Results 1 to 6 of 6

Thread: Putting in a house offer

  1. #1
    Join Date
    Oct 2004
    Location
    Wellington
    Posts
    384

    Default Putting in a house offer

    In UK it's common to offer under the asking price.

    In NZ is it the same? I see all sorts of prices like GV, BBO, Tender, Rateable Value (RV?), Enquiry welcome from...,

    What do they all mean???

  2. #2
    Join Date
    Feb 2008
    Posts
    28

    Default

    Hi
    Yes you can put in offer for price under asking price. It is usually expected to be done unless the house is in a high demand area. Negotitions will then start with the owner and go back and forwards until you agree on a price and contracts are signed.


    GV and Rateable Valuations are a ball park figure that the house has been estimated at. Not actual market value though but can be used as a starting guide. Usually for council rates purposes.

    BBO - Buyers Budget Over (offers over a certain price will be considered)

    Tender - Put in your final offer price and hope you are the highest tendered offer. Usually there is a cut off date for getting checks etc. done and offers in by.

    Hope this helps

  3. #3
    Join Date
    Sep 2005
    Location
    North Shore, Auckland
    Posts
    2,801

    Default

    There is a NZ house buying programme. I wish I could remember what its called, its on daytime telly, and shows people going through the ins and outs of buying and selling. (If anyone can remember the title it may be downloadable, for those not in NZ, to view).

    What I found interesting about it was how many times the agent would actually go back and forth with the offer contract, to sign and counter sign. I think because the offer is final in NZ (usually subject to conditions), there is a lot more emphasis on the offer stage. Whereas, in the UK the important stage is getting to 'exchange of contracts'.

    As NZAussiegirl points out it will depend on the local market where your actual offer will be so research and lots of open homes is the key. If you are just trying to get a feel for whether things are in your price range (and you are feeling patient), then this site:

    http://helpsellmyproperty.co.nz/

    has actual sale prices and you can compare these to what was advertised (the actual prices tend to appear about 4 weeks after sale.). This site has a more comprehensive list for a fee:

    www.qv.co.nz/

    Cheers

    Tia

  4. #4
    Join Date
    Jan 2007
    Location
    Waiheke Island - Auckland
    Posts
    266

    Default

    have a look at the book the streetwise homebuyer its by the same person who writes whe where to live in auckland book, we found it very usefull.

    we offered less that the asking price. lots less than the Council valuation (which was way out and always higher to get more rates out of you)
    we got it for 22K less than the asking price, i guess 5 -10 % is reasonable maybe more in current climate?

  5. #5
    Join Date
    Sep 2005
    Location
    Hawke's Bay - Cardiff...ish!
    Posts
    2,314

    Default

    We offered under the asking price and the offer was accepted. Depends what the market is like I suppose.

  6. #6
    Join Date
    Jan 2008
    Location
    Wellington
    Posts
    28

    Default

    We offered under the asking price in a sealed bid scenario. As we were the only party to put in an offer at the time it meant we could negotiate with the vendor & yep the agent went back & forth many times until we wouldn't budge any more. The agents will try everything to get more out of you as they are all on commission. We had heard reports of people offering way above the asking RV to get the house of their dreams, but although we loved this house we didn't want to pay any more for it to as we knew it would leave a sour taste with us. Just remember that there are plenty of houses out there so don't pay over the odds as you wouldn't do it in the UK. Also get a good surveyor as ours told us what price was reasonable to pay for the property. Also if its a tender scenario then its not always the highest price that gets the property as if you are bringing cash with you from the UK & no chain then that could place you in the strongest position anyway (especially if you go in with an unconditional offer you can be really cheeky with the price). Our mortgage consultant with Westpac told us to only tell the real estate agent that you are a cash purhcaser as long as you have your mortgage in principle as it has nothing to do with the agent where the money is coming from as long as it's all in place!!!! And if you miss out on the first house then it just wasn't meant to be!!!

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •