House buying checks?
May 15th 2007, 8:51 am
#1
HAPPY AS...
Thread Starter
Joined: May 2006
Location: Taupo
Posts: 1,068
House buying checks?
We may be about to put an early offer in on a "to be auctioned" house.
The real estate agent has told us that an offer, made prior to auction is immediately unconditional.
We understand the concept of this, and have arranged a building inspection prior to making the offer, but are there any other checks we should make before we formally put the offer in which could affect the sale?
The real estate agent has told us that an offer, made prior to auction is immediately unconditional.
We understand the concept of this, and have arranged a building inspection prior to making the offer, but are there any other checks we should make before we formally put the offer in which could affect the sale?
May 15th 2007, 8:57 am
#2
Galaxy 1: Cadbury's 0
Joined: May 2005
Posts: 1,606
Re: House buying checks?
We may be about to put an early offer in on a "to be auctioned" house.
The real estate agent has told us that an offer, made prior to auction is immediately unconditional.
We understand the concept of this, and have arranged a building inspection prior to making the offer, but are there any other checks we should make before we formally put the offer in which could affect the sale?
The real estate agent has told us that an offer, made prior to auction is immediately unconditional.
We understand the concept of this, and have arranged a building inspection prior to making the offer, but are there any other checks we should make before we formally put the offer in which could affect the sale?
From reading another thread about 'what you wished you had done differently in NZ', I can recall someone writing (I think it was Genesis) that they would have a building inspection, a LIM report AND an independent valuation done before buying/offering on a property. But depending on how long you have been in NZ, how trustworthy and confident you are about the real estate agent and how knowledgeable you are about house prices in the area and this property's 'guide price' (assuming there is one?), you may be happy not to do all these things.
It just struck me as brilliant advice at the time. So just thought I'd mention it.
Good luck.
May 15th 2007, 9:45 am
#3
BE Forum Addict
Joined: Sep 2006
Posts: 4,298
Re: House buying checks?
From reading another thread about 'what you wished you had done differently in NZ', I can recall someone writing (I think it was Genesis) that they would have a building inspection, a LIM report AND an independent valuation done before buying/offering on a property. But depending on how long you have been in NZ, how trustworthy and confident you are about the real estate agent and how knowledgeable you are about house prices in the area and this property's 'guide price' (assuming there is one?), you may be happy not to do all these things.
It just struck me as brilliant advice at the time. So just thought I'd mention it.
Good luck.
It just struck me as brilliant advice at the time. So just thought I'd mention it.
Good luck.
Get a LIM. It does not matter who you trust or what you know. Get a LIM!!!! Land information memo...from the local coucil, about $350. Basically its a dossier on the house..all the good and possibly bad and ugly about your gaff to be!! Had I got one I would have realised one of my bedrooms does not exist!!!!!! It was built at the time of the house back in 1990 without consent. Got it all sorted now but its irritating paying full 4 bed money for 3 beds..learn by my mistake!!
You could also get an independent valuation from a registered valuer..that way you would know where to stop when bidding!
Get your builder to do a written appraisal..I only got a verbal!!! Get the wiring checked too. Does the cooker work?? Mine didn't..wasn't checked!!! Also it might be worth looking at QV, they do dossiers on your house too..like what it has sold for over the years etc etc..I got one of them..a year later..very interesting report however!!
My excuse was I had only been in the country for 4 days and was severly jet lagged. Still no regrets now..mind you at the time the realtor and the vendor must have thought all their xmases came at once!! happy bidding!!
May 15th 2007, 10:21 am
#4
Galaxy 1: Cadbury's 0
Joined: May 2005
Posts: 1,606
Re: House buying checks?
You're welcome. I'm going to live by it. And send you some karma for some great advice, from which we could all learn.
Re: the LIM - agree it's imperative. My 'trustworthy type comments' were in relation to an indep. valuation (not the LIM) as some people won't want the additional expense/time involved in doing this - but I agree with you that it's all the ideal way to proceed.
Happy days!
Re: the LIM - agree it's imperative. My 'trustworthy type comments' were in relation to an indep. valuation (not the LIM) as some people won't want the additional expense/time involved in doing this - but I agree with you that it's all the ideal way to proceed.
Happy days!
