So, You Think You are Ready to Make an Offer?

Whether it's in relation to the steps that need to be taken, legal terminology or understanding the different types of properties out there. Because first home buyers can incur substantial costs during this process, it is worth checking readiness before making an offer and considering whether conditions are needed for finance, legal review, building inspection, LIM or other due diligence.

1. Seek Legal Advice

Before you submit your offer to the vendor, consult your Legal Executive/Conveyancer/Solicitor ("Legal Adviser").

The advice that they will provide will depend on your circumstances and the type of property you will be looking at. There are so many variables, and we can't provide you general advice that will apply to all situations. The firm you instruct can provide you with an estimate about legal fees and a general understanding of the process. If you decide to proceed then terms of engagement will be sent to you, so that advice can be provided once you have secured a property or if you need conditions to be inserted into an offer.

2. Finance Pre-Approval

Before you make an offer, aim to understand your finance position, including any conditional pre-approval or lender guidance on how much you may be able to borrow.

If you have finance approval in advance, we suggest that you familiarise yourself with any finance conditions that apply. Even with conditional pre-approval, lenders commonly ask for information about the specific property before confirming the home loan. If you are unsure about your finance conditions, get clarity from your mortgage adviser, broker or bank before your offer goes unconditional.

3. KiwiSaver and Other Financial Assistance Arrangements

It can help to check your KiwiSaver first-home-withdrawal eligibility, estimated available amount, provider process and documents before making an offer. If you hope to use KiwiSaver funds for the deposit or at settlement, tell your lawyer or conveyancer early because the agreement wording, timing and provider process can affect what is possible.

The Kāinga Ora First Home Loan may be relevant for eligible first-home buyers with a smaller deposit, including some buyers with a 5% deposit. First Home Loans are issued by selected banks and other lenders, underwritten by Kāinga Ora, and still require both Kāinga Ora eligibility and lender approval.

There are also some co-ownership housing opportunities where another party is a co-owner and there may be a pathway to buy them out later. These arrangements can involve upfront costs, monthly costs and legal obligations, so get legal and financial advice before relying on approval or signing documents.

Learn More: Buying Property With Others: Things To Be Aware Of

4. Your Circumstances and Timeframes

Consider the timeframes you will need for any due diligence before confirming the agreement is unconditional. If KiwiSaver is part of your deposit or settlement funds, check the provider process, required documents and timing early rather than relying on a fixed turnaround.

5. Once You Are Ready to Make a Conditional Offer

If there is an agent involved, they may provide or prepare the sale and purchase agreement paperwork, but you should still have the agreement and any conditions reviewed by your lawyer or conveyancer before signing. If you wait until after acceptance to seek advice, any recommended changes will usually require the other party to agree.

Some purchasers ask for a due-diligence condition as well as, or instead of, specific finance, LIM or inspection conditions. The effect depends on the wording, and sellers may view broad conditions differently from narrower conditions, so get the condition drafted or checked before signing.

6. Offer is Accepted – Time to Undertake Your Due Diligence

Once the offer is accepted by the vendor, you will need to act quickly. Email the agreement to your lender or broker straight away, and book relevant reports with building inspection companies and valuers. If you haven't already done so, seek advice on the title and agreement from your legal adviser.

Read any disclosure provided by the seller or agent. If defects are identified, tell your lender or broker and check whether the issue affects insurance, finance approval or your willingness to proceed.

7. If Issues Come Up During Inspection or LIM Report Review

If an inspection, LIM or legal review raises issues, your options depend on the agreement wording, the condition used, the issue and the evidence. Your lawyer or conveyancer can advise whether to ask for repairs, negotiate, satisfy or decline a condition, seek a variation, or take another step.

Learn More: The Importance of a LIM Report: What You Need to Know

8. What Happens If You Need More Time?

A seller does not have to agree to an extension of time for a condition, but your lawyer or conveyancer can ask for one. If a condition is not satisfied by the deadline, the consequences depend on the agreement and condition wording; for example, some finance conditions may require evidence from a bank if finance is declined.

9. Written Instruction to Your Legal Advisor

The sale and purchase agreement is a legally binding document that you need to understand before signing. If you need an extension, variation, or want to satisfy or decline a condition, it is usually sensible to give your lawyer or conveyancer clear written instructions.

10. How to Make Your Offer More Attractive

If you find yourself in a multi-offer situation, you may look for ways to make your offer attractive to the seller. Keep the offer within your budget and avoid unrealistic condition dates or removing protections you still need.