Lucy Corry –
It is easy to get carried away when you are searching through property listings for the house of your dreams. But if you are not careful, home buying can become a nightmare.
Real Estate Agents Authority (REAA) Chief Executive Kevin Lampen-Smith said that buying a property is a complex and potentially stressful process, not least because it involves such a scary amount of money.
Do not hesitate
“It is smart to do as much as you can to reduce the risk of unwelcome surprises or unexpected costs further down the line,” he said.
In the first instance, he recommends that you should prepare a list of questions to ask about properties in which you are interested.
“Remember that you can ask the real estate agent anything you like about the property. They are also required to tell you everything they know and not withhold any details,” he said.
If you are not sure what to ask, here is a handy list of questions.
List of Questions
Open homes can be busy, so ask the agent if you can talk on the phone, or send questions via email.
- Have there been any issues with the property, such as earthquake damage or water-tightness?
- Are there any offers on the property, or have any contracts been cancelled by potential buyers?
- How long has it been on the market? What is the seller’s preferred settlement date?
- What maintenance, repairs or improvements have been carried out? Do these have permits?
- Is there a Land Information Memorandum (LIM) available or a building report prepared by an accredited property surveyor?
- Is the property well-maintained? What condition are the roof, piles, wiring, and plumbing in?
- Is the property insulated? If so, to what degree (for example, walls, underfloor, ceiling)?
- Is there any risk of methamphetamine (P) contamination?
- If there is a body corporate (usually for apartments), what does that entail?
- Are there any issues with neighbours or planned developments?
“If you are seriously considering making an offer, you must do your own research and seek professional advice. It may well become your home, so you need to know as much about it as possible to save unhappy surprises later. Knowing the right questions to ask is a good starting point,” Mr Lampen-Smith said.
Lucy Corry is Media Communications Manager at the Real Estate Agents Authority based in Wellington. For more free and independent advice on buying a property, please access the Home Buyers’ Guide at buyingahome.reaa.govt.nz. If you still have questions, call the Real Estate Agents Authority (REAA) on 0800-3677322 (please call 04-4718930 from a mobile phone).
