Making An Offer On A Property In New Zealand
An offer is more than a price. The agreement, conditions, dates and deposit determine what you are committing to and how much protection you retain.
Before signing, confirm the property fits your finance, ask your lawyer to review the agreement and allow enough time for the lender and other professionals to complete their checks.
THE LEGAL COMMITMENT
A Signed Offer Can Become A Binding Contract
A New Zealand property offer is usually made through a sale and purchase agreement. If the seller accepts it, the agreement becomes binding subject to any conditions written into it.
Do Not Treat The Agreement As An Agent Form
The agreement records the price, deposit, settlement date, chattels and conditions. Small wording or timing differences can materially affect your options, so obtain legal advice before signing rather than after acceptance.
Your mortgage adviser can help with the finance position and lender timing. Your lawyer advises on the contract and legal protection.
METHOD OF SALE
How You Offer Depends On How The Property Is Being Sold
The seller chooses the sale method. Each method creates different timing, negotiation and condition considerations.
| Sale method | How the offer is usually made | Main finance point |
|---|---|---|
| Asking price or negotiation | A written agreement can be accepted, rejected or counter-offered. | Conditions can usually be proposed, but the seller decides whether to accept them. |
| Deadline sale | Written offers are submitted by the advertised deadline, although the seller may reserve the right to sell earlier. | Prepare finance and legal review early enough to meet the deadline. |
| Tender | Offers are submitted under the tender terms by a set time. | Read the tender documents carefully and confirm whether conditions are permitted. |
| Auction | Bidding is normally unconditional and the successful bidder signs immediately. | Complete finance confirmation and due diligence before auction day. |
The exact process depends on the listing and agreement. See the independent Settled.govt.nz making-an-offer guidance and obtain legal advice before signing.
BUILD THE OFFER
Price, Conditions And Timing Work Together
The strongest offer is not automatically the highest number. Sellers may also consider certainty, conditions, deposit and settlement timing.
Price And Walk-Away Point
Decide the maximum price before negotiations begin and leave room for valuation risk, repairs and the costs of ownership.
Use The Mortgage Calculator →Conditions
Finance, building, LIM, title, insurance, valuation or other conditions may be appropriate. Ask your lawyer for wording that fits the property and situation.
Plan Your Due Diligence →Dates, Deposit And Chattels
Set workable condition and settlement dates, confirm when the deposit is payable and list the chattels you expect to remain.
Follow The Home Loan Process →BEFORE YOU SIGN
Check The Finance Before You Sign
If you have found a property, send the listing and proposed timing through before the offer is finalised. A pre-approval still needs to be matched to the specific property, price and agreement.CONDITIONS
Conditions Need The Right Wording And Enough Time
Conditions are part of the legal agreement. The examples below explain what they may need to cover, but your lawyer should draft or approve the wording.
Finance
Allows time for the lender to assess the final application, agreement and property. Pre-approval alone is not formal approval for every property.
Building Inspection
Allows an appropriately qualified inspector to report on condition and for you to respond under the wording of the condition.
LIM And Title
Allows legal and council information to be reviewed, including consents, interests, easements, covenants or other matters.
Insurance
Allows time to confirm acceptable cover is available and provide the evidence required by the lender.
Registered Valuation
May be required by the lender or useful where value is uncertain. The lender normally controls how an acceptable valuation is ordered.
Other Property-Specific Checks
Unit title, cross-lease, sale of another property, toxicology or specialist engineering matters may need their own advice and wording.
Do not copy a generic clause from a website into an offer. The wording, deadline and evidence required can affect whether the condition protects you.
MULTI-OFFER SITUATIONS
Make The Best Offer You Can Safely Live With
In a multi-offer situation, the seller considers complete written offers. You may not get another chance to improve the price or change the terms.
Certainty Matters, But So Does Protection
Price is only one factor. A suitable settlement date, clear conditions and a buyer who is ready to progress may also matter to the seller.
Do not remove a necessary condition solely because another buyer may exist. An unsuccessful offer is disappointing; an unconditional commitment you cannot complete is much more serious.
MAKING AN OFFER FAQS
Common Questions Before Signing An Offer
These general answers do not replace advice from your lawyer on the agreement or from your mortgage adviser on the finance.
Can I make an offer while I only have pre-approval?
Often, yes, provided the offer contains suitable conditions and timing. Pre-approval is not formal approval for the specific property, so discuss the agreement with your lawyer and the finance with your adviser before signing.
Is a verbal offer binding?
Property transactions should be documented in the sale and purchase agreement. Do not rely on an informal discussion as a substitute for legal advice and a correctly completed written agreement.
How much deposit do I pay when making an offer?
The deposit under the agreement is negotiable and is different from your total home-loan deposit or equity contribution. Check the amount and payment timing with your lawyer before signing.
Can the seller accept another offer after accepting mine?
The answer depends on the agreement and whether it is conditional. Your lawyer can explain any escape clause or backup-offer provisions and what notices may be given.
Should I make an unconditional offer at auction?
Auction bids are normally unconditional. Complete the finance, legal review and property investigations before bidding, and set a firm maximum price.
What happens if the valuation is below my offer?
The lender may lend against the lower value or may reconsider the application. You could need more deposit, a different structure or another outcome. A suitable finance or valuation condition may be important, so discuss this before signing.
Who tells the seller when my conditions are satisfied?
Your lawyer normally manages formal notices under the agreement. Confirm with your lawyer what evidence is required and do not personally announce that you are unconditional without advice.