May 15th 2007, 11:27 am
#5
BE Forum Addict
Joined: Jan 2007
Location: Hawkes Bay
Posts: 1,303
Re: House buying checks?
You're welcome. I'm going to live by it. And send you some karma for some great advice, from which we could all learn.
Re: the LIM - agree it's imperative. My 'trustworthy type comments' were in relation to an indep. valuation (not the LIM) as some people won't want the additional expense/time involved in doing this - but I agree with you that it's all the ideal way to proceed.
Happy days!
Re: the LIM - agree it's imperative. My 'trustworthy type comments' were in relation to an indep. valuation (not the LIM) as some people won't want the additional expense/time involved in doing this - but I agree with you that it's all the ideal way to proceed.
Happy days!
Just a couple of days stress, instead of the 3 months we used to have buying or selling back in the UK.
May 15th 2007, 1:01 pm
#6
duckfoot
Joined: Feb 2007
Location: Auckland - Timaru !!
Posts: 244
Re: House buying checks?
Thank you!!!! Don't often get compliments on my advice!
Get a LIM. It does not matter who you trust or what you know. Get a LIM!!!! Land information memo...from the local coucil, about $350. Basically its a dossier on the house..all the good and possibly bad and ugly about your gaff to be!! Had I got one I would have realised one of my bedrooms does not exist!!!!!! It was built at the time of the house back in 1990 without consent. Got it all sorted now but its irritating paying full 4 bed money for 3 beds..learn by my mistake!!
You could also get an independent valuation from a registered valuer..that way you would know where to stop when bidding!
Get your builder to do a written appraisal..I only got a verbal!!! Get the wiring checked too. Does the cooker work?? Mine didn't..wasn't checked!!! Also it might be worth looking at QV, they do dossiers on your house too..like what it has sold for over the years etc etc..I got one of them..a year later..very interesting report however!!
My excuse was I had only been in the country for 4 days and was severly jet lagged. Still no regrets now..mind you at the time the realtor and the vendor must have thought all their xmases came at once!! happy bidding!!
Get a LIM. It does not matter who you trust or what you know. Get a LIM!!!! Land information memo...from the local coucil, about $350. Basically its a dossier on the house..all the good and possibly bad and ugly about your gaff to be!! Had I got one I would have realised one of my bedrooms does not exist!!!!!! It was built at the time of the house back in 1990 without consent. Got it all sorted now but its irritating paying full 4 bed money for 3 beds..learn by my mistake!!
You could also get an independent valuation from a registered valuer..that way you would know where to stop when bidding!
Get your builder to do a written appraisal..I only got a verbal!!! Get the wiring checked too. Does the cooker work?? Mine didn't..wasn't checked!!! Also it might be worth looking at QV, they do dossiers on your house too..like what it has sold for over the years etc etc..I got one of them..a year later..very interesting report however!!
My excuse was I had only been in the country for 4 days and was severly jet lagged. Still no regrets now..mind you at the time the realtor and the vendor must have thought all their xmases came at once!! happy bidding!!
May 15th 2007, 1:02 pm
#7
Forum Regular
Joined: Apr 2007
Location: WA Perth at the mo'
Posts: 234
Re: House buying checks?
First rule of how not to be an idiot property buyer -
Never ever buy or enter into an unconditional contract
Why would you go to the expense, hassle and with definite lack of due diligence experience in a market you neither know nor understand yet to purchase a property unconditionally?
You have to be a serious gambler or a total fu#kwit to buy property this way when you can make a "conditional" offer on the many others out there. This way you get a chance to make an inexpensive assessment before committing to the cost of a thorough due diligence exercise. A failure in any one or more of the conditions allows you to either walk away or renegotiate.
At an auction you better know what your about or you risk serious problems.
Never ever buy or enter into an unconditional contract
Why would you go to the expense, hassle and with definite lack of due diligence experience in a market you neither know nor understand yet to purchase a property unconditionally?
You have to be a serious gambler or a total fu#kwit to buy property this way when you can make a "conditional" offer on the many others out there. This way you get a chance to make an inexpensive assessment before committing to the cost of a thorough due diligence exercise. A failure in any one or more of the conditions allows you to either walk away or renegotiate.
At an auction you better know what your about or you risk serious problems.
