buying a property – be informed


If you are thinking of buying a property, what information do you need? What can you expect from real estate agents based on REAA’s new rules for client care? Find out how you are protected and what independent information is available to you.

Deciding on what you want

When you start to think about buying a new house, the first thing you should do is to figure out what you can afford and what features are really important in your new home. Affordability and finance are key aspects for deciding on the kind of house you want to buy. While you may want the perfect home in the perfect location, it is important to understand what you can compromise on and afford.

Banks and financial institutions can provide you an indication as to the value of property you can finance based on your deposit, your income level and what type of property you are thinking of buying. Once this limit is known, you may have to compromise by identifying what you must have in order to live the lifestyle you want. This raises the issues of school zones, proximity to amenities, public transport, motorways, employment and family to name a few.

Choosing an area

Choosing where to live depends on a number of factors; affordability, access to transport and amenities and the kind of neighbourhood you want to live in. If you have children you may be interested in knowing how close a property is to schools and if it is zoned for the right schools. You can check this out with QV’s school zones information. If you are looking to move into a new neighbourhood check out the FREE Demographic Profile report to get an insight into the type of households in the surrounding area.

Finding a home

House hunting requires lots of research and viewing to find what you want. There are a number of different ways to search for properties.

  • You can look at houses online and get an idea of house prices in different areas. Major listing sites like Trade Me Property  or Open2View and most real estate companies will allow you to identify properties in your location that match your price range.
  • You can meet real estate agents; they will let you know of properties on the market and even those that are likely to come on the market soon.
  • You can browse the real estate section of local and national newspapers and publications like Property Press.


When viewing a property remember to keep your checklist of features that you identified as must-haves to help you decide if the property fits your requirements. In short, you should do all your research to find what you like and what it might sell for before you start getting serious about a property.
 
Once you have identified a property that fits your needs and budget, it is the time for delving into the detail. This is where QV.co.nz can support you with a range of reports that offer independent property information and valuations to help you make an informed decision.

An important aspect of making a successful property purchase is to comprehensively examine the value of similar properties in the area you are interested in. Here, QV’s Local Sales is a useful tool.

A Local Sales report is a great way to find out what other properties near the one you are interested in have sold for. Recent sales can help determine the current value of a property as they provide evidence as to what people are willing to pay for a property in the current market.

The report is easily customisable with a range of search criteria. When you submit your search, you will be told the number of sales that match your criteria, so you have the option of refining your search. You can then choose to purchase up to 10, up to 20, or up to 30 sales. The most recent sales will be returned first. The report displays each sale on a map, along with details including sale date, sale price and capital value at the time of sale. From only $17.50 for 10 sales, this report allows you to gain a good understanding of what properties in area are selling for.

For more information, including a current estimate of market value you can purchase our popular E-Valuer report. E-Valuer takes the hassle out of trying to find and determine comparable recent sales, as it does all this for you. E-Valuer comes bundled with up to 10 recent sales including the sale date, sale price and current capital value. E-Valuer uses a range of dynamic criteria including building age, proximity and value to find comparable sales.  Each sale is then weighted based on how similar it is to the target property and the weightings and sales prices of the most comparable sales are used to calculate an estimated market value. At only $44.95, E-Valuer provides an easy and cost effective way to get an estimate of a property’s current value.

The Certificate of Title is another key piece of information that you should check when interested in buying a property. While the detailed search can be left to your lawyer once you finalise your offer on a property, the Certificate of Title is equally important in the initial stages of a property purchase.  QV.co.nz provides a Certificate of Title details and Title document service that makes it easy for you to access this information. If you are unsure about anything that appears on a Title, we recommend you consult your lawyer.

If you are serious about putting in an offer it can be useful to check the properties Sales History.  If the property has sold repeatedly in a short amount of time you might enquire as to why?  If there is something undesirable about the property you want to find out before you’re the next owner?  When setting an offer price it is often useful to know how long the current owner has lived there and how much they paid for the property – this may affect their expectations on asking price. At just $4.50, the Sales history report provides this useful information.

QV also provides a Full Current Market Valuation which is a detailed property valuation report. This is done by a registered QV Valuer who will inspect the property, consider all factors that affect its value and write up a comprehensive property report and valuation. Depending on your lending circumstances your bank or financial institution may require you to get a Full Current Market Valuation to independently verify the value of the property.

To get any of these valuations and tools to help determine the value of a property simply visit QV.co.nz and search for a property.

Knowing your rights

Once you have found the property that you are interested in and identified its value, you are ready to make an offer. This is a good time to be aware of your rights.

The Real Estate Agents Authority (REAA) is a new Crown entity setup to assist consumers and those who work in the real estate industry.  REAA provides consumer information that will help guide you through the property buying and selling process. This includes an Approved Guide that ensures you have the information you need at the most important stages of the residential property buying process –the signing of a Sale and Purchase Agreement. You must be given a copy of the guide before you sign the agreement.

Buying or selling a property is one of the biggest financial decisions you will ever make. The information that you can get from QV combined with other information you receive from real estate agents will help you assess a fair price for a property and be more comfortable with your offer.