A question I am getting asked, in my job as a Mortgage Broker, often by first home buyers in this current climate, “how can I get my offer accepted?”.
Some tips and tricks on how you can get your offer accepted on a property. I’d love to talk to you about your finance and mortgage needs!
I’d love to talk to you about your finance and mortgage needs!
More about the benefits of using a Mortgage Broker here: http://www.michaelmortgageman.co.nz/why-should-you-use-a-mortgage-broker/
Contact me here: https://www.michaelmortgageman.co.nz/#contact
Michael Anastasiadis – Mortgage Broker Wellington – call me – 021 757 269
Okay, good evening everybody. It’s Michael Anastasiadis here from Bozinoff Mortgages, mortgage advisor, mortgage broker mortgages made easy. Just move out of the wind a little bit. It’s quite windy here in Newlands today.
Look, I just wanted to come online and just give some tips on how to get your offer approved in this market that’s just so hot at the moment. It’s really difficult for buyers at the moment to get their offers accepted.
So I’ve had a couple of clients lately that have won at an auction and someone that’s also won at a tender. And the one thing that they’ve both got in common is that they treated it like an auction. So that makes sense for the person that was bidding at an auction. But what about for the person at the tender? Why did they treat it like an auction?
Well, what they wanted to do, they wanted to put an offer the best they could going unconditional. Now, both of these clients, they don’t have a 20% deposit, so they needed to get a valuation done beforehand.
Now, valuations at the moment are taking a minimum, minimum five working days. So you’ve got to allow a few days for the valuer to do his valuation.
Then you got to get it back to the broker or the bank to do their bit. So it’s taking roughly around five working days minimum and if you’re lucky, you hear back from the bank in time.
So it just shows you that these people needed to get a valuation done and they got it done within the timeframes. So fortunately for them, the valuation came up as high as it did.
So that’s a risk, plus you’ve got to pay those valuation costs. Plus you’ve got to pay your builder, your lawyer to go through everything. You’ve got to give time for your mortgage broker to get everything to the bank. So basically at the moment, clients are buying properties just like they would if they were at an auction, regardless if it’s been sold by tender, by deadline, everything is being treated like an auction, which makes it really difficult for people with conditions.
Now you would have seen in some of my other videos and I did one with Renee a few weeks back, that offers can still get accepted with conditions because there are some buyers that have to have conditions for whatever reason.
But vendors know that and they know the banks are taking a while and they do sometimes want to sell to first home buyers, not investors. So they do ask, is there any information on the buyers? And some buyers write a nice little biography or a nice little letter, so the vendors can read it. And hopefully that boosts their chances.
Now, if you want to buy a house in this market, you have to think of a bell curve. You have to be the outlier at that bell curve on the far right-hand side, because people are selling their only asset. So they want to get as much money as they can. So you’ve got to have your best offer in terms of price and in terms of as little or no conditions as possible.
So it is tough out there guys, but just like everything, this peak will plateau. It won’t drop, because house prices don’t drop in New Zealand. We just have a big love affair, as a plane flies over.
Gee, it’s nice to see more and more planes flying. And on that note, as the economy improves, there’ll be more and more people wanting to get pre-approval to buy a house and hi to everyone watching, by the way.
Do me a favor. If you’re liking these videos, if you’re liking the content, please do me that favor, press that like button press that share button, because the more confidence and certainty we can put out there in these uncertain times, the best that is for everyone.
So there you are guys, like I said, as the economy improves, more people will be looking to buy. When there’s more buyers, it is more competition and we’re just struggling over lack of stock of housing in New Zealand. It’s been low since 2004. So nothing’s going to change overnight to bring more stock level into the country.
We just can’t build the houses fast enough and there’s 16 years of backlog to catch up on. And there’s more and more New Zealanders arriving back into the country every week. So the pressure on the housing market and rental market is growing.
So look, if you want a hand, if you want to know more, reach out, give me a call. All my details are here, my social media pages, profile. If you know of anyone that could benefit from a chat, feel free to tag them in the comments below and I’ll be more than happy to reach out to them or just get them to call me.
But really you’ve got to put in your best offer and try and do all your conditions beforehand. If you need a valuation, get the valuation done. Get the builder’s report done. Get insurance done. Get your lawyer to check the title and then make sure that your broker is working in time with the bank, that they are happy with everything, so you can put in your offer without a finance condition.
Look, I don’t think the country’s ready for wealth taxes and things like that. Not during these times and especially on assets over a million dollars. Wellington’s going to be a million dollar city soon. Auckland already is.
There’ll be other parts of New Zealand. And it’s scary because if you want a deposit on a million dollar home to get these special interest rates that are being advertised by the banks on TV, you need to have a $200,000 deposit 20%. And then you’ve got to have enough income to service that $800,000 and the banks are still making things difficult. They are still scrutinizing everything.
So anyway, guys, that’s enough for me. It’s a bit of a rant, but hopefully these tips can help you get your offer approved in these difficult conditions. Right guys, signing off, have a great evening and may God keep blessing our beautiful country. Cheers guys.