I’ve been involved in property purchases in New Zealand for 25 years, both for myself and for clients. Here’s what I’ve learned.
The process isn’t complicated. But the roles and responsibilities? That’s where most buyers come unstuck, and where New Zealand differs from what you might be used to.
This is Part 1 of a multi-part guide covering who’s really on your side, and why understanding that can make all the difference.
Picture this: you walk into an open home, meet a real estate agent who greets you with a big welcoming smile and you suddenly feel relaxed, welcomed, looked after.
In reality, like all good salespeople, they hope you’re the one who is going to buy this house, their listing, for as much as you can be nudged into paying, because that’s how their commission works: in New Zealand between 2 and 4% of the property sale price plus taxes.
The moment you walk through the front door, they’re assessing you: perceived wealth, seriousness, urgency. What you might pay. They might be completely wrong, but here’s the funny part: most inexperienced agents still judge a book by its cover. That’s why they sometimes don’t return calls, don’t follow up, and miss buyers who actually can transact. Believe me, it happens a lot, even in quiet markets.
They’re one person, so they focus on the most probable purchaser, and the rest get in line, or fall under the radar.
And yes, most of my genuinely wealthy clients dress very casually. They’re not trying to impress anyone. All salespeople could learn something from that.
The mistake almost everyone makes
This is where so many people go wrong. They assume the real estate agent is working for them, the buyer.
They’re not.
They are engaged by the vendor and their incentives are aligned accordingly. That alone doesn’t make them untrustworthy. It makes them vendor-side salespeople.
And here’s the kicker: once you’re unconditional, it’s yours. Problems and all. In the real world, you don’t “return” a house like a jacket because you later discovered it has missing stitches.
My first rule
Here’s what I always do, without exception.
I treat the real estate agent as the introducer. They introduce me to the property. That’s all.
They can tell me what the vendor told them. They can show me features. Some will offer opinions, which they’re not supposed to do, but I never treat that as truth until I verify it.
Because even the majority of vendors don’t know their property has issues. Most people don’t even know what their house is made of, let alone how it was constructed, what’s been patched, what’s been deferred, what’s unconsented, what’s “fine” in summer and miserable in winter.
My job as a purchaser, and it is 100% my responsibility, is thorough due diligence. That includes checking council for planning changes and infrastructure projects near the property. It includes building inspections and specialists when needed. It includes reading the documents properly, not skimming because it looks fine.
Contracts: protect yourself properly
Due diligence costs money. Inspections, specialists, time, advisors. I’m not doing that with the rug ready to be pulled out from under me.
So, I negotiate a sale and purchase agreement that is in my favour: a proper due diligence period of at least three weeks (ideally more), conditions that actually give me control, and no vendor cash-out clause that lets them sell to someone else while I’m doing my homework.
What real estate agents actually know
Here’s something that might surprise you.
The vast majority of real estate agents know almost nothing about houses. They don’t understand construction. They can’t reliably tell a well-built home from a poorly built one. They don’t recognise the signs of problems hidden beneath fresh paint and staging. And I’m not singling out agents just for fun. Many architects wouldn’t know how to build a good quality, sustainable and healthy house either. Building and construction is one of the least educated and understood industries in the world, that’s why it has been so slow to evolve.
Agents know prices. They know what sold and for how much. They know how to market and run a campaign.
But the house itself? The thing you’re actually buying? They’re often no more qualified to assess it than you are. Sometimes less, because they’re not looking for problems. Problems don’t help them sell.
So when an agent says “well-built”, “solid”, or “no issues”, understand what that usually means: nothing.
Think of agents like fishermen: they concentrate on the biggest bite. If you’re a serious buyer with a big budget, ready to move, you’ll get attention. And they’ll show you their listings first, because that’s where they make the most commission. Cynical? Sure. Also true.
The reality of New Zealand housing stock
Before you fall in love with anything, understand what you’re buying into.
New Zealand’s houses, like many countries, are generally not high quality. Our building practices are decades behind Europe’s leading countries in thermal performance, moisture management, affordability, and quality. We have an enormous amount of housing that looks fine and photographs beautifully while performing badly in the real world.
This is why most houses sell in summer, when these problems seem to disappear.
If you’re viewing a property in January, imagine it in July. Ask yourself: how will this house feel when it’s 8 degrees outside and raining for the third week straight? Because that’s when you’ll probably be living in it.
Photos show staging and fresh paint. They don’t show uninsulated walls, lack of ventilation, deferred maintenance, or the problems hidden beneath the surfaces.
Before you even start looking
Most buyers begin by opening their favourite real estate website, typing in a suburb they’ve heard of, and scrolling photos.
Within an hour, they’ve found three houses they “love”. All at the top of their budget. All in the suburbs everyone wants. All with dozens of other people looking at them.
They started with what’s for sale instead of what they actually need. They let the market set their expectations.
What do you actually need? Not want. Need.
How will you live in this house on a wet Tuesday in July, not a sunny Saturday at an open home? Where does your budget go furthest? What if you looked somewhere less obvious, improving rather than established, where you’re buying quality and space, not just postcode status?
Real estate agents won’t ask you this. They’re selling listings, not solving your long-term goals.
The money
If you’re relying on local finance, a few things worth noting.
New Zealand banks are very conservative. They stress-test borrowing against higher interest rates. If your income is overseas or complex, expect many questions. If you’re a non-resident, lending can get harder and deposits can be higher.
Get pre-approval in writing before you start looking seriously. Understand the conditions attached. And remember: banks understand money, not property.
I often say New Zealand banks will lend you an umbrella when it’s sunny, and ask for it back when it rains. Be prepared.
If you’re coming from overseas
Spend time here first if you can. Rent for six months. New Zealand feels different living here versus visiting. Weather, pace, distances: it all lands differently when it’s your daily life.
Also check what you can buy if you don’t hold a resident visa or aren’t a New Zealand citizen. There are quite a few restrictions.
If you’re a returning Kiwi
The New Zealand you left 10 or 20 years ago isn’t the New Zealand you’re coming back to. Places and communities have changed. Prices have changed. Give yourself time to recalibrate before you commit significant capital.
Buyer’s agents
A buyer’s agent works for you, not the vendor. For someone buying from overseas or with limited time, they can be valuable.
The key question: how do they get paid?
Flat fee? Great, aligned.
Percentage of purchase price? Be careful, misaligned incentive.
Paid via the selling side? Potential conflict.
If you use one, get the fee structure in writing. Use someone who charges for their time and judgement, not for how much you spend.
Please note, the majority of buyer’s agents in New Zealand are also registered real estate agents. That could raise questions about who they’re really representing.
What Part 1 comes down to
Before you look at a single property, understand this:
The real estate agent is not on your side. They legally can’t be. Their job, their income, their obligation: it’s all aligned with the vendor.
You are responsible for protecting yourself: due diligence, proper contracts, and not getting swept up in urgency and emotion.
My advice, consider the real estate agent as the introducer. Nothing more.
I’ll draft Part 2 soon. It will cover finding and viewing properties: how to see past staging and spot what actually matters.
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