Interested buyers may have to pay these fees even when the purchase is not successful
Buying a property requires a lot of research and due diligence that home buyers will be invoiced for – even if their offer doesn’t get accepted.
Here are the four main costs of house hunting that potential homeowners need to budget for, according to Westpac’s RedNews.
Read more: The real cost of buying a house in New Zealand
Lawyer fees
Home buyers require a lawyer to look over documents when going to an auction or placing an unconditional offer on a property – even if the purchase is not successful. Those fees can add up, especially if the home buyer is attending multiple auctions before successfully buying their dream home.
Landley Law’s Chris Connell said legal fees to look over the LIM report and property documents can cost upwards of $400 to $600, plus GST and disbursement fees, per property. Disbursement fees, which are any other extra costs incurred to search a property title, usually $6 per document search.
“Our firm has a set fee, but other firms can charge by the time it takes,” Connell said. “For the full service of buying a property, it usually can cost anywhere from $1,700 plus GST to $2,200 plus GST. However, some larger firms start their fees at $2,500 plus GST. The costs will also depend on whether it’s an existing property or off the plans and how much work is involved. If it’s not a complex case, it could cost less.”
Building inspections
A building inspection is highly recommended before buying a property. This will inform the home buyer of the strengths and weaknesses of the building structure, so they can prepare for the upcoming costs of maintenance and even help negotiate the purchase price.
The cost can vary, however, depending on the size and type of property. The cost of a full report ranges from $300 to $1,000.
To find a qualified building inspector, homebuyers can visit the New Zealand Institute of Building Surveyors or the Building Officials Institute of New Zealand website.
LIM report (Land Information Memorandum)
Interested buyers will usually receive the LIM report along with other documents in the property pack from their real estate agent. If not included, the buyer will need to request this document from the local council.
The report – which will show the council rates for the property, the work consented, as well as other important information such as whether the land is susceptible to flooding – can cost between $300 to $400 per property.
Asbestos and chemical testing
If the property is likely to contain asbestos or may have been exposed to chemicals such as methamphetamine, interested buyers are advised to organise asbestos and chemical testing.
An asbestos test can cost between $200 to $600 depending on how many surfaces are being tested and the type of report and/or management plan issued, while methamphetamine testing is also available for around the $200 mark.
For accredited asbestos testing services, home buyers can visit the IANZ website.
Read next: What different property ownership types mean for New Zealand home buyers
