Buying a property to live in, or as an investment, may be the biggest financial decision and commitment you’ve faced… It makes sense to complete a thorough, due diligence process.
The Christchurch market has changed significantly since the 2010/2011 earthquake events, so it’s never been more important to engage qualified professionals;
• Licensed Real Estate Agent
• Registered Valuer
• Building Inspector
• Mortgage Broker
• Property Lawyers
Licensed Real Estate Agents
It‘s important to remember the Real Estate Agent is working for the seller. However under the Real Estate Agents Act, Licensed Agents must provide you with important information about the property which could impact your decision to buy. Unlicensed Agents are not bound by this requirement.
A *Registered Valuer will assess the market value of a property before a purchase, to provide a Current Market Valuation (also known as a ‘Registered Valuation’). This is a considered and objective view of what the property would sell at a set time, and the security it provides to the lender.
The Valuation process includes an external and internal inspection, research into recent Comparable Sales in the area (for a Sales Analysis), the Certificate of Title, zone and town planning requirements, location and other relevant information, which will be included in your Current Market Valuation report.
Click here for information about our Valuation Process
*Only Registered Valuers are qualified and licensed to provide Valuation Reports recognised by banks, lending institutions and Courts.
Building Inspection Companies
Faced with a myriad of information about prospective homes of different ages and construction types, you might seek advice from friends and family to help whittle down the list of choices.
However, when you’re close to decision time, getting a Building Inspection Report will help clarify whether to proceed with the purchase, or whether to negotiate for a lower price; allowing for the expense of fixing any problems the report may have identified.
All houses require maintenance, and all are capable of leaking if not built correctly. A Building Inspection Report will include maintenance and construction problems, if they exist.
A hot topic in the Auckland market, but they exist throughout New Zealand. The effects of water damage over time can be devastating - remediation can be very expensive and can significantly reduce the value of a building.
Non-Cavity Cladding System: Homes built between the mid 1980’s and the early 2000’s that used a non-cavity cladding system, are at risk. ‘Non-cavity’ means that the exterior cladding is ‘direct fixed’ to the house frame. A lack of ventilation plus water ingress, results in mould, dangerous spores and perfect conditions for rot to set in.
Monolithic Cladding Systems: Cladding that’s ‘direct fixed’ onto building framing, is referred to as monolithic - e.g. texture plaster, coated fibrous cement boards, polystyrene panels, and stucco. These cladding systems, along with lightweight concrete panels (autoclaved aerated concrete or AAC panels), now use a cavity system.
Cavity System: The cladding is fixed to a baton, which creates a space between the cladding and the building wrap and frame; allowing ventilation to the frame and back of the cladding. Water penetrating behind the cladding, will meet the barrier (building wrap), and the cavity will allow the water to escape via weep holes.
Rot caused by Non-Cavity Cladding System
Whether you already have finance pre-approved through your Broker, or you need them to help you with a home loan application, when you find a property, the Mortgage Broker will need to verify its value and give the lender a Current Market Valuation report.
As an independent adviser, a Mortgage Broker gives you access to wide range of banks, and non-bank lenders. They’ll negotiate with lenders to get you the best deal, and advise on how to structure your loan. Generally they are paid by the lender, and will not charge you a fee.
A Property (Conveyancing) Lawyer acts as your intermediary; guiding you through the buying process and legal documentation. This includes checking the property’s Title is in order, and advising on negotiating terms and conditions of an Agreement for Sale and Purchase. E.g. Being satisfied with a Building Inspection Report, Current Market Valuation report, Council LIM report.
Your Lawyer is also an integral part of the Settlement process, including liasing with your bank and the seller’s Lawyer/Solicitor, arranging the Transfer of Title (ownership), and Registration of the Mortgage.