The process for buying & selling a residential property in New Zealand

Buying and selling a house or section can be complicated so we’ve created this guide to help you. We explain the key steps to follow when buying and selling, including how to navigate both processes at the same time.

In this article, we outline the process of buying and selling a residential property, including the key steps you need to know.

Key steps to buying a house or section

If you are buying a house, the following steps will ensure you are prepared to make an offer and follow through on the property purchase.

1. Talk to your lawyers, bank, and mortgage broker

2. Research the local property market

3. Make an offer

4. Negotiate offer(s)

5. Offer accepted

6. Offer goes unconditional

7. Settlement day
   

Key steps to selling a house or section

If you are selling your property, there are several key steps to ensure you attract buyers and have a successful property sale.

1. Talk to your lawyers and real estate agent

2. Prepare your property for sale

3. Host open homes and viewings

4. Negotiate offers

5. Accept an offer

6. Offer goes unconditional

7. Settlement day

   
   

How to buy and sell a house at the same time

Buying and selling property is often a juggling act, requiring a careful balance of the previous property sale with the purchase of the next one. To help you navigate this process, we’ve explained the three ways to approach it below.

1. Sell first, buy second

The simplest option is to sell your current property and then buy the next one. In most cases, you will need to arrange somewhere to live in the meantime or you can set a long settlement date on your property sale and hope to settle a replacement property purchase on the same date.

As a buyer, this option makes you more appealing to vendors because you already have the cash to follow through on your offer. While you may need to get financial pre-approval for your next purchase, you will have a high level of equity to play in your favour.

2. Buy first, sell second

If you make an offer on a property before you sell your existing home, the offer will most likely need to be conditional on the sale. Unfortunately, vendors are more likely to accept an unconditional offer so you may need to bid lower to be considered. When taking this approach, you will need to know about cash-out clauses and bridging finance.

Cash-out clause

If you make a conditional offer, the vendor may choose to include a “cash out clause” in the agreement. This means that, if a more acceptable offer is submitted to the vendor by another buyer before your existing home is unconditionally sold, the vendor can accept it. At this point, you will typically have three to five days’ notice to arrange the finances to buy the home, usually with the help of bridging finance, or the vendor sells to the other buyer.

Bridging finance

Bridging finance refers to a short-term loan from your bank. This is a backup option in case your house doesn’t sell by the agreed deadline, allowing you to pay the vendor and secure your new house. However, you are unlikely to be approved for bridging finance unless you can pay (service) the mortgage on both properties.

3. Buy and sell at the same time

Depending on when you make and receive offers, you may be able to sell your current home at the same time as buying your next. For this to work, you will need to be fully equipped with all the documentation and expert advice from your lawyers, real estate agents, and mortgage broker.

This will also depend heavily on the current property market and the balance of supply and demand. If your local area is currently in a buyer’s market, you may be able to buy the next property sooner than if it were a seller’s market.

Talk to the experts

Did you know the entire conveyancing process can be completed by Halliwells law firm while you’re in the comfort of your own home? Our online portal allows you to get all the support you need without having to leave your home to attend meetings or appointments.

Benefits of online conveyancing

• Expertise and experience

• Legal representation

• Cost-effective

• Convenient

  
  

Online conveyancing services are typically more accessible and user-friendly, with clear and transparent pricing structures. With lower overhead costs and efficient processing times, they also offer competitive prices.

Halliwells combines 127 years of expertise, support, and legacy in residential conveyancing with the convenience and cost savings offered by our increasingly popular online services. Experience it for yourself by requesting a free, no-obligation conveyancing quote today.