Mark Fourie’s 8 Tips for Helping You Choose the Right Property
Buying a home is a big deal. For those that think that they can take it lightly, they are likely to get taken advantage of or lose offers on their favorite properties. Working with an experienced real estate sales agent is a great start. Mark Fourie a lifestyle and real estate sales agent for Bayley’s Real Estate Limited of South Auckland has been in the Pukekohe, New Zealand real estate business for some time. Because every person’s home buying goals are different, he thoroughly enjoys guiding home buyers with unique needs and desires. Here are his 8 tips for helping you choose the right property.
1.Understand Your Goals
Why do you want to buy? Are you wanting to live in the house for the rest of your life, or is this going to be a steppingstone? Do you want to make it an investment so that you can manage your own rental property? Are you wanting to renovate and resell at a profit? Your answers to these questions make a big difference on the types of properties and areas that you want to look at in your search.
2.Find Out if You Qualify
If you are one of the many foreigners looking to buy a property in New Zealand, it is important that you understand what you need in order to qualify to purchase a home. All foreigners must first secure a resident visa. (NB there are some exceptions), working with local experts (such as lawyers, conveyancers, or sales agents) will protect you from having to pay extra fees/penalties that you might otherwise be unaware of.
3.Take the Location Seriously
Look at the area wherein you plan to purchase. Some neighborhoods are appreciating and growing, while others are deteriorating. Within the city, most utilities and public services are easily available to properties. If you are interested in more rural areas, some utilities will not be available.
It is a good idea to consult real estate sites like TradeMe, RealEstate.co.nz, and Open2view to get a sense of where the available properties are as well as the neighborhood value. If you find a property you are most interested in, consider purchasing a local council report, such as Auckland Council’s Land Information Memorandum (LIM). These reports will clue you in to anything unusual or unsafe about the property.
4.Know Your Budget and Financing Options
Most likely, you are considering a mortgage for your New Zealand home. Check with local banks to see what you can afford. Make sure to consider the amount of cash you will need for a deposit.
5.Use Comparables to Estimate Value
In real estate, comparables are houses that are similar than the one you are considering. They usually have the similar features and benefits. This helps appraisers justify the house’s value. That being said, a seller can ultimately choose whatever price he/she wants. Using comparables yourself, you can get a good sense on whether the seller is asking a fair price.
It can be difficult to understand comparables for those not in real estate. Mark Fourie is highly experienced at New Zealand home comparables and can help you know if a home is priced fairly.
Lastly, it is important to note the different home valuation systems and how they factor into the home’s estimated value. The seller’s agent should be able offer a rough guide if the property is not listed with an advertised price. There are several ways to achieve a market value, the Recent Rateable value (RV), this is for rating purposes (Tax) and should only be used as a guide, Registered Valuation done by a qualified property valuer and there is cost engaging a valuer. A CMA (Comparable Market Appraisal) this is done by a licensed agent such as Mark Fourie. There are some Websites that offer market estimates, but these can sometimes be over or under inflated and should only be used as guide.
6.Choose a Sales Agent Carefully
Using a friend or family member can be risky. Just because you know them and feel comfortable with them doesn’t mean that they know what they are doing. Make sure that they are licensed and experienced. Inexperienced real estate agents will overlook key costs or regulations resulting in hidden fees/costs that you do not expect.
One of the best ways to find a solid sales agent is to look at reviews or seek referrals from those that are happy with their new home. These indicate that the agent has a good record and the experience required to help you land the right home.
7.Understand How to Make Offers and Negotiate
You cannot venture to make an offer unless your financing (or cash) is in order. No seller will take you seriously until then. Every home for sale should have a clearly spelled out purchase agreement. Include your sale agent when examining the purchase agreement.
Depending upon how the property is sold – whether by auction, negotiation, tender, or deadline – you may or may not have a lot of competition or the ability to negotiate with the seller. Have your agent explain the procedure for your buy so that you craft the right offer.
One final consideration you should take into account is a house inspection. Ideally, you should use a qualified building inspector to confirm that the property is in the condition as advertised. You can make your offer including a contingency should the inspector find anything major impacting the value of the home.
8.Anticipate “Rates” by Local Councils
When it comes to local services, such as utilities and rubbish removal, your area may require special rates (or taxes) to be included in your final purchase price. Make sure to understand what it includes and consult your real estate agent on how that will affect your final purchase price.
Buying a home is an exciting time, but it can be a long, drawn out process. The home buying process – done correctly – can help new buyers’ transition into their new home without any surprises or negative experiences. And while foreign buyers will have to go through a few extra hoops, it is worth the effort to reside in one of the world’s most beautiful island nations.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes.