooding of any type and possible presence of hazardous substances
• Information on private and public storm water and sewerage drains
• Rates information
• Any consents, notices, orders or requisitions affecting the land or buildings
• District plan classifications relating to the land or buildings
• Any other classification that relate to the land or buildings
• Any other classifications on the land or buildings notified to the council by network utility operators in relation to the Building Act 2004.
4. House Hunting.
You can now begin searching for your property within your price range, working with Jane your Harcourts Sales Consultant.
5. Inspecting the property.
It is always a good idea to view the property you are interested in a couple of times. It is important to determine any ‘deal breakers’ on your ‘wish list’ versus things you would be willing to compromise on.
6. Making an offer.
All offers must be in writing using the correct documentation. There are two types of offers: Unconditional Offer – We would recommend that you consult your solicitor before putting in an unconditional offer. You would need to be confident you know all about the property and that you can pay for it.
If you make an unconditional offer which is accepted, you must complete the purchase. Conditional Offer – Your offer has conditions attached, such as finance being secured, sale of buyers current house, or being satisfied with a specialist report on the property at your cost. If you are buying a rental investment, our experienced Property Managers can help manage your investment for you – taking the day-to-day hassles off your hands.
We recommend seeking legal advice before signing the sale and purchase agreement.
The seller and buyer negotiate through their Sales Consultant until the seller and buyer agree on a price, dates, chattels, deposit and conditions.
The Sales Consultant is paid by the seller and must therefore carry out the seller’s instructions (as set out in the Agency Agreement). Sales Consultants also have clear responsibilities to buyers and are bound by the Code of Professional Conduct and Client Care issued by the Real Estate Agents Authority. Under the Code, Sales Consultants have to deal fairly and honestly with all parties.
7. Getting your offer accepted.
Your offer is accepted once all parties have agreed to the terms, including price, dates and deposit, and the contract agreement has been signed by all parties.
Once the Sales and Purchase Agreement is signed and dated, it is legally binding, and therefore neither party can pull out of the transaction, unless one or more of the conditions of the contract are not fulfilled, eg: if your offer has been made conditional on you gaining mortgage finance, and you are unable to obtain that finance, you may choose to withdraw from the contract on that basis.
If the agreement is conditional – any conditions need to be satisfied by the due date. It is the buyers responsibility to satisfy those conditions.
Once all the conditions of the contract have been met to the satisfaction of both parties, the agreement is declared unconditional. If there is a deposit required, this must be paid by the buyer to the Harcourts Trust Account, this is held in the Trust Account for ten working days (our commission is then deducted and the balance is transferred to the sellers solicitors Trust Account).
Our account is an audited Trust Account. The deposit will not be refunded should you fail to settle for any reason.
There is also a clause in the contract for interest to be paid on the remainder of the purchase price if you delay settlement for any reason.
9. Before settlement.
Make an appointment with your bank to discuss your financial arrangements for settlement day
• Make an appointment with your solicitor to sign the necessary legal documents to transfer the property into your name.
• Organise the move.
• Arrange the transfer of water, telephone, electricity and gas and any other services
• Organise change of address.
• Arrange insurance for your new property – this should commence on possession day.
• You are entitled to a ‘final inspection’ of the property prior to settlement, giving you the chance to check that the condition of the property is in the same state of repair as at the date when you signed the Sale and Purchase Agreement and to check that all the chattels listed in the agreement remain on the property.
10. Settlement Day
This is usually the same date as the date you get possession (the keys). Settlement day is the date on which you pay the balance of the purchase price for the property.
Please note we can only release the keys to you once the legal settlement has occurred and the sellers’ solicitor has notified us. Congratulations – you will be the proud owner of your new home!
M 021 822 500
P 0800 030 403