What factors determine the purchase price of the property you are buying?
While a number of factors come into play, in the end a property's worth is judged by only one figure - how much is somebody prepared to pay for it at the time?
The most significant considerations for pricing a property are recent sales and current competition.
The former is a review of what other properties of this type have sold for, while the latter takes into account similar homes that are presently on the market.
Your Harveys agent can provide you with information and advice regarding both of these aspects of the house-hunting process through competitive market analysis.
It is also important to take note of the prevailing market conditions, as these can generate a genuine insight into short-term trends and help prospective homebuyers gain a feel for what they will need to pay to achieve their goals.
If high buyer demand exists at a time when very little property is actually available, prices are likely to increase.
'Seller motivation' - the reason the current owner is attempting to offload the property - might also play a major role in determining the final cost. If a quick sale is required, vendors have little choice but to accept the best offer at the time without the luxury of waiting for a better deal.
Why should I carry out a final inspection on the property I am buying?
No matter how excited you are about purchasing your new house or unit, it is prudent to undertake a final inspection to ensure that the property is still in the same condition it was when you negotiated the deal.
You should check that all the fixtures and fittings included in the contract are still present and that the previous residents did not cause any damage when moving out of the property.
How many homes should I inspect when looking for a property?
We recommend looking at enough properties to gain a comprehensive understanding of the marketplace.
This will provide you with the required knowledge to work out if the property you are interested in buying represents value for money, while also helping you to determine which location appeals to you the most.
It is important to feel confident about your eventual purchase, so viewing properties online is a good way to research the market efficiently.
Alternatively, your Harveys agent can give you comprehensive market analysis on the property, with details of similar properties currently for sale or in the same area.
What is conveyancing and why do I need it?
Conveyancing is a term that refers to the transfer of ownership of a property -most buyers enlist the services of either a conveyancer or solicitor to handle this process on their behalf.
While you are able to act on your own when making a property purchase, the process of documentation and settling can be complicated - and may seem daunting. Bringing in support from an expert who is familiar with legal documents and legislation can make the process easier.
What does a conveyancer do?
Once you have appointed your conveyancer, they will be responsible for a number of tasks as they help you through the settlement process.
These jobs include acting as a liaison between you and your lender's solicitor, checking your contract of sale, performing title searches and acting as your legal representative for the transaction.
Your conveyancer will also check on a number of important things for you, including whether there are any outstanding rates on the property - such as council taxes or water payments. In some cases, your conveyancer will also check over your loan documents for you.
How much does a conveyancer charge?
The cost of hiring a conveyancer can differ from city to city - and even from transaction to transaction, depending on the amount of time and work involved. It is important to enquire about fees before you agree to appoint anyone.
How do I choose a conveyancer?
There are a number of points to consider when choosing a conveyancer.
These include assessing whether they are available to provide the level of service you are looking for and if you can clearly and effectively communicate with them.
You may be looking for a conveyancer who can explain the process to you - particularly if you are a first-time buyer - so it is important to ensure they have time to take you through every step of the process.
You may also wish to consider location - you may want your conveyancer to be locally-based or easily accessible.
How much deposit do I need to buy a property?
While a good general rule for anyone planning to live in the property they buy is that they'll need a deposit of twenty per cent of the purchase price, this can vary depending on a number of factors.
These include the type of home loan you are seeking, as well as the lender you choose. Anyone purchasing a property for an investment is generally required to provide a deposit worth thirty per cent of the purchase price.
Your deposit may come in the form of savings - usually from at least the past three months - as well as contributions from other avenues, which can include family assistance, gifts or bonuses, equity in other property.
What happens to the deposit paid to the agent?
When a contract is signed, a ten per cent deposit is usually required. In some cases, an agent may ask for a smaller amount to be paid when an offer is submitted.
When you pay your deposit to an agent, it will be paid into a trust account they operate. No interest is payable from this type of account.
Buying At Auctions
What is the vendor reserve price?
The "vendor reserve price" indicates the minimum price the vendor is willing to sell the property for.
When bidding has reached the vendor reserve price, the property will be sold at auction - if it does not reach this level, the property may not be sold.
If you are bidding at auction, be aware that negotiations with the highest bidder often begin immediately, so it is essential you are prepared.
What is a vendor bid?
The vendor can make a bid to help move the auction process along - or to help push the property towards the reserve price.
This bid can either be made by the vendor themselves or by the auctioneer on their behalf.
The Auckland district law Society together with the New Zealand Real Estate Institute have a standard form of contract called Particulars and conditions of sale of Real Estate by Auction. The right of the vendor to place a bid is outlined in the conduct of of Auction section clause 2.5. The Real Estate Institute Auction Code of practice states that should the Auctioneer make a bid on behalf of the vendor he/she must declare such bid to ensure the fairness and transperancy of the Auction process . Clause 3.4 (a)