What you should look for in a house to buy

Ruapehu Bulletin, Volume 12, Issue 553, 13 September 1994, Page 9

What you should look for in a house to buy

A useful approach in looking at a house is to go armed with a checklist so you can note positive and negative features. Then, if first impressions are favourable, go back through the home and check off the features against the list. "The most obvious feature to check is the number of bedrooms. A spare bedroom may sound nice to have as a study or sewing room but it could become just a rather expensi ve storage area," says Joan Harnett. "Your inspection list should also include ensuring there is sufficient storage space in the kitchen,

bedrooms and outside. Check that the floors are level and the pilingis sound. Turn on the tap to check water pressure and find out whether the home is insulated." There are some tell-tale signs to watch out for too. For example, acracked window sill can reveal the house has moved. A stain on the ceiling or wallpaper would indicate the roof needs to be checked. A tangle of wires at the meter box could be a sign of old electrical wiring. However, such signs are not always reasons for rejecting a property . The signs

may remain.even after satisfactory repairs have been completed, she says. She says that by being systematic in their approach, buyers are more likely to choose a house that will provide the features they need for a happy and comfortable existence. Among the features to watch out for, type of heating, positioning, (sun, outdoor living) privacy, condition of electrical appliances. 'The notes should include a list of fixtures that are going to be included in the sale. This can make a big difference when comparing the price of one home against another."

What you get is what you see Dick Kirk says it is necessary for buyers to be aware that the onus is on them to ensure they are buying exactly what they think they are getting. "There is no onus on the vendor to point out any defects so it is up to the buyer to check the property out thoroughly and to call in expert advisers if they think it necessary," Mr Kirk says "The law is on the side of the buyers only if they are gi ven wrong information or if aspects of the property are misrepresented." Registered valuers can provide a report on a property. Although there is a cost, buyers have the peace of mind ofknowing exactly what they are getting and the valuation will play an important part later when arranging finance. Another necessary step is to ensure that the title is searched carefully to ensure that there are no conditions such as fencing, storm water drains or easements applying. The search can be organised by a solicitor.

The third aspect that needs to be discussed and clearly understood are the terms and conditions of sale, such as the date of possession, which fixtures and fittings are included and which are available by negotiation. How to make an offfer that is taken seriously Clyth MacLeod a former national councillor of the Real Estate Institute, says price is one question buyers cannot ask of the agent. "Agents cannot tell buyers how much a seller will accept," he says. "The agent is retained by the seller and is therefore obliged to get the best price possible. Many times, the agent will not know at what price the seller will settle when confronted by an offer." However, deciding on an offer price need not be difficult. From their observations of what similar properties are being priced at in the district, together with advice from the agent on what the market is doing in general terms, most buyers can usually tell whether the home they wish to purchase

has a realistic price. Buyers should not reveal the full amount they can afford. Leavingthemselves $10,000 or so in reserve, buyers can give themselves room for negotiation. The seller will either reject the first offer or, more customarily, will make a counter offer, perhaps.reducing the original asking price. When this happens, the buyers will know that a compromise is possible. When an agreement has been reached, the offer is

said to be binding and provided the funds are paid in full, the vendor must make possession of the property available on the settlement date on the contract. Usually there is a 60-day period for the buyers to complete the paperwork with their solicitor, finalise the mortgage and pay a deposit, usually 10 to 20 per cent of the agreed price. Attaching a cheque for the deposit to the original offer form will show the seller you mean business.