The property market has started the year in the same way it ended 2020 – very busy! Check out our top tips for avoiding disappointment when buying.
The property market has started the year in the same way it ended 2020 – very busy!
It can be very tempting in a heated real estate market to forego the usual checks that you would do on a prospective new property. The pressure of multi-offer situations and the attractiveness to a vendor of presenting an unconditional, ‘clean’ deal can often override the good sense of completing basic checks on a property to ensure it is sound and meets your needs.
In order to act fast on a great property in a heated market, whilst still proceeding with caution and completing basic due diligence steps, here are some tips:
Communicate
Give a heads up to your team of professionals that you are actively looking. That way they are more likely to be able to complete work at shorter notice. A good building inspector is key!
Obtain Pre-approved Finance
Have finance approval from your bank and/or broker in place. A bank will often need to approve a specific property before finance can be confirmed for that specific property. If you have a broker, or bank manager, who is familiar with your situation, often this can be completed very quickly.
Always Get a LIM Report
Ask the agent for the property to provide a LIM report, and for any reports that the vendor may have obtained in the past. You should never rely on a vendor-obtained report, but sometimes the information contained within them can present a wider picture of the property. Remember that you can obtain an urgent LIM yourself from Auckland Council, through its website.
Using Kiwisaver
If you are using Kiwisaver, speak to your lawyer before you sign any agreements. There are strict timelines with using Kiwisaver money, which doesn’t always align with your need for speed!
Vendors are often understanding with timelines for first home buyers, so speak to your lawyer about how an offer can be structured to give you the time you need to draw down Kiwisaver funds and give the vendor certainty that the deal will proceed.
Good luck out there!