Do your homework when looking for a property

It is a serious business and requires a serious investment in time

You need to buy a house, but where do you start? Here are some points to consider when looking for a property.



Buyers' agent Stephen Hart, author of Where to live in Auckland, says
do your homework before shopping for a home. "Like anything in life,"
he says, "the people who do the most groundwork get the best properties
at the best prices.



"It is a serious business and requires a serious investment in time.
People have to accept if they do the bare minimum, they are more likely
to make a mistake than if they commit themselves to the whole project."



The information is out there. Before going to the open homes, look up
the Quotable Value New Zealand site or local authority sites. The Real
Estate Institute of New Zealand has tips for buyers and sellers at
www.reinz.co.nz, as do sites like Hart's www.aucklandhomefinders.co.nz.



Don't get stuck in a neighbourhood



"A lot of people feel inertia to stay in a given area, sometimes for
irrational reasons. It may be familiar, but neighbourhoods change all
the time. They become fashionable, then become less fashionable,"
Stephen says.



Sure, there may be sound reasons for living in an area - the commute to
work, it's where the children go to school - but some areas may be
interchangeable. If Parnell, why not Freemans Bay? Look around a few
streets down northern Sandringham rather than waiting for the ideal
address to come up in Kingsland.



"People may have misconceptions about areas. People write off somewhere
like Mt Albert, but it seems to me Mt Albert is determined to be the
next Mt Eden or learn where Mt Eden got it right," says Stephen.



"It has elements for success, like a village-like atmosphere, lots of character housing and good infrastructure."



Walk the dog



If you are serious about looking for the house that is best for you and
at the right price, there is no substitute for getting in the car,
questioning your prejudices and looking somewhere new. Choose two
different areas to go for a walk with the dog on Sunday, or just see
what amenities a neighbourhood may have. Go to open homes and talk to
people.



Get the real estate agent working for you



The market has tightened and is now less of a sellers' market, so real
estate agents whose main priority may previously have been to take the
listings may now be ready to work their database of buyers a bit harder.



Talk to different agents at open homes. If you are impressed with their
way of thinking or feel you can develop a rapport, try to get them to
follow up with other listings. Tell them you are serious.



"Real estate agents want to qualify buyers. A lot of people go to open
homes as a leisure pursuit. This is hugely time consuming for agents.
If you are serious, give them some indication your house is on the
market, you have a pre-approved loan, or you have a fixed time when you
need to move," Stephen says.



"If you say you are looking to buy any time in the next 12 months, you are likely to get a less positive response."



Price is important



People can easily make mistakes. Get comparative sales figures from
agents, or go online. This can provide reassurance you are not about to
make a tragic error.



"The number of people who go into this with a sense of trust amazes me.
You must recognise the agent is there to get the best price for the
vendor, so isn't it worth spending some funds to get some authoritative
information?" says Stephen.



Set a budget and stick to it. The numbers may seem too big to matter,
but every $1000 you pay more than you need to is $1000 plus interest
you have to earn to pay it off.



Don't let the pressure get to you



If you decide this is your new home, your may be listening to your
heart more than your head. Don't. Make all the necessary checks on
condition and legal status. See what building work is permitted.



It you keep losing out at tenders and auctions, you may think you will
never get a new home. But at any time when you are operational, there
are only a few houses in the market, and depending on your criteria,
only a quarter may be good properties.



Stay in character



"Character houses tend to look and feel appropriate to neighbourhoods," says Stephen.



"Grey Lynn attracts people who want certain kinds of houses, as does Mt
Eden or Remuera. If you are looking in one of those leafy suburbs and
you recognise it is a villa-loving market, you have to ask why you
would buy out of character. Anything else is a gamble.



"Even somewhere like Papatoetoe, where you have a lot of brick and tile
houses with the camellia outside, a townhouse or apartment doesn't look
right - whereas it might in the inner city."



Give yourself an out



Common conditions such as 'subject to a builder's report, valuation or
finance' give you a little bit of protection if things aren't what they
first seemed.