The steps to your first home

Our new columnist Rachael Cone, managing director of Total Realty, shares some helpful tips for navigating the buying process and preparing to take those all-important first steps towards homeownership.

Purchasing a home can be stressful for anyone, even seasoned real estate agents! From discussing the decision with your friends and family to finding the right house, then dealing with the paperwork, signing on the dotted line… and not to mention moving-in day!

Pre-approval

Talk to your bank or a mortgage broker as soon as possible – know what you can borrow! This can help immensely with decision-making when you do find that “dream home”. It also takes the stress out of trying to jump through hoops to obtain finance when you have a property under offer and the clock is ticking.

KiwiSaver

If you’re a first home buyer and planning to use your KiwiSaver funds, you’ll need extra time for your contract clauses. Your real estate agent will be able to factor this into the Sale and Purchase Agreement, if you make them aware of your situation.

Find a solicitor

Ask family, friends and work colleagues for recommendations. Choosing a solicitor before entering into a contract will speed up the process and allow you to seek legal advice beforehand.

Clauses

You might have additional clauses in your contract. For example, you may require a building inspection report, a valuation, an electrical report etc. It’s important to understand that your solicitor will not organise these reports for you. These are up to you to arrange, and the real estate agent will help you by providing access to the property for the purpose of carrying out the reports.

Deposit

This is due when your offer is accepted or alternatively when the conditions in your offer have been confirmed. The timing of the deposit depends on what is written into the contract. Your real estate agent will confirm exactly when the deposit is due, and it is vital that you make arrangements to have the deposit ready by the due date.

Pre-settlement inspection

You are legally entitled to a pre-settlement inspection, and this will normally be arranged through your real estate agent. If there is anything amiss at the property, you will need to inform your solicitor.

Settlement

Don’t get caught out on the day! Ideally, if you can move the day after settlement, it makes it a much easier transition. If not, just be aware that the keys cannot be passed to you until the seller’s solicitor gives approval for “key release” in writing. So often buyers have a removal company booked and the truck ready to go early in the morning. But solicitors may still be working on the settlement until later in the day. To avoid disappointment and unnecessary costs, discuss this early on with your solicitor or real estate agent before making any arrangements.

0800 663 737 | totalrealty.co.nz