A quick heads-up: The information in this article is designed as a general educational guide only and does not constitute personalised financial, tax, or legal advice. Because everyone's situation is unique (and bank policies change frequently), we recommend speaking with a licensed Financial Adviser to see how this applies to your specific circumstances. For full transparency on our terms of service, how we are remunerated by lenders, and any specific situations where a fee may apply, please read How We Get Paid.
When you start hunting for your first home, your weekends quickly become a blur of open homes, architectural brochures, and friendly real estate agents welcoming you at the front door.
Because good agents are personable, engaging, and genuinely passionate about property, it is very easy for first-time buyers to forget the underlying dynamics of the transaction. A common trap is treating the selling agent like your personal buying consultant.
To navigate the market confidently, you simply need to understand how property representation works under New Zealand law—knowing what questions to ask, what information to keep private, and how to work collaboratively with agents while protecting your own position.
The Core Rule: Who Does the Agent Represent?
Real estate agents are licensed professionals operating under the Real Estate Agents Act 2008 and the REA Code of Conduct. They provide a vital service in bringing buyers and sellers together.
However, under New Zealand law, the listing agent has an agency agreement with the vendor (the seller).
Once you understand that boundary, you can approach every interaction at an open home with clear, constructive confidence.
Questions You Should Definitely Ask at the Open Home
Under the REA Rules (specifically Rule 10.7), licensed agents have strict obligations regarding disclosure. If an agent is aware of a significant defect or unconsented work, they cannot mislead you.
Your goal at an open home is to gather factual, practical information:
"What is the vendor's preferred settlement timeline?"
"Are there any unconsented works or alterations on the property?"
Many classic Wellington character villas and 1970s units have had internal walls moved, decks added, or basements lined without council consent. Unconsented works can trigger immediate lending hurdles with bank credit teams, so it pays to ask upfront.
"Has the vendor commissioned a building inspection or LIM report?"
Vendors frequently supply these upfront to assist buyers. If available, review them carefully—though you and your solicitor should still evaluate whether an independent inspection is necessary for your bank sign-off.
"Is there anything else material I should know about the property before preparing an offer?"
This is the catch-all question. Under REA disclosure rules, asking this directly gives the agent the clear opening to disclose any known property quirks that might not be highlighted on the marketing flyer.
What to Keep to Yourself (Protecting Your Buying Position)
While an agent will treat you professionally, sharing your personal financial limits can compromise your bargaining power. Keep your strategic details private:
- Avoid asking, "What will the vendor take?": The agent cannot negotiate against their own client. If a listing is marketed without a set price, focus on local comparative sales data rather than verbal guides. (For a complete breakdown of pricing strategies, read our guide on how to figure out what a house is worth when there is no price).
- Keep your personal urgency private: If your current tenancy ends in three weeks, keep that timeline between you, your solicitor, and your adviser. Sharing extreme urgency can reduce your leverage when negotiating price or contract conditions.
Navigating the Multiple Offer (Multi-offer) Process
In a competitive market, you will often hear that a property has "strong interest" or that multiple parties are preparing contracts.
It is important to understand the legal difference between buyer interest and an actual, signed offer:
If an agent mentions strong competition, simply ask: "Has a formal multi-offer situation been triggered yet?" If not, remain calm, stick to your researched numbers, and work through your standard due diligence.
Handling the Monday Follow-Up Call
If you sign the register at a Sunday open home, the agent will typically call on Monday to gauge your interest and provide feedback to their vendor.
You do not need to feel pressured. Treat the call as a polite, professional touchpoint:
- If the property didn't suit: "Thanks for touching base. It wasn't the right fit for our needs—we are focusing on properties with flat drive-on access—but we appreciate your time."
- If you are genuinely interested: "We liked the home and are currently running the property details and title past our mortgage adviser and solicitor. We'll be in touch once our checks are underway."
Don't Enter Negotiations Unprepared
Submitting an offer on a home is a formal legal step. Before signing a Sale and Purchase Agreement, send the draft contract and property details to your advisory team.
At Home Loan Factory, we check the property against bank security policies, run banking-grade valuation data (such as CoreLogic and Valocity) to help guide your price, and collaborate with your solicitor to ensure your finance, building, and title conditions protect you from day one.
Ready to start house hunting safely? Let’s get your finance sorted.
