How to Work With Real Estate Agents When Buying Your First Home

While most people know they may need a lender or mortgage adviser and a lawyer or conveyancer, it is also important to understand the role of real estate agents. Most listing agents work for the seller, while a buyer's agent works for and is paid by the buyer.

In this guide, we'll cover how first-home buyers can communicate with listing agents, what buyer's agents can and cannot do, what agents must disclose, and why independent legal, lending and property advice still matters before you sign.

Real Estate Agents in New Zealand: Who Do They Work For?

In New Zealand, listing agents are most commonly engaged by the vendor, or seller. Settled.govt.nz says real estate agents work on the seller's behalf to get the best possible sale price and conditions, and the seller pays the commission if the property sells.

That does not mean buyers are on their own. Agents must treat potential buyers fairly, answer questions professionally, tell buyers about known problems, and not withhold information that should be provided.

This might mean building a professional relationship with agents in your target area, or in some cases engaging a licensed buyer's agent who acts for you under a clear agreement.

Using Agents to Help With Your First Home Search

While listing agents represent sellers, they can still provide useful property and process information to buyers. Keep the role clear: unless you have engaged a buyer's agent, the listing agent is not your independent adviser.

If an agent understands your search area, budget range and timing, they may point you toward suitable listings, explain the sale process, tell you what information is available, and help you register interest in auctions or pre-auction offers. Use that information alongside your own research, lawyer or conveyancer, lender or mortgage adviser, building inspector and any other expert advice you need.

Using a Buyer's Agent to Engage with Listing Agents

A buyer's agent works on the buyer's behalf and is paid by the buyer. REA says a buyer's agent may search for properties, help arrange due diligence such as a LIM, negotiate with the vendor, or bid at auction on behalf of a buyer.

Before using a buyer's agent, check they hold a current licence on REA's public register, ask what they charge, and make sure any agency agreement sets out what they can do for you. If they will negotiate or bid for you, be very clear about when they need your approval for decisions, offers or bids.

Be Careful With Pre-Approval Information

It can help to show that you are a serious buyer, but you do not have to disclose your maximum borrowing amount to a listing agent.

Because the listing agent works for the seller, think carefully before sharing your full pre-approval limit. Share enough information to support a credible offer, but keep your maximum budget and personal limits clear with your own adviser team.

Frame discussions around the offer you are considering and the conditions you need. Your lender or mortgage adviser can help you understand affordability, deposit, loan conditions and whether a specific property fits lending criteria.

Remember: a lender's possible borrowing range is not the same as a comfortable purchase budget for your household.

Avoid Common Pitfalls When Dealing with Agents

Common pitfalls include assuming the listing agent is your adviser, relying only on verbal comments, forgetting to ask direct questions about property issues, or skipping independent legal, lending and building advice. Agents must deal fairly and honestly, but Settled.govt.nz says buyers should not rely solely on the agent for advice or assistance.

Pre-Approvals and Live Deals: Timing Matters

If you have pre-approval, treat it as a useful starting point rather than final approval for every property.

Reserve Bank LVR rules classify owner-occupier lending above 80% LVR as high-LVR and restrict how much of a bank's new owner-occupier lending can sit above that threshold. Individual lender appetite, low-deposit availability and pre-approval settings can change, so check current requirements with your lender or mortgage adviser.

Check the expiry date, conditions and renewal process for your own pre-approval. Working with your lender or mortgage adviser can help you stay on top of changes to deposit, income, debt, rates, policy or property-specific requirements.

Once you have a specific property, your lender may need to assess the property, valuation, insurance, sale and purchase agreement and any reports before confirming finance. Make sure contract deadlines are realistic and your lawyer or conveyancer understands the finance condition.

The Right Team Makes All the Difference

Buying a home is not just about finding a property. Consumer Protection says property lawyers and conveyancers work for you and can review the sale and purchase agreement, title, LIM, council files and conditions. You may also need a lender or mortgage adviser, building inspector, insurer or specialist reports depending on the property.

Build Trust, But Stay Informed

Real estate agents can be helpful sources of property and process information, especially when you are proactive, respectful and well prepared.

But remember that the listing agent works for the seller. Ask direct questions, keep important answers in writing, and get your own advice before signing or going unconditional.

Use Clear Questions and Independent Advice

Buying your first home can be emotional, but clear questions and independent advice reduce the risk of rushed decisions. Understand who the agent works for, what information they must disclose, and what your own lawyer, lender or adviser needs to check.

If you're just starting your home buying journey, or have questions about where to begin, The First Home Buyers Club can help connect you with mortgage advisers, lawyers, conveyancers and property professionals who understand first-home buyers.