BUYING TIPS
Buying Tips
Buying property can be a minefield, but doesn't need to be. If you approach it the right way, you should find the home you want, for the price you can afford.
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Make sure you pick up a copy of the Property Press from one of the many locations around the city and check out our advertisement in Saturday's Daily News. Also go to our website for all of our Listings. www.newplymouthfn.co.nz
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Identify your preferred areas, bearing in mind affordability and your space requirements, school zones and amenities.
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Register your name and your preferred Sales Consultant on our website, a free service to help you find the perfect property.
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Before attending open homes, discuss the properties with your sales consultant who should be able to describe the property more to you. This will also help develop your knowledge of the market.
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Find one consultant with each company whom you feel comfortable with and start building a relationship, so the sales consultant understands your requirements and can alert you to any new listings. Although representing the seller, the consultant has the responsibility to protect your interests and disclose any information that might influence your buying decision. Building rapport with a good sales consultant means you will be 'Top-of-Mind, and their advice will help you feel confident about your buying decision.
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Don't take Government Valuations (Rateable Value) too seriously - they don't always reflect current market values, especially after periods of strong growth. Its main role is to benchmark local authority rates.
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Endeavour to know the vendor's anticipated price range before you become emotionally involved in the property.
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Talk to a Mortgage Broker or Banker to arrange the best loan to suit your needs - good advice could save you thousands over the life of your mortgage.
When you've found the right property:
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Do tell the consultant if you are interested, (there is nothing worse than missing out on a property because the consultant was not aware of your interest)
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A valuation can provide a useful, and unemotional report on the property, although you also will be very astute as to the true value after looking at several properties in your price range.
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Once you've agreed to the sale price and signed the Sale and Purchase Agreement, you will need to pay a deposit which will be held in trust in the Real Estate Company's Trust Account.
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Your consultant will provide you with a copy of the sale and purchase agreement.
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On settlement day or the day prior to settlement, your solicitor may suggest you make a pre-settlement inspection, just to ensure the property is in the condition you expected, and that everything has been included.
Remember:
Vendors (sellers) prefer offers without conditions, however you need to protect your position, so you may want to consider the following conditions:
- Subject to arranging finance
- Subject to a builder's report or other building specialists (electrician, plumber) report
- Subject to solicitor's approval of the sale and purchase agreement and title search
- Subject to a LIM Report (Land Information Memorandum), which covers all the local authority's compliance criteria.
- Subject to sale of an existing property
- Subject to a valuation report. (This may be required to arrange finance).
Some Sound Advice:
- Be wary of well-meaning friends/family. They sometimes think, because you have asked them to look at the house with you, that it's their responsibility to find a fault. Remember, you have already compared the home with others - and they haven't!
- If you like the property, make a sensible offer (close to what you are prepared to pay)
- If there is other interest in the property and a deadline is called, trust your consultant to guide you in making your very best offer. You may not get a second chance.
- If you do get a builder's or other specialist's report, remember that the perfect house has never been built. Make allowance for its age and normal deterioration, but take heed of any serious issues that can be costly to remedy.
For further information on buying investment property click here
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