20 Common Real Estate Questions NZ Buyers and Sellers Ask
Buying or selling a home is one of the biggest decisions you'll ever make. It can feel exciting — and also a little scary, especially if it's your first time. There's a lot of new language, new steps, and new people involved. I've put together this list of the 20 most common real estate questions in plain, simple English so you always know what's happening and why.
Questions About Buying a Home
1. Where do I even start when buying a home?
Start by checking your finances. Know how much money you have for a deposit, and find out how much a bank or lender is willing to lend you. This is called getting pre-approval. Once you know your budget, you can start looking at homes with confidence.
A good starting point for checking current property listings in New Zealand is realestate.co.nz, TradeMe Property, or OneRoof. All three sites are updated daily with homes for sale across the country.
2. How much deposit do I need?
In New Zealand, most banks ask for at least a 20% deposit of the home's purchase price. Some lenders allow a lower deposit (as low as 5–10%), but this usually comes with extra costs or conditions.
For example, if a home costs $700,000, a 20% deposit is $140,000. This is why saving early matters so much.
Note: First-home buyers may qualify for special support. The Kāinga Ora First Home Loan allows eligible buyers to purchase with just a 5% deposit. You can check your eligibility at kaingaora.govt.nz.
3. What is pre-approval and do I really need it?
Pre-approval is when a bank looks at your income, savings, and spending, and tells you in writing how much they're willing to lend you. It's not a final loan — it's a promise that they're likely to lend you that amount.
You don't have to get pre-approval, but it's a very good idea. It shows sellers that you're serious, and it helps you avoid falling in love with a home you can't afford.
4. What does a real estate agent actually do for me as a buyer?
A buyer's agent helps you find homes, arrange viewings, understand the market, and write an offer. In New Zealand, the seller usually pays the agent's fee — so as a buyer, you often get this help at no direct cost to you.
All real estate agents in New Zealand must be licensed under the Real Estate Agents Authority (REAA). You can check if an agent is licensed at rea.govt.nz.
It becomes a team effort, so it's important that you choose an agent who is knowledgeable and trustworthy — rather than someone who's pushy or telling you to make an offer all the time.
5. What is a deposit?
A deposit is a sum of money you pay when you make an offer on a home. It shows the seller that you're serious. In New Zealand, this is typically around 10% of the purchase price, paid once your offer becomes unconditional.
This money is held in a trust account. If the sale goes through, it becomes part of your payment. If the sale falls through because the seller breaks the agreement, you usually get it back.
6. What is the difference between a conditional offer and an unconditional offer?
- A conditional offer means your offer depends on certain things happening first — for example, getting finance approved, or the home passing an inspection. If those conditions aren't met, you can cancel the agreement.
- An unconditional offer means you're committed to buying the home no matter what. This is a big step and only go unconditional when you're completely sure.
7. How do I negotiate the house price?
In this current market, negotiating is normal — most buyers do it. Here are some simple tips:
1. Research recent sale prices of similar homes in the area.
2. Start with a Reasonable Offer: If you have ample time, consider making an initial offer that's fair—not too low to upset the seller, but also leaving room for negotiation. If you truly love the house and recognize its value, it’s beneficial to demonstrate your interest. This approach can minimize prolonged negotiations.
Understanding Multiple Offers: Be aware that during negotiations, other buyers may enter the negotiation with their offers. This can lead to a competitive multiple-offer situation, where several interested parties are vying for the property.
3. Use conditions (like the building inspection result) as a reason to adjust the price, or ask the vendors to organise fixing the issues if problems are found.
4. Be patient. Don't rush. A good negotiation takes time.
Economist Tony Alexander regularly shares insights on New Zealand property market conditions and buyer confidence. His free newsletter at tonyalexander.nz can help you understand whether it's a buyer's or seller's market right now.
8. What is a LIM report and do I need one?
A LIM (Land Information Memorandum) is a report from the local council. It tells you important facts about the property — like zoning rules, any flooding risk, council rates, and whether there are any permits or consents on record.
It costs around $400 – $550 and usually takes about 10 working days to get. It's strongly recommended for every buyer. You apply for it through the local council where the property is located.
9. What does a home inspection cover?
A building inspection is done by a qualified inspector who checks the physical condition of the home. They look at things like:
- The roof and gutters
- The foundation and structure
- Moisture and dampness inside walls
- Electrical wiring and plumbing
- Insulation etc….
Building inspection results can vary depending on the inspector. Each inspector has a different level of experience and may focus on different areas. We recommend choosing a qualified, experienced inspector and asking what their report will cover.
The inspection usually takes 1–2 hours and costs around $500–$900 depending on the size of the home, or plan you choose. The inspector gives you a written report. If serious problems are found, you could renegotiate or walk away from the deal.
10. What does a real estate solicitor (lawyer) do?
In New Zealand, you must use a lawyer (solicitor) when buying a home. They protect your legal interests throughout the process. Your lawyer will:
- Check the title of the property (to make sure the seller actually owns it and there are no problems)
- Check legal documents
- Review the sale and purchase agreement before you sign
- Manage the transfer of money on settlement day
- Register the property in your name at Land Information New Zealand (LINZ)
Budget around $1,500–$3,000 for a conveyancing lawyer. You can find a registered lawyer at lawsociety.org.nz.
Questions About How Long Things Take
11. How long does it take to close on a house?
In New Zealand, "closing" is called settlement. The time between signing a sale and purchase agreement and settlement day is usually 4 to 6 weeks, but it can be shorter or longer depending on what both parties agree.
12. How long does it take to find the right home?
This is different for everyone. Some people find their home in a few weeks. Others take 6 months or longer. It depends on how much you've saved, how competitive the market is, and how specific your needs are.
The key is to be honest with yourself about whether your expectations are realistic.
If you keep missing out on houses you really liked, compare the final selling price with your budget.
If the gap is about the same every time, you may need to change your plan. For example, you could change your must-have list or look in more suburbs.
The clearer you are about what you can afford and what you really need, the faster you'll find the right home.
In a busy market, you may need to make several offers before one is accepted. Be patient with yourself. The right home is worth waiting for.
Questions About Selling a Home
13. How do I decide what price to list my home at?
This is one of the most important decisions you'll make as a seller. You can:
- Ask a real estate agent for a Comparative Market Analysis (CMA) — this looks at similar homes that have sold recently nearby
- Check sold prices in the area
- Get a registered valuation from a professional valuer. It costs around $500–$900 and gives you a formal written report on the property's value. Keep in mind that a valuation is only an expert opinion. It doesn't guarantee what buyers will actually pay.
Pricing too high can mean your home sits on the market for too long. Pricing too low means leaving money behind. A good agent will help you find the right balance.
- Some properties are sold without a listed price, for example by negotiation, auction, tender, or deadline sale. Ask your agent how the selling method works and how it affects your offer.
14. What are seller concessions?
Seller concessions are things a seller agrees to give the buyer as part of the deal — usually to help close the sale. Examples include:
- Agreeing to fix something found in the home inspection
- Leaving behind expensive furniture with the home
- Reducing the price slightly
Seller concessions are negotiated and aren't required. But offering them can make your home more attractive to buyers, especially in a slower market.
15. Do I need to fix things before I sell?
You don't have to fix everything, but small repairs and a tidy presentation can make a big difference to how much buyers are willing to pay. Things that are worth doing before selling include:
- Fresh paint in neutral colours
- Fixing leaky taps or broken fittings
- Cleaning the garden and pathways
- Deep cleaning the entire home inside and out
Major repairs (like a leaking roof) should usually be disclosed to buyers honestly. In New Zealand, you have a legal obligation to disclose known defects. Your real estate agent and lawyer can advise you on what to tell buyers.
16. What is the difference between a private sale and selling through an agent?
- In a private sale, you market and sell the home yourself. You save on agent fees but take on all the work yourself — advertising, showing the home, negotiating, and managing paperwork.
- Selling through an agent means the agent does all of that for you. Their fee is usually 2–4% of the sale price (plus GST), depending on the agency and agreement.
Why do many people use an agent?
Agents know the local market, so they can help you set the right price. They also reach more buyers, handle negotiations, and manage viewings and paperwork etc etc….. This saves you time, lowers stress, and reduces the risk of costly mistakes.
Questions About the Market and Costs
17. Is now a good time to buy or sell in New Zealand?
This depends on your personal situation — your finances, your life plans, and how long you plan to stay in the home. Market conditions change all the time.
As of 2026, Tony Alexander's buyer survey data (published at tonyalexander.nz) shows that buyer confidence in New Zealand is gradually recovering after a period of high interest rates.
18. What costs should I plan for as a buyer?
Beyond the purchase price, here are the extra costs to expect:
- Lawyer/conveyancing fees: $1,500–$3,000
- Building inspection: $500–$900
- LIM report: $400–$550 (for the majority of auction properties in Auckland, the vendor will pay the cost and make it available to buyers)
- Loan application or break fees (if applicable): varies by lender
- Moving costs: $500–$3,000+ depending on distance & time
It's a good idea to budget an extra 1–2% of the purchase price for these costs so you're not caught off guard.
19. What costs should I plan for as a seller?
As a seller, your main costs are:
- Real estate agent commission: 2–4% of the sale price (plus GST) — you pay their fees when your property sells unconditionally
- Lawyer fees: $1,500–$3,000
- Pre-sale repairs or staging: varies
- Advertising and marketing
20. What happens on settlement day?
Settlement day is the final step. On this day:
1. Your lawyer transfers the purchase money to the seller's lawyer.
2. The seller's lawyer confirms receipt and releases the keys.
3. Ownership is officially transferred to you at LINZ (Land Information New Zealand).
4. You collect the keys and the home is yours.
It usually all happens in the background — you don't need to be at the lawyer's office. But make sure you've done a final walkthrough of the home at least 3 working days before the settlement date to check everything is as agreed.
Conclusion: You're More Ready Than You Think
Real estate questions can feel overwhelming at first, but most of them have simple, clear answers. The key is to take things one step at a time — get your finances ready, find professionals you trust, and ask questions whenever you're unsure.
There's no silly question when it comes to buying or selling your home. The most important thing is that you understand every step before you sign anything.
If you found this home buying and selling FAQ helpful, share it with someone who's about to start their property journey. And if you have a question that isn't answered here, feel free to reach out — I'm always happy to help.
